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Landlords should say NO to the proposed landlord licence

By Chris Horne

The latest government proposals mean that Instead of landlords being treated as decent honest people they will only be judged 'fit' to be able to let their own property to willing tenants if they first obtain a licence and are granted a licence number by the government.

The landlord licence was put forward in a Green Paper launched appropriately enough on the 13th May by Margaret Beckett the Housing Minister.

Property Hawk the website I write for has responded to the anger felt by many landlords at the prospect of having to get a licence to let their own property by petitioning the Prime Minister to abandon the idea.

We think it is wrong and here are the reasons why.  See if you agree.

Property Hawk says ‘NO'
Property Hawk says ‘NO' to the landlord licence. We think it is unacceptable, in any shape or form. Here are six reasons why it is simply WRONG!

1. Letting property is a right.  Fundamentally I, as a landlord and law abiding citizen should be able to let my property to a willing tenant as a right.  I shouldn't need to go cap in hand like a cowed child to some trumped up bureaucrat to get permission.

2. A landlord licence is no measure of competency. The concept of having a licence should not be confused with a measurement of competence or quality.  It is a licence.  This is neither useful to a landlord or to a tenant.  Really bad landlords will simply evade the licence or let their property even if they are banned which negates the whole purpose of having it.

3. It duplicates control.  The proponents of the licence have suggested it is a way of weeding out the really bad landlords by ensuring that only competent landlords will be kept on the register.  They suggest that two areas where landlords could be struck off the list are where they ‘bodge' repairs or intimidate their tenants.  Again WRONG.  For a start most landlords who have property will use professional contractors to do work.  Will this mean where a plumber fails to fix a leaking toilet correctly that the landlord has to pay the price of no longer renting their property? If a tenant is unhappy that the landlord has not keeping the property in good repair they can already legally withhold their rent.  Intimidation of tenants has been used as another justification.  Landlords have been subject to strict legal control on intimidating tenants since the introduction of the 1977 law against tenant harassment.  
Why force landlords to have a worthless and costly piece of paper to duplicate control in a less effective manner?

4. It will restrict supply of rental accommodation.  Any restriction on ability of a property owner being able to let their property will inevitably serve to restrict the supply of rental property as some potential landlords will be put off from doing it, and some will move out of the rental market.  This is happening at a time when with increasing tenant unemployment, falling housing completion rates and struggling housing associations and the most difficult mortgage market in a generation means that the demand for affordable rental housing is stronger than ever.

5. Its' a back door way of collecting more tax.  A landlord licence would simply be a tax on letting and renting resulting in either a landlord receiving less net rent by incurring the charge or the landlord passes the charge on to the tenant in the form of a higher rent. The fact that each landlord would have an individual licence number would make it easier for the Inland Revenue to cross check their records to see if the landlord is paying sufficient tax.  In other words it would be a back door way of snooping on a landlord's accounts.

6. A landlord licence is costly and a waste of money.  Does any landlord who does their property management on a tight budget such as Property Sparrow think that any new landlord licensing authority will be as careful with their pennies?  The fact is the authority will employ a chief executive on a six figure sum and none contributory pension.  It will need a grand London office, PR staff, human resource department, bodies to monitor process data, finance managers, middle managers.  The list goes on.  Whilst landlords struggle to make ends meat a whole needless worthless band of bureaucrats will be dining out on our money!

Landlords - say ‘NO' to a landlord licence

This government is devoid of direction and sense.  To cap it all they are determined to leave landlords with yet another piece of useless legislation. Priceless! Unfortunately it's not, it will cost at least £50 and that will just be the start.  Just as previous Labour administrations almost killed the private sector with regulation and rent control.

‘New' Labour in their dying breath is finally showing their true colours.  They believe that the state always knows best!

My message to landlords who believe in the principle that they should be able to rent out their property to a willing tenant as a right and not as some earned privilege should support Property Hawks petition on the No.10 website.

Go to the landlord-licence petition and sign.

Landlords should say ‘NO' - to the landlord licence today before it's too late.

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