Southwark Council’s Selective Licensing Enforcement: What London Landlords Need to Know
Southwark Council's decision not to enforce selective licensing rules against Chancellor Rachel Reeves after she let an unlicensed property highlights important nuances in local enforcement policies. This article explains the implications for landlords letting in licensable areas, outlines practical compliance steps, and advises on managing risks associated with unlicensed lettings.
Background: Selective Licensing in Southwark and the Enforcement Controversy
Southwark Council, under Labour leadership, recently declined to take enforcement action against Chancellor Rachel Reeves, who let a property in summer 2024 without the required selective licence. The council cited its policy of allowing landlords a 21-day window to apply for a licence after letting. This case has sparked debate, with activist groups and political figures criticising the decision, particularly regarding the potential for Rent Repayment Orders (RROs) for tenants during the unlicensed period.
Why This Matters to Landlords
Selective licensing schemes require landlords in designated areas to obtain a licence before letting a property. The aim is to improve housing standards and tenant safety. Non-compliance can lead to enforcement notices, fines, and tenants applying for RROs to reclaim rent paid during unlicensed periods.
Southwark’s approach introduces a degree of enforcement discretion by allowing a 21-day grace period for licence applications after letting. However, this is not a universal policy and varies by council, making it crucial for landlords to understand local rules.
Practical Implications Across Landlord Profiles
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Single-Unit Landlords: Even if you let a single property in a licensable area, failure to obtain a licence before letting risks enforcement action and rent repayment claims. The 21-day policy may provide some leeway in Southwark but should not be relied upon as standard practice.
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HMO and Portfolio Landlords: Larger portfolios increase complexity. Each property must be licensed if in a licensable zone. Missing licences on multiple properties can amplify financial and legal risks.
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Accidental Landlords: Those who inherit or temporarily rent out properties without prior licensing knowledge face similar risks. Early engagement with council licensing teams is essential.
What Landlords Should Do Now
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Check Local Licensing Requirements: Confirm if your property falls under selective licensing. Southwark Council’s website and local authority offices provide up-to-date maps and criteria.
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Apply for Licences Before Letting: To avoid enforcement and rent repayment risks, secure licences before tenants move in. If you've let without one, apply within any grace period your council offers.
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Maintain Clear Records: Keep copies of licence applications and approvals to evidence compliance.
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Review Letting Agent Practices: If using agents, ensure they verify licensing as part of their due diligence. Non-compliance can reflect poorly on landlords.
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Prepare for Tenant Queries: Tenants may seek RROs if lettings were unlicensed. Have transparent communication and records ready.
How Enforcement Policies Vary
Southwark’s 21-day policy is not standard across London or the UK. Some councils enforce immediately, while others may have different grace periods or none at all. Landlords must not assume leniency and should regularly monitor local council websites or contact their housing departments.
Next Steps: Scheduling Your Compliance Review
- Immediate Task: Conduct an audit of your properties in licensable areas.
- Within Two Weeks: Apply for any outstanding licences.
- Within One Month: Arrange a discussion with your letting agent or property manager about compliance verification processes.
- Ongoing: Monitor council announcements for changes in licensing schemes or enforcement policies.
How Rentals & Sales Can Support You
We offer comprehensive portfolio reviews that include licensing compliance checks tailored to your properties’ locations. Our compliance audits identify risks before enforcement actions arise. Additionally, our pricing strategy advice factors in licensing costs to maintain your rental yields.
Contact us for a tailored compliance consultation to safeguard your investments and tenant relationships.
Compliance Disclaimer: This article is for informational purposes and does not constitute legal advice. Landlords should consult local authorities or qualified legal professionals regarding specific licensing and enforcement matters.