Navigating the Rising Risks of Overlapping Licensing Conditions from Local Councils

Understanding the Issue: What is ‘Double-Dipping’ in Licensing Schemes?

Recent reports from Landlord Today highlight a concerning trend among UK local councils: the inclusion of multiple, overlapping, and sometimes duplicative conditions within landlord licensing schemes. These conditions often reiterate existing national legal requirements—such as those relating to HMO management, electrical and fire safety, gas safety, EPC (Energy Performance Certificate) obligations, tenancy deposits, and pest control regulations.

This practice, colloquially referred to as ‘double-dipping,’ effectively creates additional licensing offences for breaches already penalised under primary legislation. As a result, landlords face the risk of multiple penalties for a single compliance failure—exponentially amplifying their exposure to fines.

Why This Matters to Landlords

Licensing conditions are legally binding. Breaching any licence condition can lead to strict liability criminal offences, with councils empowered to issue unlimited fines or impose civil penalties up to £30,000 per breach. When conditions overlap with national laws, landlords risk being penalised twice for the same issue.

For example, a landlord who fails to maintain an electrical safety certificate may be in breach of the Electrical Safety Standards in the Private Rented Sector (England) Regulations 2020 and simultaneously contravening a local licence condition mandating the same. This duplication increases financial risk and complicates compliance management.

The consequences are particularly acute for landlords managing multiple properties or HMOs, where the cumulative effect of overlapping conditions could mean significant aggregate penalties. Accidental landlords or those with smaller portfolios, who may lack dedicated compliance teams, are equally vulnerable given the complexity and volume of regulations.

Practical Implications Across Your Landlord Operations

Compliance Workflows

Ensure your compliance checks and record-keeping address both national legislation and all specific licensing conditions attached to each property. This doubles the need for thorough documentation and vigilance.

Financial Planning

Factor in potential increased enforcement risk and the possibility of compounded fines. Budget for legal advice or consultancy support to navigate complex or contentious licensing terms.

Tenant Relations

Ambiguities in compliance requirements can lead to misunderstandings or disputes with tenants, especially around safety inspections or remedial works required under overlapping regulations.

Strategic Risk Management

Landlords should adopt a proactive stance, reviewing all licence agreements on renewal or application to identify overly onerous or duplicated conditions that could be challenged.

Action Steps for Landlords: Mitigating Risk and Managing Compliance

1. Review Your Current Licence Agreements Thoroughly
   • Scrutinise each condition to spot duplication with national laws.
   • Note any terms that seem unusually demanding or unclear.
2. Seek Legal or Specialist Advice
   • Engage qualified legal professionals or landlord defence groups experienced in local licensing disputes.
   • Explore potential challenges against unfair or duplicative conditions.
3. Engage Constructively with Local Authorities
   • Request clarification on specific licence conditions.
   • Advocate for clauses that limit enforcement strictly to primary legislation to avoid ‘double-dipping.’
4. Document Compliance Meticulously
   • Keep detailed, dated records of safety certificates, inspections, communications and remedial actions.
   • This evidence is vital if enforcement action arises.
5. Stay Informed About Local Licensing Changes
   • Monitor council websites and landlord forums regularly.
   • Attend local landlord meetings or forums when possible.

Tailoring Your Approach by Landlord Profile

• Single-Unit Landlords: Pay close attention to licence conditions applicable to your property, as even a single breach could incur disproportionate fines.
• HMO Operators: Given the complex regulations around HMOs, overlapping conditions increase compliance workload; consider specialist HMO compliance audits.
• Portfolio Landlords: Systemise licence and compliance management across properties to efficiently identify and resolve duplications.
• Accidental Landlords: Seek support early; unfamiliarity with licensing complexities increases risk.

How Rentals & Sales Can Support You

At Rentals & Sales, we understand the evolving compliance landscape and heightened risks landlords face. We offer tailored services including:

• Comprehensive portfolio reviews focusing on licensing and compliance risks.
• Detailed compliance audits to identify areas vulnerable to overlapping conditions.
• Strategic advice on licence negotiations and engagement with local authorities.
• Pricing strategy insights to factor compliance costs into rental returns.

Our pragmatic, hands-on support helps you mitigate risk, avoid costly penalties, and maintain successful tenancies.

Compliance Disclaimer: This article is intended for general guidance only and does not constitute legal advice. Landlords should seek professional advice tailored to their specific circumstances.