A licensing scheme for residential properties is already operating in parts of Merseyside and, on September 1, it will come into force in areas of Bootle – and some are not happy. Tony McDonough reports

A Merseyside lawyer claims residential landlords are considering evicting tenants rather than pay a licence fee.

The licensing scheme for residential properties is already operating in parts of Merseyside and, on September 1, it will come into force in areas of Bootle. It has been introduced to ensure certain standards are maintained in privately rented property and to prevent rogue landlords from taking advantage of vulnerable tenants.

From next month landlords in Bootle will have to pay £695 for a licence and failure to comply could see them hit with penalties worth thousands of pounds.

Councils say these “selective licensing schemes” are a key weapon in the battle to improve standards in the private rented sector, weed out landlords putting tenants at risk, and to deal with crime and antisocial behaviour.

However, Danielle Hughes, a solicitor at law firm Kirwans, said some landlords are considering making a stand against the fee and are planning to evict tenants and leave properties empty instead.

Ms Hughes said: “There are landlords, particularly those whose tenants are in rent arrears, who have objected to paying the hundreds of pounds required to apply for a licence and are considering cutting their losses and instead asking tenants to leave.

“For those struggling to find the fee, the obvious answer may be to withdraw their property from the rental market and so avoid payment.

“However, after factoring into the calculations a rise in council tax, costs of seeking possession via court and the associated costs of leaving a property vacant in terms of potential vandalism and deterioration, it may not actually make financial sense to do so.

“The licence, once secured, will last until February 28, 2023, and there are discounts available for multiple properties and for those landlords that belong to accreditation schemes, so it is important to weigh up all factors before making a decision to serve notice on a tenant.”

Under section 80 of the Housing Act 2004, a local housing authority can designate part or all of an area as subject to Selective Licensing. The licensing then applies to privately rented property in the area.

The scheme has been active in Liverpool city centre since April 1, 2015 and in areas of the Wirral from July 1, 2015. Landlords in those areas have, however, questioned whether the licensing scheme has done anything to improve the private rental market. 

Danielle said: “Whether or not landlords agree with the scheme, it is mandatory and is here to stay for the next five years.

“Once those landlords affected apply for a licence, the council will carry out checks into whether they are ‘fit and proper’ to be a landlord, as well as setting out requirements around the management of the property.” 

The streets that fall under the new scheme in Bootle can be found by clicking here.