Section 80 of the Housing Act 2004 gives local authorities the power to designate parts of its area to ‘selective licensing’. 

This is a scheme which requires all private landlords with properties in the designated areas to licence all privately rented properties within that area for a maximum period of five years. 

These licences are accompanied by a set of conditions which need to be complied with for the duration of the scheme. It is the responsibility of the landlord to apply for the licence. 

The local authority must then issue the licence once it is satisfied with certain conditions, this includes that the management of the property is satisfactory, and the persons involved in the management are competent. 

Failure to licence a property within a designated area is a criminal offence which means the landlord may be prosecuted and receive an unlimited fine or a Civil Penalty Notice, with fines of up to £30,000.

This legislation can be used specifically to crack down on rogue landlords and tackle anti-social behaviour in certain areas. This allows local authorities to monitor and improve management standards in the private sector. 

Last month, Merton Council seized 18 properties from a private landlord after complaints from tenants were ignored. After the council intervened, inspections revealed a number of issues with outstanding repairs to numerous properties. Despite the council issuing warnings to the landlord, the issues continued to remain unresolved. 

It is unlikely that the properties could be licensed in the current conditions and as such Merton Council made an Interim Management Order to take control of the properties.  

They will now use the rent to pay for much-needed repairs and improve the management of the property. The landlord is still to be responsible for the mortgage whilst the Management Order is in place. 

Landlords must take issues reported by their tenants seriously as there can be significant consequences if they don’t, including criminal convictions.  

This is one of the first times a local authority has exercised its powers. This sends a clear message that these private properties need to be licensed by the landlords, and landlords need to ensure that the management of these properties allows for them to be licensed.

This should be a wake-up call to landlords as local authorities are getting serious about tackling rogue landlords and are ready to take action against them.