The Rent Deposit/Bond Scheme is designed to assist people who are threatened with homelessness within the terms of the homelessness legislation, eligible for assistance and in priority need.

The scheme is designed to help applicants who are financially unable to secure accommodation in the private sector. The Council can provide a bond guarantee for the duration of the tenancy. In exceptional circumstances a cash deposit can be paid to the landlord.

For more information please click on the link below.

A: What is Selective Licensing? [sta_anchor id=”A: What is Selective Licensing”]

A compulsory licensing scheme applying to all private landlords within a specific area. It is very similar to the licensing scheme that landlords of qualifying Houses in Multiple Occupation have to legally comply with. Essentially the landlord has to prove that they are ‘fit and proper’ to continue letting their property.

A: What does being ‘Fit and proper’ mean? [sta_anchor id=”What does being ‘Fit and proper’ mean”]

Basically it is about having no serious record of poor management or an outstanding criminal charge that is inconsistent with operating as a landlord. It helps confirm that the landlord is both reputable and capable of following good tenancy practices.

A: What does ‘Selective’ mean in relation to Selective Licensing? [sta_anchor id=”What does ‘Selective’ mean in relation to Selective Licensing”]

Selective refers to the fact that it applies only to a specific targeted area of the Borough

A: Why introduce Selective Licensing? [sta_anchor id=”Why introduce Selective Licensing”]

We recognise that there are many good landlords, however there are so many problems associated with poor quality rented housing, anti social behaviour, and irresponsible and unscrupulous landlords can have a detrimental effect on a neighbourhood and community. As the area becomes less attractive, properties are left empty, leading to further decline. Through Selective Licensing we aim to encourage the best possible standards of property management and maintenance amongst private landlords, letting agents and managers of property.

A: How are these areas Chosen?[sta_anchor id=”How are these areas Chosen”]

The Council must be able to prove that one of two criteria are met, the area must be or likely to become either:

an area of low housing demand and/or
an area which is experiencing a significant and persistent problem caused by anti-social behaviour

Hyndburn has chosen to consider the criteria of low housing demand for the purposes of Selective Licensing.

A:Why has the area been chosen”?[sta_anchor id=”Why has the area been chosen”]

The Borough of Hyndburn has been categorised by Government as an area of low housing demand. Statistics combined with local knowledge show that the area demonstrates the worst symptoms of low housing demand within the Borough.

A: Does Selective Licensing weed out bad landlords?[sta_anchor id=”Does Selective Licensing weed out bad landlords”]

Yes. If someone cannot meet the ‘fit and proper’ landlord criteria they really should not be a landlord. We believe that the majority of landlords conduct their business in a satisfactory manner and, in many cases provide vitally important housing options for many. For those who do not Selective License will provide a set standard they must meet to continue as a landlord.

A: What if a Landlord fails the ‘fit and proper’ test?[sta_anchor id=”What if a Landlord fails the ‘fit and proper’ test”]

Such a landlord will not be able to obtain a licence. Bad landlords who cannot be considered to be ‘fit and proper’ and able to hold a licence will be forced to take positive action to enable them to continue renting their properties – such as employing a managing agent to deal with the day to day management of the rented property. The managing agent would have to obtain the licence for the property.

A: Is Selective Licensing a penalty against good landlords?[sta_anchor id=”Is Selective Licensing a penalty against good landlords”]

Certainly not. Licensing is all about encouraging best practice, setting standards and supporting the status of good landlords by removing those people who could potentially tarnish the reputation of all landlords. Landlords should ultimately benefit from all the regeneration activity in the area as it overcomes all the physical, community and environmental problems, setting the framework for a prosperous, pleasant and suitable living environment.

A: Are private landlords deliberately targeted by licensing?[sta_anchor id=”Are private landlords deliberately targeted by licensing”]

In one sense yes, as they are the only ones that licensing applies to. However the Council wants to work more in partnership with landlords to help them to provide a better service and contribute more fully to the regeneration process, as well as improve the image of the private rented sector.

A: Do all properties need a licence?[sta_anchor id=”Do all properties need a licence”]

All private rented properties within a designated Selective Licensing area are required to be licensed. The legislation exempts certain categories of property from being licensed, in the main these are Registered Social Landlord Properties, business premises, properties already licensed under other provisions, agricultural tenancies and tenancies granted to relatives. For a full list please refer to The Selective Licensing of Houses (Specific Exemptions)(England) Order 2006 or contact the Private Rented Team on 01254 380125 for clarification.

A: I am not a landlord, I bought the house as my son/daughter where unable to get a mortgage and they just give me the money to pay the mortgage?[sta_anchor id=”I am not a landlord, I bought the house as my son/daughter where unable to get a mortgage and they just give me the money to pay the mortgage”]

As far as the law is concerned you are still a landlord, however Selective Licensing does not apply to you as properties rented to relatives are specifically exempt by the legislation.

A: I have a couple of lodgers who live with me do I need a licence?[sta_anchor id=” I have a couple of lodgers who live with me do I need a licence”]

No, if lodgers live with you and share your accommodation you are specifically exempt from licensing.

A: Who should be the licence holder?[sta_anchor id=”Who should be the licence holder”]

The Housing Act 2004 requires that the Council can only grant a licence to someone who is the most appropriate person to be the licence holder and they must be in control of the property. In general terms this means the person who collects the rent, so in the case of a managing agent being used it would be the managing agent who would need to become the licence holder.

A: How long would a licence last?[sta_anchor id=”How long would a licence last”]

The maximum length of time a licence can be issued for is five years from the date of issue.

A: Are licences transferable?[sta_anchor id=”: Are licences transferable”]

No, a licence is personal to the licence holder and specific to the property. If a property changes hands then a new licence will need to be applied for.

A: Is a licence application required for each property?[sta_anchor id=”Is a licence application required for each property”]

Yes, a licence is only valid for one property.

A: Can the Council refuse to issue a licence?[sta_anchor id=”Can the Council refuse to issue a licence”]

Yes. If the licence applicant or manager is not a ‘fit and proper’ person or other conditions cannot be met and the owner cannot find a suitable alternative person or organisation to act as licence holder.

A: As a landlord or agent, what happens if I don’t get a licence?[sta_anchor id=”As a landlord or agent, what happens if I don’t get a licence”]

If you don’t apply for a licence and continue to rent your property then you are carrying out a criminal offence. Subject to conviction you could be fined up to £20,000 with additional penalties should you not remedy the situation.

A: Are there conditions attached to the licence?[sta_anchor id=”Are there conditions attached to the licence”]

Yes there are a number of conditions attached to licences, some of which are set out in the Act and some of which will be prescribed by the Council. Please see the website www.hyndburnbc.gov.uk/selectivelicensing

A: What happens if licence conditions are breached?[sta_anchor id=”What happens if licence conditions are breached”]

If a licence is issued and the conditions are breached this could lead to a fine of up to £5,000. This could also lead to the revocation of the licence and unless a suitable alternative licence holder could be found, the Council may take over the management of the property by issuing an Interim Management Order (IMO).

A: What is Selective Licensing?[sta_anchor id=”What is Selective Licensing”]

The Housing Act 2004 gives Councils the power to introduce the licensing of private rented homes, within a designated area. Hyndburn Borough Council is considering whether it would be appropriate to introduce a new selective licensing designation for parts of Accrington and Church because the Council believes the proposed area is or is likely to become an area of low housing demand.

One of the aims of Selective Licensing is to improve the management of residential properties to ensure they have a positive impact on the area, including the local housing market.

Hyndburn has an existing selective licensing designation for parts of Accrington and Church that will come to an end after 5 years on 30th November 2017. Evidence indicates that the existing designation, alongside other measures, is starting to stabilise the housing market with some improvements in parts of the area. Selective licensing is not a quick fix and therefore a further designation is being considered as an option in order to help deliver more sustainable improvements in the housing market.

The proposed new designation under consultation is an extended area when compared to the existing designation. It will include additional areas in West Accrington, Church, Spring Hill, Peel and Accrington town centre. This equates to approximately 1000 additional residential properties. See map.

A: Why is the Council considering Selective Licensing?[sta_anchor id=”Why is the Council considering Selective Licensing”]

The Council is considering continuing with Selective Licensing as part of a wider strategy to address low housing demand. The Council believes that licensing is an option to tackle problems arising from private rented housing and can contribute to the regeneration of the area when combined with other regeneration initiatives. The Council will be considering other remedies, but would like to assess whether Selective Licensing provides the best chance of improving the management and conditions in the private rented sector.

More detailed information on low housing demand, other courses of action that the Council considered and details of other regeneration activity can be found in the Draft Designation Report on the Council’s website:

www.hyndburnbc.gov.uk/proposedselectivelicensing2017

A: How can I find out if my landlord is licensed should Selective Licensing go ahead?[sta_anchor id=” How can I find out if my landlord is licensed should Selective Licensing go ahead”]

This information would be entered onto a public register which would be accessible via the Council and the Council’s website.

A: What would happen if a landlord does not apply for a licence?[sta_anchor id=”What would happen if a landlord does not apply for a licence”]

It is a criminal offence to rent out a property in an area designated to be a Selective Licensing area without a licence. Failure to apply for a licence could lead to prosecution, with the penalty of an unlimited fine upon conviction in a Magistrates’ Court.

Following a conviction any rent or Housing Benefit that has been paid to the landlord by either the tenant or the Council during the period of the house being rented out without a licence (up to a maximum of 12 months) may also be claimed back through a Rent Repayment Order.

A landlord of an unlicensed property is unable to serve a Section 21 Notice under the Housing Act 1988 in relation to a short hold tenancy of the whole or part of any property which is an ‘unlicensed house’.

A: Do all properties need a licence?[sta_anchor id=”Do all properties need a licence”]

A:Is a licence application required for each property? [sta_anchor id=”Is a licence application required for each property”]

Yes, a licence is only valid for one property.

A: What is a Landlord fails the ‘fit and proper’ person test?[sta_anchor id=”What is a Landlord fails the ‘fit and proper’ person test”]

Such a landlord would not be able to obtain a licence. Landlords who cannot be considered to be ‘fit and proper’ and able to hold a licence would be forced to take positive action to enable them to continue renting their properties – such as employing a managing agent to deal with the day to day management of the rented property. The managing agent would have to obtain the licence for the property.

A: Are licences transferable?[sta_anchor id=”Are licences transferable”]

No, a licence is personal to the licence holder and specific to the property. If a property changes hands then a new licence will need to be applied for.

A: Are there conditions attached to the licence?[sta_anchor id=” Are there conditions attached to the licence”]

Yes there are a number of conditions attached to licences, some of which are set out in the Act and some of which will be prescribed by the Council.

Please see the website

www.hyndburnbc.gov.uk/proposedselectivelicensing2017 for a list of the proposed conditions.

A: What happens if licence conditions are breached?[sta_anchor id=”What happens if licence conditions are breached”]

A licence holder (or person bound by the licence conditions) may commit a criminal offence if they are found to be in breach of licence conditions.

It should be noted that upon conviction in a Magistrates’ Court the maximum fine for a breach of licence condition is now UNLIMITED for each offence (having previously been up to a maximum of £5,000 for each offence). A separate offence is committed by a breach of each individual condition. Where the breach is serious the Council may, in addition to, or instead of, instigating a prosecution, revoke the licence in certain circumstances and then make a Management Order taking over the management of the property.

A: Are licences transferable?[sta_anchor id=”Are licences transferable”]

No, a licence is personal to the licence holder and specific to the property. If a property changes hands then a new licence will need to be applied for.

A: Are there conditions attached to the licence?[sta_anchor id=”Are there conditions attached to the licence”]

Yes, there are a number of conditions attached to licences, some of which are set out in the Act and some of which will be prescribed by the Council. Please see the website www.hyndburnbc.gov.uk/proposedselectivelicensing2017 for a list of the proposed conditions.