Part 3 of the Housing Act 2004 provides that a local Housing Authority may make a licensing scheme for privetely rented accommodation in its area, or any part of it, providing any of the following conditions are met.

Condition 1) An area suffering from low housing demand (or is likely to become such an area) with a significant stock of privately owned houses let on short term arrangements when combined with other measures taken by the LHA, solely, or in conjunction with others, would lead to an improvement in the social or economic conditions of the area.

Condition 2) An area experiencing a significant and persistent amount of problems caused by Anti Social Behaviour.

Most private landlords will be required to obtain a license (either for themselves or for their managing agents) in order to let or manage residential property in an area where a licensing scheme exists.

Tenancies with a Registered Social Landlord or Local Authority will be exempt. Holiday lets will also be exempt.

A license fee is payable. Controlling or managing a house which ought to be licensed, but is not, without a reasonable excuse for doing so will be a criminal offence, subject to a maximum fine of £20,000.

Where a property is required to be licensed , but is not, and no application for a licence or exemption from licensing has been made to the LHA, the landlord may not use the procedure in section 21 of the Housing Act 1988 to recover possession at the end of an Assured Shorthold Tenancy.

A Part 3 license may include conditions relating to:

1) The management of the house, including taking such steps reasonable to deal with anti social behaviour of the occupants and people visiting it;

2) The use and occupation of the house.

A Part 3 license must include conditions requiring the license holder to:

1) Present to the LHA, a gas safety certificate annually, if gas is supplied to the house;

2) Present to the LHA, a periodic electrical inspection report for the whole of the electrical installation in accordance with current IEE wiring regulations;

3) Keep smoke alarms in proper working order;

4) Supply the occupier with a written statement of the terms of occupation;

5) Demand references from persons wishing to occupy the house.

The license holder or manager, who commits an offence if he/she is in breach or fails to comply with a condition of the license may be fined up to a maximum of £5,000 for each offence. Prosecution of the offences is without prejudice to the LHA's power to revoke the license.

Further information on Selective Licensing Scheme is available from your LHA or simply contact Northwest Landlord Association.