Hello readers,
Following my recent article about selective and additional licensing for Medway landlords, the application portal is now live, although you can’t submit an application until 4 January and I wanted to give you all the information you need so you can prepare your paperwork in advance of registering in January.
One thing that’s slightly crazy is how Medway Council seems to expect properties to be licenced 4th January before they can be legally let, but applications do not open until this date, and there is no stated grace period. It will be interesting to see if the portal can handle the surge in demand on January 4th when the portal opens!
Whilst Medway may comment that properties need to be licenced from 4th January, under the Housing Act a landlord isn’t committing the offence of renting without a licence while a complete application is waiting for a decision. The crazy thing here is that if you submitted your application on, say, January 20th, you could be open to legal issues for the period 4th to 19th January, whilst the property was not licenced!
You can access the licence application portal here and something that might be worth considering is the landlord accreditation training, which is £199 to cover you for five years and can be done face to face or online. Accredited landlords save £84 on a selective licence and £160 on an additional HMO licence.
The maps below visually show each area and if you are not sure which ward your property is in, you can find a handy postcode checker here.
In advance of the application, here’s a list of the documents I expect you will need to provide. Medway hasn’t confirmed exactly what it will ask for, but most councils want similar documents, so it’s worth pulling it together over the next two months:
- Gas safety certificate
- Electrical installation condition report (EICR)
- Energy performance certificate (EPC)
- Evidence of working smoke and carbon monoxide alarms
- A copy of your tenancy agreement
- Deposit protection certificate
- Details of any mortgage lender, freeholder or managing agent (you usually have to tell them you’ve applied)
- Your accreditation certificate, if you’re claiming the discount
For HMOs, also expect to need:
- A floor plan with room sizes
- Fire alarm and emergency lighting test certificates
- A fire risk assessment
As a managing agent the Home Share team will be assisting landlords with this and now the portal is live, we will be communicating with each landlord how this will work.
Got questions? Here are a few common ones that I find landlords ask and may be helpful!
How do I pay?
The fee is paid in two parts. For a selective licence you pay £436 when you apply and £404 once it’s approved. For an additional HMO licence it’s £830 upfront and £770 on approval.
The first payment isn’t refunded if your application is refused or withdrawn, so make sure everything is in order before you submit.
Are there any discounts?
Yes. Accredited landlords get 10% off, which is £84 on a selective licence and £160 on an additional HMO licence.
There’s also a discount if you’re licensing several properties under one freehold, and a 25% discount for registered charities housing vulnerable tenants. You can only claim one discount. You’ll lose it if the council has to chase you twice for missing documents.
How long does a licence last?
Most licences will last until 3 January 2032, when the scheme ends. If the council finds problems with the property or how it’s managed, it can issue a shorter licence of one or two years, with conditions you must meet by set deadlines.
Will my property be inspected?
The fee covers property inspections, however I very much doubt that the council will be able to inspect all properties!
What happens if I sell my property?
Licences can’t be transferred. If you sell a licensed property with tenants in place, the buyer will need to apply for a new licence and pay the full fee again.
What if I don’t get a licence?
The council has said it will take action where licensing rules aren’t followed, and its own report mentions financial penalties of up to £30,000. Tenants can also apply for a rent repayment order to claim back rent paid while the property was unlicensed.
Will the fee be reduced if I apply later in the scheme?
Medway’s published fee schedule doesn’t offer any pro-rata reduction, and licences are granted to run until the scheme ends on 3 January 2032. That means a later application is likely to cost the same for a shorter licence. Fees may also be reviewed each year, so check the current fee with the council before you apply.
There’s a lot here for landlords to think about and if you have any questions, I’d be more than happy to help. The best way to get in touch is by emailing hasan@home-share.co.uk.
Hasan