Rental Property Licensing in Merton

Landlords operating in the London Borough of Merton must be aware of the active property licensing schemes in place. Merton Council has implemented both Selective Licensing and Additional Licensing schemes, which apply to certain privately rented properties within specific areas of the borough. These schemes aim to improve housing standards, ensure good management practices, and protect tenants. Understanding which scheme applies to your property is crucial for compliance and avoiding significant penalties.

What is Selective Licensing?

Selective Licensing schemes are introduced by local authorities to address issues such as anti-social behaviour, poor property conditions, and high levels of deprivation in specific areas. Under Selective Licensing, all privately rented properties, regardless of the number of occupants, must be licensed if they fall within a designated area. The primary goal is to ensure that landlords meet certain management standards and that properties are safe and well-maintained. This helps to uplift neighbourhoods and provide better living conditions for residents.

What is Additional Licensing?

Additional Licensing schemes apply to Houses in Multiple Occupation (HMOs) that are not covered by mandatory HMO licensing. While mandatory HMO licensing typically applies to properties with five or more occupants forming two or more households, Additional Licensing allows councils to extend licensing requirements to smaller HMOs, often those occupied by three or four tenants forming two or more households. This provides local authorities with greater control over the management and condition of these properties, ensuring they meet safety and welfare standards for their occupants.

Which properties need a licence in Merton?

Merton Council operates both Selective and Additional Licensing schemes, both of which are partial, meaning they apply only to specific geographical areas within the borough.

For Selective Licensing, if your privately rented property, regardless of its size or the number of occupants, is located within one of the designated Selective Licensing areas, it will require a licence. These areas are typically identified based on specific local housing issues that the council aims to address through improved management and property standards.

For Additional Licensing, if your property is a House in Multiple Occupation (HMO) that is not subject to mandatory HMO licensing, but is located within a designated Additional Licensing area, it will require a licence. This typically includes smaller HMOs, such as those occupied by three or four tenants forming two or more households. It is important to note that the specific boundaries for both schemes are defined by Merton Council.

Landlords should verify if their property falls within these designated areas to ensure compliance. The schemes are designed to ensure that all licensed properties meet specific safety, amenity, and management standards, contributing to a better living environment for tenants and a more responsible private rented sector.

How to check if your property needs a licence

Determining whether your property requires a licence can sometimes be complex due to varying scheme boundaries and property types. The most straightforward way to check is by using a dedicated property licensing tool. Websites like tuxa.co.uk allow landlords to search by address to quickly ascertain if a property is located within a licensing scheme area and what type of licence, if any, is required. This service provides clarity and helps landlords understand their obligations without having to navigate complex council documents.

Penalties for non-compliance

Failure to obtain a required property licence in Merton can lead to severe penalties. Landlords found operating an unlicensed property may face a civil penalty of up to £30,000. In more serious cases, or if the council decides to prosecute, an unlimited fine may be imposed by a magistrates' court. Additionally, landlords could be subject to Rent Repayment Orders, where tenants can reclaim up to 12 months' rent. Non-compliance can also impact a landlord's ability to regain possession of their property, as Section 21 notices cannot be served on tenants of unlicensed properties.

Apply for a licence

To apply for a property licence under either the Selective or Additional Licensing schemes in Merton, landlords should contact Merton Council directly. The council's official website will provide detailed guidance on the application process, required documentation, and any associated fees. It is advisable to begin the application process well in advance of any scheme deadlines to ensure your property is compliant.