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  • Buy-to-Let

    Landlord facing £50K additional license costs



    I had a very worried Landlord call me over the weekend about the New Additional Licence in Newcastle due by April 2020

    He owns 18 BTL properties in the New Licence area

    I have a little knowledge about selective Licence in Newcastle and it looks as if they are going to use the same criteria for the new Licence

    https://www.newcastle.gov.uk/sites/defau...y_2016.pdf

    I showed the Landlord my own Licenced property and we worked out that the cost for the Landlord to comply with the new regulations will be around £3000 per property including the licence fee of £730

    His costs will be around £50,000

    I think we should all be mindful of this Topic.

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    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.

    Can you give us an idea on what improvements the landlord in question will need to do to their property that will cost approx £3k?

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    If you have a look at the attached PDF it will give you some idea of whats required

    Newcastle are quite hard to deal with and they start asking for really silly stuff which is plain daft and unreasonable at times

    I knew one landlord who made an open plan living room and kitchen which is common in a lot of new builds and they asked the wall to be reinstated 

    Ground floor bedroom windows changed to fire escapes was another

    So costs can mount quickly the main cost is hard wired smoke detectors and heat sensors and fire doors

    I have even seen them argue over new builds with current building regs

    Building inspector says its fine, Environmental health say its not - who is right, who is wrong?

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    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.

    With respect to escape windows the condition only applies to “inner rooms” at least as i read it. I’d argue against the fire blanket provision in that unless trained to use one it puts the user at risk and that the tenant should be intructed only to vacate the premises asap ensuring anyone else is with them. There is no counter argument as its the safest option.
    Quite comical that the landlord is expected to provide replacement lightbulbs.
    The exterior condition of buildings is one that my council take no interest in enforcing, i have a long list of additional conditions as a result of having a buildings licence.
    Is there not a case that many of these conditions exceed those required outside of selective licence areas and as such are seeking to raise standards above the norm , where as selective licensing is meant to bring properties upto standard.
    If this becomes a national standard for all landlords in the long term, social providers will be in tears and i’ll be importing light bulbs , going to be a growth business.
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    Building inspector says its fine, Environmental health say its not - who is right, who is wrong?

    For most of the things you have listed the Fire Brigade are right. Without more details on the properties I can't say if the council are being daft and unreasonable.

    I knew one landlord who made an open plan living room and kitchen which is common in a lot of new builds and they asked the wall to be reinstated 

    Did the fire escape route pass through this room? There needs to be separation between at risk rooms (e.g. kitchen and potentially communal living rooms).

    Ground floor bedroom windows changed to fire escapes was another

    Was it an inner room? Was the escape route complex? My father had to install a escape window because the exit from the room was obstructed when the front door was open.

    So costs can mount quickly the main cost is hard wired smoke detectors and...

    Required by the fire brigade.

    ...heat sensors and fire doors

    Possibly required by the fire brigade, depending on number of floors, occupiers etc

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    "Ground floor bedroom windows changed to fire escapes was another

    Was it an inner room? Was the escape route complex? My father had to install a escape window because the exit from the room was obstructed when the front door was open.

    So costs can mount quickly the main cost is hard wired smoke detectors and...

    Required by the fire brigade.

    ...heat sensors and fire doors

    Possibly required by the fire brigade, depending on number of floors, occupiers etc"

    I knew this would come in at some point so had these features installed during refurbs.

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    Yes, portfolio landlords will really suffer if blanket licensing is brought into their area.

    Maybe this is one reason why you shouldn't invest on one "patch" close to home?!?!

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    Don't forget the Council wanted every property in Newcastle licenced

    that would have been around 18000

    it would be hard to avoid this situation if they had got their way

    It was through the work of the RLA it did not happen

    The problem is all councils will now have this at the back of their minds ...

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    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.

    I think if you inform the Local Authority that a landlord with 18 properties, is having to spend £3k per property to bring it up to standard. Their response would be that the licencing is working?

    Unless we are talking about improvements that are unnecessary and over the top. I think the general public would not be disposed of the landlord selling one of the 18 properties fund bringing the existing stock up to standard.

    Not that i'm a fan of Selective Licensing areas. Some of the T&C in these schemes are crazy. The one you linked too, for example, seems to suggest the landlord is the backstop and be responsible for disposal of a Tenants bulky items such as furniture as a condition of the licence.

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    _________________________________________________________________________


    My posts are not financial advice, just a rambling guy passing time on a coffee break.
    The team at Bespoke Finance offers advice, including Limited Company Buy-to-Let , HMO Conversion and Cheap Life Insurance.

    _________________________________________________________________________

    Agree - personally have no issues with operating a licensing scheme providing the costs are in line with what is required to administer such a system - when you have licenses that cost over 1K per property then it certainly seems like its another easy revenue stream for the councils to exploit.....

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    We suspect its all about money making

    If they had introduced the Licence for the whole of Newcastle it would have netted over 25 Million in fees

    They say in there report that only 5% of the PRS stock in Newcastle causes a problem and they wanted 25 Million to sort it

    No - Its driven by revenue to help a strap cashed council funds.

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    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.