21st
Aug 2015
Croydon Council’s controversial plan to implement a borough-wide licensing scheme for the private renting sector that will cost landlords hundreds of pounds for each of their properties, has been given the thumbs up despite the landlords’ legal challenge against it, by the High Court.
The Croydon Property Forum that led the challenge, on behalf of a group of landlords, had forced Croydon council to face a judicial review when they originally brought the case against the authority.
At the court hearing on August 4th, the Forum said that the council had approved the scheme without taking the necessary steps and procedures for “reasonable steps” throughout the consultation process.
The Judge Sir Stephen Silber QC has just ruled that Croydon Property Forum’s request for a judicial review, to be turned down.
Croydon Council planned to introduce its licensing scheme prior to the previous governments’ new legislation came into being on was April 1st 2015, which meant that councils had to request permission to be allowed to introduce larger schemes for more than 20% of private housing within their authority.
It was ruled that because the council had approved the scheme on March 1st then it did not come under the new legislation. Any landlord who rents out properties within Croydon’s boundaries will have to apply for a licence for each of their properties. Failure to do so could mean fines of up to £20, 000, and if any landlord who does not adhere to the licence’s conditions could be prosecuted and receive fines of up to £5,000.
The licences have been available since 1st July at a discounted price of £350 per property, but from 1st October when the scheme is introduced, the cost will increase to £750.
Croydon Council once again states that their intentions are to weed out ‘rogue landlords’ from the 30,000 or so privately rented properties within the borough. They also state that the scheme will improve housing standards as landlords will no longer be able to undercut each other on price and therefore improve the standard of properties.
Councillor Alison Butler, deputy leader and cabinet member for homes, regeneration and planning, said: “We always maintained that our landlord licensing scheme was robust and lawful, so we’re very pleased to hear the High Court has found in our favour.
“This scheme is important because raising housing standards and tackling antisocial behaviour is crucial to making Croydon a better place to live.
“We’ll continue to prepare for the licence’s launch on 1 October, and urge any landlords who haven’t yet taken advantage of our early bird discount fee to join the thousand who have.”
After the High Courts’ decision was announced, a Croydon Property Forum spokesperson said: “The judge, Sir Stephen Silber, found we had a good reason to argue against Croydon Council’s designation, but found they had consulted adequately and dismissed our claim on that basis. Our barristers disagree and have advised we have good grounds to appeal.
“If we are to appeal, we still need to raise funds!”
News Archive »