An SLS can only be introduced if the council is satisfied that there is a problem with low housing demand or where there are significant and persistent problems of anti-social behaviour. Any decision to implement an SLS must be consistent with the council's housing strategy and part of a coordinated approach for dealing with homelessness, empty homes and anti-social behaviour. The council must be satisfied that there are no other courses of action that might provide an effective remedy and that the introduction of an SLS will assist in dealing with the problem. You should check with your local council for updates and more information on SLSs.
Councils can implement an SLS, provided the local authority area meets at least one of the following requirements:
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the area must have low housing demand
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the area is experiencing a significant and persistent problem of anti-social behaviour
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the area is experiencing a high level of migration (ie movement within the country or from overseas)
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the area has a significant number of privately-rented properties in a poor condition
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the area suffers from a high level of crime
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the area has high levels of deprivation
Selective licensing for privately rented housing is available if local authorities believe it would reduce or eliminate the above housing problems.
Local authorities can designate an area for selective licensing without the Secretary of State's approval if they consulted everyone affected for a minimum of 10 weeks.
Any SLS that covers more than 20% of the area or 20% of private rented homes, can only be introduced with the Secretary of State's approval.
Low housing demand
When deciding if an area is suffering from low demand, a local authority must take into account:
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the value of the properties in the area in comparison with similar properties in comparable areas
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the turnover of occupiers in the area
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the number of properties available and the length of time they are unoccupied
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the appearance of the locality and the number of boarded-up shops and properties
Fit and proper persons
When operating an SLS, local authorities must also assess landlords for:
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sufficient level of management competence
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being 'fit and proper'
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the suitability of their management structures and funding arrangements
When determining whether a landlord is ‘fit and proper’, local authorities can consider factors such as whether the landlord has been involved in any fraud, practised unlawful discrimination, broken any housing laws or breached any relevant code of practice.