Selective Licensing Schemes Judgment

Part 3 of Housing Act 2004 makes provision for local authorities to establish selective licensing schemes for some or all of their areas. The effect of such a scheme is to require a landlord of specified categories of residential property to obtain a licence from the authority, failing which the landlord commits a criminal offence (subject to a defence of reasonable excuse). The property to which Part 3 can apply is defined in s.99, 2004 Act, as “a building or part of a building consisting of one or more dwellings”.

Where a local authority is satisfied beyond reasonable doubt that a person has committed a “relevant housing offence” (such as failuring to obtain a licence under Pt.3, Housing Act 2004), it may – as an alternative to prosecution – use a procedure culminating in a penalty notice for up to £30,000.

The appellant in Northumberland Mews Ltd v Thanet DC [2022] UKUT 179 (LC) was the owner of a property which contained 22 flats. It was in an area which was subject to a selective licensing regime but the appellant did not apply for a licence. The local authority had difficulty inspecting all of the flats, but was able to conclude five of them were properties to which Part 3, 2004 Act applied and served five fixed penalty notices. Each imposed a financial penalty of £10,000. The appellant appealed to the First-Tier Tribunal, contending that the property to which Part 3 applied was the entire property of 22 flats and that therefore the authority should only have imposed one penalty. The FTT rejected that argument and upheld the five notices.

An appeal to the Upper Tribunal was also dismissed. Each flat was a part of a building and each was a “dwelling”. Whilst the authority could have decided that the whole building was a single Part 3 property, it was not required to do so; and it was important to afford the local authority flexibility in how it carried out its licensing functions.

Oliver Kew

Published on 12/10/2022