Manchester considers introduction of landlord licences

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Manchester City Council is proposing to run a pilot scheme in selected areas of Manchester that will require private landlords to be licenced.

According to an August 2016 article on the Residential Landlords Association website, the council says that the licences will cost between £500 and £750 for each house rented by the landlord.

To be issued with a licence, landlords must fulfil certain conditions. These include having written tenancy agreements and putting tenants’ deposits in a deposit protection scheme. They must also comply with safety requirements, including regular gas and electricity safety checks and fitting smoke alarms. Licences could be refused if a landlord has a history of breaking housing laws or has been prosecuted for discrimination.

The Council says that the scheme will make landlords better and encourage them to improve their homes. With the landlord licences providing confidence and security for tenants, the Council expects more people will want to live in the pilot areas. It also expects property values will increase, and people will want to stay in the area longer which will reduce vacant rental properties.

The scheme may encourage more landlords to invest in buy-to-let properties in these areas.

The council is currently holding consultations about the scheme, which are open until the end of October 2016.

According to a July 2016 article in the International Business Times, Manchester is the top city in England and Wales for rental yields from buy-to-let property. With high yields and commercial mortgages at low interest rates, many buy-to-let landlords are choosing to invest in Manchester properties.

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