Landlords with properties in Barking and Dagenham, and prospective investors, need to ensure they are aware of big changes in the area. New licensing will have a massive impact because it will increase costs and responsibilities. As a top provider of guaranteed rent in Barking and Dagenham and other parts of London, we want to have a closer look.

Additional Licensing

On 9th January, a new Additional Licensing Scheme began. The Council chose to introduce it to improve standards for Houses in Multiple Occupation. It means that small HMOs home to three or four people now need to get a licence. These properties were outside the mandatory licensing scheme. However, landlords will now need to pay £1,400 per property for licences.

Selective Licensing

On top of this, from 6th April a Selective Licensing Scheme will begin to cover the majority of private rental properties in the borough. All landlords will need to get a licence. This scheme will replace an initiative that expired in summer 2024.

Landlords and potential investors should ensure they understand the cost here. It will be £950 per licence. However, the Council wants to reward landlords that are compliant and achieve high standards. To that end, they will be offering discounts. Landlords that achieve a Silver Compliance Award will get £200 off. Accredited landlords that get a Gold Compliance Award will save £250.

Why the change?

This part of East London has been popular with investors for a few years now. We’ve seen it first hand while offering guaranteed rent in Barking and Dagenham. However, the Council has concerns about the number of private rental properties. Almost a third of homes are in the PRS, meaning private landlords play a huge part in delivering housing for locals.

One thing the Council worries about is the potential for landlords to take advantage of tenants with poor quality or even unsafe homes. So, they are doing the licensing primarily to improve standards. It will also help to address issues like anti-social behaviour and deprivation.

Syed Ghani, Barking and Dagenham Council Cabinet Member for Enforcement and Community Safety, was happy with the decision to use Selective Licensing. He said it is an important tool to tackle unscrupulous practices and also ensure landlords are providing good quality homes.

Barking and Dagenham Council had been planning a new Selective Licensing scheme for the future. However, they have been able to push through the introduction. In the past, schemes like this had to get approval from the Secretary of State. That is not the case now though because of the English Devolution White Paper. It gives more power to local authorities so they can independently introduce schemes.

Ask us about guaranteed rent in Barking and Dagenham

Licensing schemes can make landlords and investors rethink their strategies. In some cases it can deter them from investing or even push them to sell assets. There is another option though; guaranteed rent. It can involve a relationship with a local council to allow them to use properties to house council tenants. The reward is secure income and less responsibility.

If you want to look closer at guaranteed rent in Barking and Dagenham, we’d be happy to advise you. Then, if you decide it’s right for you, we can go from there and you will get everything arranged for you. So, call us now.