Anybody with investment properties in Barking and Dagenham needs to be aware of the Council’s plans for new selective licensing. It will have an impact if you are a private landlord. Let’s have a closer look so you know what to expect in the future.

Concerns about the private rental sector

The PRS in Barking and Dagenham has been growing for a number of years. The area became very popular because of the more affordable house prices. As a result, investors could make their money go further and enjoy healthy demand from renters.

However, because the PRS is now almost a third of all homes in the borough, Barking and Dagenham Council has been taking action. They want to ensure that people have safe, high quality housing. At the same time, they want to address unscrupulous activities like deprivation and overcrowding.

Barking and Dagenham previously had a selective licensing scheme in the borough to improve standards. It was active for five years, ending on 31st August 2024. During the period, some landlords had to get a licence for their properties.

The Council was really happy about the licensing. They reported that during its lifetime, they made significant strides to improve property standards and management practices. Interestingly, they did over 8,000 inspections. They were pivotal in identifying hazards in properties, ultimately leading to action to rectify them and make homes safer.

New licensing

The expiry of the selective licensing scheme will have been good news for people considering investment properties in Barking and Dagenham. It meant there was no need to think about the additional cost. However, that is about to change. The Council said in January they will introduce a new scheme starting on 6th April 2025. It will cover almost all private rental properties in the borough.

The Council was already planning to introduce licensing to replace the original scheme. The proposal would have meant that a licence was necessary for properties in 20% of the borough. It was awaiting approval from the Secretary of State. However, local authorities got more powers thanks to new legislation in December. So, they have been able to introduce the new, larger scheme without authorisation.

Syed Ghani, Council Cabinet Member for Enforcement and Community Safety had comments about the licensing. He said it was “an important tool” because it ensures landlords have to provide good quality homes. The council is happy that the new scheme will come in. Crucially, he also said that “many residents expressed their support during the consultation”.

There is an important thing for property owners to keep in mind with the new selective licensing scheme; Barking and Dagenham Council wants to reward good landlords. Before issuing a licence, they will inspect the properties. Discounts will be available for best practice. Properties that get a satisfactory rating will get a Silver Compliance Award and £200 off the licence fee. Accredited landlords that get a satisfactory rating will get a Gold Compliance Award and £250 off the fee.

Ask us for advice about investment properties in Barking and Dagenham

Finefair Ltd can provide a number of different services to help investors get the most from assets. We specialise in guaranteed rent, ensuring there are no concerns about voids and missing out on income. We also do portfolio reviews, expansion, and more.

So, if you would like to see how working with us can help you, please get in touch. We can discuss everything we can do for investment properties in Barking and Dagenham and other parts of London. At the end of the day, we’ll make sure you have the perfect service.