Licence conditions are attached to each licence which relate to the management of the property. Under the terms of the Housing Act 2004, several conditions are also mandatory.
They include:
- A gas safety certificate must be obtained annually and produced to the council (if there is a gas supply to the house)
- Electrical appliances and furniture supplied by the landlord must be kept in safe condition
- Smoke alarms must be installed in the house and should be well maintained
- The licence holder must supply the occupiers with a tenancy agreement
- The licence holder must demand references from prospective tenants
These conditions mean that landlords will have to upgrade currently unsafe or unhealthy properties and will enhance the protection available to tenants. In addition to the mandatory conditions the council has attached local conditions which are available here. These conditions will be monitored by the council to ensure they are being complied with.
Failure to comply with any of the conditions of the licence could lead to a financial penalty of up to £30,000. In this situation the council would consider whether to revoke the licence and take over the management of the property.
It is also a criminal offence to let a privately rented property in a designated area without a licence. Failure to apply for one could lead to an unlimited fine or a civil penalty of £30,000.
It is also a criminal offence to make a false statement in an application for a licence or fail to comply with any condition of a licence.