An Interim Management Order (IMO) is a power that local councils have under the Housing Act 2004, to effectively take over the role of a landlord that is failing to get their properties licensed.
Newcastle City Council operates three property licensing schemes which are intended to raise standards in the private rented sector, making landlords more accountable, improving property management and helping to make communities more stable. All privately rented homes within a Selective Licensing area require a licence, bar some minor exemptions detailed in legislation.
Despite extensive attempts to contact the landlord and advise of his responsibilities to ensure he complied with his Selective Licence conditions, he failed to respond. He did however continue to visit his tenants to collect their rent payments. The council then took the necessary steps to revoke his licence as he was deemed to no longer be a fit and proper person to hold a licence. The properties are required to be licensed and there appeared to be no reasonable prospect of the properties being licensed anytime soon.
The landlord, who has continuously failed to take responsibility for maintaining standards and provide adequate, safe housing had left his tenants living in shocking conditions with outstanding, hazardous repairs, rat infestations and outstanding safety certificates giving the council no other alternative but to step in and remove his licence. He could have avoided the orders if he had been willing to appoint an independent, fit and proper third party to apply for the licences and manage the properties however, the landlord chose not to appoint anyone.
The properties will now come under the management of the council’s Private Rented team who will organise for any required works to be carried out to ensure that the occupants have safe and satisfactory living conditions that meet all required standards. The cost of the repair works will be paid for by the rental income that the council will receive while managing the properties as all rent will be paid directly to them rather than the landlord for the 12-month IMO period.
Should the landlord fail to meet the requirements of a Selective Licence after 12 months, the council can apply for a Final Management Order, which can be placed on the properties for a maximum of 5 years.
The council’s Cabinet Member for Housing, Cllr Paula Maines, said: “I am appalled by the disgusting conditions that this landlord has provided his tenants. This case really highlights the importance of having housing legislation and regulation that must be adhered to by private landlords in our city.
“Our Property Licensing Schemes clearly outline what we expect from landlords and are intended to raise standards in the private rented sector, making landlords more accountable and improving property management.
“As we’ve shown, we will not hesitate to take enforcement action against those who fail to licence their properties or who provide inadequate housing to our residents. We will do all that we can to act against anyone who thinks it is acceptable to leave people living in such deplorable conditions.”
For further information about the Property Licensing Schemes that Newcastle City Council operates, visit Property Licensing Schemes in Newcastle | Newcastle City Council.