Fears over rent shake-up plans

EDL march from Doncaster railway station to Hexthorpe. The march pictured on Urban road in Hexthorpe.
EDL march from Doncaster railway station to Hexthorpe. The march pictured on Urban road in Hexthorpe.

Landlords fear a shake-up of the private renting rules in a Doncaster village will result in mortgage companies refusing to lend on properties in the area.

Doncaster Council is currently consulting on the proposals to introduce a Selective Licensing Scheme in Hexthorpe.

Proposed conditions of the scheme would require landlords in the area to take appropriate action to address community issues over tenancy management and particularly anti-social behaviour that has been blighting the area,

But Landlords say if the scheme is given the green light it is highly unlikely that mortgage companies will lend on properties in Hexthorpe.

Carl Agar the National Landlord Association Representative and the Managing Director of Big Red House added: “We had been advised that there was no evidence of mortgage refusals yet we have found evidence that mortgage companies are refusing to lend in neighbourhoods covered by council selective licensing schemes and during the consultation for selective licensing in Rotherham a letter was provided to the council documenting the refusal of a mortgage application and citing selective licensing as the reason for decline.

“I have personally spoken to my contacts in the banking sector and quite simply at a local level they advised that if their valuers identify that a property is within such an area then it is highly unlikely that a mortgage would be granted as the property would pose to great a risk to the bank.

“This has been mentioned to DMBC but has not been communicated as a risk to anyone involved in the consultation process.”

The consultation period started on June 30 and lasts for 12 weeks.

If a scheme is approved following this it would be introduced from December.

All private sector landlords would then have to apply for a licence to operate as a landlord.

The licence fee will be £500 for each rented property and last for 5 years.

Doncaster Council declined to comment while the consultation is ongoing.