Preferred landlords
A ‘preferred landlord’ is a landlord that we will use to dispose of a property that has been compulsory purchased.
Who can become a preferred landlord?
Anyone can be a preferred landlord as long as you can demonstrate you are able to purchase the property, redevelop it and then bring it back into use. This can be through either renting or selling on the open market.
Depending on whether you intend to rent the properties back to the council, sell the properties on the open market, or both, you will be required to provide evidence of:
- properties previously developed and sold
- good management of tenancies
- accreditation under the London Landlord Accreditation Scheme.
If you are planning to rent the property you must be able to demonstrate that you are a ‘good’ landlord. Evidence will be considered from management of previous and/ or existing tenancies. If you are a landlord accredited under the London Landlord Accreditation Scheme (LLAS), this will be sufficient.
More information can be found in the Landlord Accreditation page.
Why use a ‘preferred landlord’?
Despite the best efforts of the council, private sector homes sometimes remain empty for a number of years. Where these cause a nuisance in the immediate neighbourhood, the council will seek Compulsory Purchase Orders, so that these can be returned to use, (refer to Compulsory purchase of empty homes by council).
When the council successfully purchases a property, it will take action to ensure it is then occupied as quickly as possible. Ideally this would be by selling to a Housing Association (HA). However, sometimes HAs can find it difficult to raise the capital to purchase an individual property, or it may be in such a poor state of repair that it is uneconomical for a HA to be involved. In these circumstances, the council involve a preferred landlord.
How do ‘preferred landlords’ purchase these properties?
If the council cannot find a HA to purchase the property in question the council will contact its list of preferred landlords. These landlords will have 28 days to submit a bid on the property, detailing what action they intend to take to bring it back into use.
Those expressing an interest will be given details relating to the property (including research on the title), and a deadline to submit a bid. The preferred landlord will need to put forward a proposal based on acquisition costs, refurbishment costs and their proposals once the works are complete.
The preferred landlord will be able to put in different tenders, depending on what options they wish to pursue.
How are bids prioritised?
Bids will need to be submitted to the empty property service by 4pm on the deadline date stated. Each bid will need to be signed by the landlord across the seal of the envelope. The tenders will then be prioritised on the following basis:
- Highest bid from a preferred landlord where the intention is to lease the property back to the council, and where the bid is equal to, or greater than the valuation determined through the CPO.
- Highest bid from a preferred landlord where the intention is to sell the property on the open market, and where the bid is equal to, or greater than the valuation determined through the CPO.
If none of the bids match, or are greater than the valuation determined through the CPO, the property will be put up at auction, but with the asking price set at the highest bid submitted. If the asking price is not obtained, then the preferred landlord with the highest bid will be offered the property.
The council retains the right to determine a reasonable price to sell on the property, based on the valuation of the property by the Land Tribunal (LT) and the CPO costs.
How can I become a ‘preferred landlord’?
The Empty Property Service maintains a list of preferred landlords, all of whom will be contacted when a property becomes available. If you are interested in having your details added to this list, please contact the empty property service on 020 7926 0378 or email privatesectorhousing@lambeth.gov.uk.