Newham Council is leading the way in regard to private landlord licensing in London.
The Evening Standard reports that those who wish to rent out property in this part of east London must purchase a licence prior to establishing tenancy agreements with their customers.
Private landlords who are found to be renting out homes without the relevant documentation will face fines up to £20,000.
This arrangement also means that the local authority has greater power over who becomes a landlord in the borough.
Commenting on the new system, Newham mayor Sir Robin Wales - who has just been named in the Standard's most influential Londoners 2009 list - told the publication: "Greedy landlords profiting from renting out sub-standard homes are not welcome here."
Newham Council's website states that the local authority aims to provide the community with better standards in the private rented sector.
Written by Claire Doyle
