30th
May 2022
Landlords in Nottingham say they have no other choice than to increase tenants rents if the contentious licensing scheme is re-introduced.
In August 2018 Nottingham City Council first introduced its the Selective Licensing programme in its campaign against rogue landlords and to improve private sector rented properties.
The scheme applied to nearly 32,000 PRS ‘residences across the city that had to be licensed and landlords failing to do so would be fined up to £30,000 or be prosecuted through courts.
Licensed properties can be checked by council housing teams to make sure they are ‘fit for purpose’ and are able to target rogue landlords whose properties are unsafe and in poor condition.
However there were considerable concerns from BTL owners that essentially good landlords were having to pay the fees for landlords, and in many cases the fee was ‘passed’ onto tenants by increasing rents.
Since the scheme’s introduction in 2018 fees have steadily risen and are now between £670 to £890 per property, and is due to end in July 2023 and a decision will be made on introducing a new scheme from thereon.
Since August 2018 the council says the scheme has been responsible for 666 (?) improvements have made to 446 properties in Nottingham.
The council says the scheme has been responsible for rogue landlords either being shut down or selling up. anti-social behaviour has been clamped down and many thousands of PRS homes have now achieved required EPC ratings.
From the Executive Board Meeting held yesterday (Tuesday May 24th), council papers state: “The scheme will end in July 2023 and the evidence supports a second scheme in order to build upon the first and continue to deliver the benefits which are already being seen in the city’s private rented sector (PRS).”
Councillors attending the meeting agreed that the selective licensing scheme had been a resounding success.
Cllr David Mellen (Lab), leader of the council, said: “This scheme has been very effective in the ward that I represent. A lot of people live in private-rented accommodation – sometimes I get to visit those houses.
“Some of them are very good but others are less so and being able to have some kind of encouragement for landlords to bring private rented households up to a decent standard and give tenants’ a decent place to live is really important. I am in favour of a second scheme for our city.”
Councillor Linda Woodings (Lab), said: “I have spent some time with the (council) team that do these inspections and seeing the standards of properties they are encountering. This is not an extension, it is a brand new scheme.
“It is quite clear with the enforcement side and compliance checks that take place that there is so much more work to do in certain areas of the city to improve the standards.
“It is a deterrent for tenants’ to report repairs to their house.”
The proposed new scheme will undergo a public consultation between June to August prior to a decision being made on the more than likely ‘thumbs up’.
Giles Inman on behalf of a group of 600 landlords, says that the likelihood of the council continuing to make it mandatory for applicable properties to be licensed means that “most (landlords)will have no other option than to pass on the costs to tenants” especially if the cost of the scheme rises as it has done in previous years.
He also says that maintenance and having to upgrade energy efficiency measures’ in their properties costings are continuing to rise for landlords.
He told the Local Democracy Reporting Service: “We are considering forming a committee to draft our own submission on behalf of landlords – we are considering going against that renewal.
“The costs associated with complying with the licensing scheme translates into higher rents (for tenants). There is no question about it.
“You have utility bills going through the roof and huge strains on tenants paying gas and electricity to heat their homes.
“Bills are going to be twice as expensive in December than they were in January for those that are not on a fixed tariff. This is really not the time if ‘we are all in it together’ to be putting more costs on tenants.
“Landlords are trying to keep costs for the tenants as low as possible. This is the last thing we need right now. We know the council are going to move forward with this.”
Richard Merrick of PIMS,said: “32,000 licensed properties will have raised nearly £22million for the council’s coffers at the very least over the last five years…. and no doubt paid upfront. As to whether this is all spent on PRS enforcement and/or housing issues may be debatable.”
News Archive »