Licensing scheme won’t weed out rogue landlords

Nottingham’s new licensing scheme for private rented accommodation has generated a storm of protest from owners of leased properties. Here, lettings manager Lucy Barlow, of Lenton-based MS Estates, argues that there are better ways to weed out rogue landl

NOTTINGHAM City Council says its new Selective Licensing Scheme will raise the standard of private rented homes across the city.

Nothing could be further from the truth.

The council claims the scheme will mean tenants are able to enjoy safe, comfortable, and well-managed homes. We believe it will mean tenants are left facing increased rents.

The council says landlords should absorb the £780 cost of the license, which is paid in two instalments over five years, but when operating costs increase, the consumer always ends up paying more. This is commonplace and common sense. It is unfair to expect landlords not to pass on the cost.

It is easy to forget that this scheme is only for studios, one- and two-bedroom flats and family homes.

Most of these landlords aren’t making the sums of money larger properties generate. If they need to factor in mortgage repayments as well, the fee isn’t a cost so easily absorbed - rent goes up.

Money that could have been put back into the property will instead be used to pay for the license.

This is the case for one of our landlords. She had budgeted for a new bathroom in her one-bedroom flat, which must now be put on hold because she must pay for a license.

The result? No improvement to the standard of the property - and increased rent as the landlord saves for a new bathroom that she still wants installed, because she is committed to providing a good home for her long-term tenants.

Even if no improvement works are planned, many landlords will still need to put up the rent to cover the cost of the fee.

Another issue is the lack of accountability that the scheme allows.

Good landlords, with good houses will naturally apply for the licence and pay the fee. Bad landlords, with bad houses, won’t. They will go further underground, operating without care for their legislative duties, continuing to provide substandard accommodation.

Rogue landlords could fly under the radar for years without being caught because, with no landlord register currently in place, the council won’t know who hasn’t applied.

The council has asked landlords and agents to help spread the word of the scheme because their officers can’t contact landlords themselves. This scheme isn’t the best way to bring rogue landlords into the fold.

We want to see an improvement in standards of rented accommodation in Nottingham. It is something in which we are personally invested. We also care passionately about tenants’ welfare and good accommodation, but we believe there are more effective ways to improve housing standards. Why not license the landlords instead of the properties? Why not introduce a scheme in which every landlord must hold a licence with a license number, that should appear on a database and be written on every tenancy agreement?

The fee would be dependent on how many properties the landlord owns and would be renewable every year. The landlords would follow a general code of practice and meet any requirements proposed by the council (there would be additional ones for larger properties, of course).

They could also sit a test before being granted the licence, to ensure they at least have a basic knowledge of tenancy agreements, deposits and the relevant housing legislation.

Having a system like this would enable local authorities to more effectively prosecute rogue landlords, who often don’t give full names and addresses on tenancy agreements or have several different people dealing with each property.

Tenants would be able to easily report problems. Local authorities could more easily identify bad landlords, who could have their licence taken away for repeated offences.

The council could carry out random inspections of rented properties and work with landlords to bring homes up to standard, if needed.

Landlords would be forced to license themselves because tenants would be advised to only rent from holders of licenses. Landlords who don’t hold licences would be reported to the council.

I find accommodation in Nottingham for more than 600 tenants every year and I’m also a tenant myself. So I know that, with the right publicity, the system would work.

What’s more, there are landlord registers already working well in Scotland, Wales, and Northern Ireland – and it is something that landlords and agents in England have repeatedly called for.

It seems surprising that Nottingham City Council has decided to go for selective licensing.

The choice has left many of us in the industry feeling like this scheme has been rolled out to create council jobs and revenue and has little to do with helping to improve standards of rented accommodation.

Our frustration has been compounded as the council, knowing that rents will rise, has tried to absolve itself of blame by telling tenants that landlords should take on the increased costs.

Selective Licensing is simply a tax on private rented accommodation.

It may be unsurprising that the council has chosen it to create jobs and revenue, but it’s a shame it is unlikely to make much difference to housing standards. And it will certainly lead to higher rents.

Bad landlords, with bad houses... will go further underground, operating without care for their legislative duties