A landlord in Nottingham fears a new licencing scheme to 'safeguard and improve' the homes of privately rented tenants may simply end up leading to more expensive rents. Plans for a new selective licensing scheme were approved at the city council's executive board on Tuesday, May 24.
The scheme, a similar one of which has been implemented in the past, requires all landlords to licence any privately rented property they have within a designated area. It gives Nottingham City Council the power to make sure rented homes meet certain conditions the landlord is a ’fit and proper person'.
They are plans for a brand new scheme and not a renewal of the first scheme introduced in August 2018. Landlords at the time were in revolt at the idea and said it would lead to the increase in rents.
It comes as the city’s private rented sector has increased to 45,500 properties in 2021, up from 43,000 in 2016. Those who refused to join the scheme faced a fine and potential prosecution.
However speaking of the fresh plans Mick Roberts, who owns a number of properties in Nottingham and the Bulwell area, believes the scheme will simply lead to "more homeless in Nottingham coming and more expensive rents".
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He told Nottinghamshire Live: "The last thing tenants need now in this cost of living crisis is the Government bringing in more regulations and rules and charges on landlords. Because once that house is up and running, there is only only place we get our money from, and that is the tenants' rent."
Under the previous scheme, 666 improvements made to a total of 446 properties. Mr Roberts says that out of more than 20,000 properties "that's less than 2%," he adds. "It means 98% of tenants have had rent increases for nothing when they had nothing wrong with their house to start with. £20 million quid in to find 2%. That's shocking."
City councillors however overwhelmingly spoke out in support of the scheme. It is anticipated that the cost of the licence would be £820 for five years with a proposed fee of £630 for accredited landlords, the council says.
There are also recommendations in the new proposals to introduce a higher fee for less compliant landlords of £1,110, as well as a proposed block licence for certain blocks of flats. These fees are £1,840 standard fee, £1,125 accredited fee and a £2,295 less compliant fee.
The council would not be allowed to make any surplus on the scheme and all revenue from the licence fees would only be used to cover the cost of administering the scheme, the council added. Councillor Toby Neal, the new portfolio holder for housing and human resources, said: “People renting privately have a right to expect a decent standard of accommodation.
"The impact of poor quality and badly managed accommodation can be very negative on the tenants. The local neighbourhood also suffers because of poorly managed properties and the crime and anti-social behaviour that can follow.
“Selective Licensing works to tackle poor housing conditions and poor management and to drive up standards in the private rented sector. The first Scheme has helped improve property conditions, management standards and helped to make homes safer through the removal of dangerous hazards such as electrical and gas safety, damp and mould, as well as slip, trip and fall hazards.
“We believe that there is more work needed to support landlords to comply with their responsibilities and it is important that standards are maintained and continue to improve where needed.”
And David Mellen, the leader of the council and Dales ward councillor, added: "This scheme has been very effective in the ward that I represent. 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."
When the initial scheme launched, landlords were asked to pay £480 per property to obtain a licence, while non-accredited pay £780.
Nottinghamshire Live reported that fee increased in 2019 to £670 (accredited) and £890 (non-accredited) in March 2020.
