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TODAY'S OTHER NEWS

Expensive new licensing scheme on its way - discussions to be held today

Proposals to introduce an Additional Licensing scheme for HMOs in yet another part of the country are to be discussed by a council today.

The move follows a consultation by Sandwell council which took place from January to April 2020, asking for views on plans to introduce the scheme – which would see landlords of any HMO in central West Bromwich having to apply for a licence from the council unless they already hold a mandatory HMO licence.

Under the proposed new scheme, landlords of all HMOs regardless of how many people are living there, would need to apply for a licence at a cost of £850 for a five-year period.

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The consultation asked for the views of local people including private landlords, private tenants, residents, businesses and organisations in and outside of West Bromwich about the licensing schemes.

The council claims that findings from the consultation showed 77 per cent of all respondents agreeing with the proposals.

The report acknowledges the important part the private rented sector plays in providing accommodation in the borough and states there are numerous high-quality landlords and letting agents providing a range of property types in Sandwell to meet a broad range of housing needs.

In addition, the borough has experienced a major increase in private rented accommodation in some areas, including some HMOs.

 

 

Councillor Zahoor Ahmed, Sandwell’s cabinet member for housing, says: “We want to improve housing conditions and make sure that landlords are providing good quality and safe HMOs, so that tenants are protected. While we know that many already do this, there are still too many properties that are poorly managed and are in unsafe and unsatisfactory conditions.

“A new approach is needed and we believe that the Additional Licensing Scheme will improve the condition of properties, support good landlords and remove rogue landlords from operating.”

If the proposals are approved, the scheme would be introduced in April 2022, with a three-month grace period for landlords, and the council starting enforcement for unlicensed premises from 1 July 2022.

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    Of Course Sandwell’s wants it like other greedy Councils running this extortionate racket with no cost whatsoever to themselves, not even one penny, money for old rope. They already had all the Powers ever needed as far as 1992 to deal with any situation regarding private rented sector, so it’s the free money.

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    "The council claims that findings from the consultation showed 77 per cent of all respondents agreeing with the proposals."
    That's because they missed out the bit about rents rising to cover the cost. As we all know, it's never just the licence fees. They will always find a list of other things to be done often running into thousands of pounds. And they wonder why rents are at an all time high.
    Also, as Michael points out, the council's all have ample existing powers to enforce standards. Just a lazy way of raising revenue.

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    suppose I add the licence fee to the rent, new tenancies only, I wonder how many tenants would not pay it even if it is "for their own protection".
    Costs to the landlord go up and agency fees for administration go up and the only person who pays is at the end of the line, as in other sales. the customer.
    I charge no inventory fees, no deposit, change of contract fees, in fact no fees at all except for breakages at cost. Tenants feel happy and safe. So I am also happy.

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    Philip, it's not a fee, just an additional cost to you. Unlike, for instance, a new boiler, it adds no value to anyone. Just a bureaucratic cost that any sensible supplier (landlord) would factor in when calculating the price (rent) to their customer (the tenant).
    Unfortunately, the bureaucrats (the Council) don't understand basic economics because the majority of them have never had to do a proper job in their lives.

     
    Theodor Cable

    Of course, if it is an extra cost to me, it goes straight to the tenant at the next rent review, and that will also be backdated and 15% on top for my trouble and admin costs.

    So again the authorities force up rental prices.

    When will they learn?

     
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    Exactly right GD it doesn’t improve the property it a cost and liability taking millions of £’s out of the Sector, so they think removing our finances will improve the property. Imagine if every LL had a new Energy Efficient Boiler how much better that would be for Environment, instead of a Licensing Application, Right 2 Rent, How 2 Rent, Settlement status, Deposit Schemes, Accreditation Schemes, Criminalising of LL’s etc, any of this use not exist until being imposed in recent years, so all those could go immediately without renting being adversely affected but an improvement.
    There is a whole load of other requirements and cost that were placed on LL’s also in recent years that I didn’t mention because those probably have a beneficial or safety value.

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