Auditors may probe council’s selective licensing scheme - report

It’s been reported by local media that a controversial landlord licensing scheme introduced by a council may now be investigated by external auditors.

Nottingham council has long been a vocal critic of landlords.

For example some months ago it revealed that 3,033 letters and legal notices were sent to landlords and 61 formal warning notices were issued between April 2020 and March 2021.

And back in 2018 Nottingham council was criticised for wasting taxpayers’ money after spending £95,000 taking a landlord to the Supreme Court and losing. The council challenged a landlord in court over the size of two student bedrooms, but lost the case; however, rather than accept the verdict, the authority mounted an unsuccessful appeal against the ruling.

Now the council appears to be in trouble again, according to a report on the Notts TV News website, which is part of the Local Democracy Reporting Service.

It reports that Nottingham’s selective licensing system, set up in 2018, has seen fees rise dramatically from £670 to £890 per property. 

The council’s external auditing company, Grant Thornton, has received a formal objection from a landlord in relation to the council’s 2019/20 accounts over the scheme.

The website reports that a Grant Thornton representative spoke to councillors at an audit committee last week, saying: “It concerns the value for money of the scheme and the way it was managed. How much it costs? How much it has brought in terms of fees paid by the landlords? Basically, whether it was a worthwhile exercise. That has been made as a formal objection to the accounts and that is something we do need to consider.”

Giles Inman from the East Midlands Property Owners Group - which represents some 600 landlords - told the Local Democracy Reporting Service: “We know the council are going to the government in October to justify why they believe Selective Licensing should be renewed for another five years. 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. Landlords are trying to keep costs for the tenants as low as possible.”

You can see the full local media story here.

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