Labour tells landlords not to raise rents to pay for new licensing

Labour tells landlords not to raise rents to pay for new licensing


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Labour controlled Nottingham council is introducing a new licensing scheme – and tells landlords not to raise rents to pay the fees. 

The proposals will introduce a second scheme of Selective Licensing and would require private landlords who let properties in certain parts of the city to obtain a licence, demonstrating that they and their properties meet required standards. The council claims this would make sure that privately rented homes are safer, suitable for tenants to live in and that they are managed effectively. 

“It will give the council resource and powers to safeguard tenants and hold non-compliant landlords to account” the authority insists.

The council claims that as with the first five-year scheme, which was introduced in the city in 2018, it would not be allowed to make a profit from the scheme with all revenue used to cover the cost of administering and running the new scheme.

But in a statement the authority then says: “Nottingham City Council does not believe landlords will need to increase tenants’ rent to cover the cost of a licence application, which would be payable in two parts. Most landlords in the city, who already have a housing licence, would be aware of licensing, so a new licence should be factored into their business plan and any previous increase in rents that they may have made, should cover a new licence fee. A new scheme would not start until at least August 2023, so this would also give landlords time to plan.”

The statement does not say how much the charge would be, and a request for this information by Landlord Today has received no response.

Councillor Toby Neal – who has the council title of “Portfolio Holder for Housing and Human Resources” – says: “People renting privately have a right to expect a decent standard of accommodation. Many of the 45,000 plus privately rented properties in the city are well-managed but, as part of the first scheme we still find properties that are to a very poor standard. Homes with damp and mould, homes with no smoke alarms or hot water or heating; so there is more work to be done.

“It is proven that poorly managed properties cause problems for local neighbourhoods that see higher crime and anti-social behaviour rates. The council believes the introduction of a new licensing scheme would not only bring benefits for tenants and local communities, but also landlords who, by obtaining a licence, will be able to clearly demonstrate to prospective tenants that they meet required standards.

“The first scheme was welcomed by residents, who appreciated that improving the safety and quality of private rented accommodation, can have a positive impact on local neighbourhoods.

If the scheme is approved by government, the council is looking to implement it this August.

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