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

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.

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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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  • George Dawes

    How about mps not increasing their ludicrous pay packets while they’re at it

    Hypocrites

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    The cheek of them. Who are they to tell landlords what to do with THEIR asset?

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    LOL!

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    Hang on, just who owns the property 🤔🤔

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    This is the problem... Landlords are slowly losing more and more control of their own properties... Where's it going to end? Compulsory purchasing.... at prices set by them... NOTHING would surprise me now.

     
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    Shane, You will be required to gift the property to your tenants.

     
  • John Ahmed

    THE goverment need to step in to stop this nonsense.
    Landlords should tell the council that if rents need to be increased then so be it. They can't dictate to a business what to charge. Go to court if necessary to sue them. Councils want to look at their own housing stock first! It's often poor quality!! What on earth is the industry doing about all this crap?

    Fery  Lavassani

    The problem is that the governments whether Tories or Labour, do not recognise PRS as business. They say we are investors. Its like any other business. If the cost of running it goes up, the end user will foot the bill.

     
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    Perhaps landlords could get a refund of fees if the accommodation meets the standards, then the council could concentrate on the few poor quality properties. An over reaction by a dictatorial council

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    Why doesn’t this council pop in to all the supermarkets and ask them to stop putting up the price of butter, eggs and bread. How dare these people!

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    Why don’t Government step in and stop Energy Companies profiteering raking in billions.
    They didn’t tell them they couldn’t increase their prices.

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    They did actually.

    That's why those of us who used to shop around are stuck on much higher tariffs and the subsidies are costing the taxpayer a fortune.

    Giving consumers an uncapped discount on energy prices, paid for by the taxpayer is ludicrous.

    If it's needed, it should be a flat sum payment for all, possibly with extra for those in real fuel poverty.

     
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    I am a Nottingham LL. The scheme is expected to cost £820 per property. I am a member of DASH (cost £100 for 3 years) who have inspected my properties which exceed the expected standard. NCC haven't been near my properties & won't because of the DASH accreditation so why am I expected to pay the full amount & why should I pay out of my own pocket?

    My tenants have already been told to expect a rent rise.

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    I have property in Nottingham also, check the costs. NCC have increased the cost of licensing and DASH was free tho start with but at £100 ish per year it’s a waste of time and money. Due to increased costs rents are increasing, well done NCC

     
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    £820 !! 😬 utter theft.

     
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    My tenancy agreement include a clause
    "£XXX payable in advance every calendar month, plus any taxes or fees imposed by central or local Government."
    to cover the situation imposed by Nottingham.

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    • A JR
    • 23 January 2023 10:22 AM

    I really think this clause is a great idea.
    Not only does it cover the inflationary costs imposed by LA's and Gov, it focuses the attention of tenants too.
    Tenants need to know how, where and by whom rent increases are driven.
    I will be using this clause in all my future AST.

     
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    Blatant breach of the Tenant Fees Act.

     
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    Cost increases are always paid by the end user, whatever the business

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    How can they possibly know whether a landlord can afford this without raising rents?? They want us to spend out on repairs and compliance, but they don't care whether it's affordable or not. What other business is just told to absorb additional costs?

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    abolishing tenant fees , landlord EPCs, certification electrical certification and gas certification, upgrading of EPCs, tenant and landlord used to share equally estate agent cost now not allowed, when something goes wrong tenants think the tennacy is like a hotel demanding action the same or next day as if we have a maintenance man on 24 h call out, at the end of the day these people at generation rent they want want want and want that's ok but at the end of the day there the tenants worst nightmare as eventually all these wants lead to the increase in rents that we are seeing now. so the goverment can make as many new laws as it likes all this extra works cost money and guess who will be eventually paying for it. Landlords are not a charitable organization but government and stupid Mps trying to get votes are very short-sighted

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    Hilarious! I’m crying here! ‘Yeah, OK Nottingham, whatever you say, yeah? I definitely won’t ever raise my rents if you don’t want me to. Tell you what, I’ll lower them if you tell me that’s what you want. And I promise I’ll never ever ever raise rents and say it’s because of interest rates/EPCs/materials costs/market rents rising etc. Definitely not! Not ever!’

    Massive LOLS!

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    Surely this Council has to be challenged on this? What are the NRLA doing to mitigate the harm caused to LL's and tenants by introducing such schemes. It seems they are doing very little to help LL's. These rogue councils need to focus on tackling the Sham landlords out there and leave decent Ll's alone to get on with providing quality homes, that the Government and Councils have failed to do for many years.

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    Leics landlord, my friend you said everything you say is factual, but you previously said the Law is applied equally to both sides, you can’t expect us to believe that when its so blatantly obviously it’s all stacked against the landlord.

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    What are you talking about?

     
  • jeremy clarke

    Double standards here! Okay for council to make money from landlords but not okay for landlords to make money.
    More councillors from the school of stupid!!

  • jeremy clarke

    Double standards here! Okay for council to make money from landlords but not okay for landlords to make money.
    More councillors from the school of stupid!!

  • PossessionFriendUK PossessionFriend

    Try telling supermarkets not to increase price of goods to shoppers when fuel costs increase !
    These morons haven't a clue how business works.

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    I thought that the politicians were trying to exterminate us financially , it appears I was wrong they clearly want to go much further than that
    Welcome to the fourth Reich

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    Mr Altman
    It's basic communism if you want a comparison. In essence our properties are wanted by these illegal immigrants ! Further we have open borders for drugs, tobacco, people, counterfeit goods. How the police etc. keep a straight face l don't know.

  • Matthew Payne

    I wonder if NCC put council tax up when faced with higher costs, forecasted or otherwise, or do they simply make a loss and then allow themselves to go bust?

    Google it, but its a bit rich to be offering such advice when NCC were placed into special measures last year for cooking their own books, moving money from housing into general funds unlawfully!

  • Mick Roberts

    Here's my notes on this:

    And Expert TobyNealeNever housed anyone in his life Councillor Toby Neale says We can't see Landlords putting rents up.
    Please tell him many of us are 100% putting rents up to pay for this. Nottingham Council has created an outgoing on a house that was very nice and had money spent on it. That outgoing needs paying for, never mind the laborious unnecessary admin involved.
    All smart tenants know RENT PAYS FOR EVERYTHING. U create more everything, more rent has to come in to pay for it.
    And if Landlords are already charging cheap 70% of market rent to look after long term tenant, which just about pays current outgoings, do u think he's gonna carrying on charging that cheap rent after the Council gives that property/tenant an £800+ charge? Der thick I am, I'm gonna become a Councillor.
    Proper thick that Council.
    He says some bad houses. Well go get em then, don't hurt the 80% that have zero problems. They wrecking low earning tenants lives.

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