A controversial licensing scheme is due to come into force tomorrow - just as the council administering it has declared itself effectively bankrupt.
Nottingham council yesterday evening declared itself effectively bankrupt after issuing a section 114 notice - a technical process which means it is not able to deliver a balanced budget for this year, which is a legal requirement.
As a result of the section 114 notice, all new spending - with the exception of protecting vulnerable people and statutory services - must stop immediately.
Therefore there is some doubt over what happens next with a selective licensing system due to begin tomorrow, December 1.
The licensing regime covers an estimated 30,000 privately rented homes across most areas of the city: because of its scale, it required explicit consent from Housing Secretary Michael Gove over the summer.
Nottingham’s Labour council - which has courted controversy on the scale of its landlord licensing in the past - said before yesterday’s news that the new scheme means that tenants will also know what is expected of their landlord in terms of the maintenance, safety and management of their home.
“It will be introduced into areas of the city where the council has gathered evidence of poorer property conditions” said a statement from the authority. This continued: “Rented properties are more likely to have dangerous hazards which could include electrical, gas, fire safety, damp and mould issues. Selective Licensing will help ensure these issues are addressed, as landlords of private rented properties in certain parts of the city must now meet a set of conditions and ensure good management of their properties.”
The council has been taking landlord and agent applications for the licence since September 1.
Before the bankruptcy announce Jay Hayes, the authority’s housing spokesperson, said in a statement: “People in Nottingham have a right to expect a decent and safe standard of private rented accommodation, which is well managed and maintained. Having a licence will allow landlords to demonstrate that they provide decent quality accommodation for tenants, and we will work with landlords to support them to achieve the licence conditions.
“We believe the scheme will improve the reputation of private landlords, as well as Nottingham’s reputation for providing quality housing. The scheme is a major step forward in improving living standards for many Nottingham residents.”
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Until Councils can demonstrate they can run themselves in a responsible, financially prudent fashion and provide well maintained Social Housing at a rent sufficient to cover all admin costs and maintenance is it appropriate for them to run licensing schemes for the PRS?
And what’s going to happen - the cost of it will be put on the rent. So rents goes up and therefore responsible for rent increases - typical
My rents went up this month with an extra amount specifically to cover the cost.
They couldn't even run a bath!
Look we know what it is a money grab or a Computer Exercise. Some Council’s now sub-letting the burden of implementing and running the Schemes, hence the huge increase in licensing Scheme fees to include their own take to sit on their bum. They are not the Tenants friend using the RRB as a smoke screen.
“Tenants will know what’s expected of their landlord in terms is maintenance, safety and management” the article states. That’s written on the tenancy agreement. If the tenants and landlords read that and sign it, it’s legally binding. What is the need fo go through a complicated and expensive procedure to promise to do the same thing on a landlord’s license. Good landlords are being treated like children and I really don’t like it. Bad landlords will not reform just because they have paid for an expensive bit of paper. What a waste of time and money.
This is just a hidden property tax. A way of double taxing a property with the tenants council tax and a bogus scheme saying it improves standards. Legalised theft at its best.
Roll up Roll up 💰💰💰 cash for anyone who cares to throw away all decency and integrity. Spivs and chancers rule.
Wasn't this the council that encouraged landlords with large cash offers, to evict their tenants so their properties could then be rented at higher rents to the council to house their homeless?
more about raising revenue than protecting tenants - and guess who pays? the tenants. Well done NCC
Honestly could not make this up, again a Labour Council..! Imagine when Labour get the big job, ten years of austerity wasted and we will all have to start again.
As normal the standards that this licencing scheme enforces will not apply to council housing - why???
I am just pleased that I paid the initial application fee of £219 to Nottingham City Council on my credit card so at least I have rights under Section 75 of the CCA 1974 if needed!
“People in Nottingham have a right to expect a decent and safe standard of private rented accommodation, which is well managed and maintained" says the Council which can't run it's own finances and is as a result Bankrupt.
Maybe they need some landlords to show them how to use their money wisely!
Were does this leave the license? Is it going
Ahead, frozen, cancelled what?
This is like Robin Hood Energy, which is council owned and run and again mismanaged
Licence fund will be very quickly mismanaged by the council. Are they going to charge the same licence fees to the council department of housing provided and monitored rigorously. Why do they believe they are some sort of God sitting on a pedestal to ensure that the private rented accommodation is well managed and maintained. Council accommodation isn't. Who monitors them? Ombudsman??
Beggars belief doesn't it. Nottingham City Council now have an £8 million and increasing homeless bill, all started spiralling cause of their 2018 Selective Licensing, which has contributed to their bankruptcy and then they bring ANOTHER Selective Licensing scheme which we EXPERIENCED KNOWLEDGEABLE people KNOW is gonna cause more homeless and ever increasing rents. All to find a few bad houses while the good houses get worse cause the good Landlords funds which are by far the 80% majority are now being spent on Licensing. Utter bonkers.
I'm Nottinghams biggest private provider to Benefit tenants over 26 years and STILL they haven't spoke to me to see if they doing ote wrong.
Of course they havent spoken to you because you know so much more than they do!
just sold my Nottingham house for 10k more than last years valuation and now stress free!
You deserve so much respect and thanks from them for housing the people they CAN'T.
Prices should hold firm this year so get out while you can.
Best of luck with the amazing service you are providing!
Colin, because the Counci
Colin, because what the Council
means its is do as I say not as I do.
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