Nottingham’s landlord licensing creates £114.9m in ‘social value’?

Nottingham’s landlord licensing schemes have created £114.9m in social value over five years, according to the first evaluation published by the city council of their wider impact.

The calculation reveals that £4.62 was returned for every £1 invested between 2020 and 2024.

The independent study examined £24.9m invested in the city’s licensing schemes, assessing their effect on renters, landlords, neighbourhoods and public services including the NHS, police and fire services.

Of the total social value identified, £91m was linked to improvements in renters’ health, safety and wellbeing.

Who was consulted?

However, well-known Nottingham landlord Mick Roberts told Property118: “This report bears little resemblance to my experience of licensing in Nottingham.

“The council describes £24.9m as an ‘investment’, but landlords have funded this scheme through licence fees, costs which inevitably affect what can be spent on properties and, ultimately, rents.

“When the scheme began, it appeared to support a substantial licensing operation, reportedly involving around 78 staff in 2018.”

He added: “I have been one of Nottingham’s largest providers of homes for homeless tenants receiving benefits over the past 29 years.

“Yet neither I nor, to my knowledge, my tenants have ever been asked whether licensing has delivered value for us.

“Before the council celebrates these findings, it should explain who was consulted and how the claimed benefits were measured.”

How many have benefitted?

Mr Roberts continued: “I accept that licensing may have improved some poor-quality homes and helped bring some properties up to standard.

“However, that is not the whole story. In my case, money that would have gone towards new kitchens and bathrooms has instead gone on licensing costs.

“My tenants understand that, because they are the ones living in homes where planned improvements have been delayed.”

He continued: “That is why I strongly challenge the claim that 14,500 tenants have benefited.

“Some undoubtedly will have done, but the council should also account for tenants whose landlords have had less money available for improvements, and for the wider costs created by its housing policies.”

Social Return on Investment

Councillor Jay Hayes, Nottingham City Council’s executive member for housing and planning, said: “It is the first time in England that the social impact of private rented housing licensing has been measured using a Social Return on Investment approach.

“In doing so, it moves the debate beyond whether licensing works, to what difference it truly makes.

“The findings are striking. Over five years, housing licensing in Nottingham generated nearly £115 million in social value, improving lives, strengthening neighbourhoods, and reducing pressure on vital public services.”

He added: “Every £1 invested delivered £4.62 in value back to the city.

“These figures represent warmer homes, safer buildings, fewer hazards, and greater peace of mind for thousands of residents.”

More compliant landlords

The findings also show that more than 14,500 renters benefited directly from improvements made to their homes.

More than 7,400 unlicensed landlords were brought into compliance during the period covered by the assessment.

And 36% of landlords reported improved knowledge of their responsibilities.

The council’s report also recorded a 48% reduction in anti-social behaviour and a 45% fall in waste complaints in licensed areas.

Further value was attributed to avoided fires, NHS savings and carbon reduction benefits arising from improvements to homes and enforcement work.

Good landlords are supported

Councillor Hayes said: “This report tells a powerful story about what housing licensing actually delivers on the ground.

“It shows that good landlords are supported, renters are better protected, and neighbourhoods are stronger and safer as a result.

“What makes this report unique is that it moves the conversation beyond cost, and instead focuses on value – value for residents, for responsible landlords, for partners, and for the city as a whole.”

He added: “Nottingham is proud to be leading the way with a report that is already informing national discussions.

“Ultimately, this evaluation shows that housing licensing is not just a regulatory tool, but a long-term investment in people, communities, and the future of our city.