Council will spend £2.5m outsourcing its selective licensing operation

Council will spend £2.5m outsourcing its selective licensing operation

0:02 AM, 10th September 2024, About 3 weeks ago 23

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A council is to spend £2.5 million outsourcing its licensing of private rented homes within the city to deal with ‘challenges with staffing and IT infrastructure’.

The decision was made at a recent cabinet meeting after councillors were informed that the council’s current resources were insufficient to maintain in-house licensing.

A report presented to the committee suggested that a private provider could offer more efficient services and potentially save money.

The move was approved during the Wolverhampton City Council meeting.

Did not have the staff to carry out checks

During the meeting, Councillor Steve Evans, who is responsible for housing, said the authority did not have the staff or IT to carry out the relevant checks.

He told the meeting: “We have got a lot of private rented sector landlords, it’s really important for the city and renters that they are safe in the knowledge that we have fit and proper landlords.”

The successful contractor will be awarded a five-year contract valued at £500,000 annually – to be paid for by the selective licensing fees collected from landlords.

The council aims to achieve cost savings, improved IT systems and efficient documentation verification through this partnership.

By outsourcing the licensing process, Wolverhampton council hopes to free up its resources to focus on enforcement and high-risk properties.

Third party’s responsibilities

The report highlights that the third party would be responsible for:

  • Processing and validating licence applications and payments
  • Issuing licences and renewal notices
  • Carrying out property inspections and compliance checks
  • Providing customer service and advice to landlords and tenants
  • Managing data and reporting on performance and outcomes.

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Julian Lloyd

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9:42 AM, 10th September 2024, About 3 weeks ago

When they say paid for by those mean old landlords, they really mean, paid for by local increases in rent.

TheMaluka

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10:28 AM, 10th September 2024, About 3 weeks ago

If an outside contractor can do this, why cannot the council?

NewYorkie

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11:20 AM, 10th September 2024, About 3 weeks ago

A child could produce a database system for managing the licensing!

TheMaluka

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11:34 AM, 10th September 2024, About 3 weeks ago

Reply to the comment left by NewYorkie at 10/09/2024 - 11:20
Indeed, a very easy computational task. But is a relational database really needed, surely a simple spreadsheet list will suffice which, using LibreOffice, is free of charge. This grown up child could have a basic system up and running in ten minutes.

NewYorkie

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11:40 AM, 10th September 2024, About 3 weeks ago

Reply to the comment left by TheMaluka at 10/09/2024 - 11:34
Microsoft offers a free Office 365 product which has all that's needed for spreadsheet and associated document templates.

Reluctant Landlord

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12:22 PM, 10th September 2024, About 3 weeks ago

be interesting to see if the sub contracted company is going to use qualified people to actually inspect these properties. Clearly the council can't even manage to manage the people to input the info so that says to me, then haven't got the feet on the ground inspecting either....

I expect that the idea of actually inspecting any property that has a licence won't happen as a matter of course going forward, UNLESS a complaint comes in from a tenant that prompts a visit.

In essence therefore no different then to the existing process in place in councils without SL.

Just how many visits has the sub contractor factored and priced in? One visit for every licence in the term of the licence?
A FOI will be a start to work out just what the detail is of the outsourced council contract is.

So it seems all money gleaned from these SL schemes is going to fund the admin of a private company.

What happens to the licence money already paid to the council before this private contract takes effect?

I am sure tenants facing a rent increase as a result of the cost being passed on are going to be ecstatic!

Reluctant Landlord

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12:28 PM, 10th September 2024, About 3 weeks ago

By outsourcing the licensing process, Wolverhampton council hopes to free up its resources to focus on enforcement and high-risk properties.

If they are already aware of 'high risk properties' why is SL needed? They can seek to enter anytime regardless of a licence or not.

What is meant by high risk anyway - presumable HMO's which are already licenced independently of SL.

JB

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12:41 PM, 10th September 2024, About 3 weeks ago

I wonder what the profit margin will be for the contractor? I'm sure tenants will be delighted with the contractors snout in the trough that they are paying for

Downsize Government

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12:59 PM, 10th September 2024, About 3 weeks ago

Reply to the comment left by TheMaluka at 10/09/2024 - 10:28
That was my thoughts, but we know that public services tend not to be run well.
Assuming corruption is not the motivation, this could be a good thing for the economy. Why does every council need to duplicate processes, the councils should share outsourced companies that will in theory make things more efficient.

JohnCaversham

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13:46 PM, 10th September 2024, About 3 weeks ago

Corporate entity will have targets and profitability to factor in so will soon be Civil Penalty o'clock.

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