Council slammed for extending licensing schemes without telling landlords
2 years ago | 1 comments
Council will spend £2.5m outsourcing its selective licensing operation
12:02 AM, 10th September 2024, 2 years ago
23
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.
Comments
Have Your Say
Every day, landlords who want to influence policy and share real-world experience add their voice here. Your perspective helps keep the debate balanced.
Not a member yet? Join In Seconds
Login with
or
Related Articles
Lambeth introduces new licensing scheme for PRS – and plans to widen the net
2 years ago | 1 comments
Propertymark calls for MOT’s for PRS homes instead of property licencing
2 years ago | 12 comments
Member Since June 2013 - Comments: 3237 - Articles: 81
2:07 PM, 10th September 2024, About 2 years ago
Shocking. Poor tenants paying for everything they don’t want.
Member Since May 2017 - Comments: 763
2:16 PM, 10th September 2024, About 2 years ago
Reply to the comment left by TheBiggerPicture at 10/09/2024 – 12:59
Let’s hope it’s not Serco
Member Since September 2018 - Comments: 3508 - Articles: 5
2:23 PM, 10th September 2024, About 2 years ago
Reply to the comment left by JohnCaversham at 10/09/2024 – 13:46
interesting. If the council enforce and issue, they will no doubt have to rely on evidence provided to them by the outsourced company?
If the outsourced company is planning to visit properties then the T has zero obligation to let them in – they are NOT the council, merely a council ‘representative’…. DBS checked???
Member Since September 2018 - Comments: 3508 - Articles: 5
2:23 PM, 10th September 2024, About 2 years ago
Reply to the comment left by JB at 10/09/2024 – 14:16
you read my mind!!!!
Member Since August 2014 - Comments: 175
3:38 PM, 10th September 2024, About 2 years ago
Basically the Council have created a hands-off external revenue source. Now they can just sit back and collect the money for minimal effort.
This “arrangement” is just a protection racket as the Council will be the “enforcers” able to impose £30,000 fines etc if the victim, sorry I meant landlord, doesn’t cough up the protection money.
It’s plain and simple an extortion scheme for the money and would be illegal if operated by a non governmental entity.
Member Since November 2023 - Comments: 8
4:23 PM, 10th September 2024, About 2 years ago
So basically the council have worked out it will cost £2.5m and this now becomes a fixed cost, don’t really matter what happens to the houses now ..
Member Since May 2015 - Comments: 2188 - Articles: 2
4:50 PM, 10th September 2024, About 2 years ago
Reply to the comment left by Bristol Landlord at 10/09/2024 – 15:38
Yes, that is just what licencing schemes are, legalised protection rackets.
Member Since May 2024 - Comments: 108
5:50 PM, 10th September 2024, About 2 years ago
If (when) I get extra rental council costs in my area I will ensure that my tenants get a breakdown of costs, as per our personal council tax bills. I want to make it clear in that instance that some of their rent will be going to fund bureaucracy.
Member Since September 2018 - Comments: 3508 - Articles: 5
6:57 PM, 10th September 2024, About 2 years ago
Reply to the comment left by Jack Jennings at 10/09/2024 – 17:50
excellent idea. I might well do the same.
Member Since March 2017 - Comments: 21
11:33 PM, 10th September 2024, About 2 years ago
£500,000 pa will buy the council very little if they are expecting a new IT system, fee collection and inspections.
It equates to the cost of maybe 3 inspectors and a few office support staff per year.
I’m guessing the income from SL will be upwards of 10 million pa so a nice earner for the council and no incentive for the third party to do anything