Council will spend £2.5m outsourcing its selective licensing operation

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.