Councillor slams selective licensing scheme and warns of landlord exodus

A councillor has criticised selective licensing schemes, describing them as a “supplementary tax” on landlords.

Speaking at a Wirral Council meeting of the Economy, Regeneration and Housing Committee, Councillor Tony Cox argued that many landlords are unable to avoid the financial burden imposed by the schemes.

Cllr Cox also warned of the number of landlords selling up and leaving the private rented sector, as social housing waiting lists rise.

No way to escape licensing fee

Mr Cox pointed out the previous selective licensing schemes across Liverpool, were not a great success, with the National Residential Landlords Association (NRLA) labelling the scheme as “a waste of time”.

Mr Cox suggested that instead of a blanket approach to licensing schemes, more should be done to incentivise landlords, such as offering discounts or exemptions if they can prove they have made significant improvements to their properties.

He explained at the meeting: “Rather than it being a supplementary tax, if a licensing scheme applies in a particular area and the landlord has made significant improvements to a property and can demonstrate that, is there justification to keep slapping that £605 charge on them every year?

“It doesn’t seem right to me to keep charging that fee when a landlord has gone out of their way to improve their property to a high standard,  yet has no way to escape that £605.”

Despite his concerns, the council decided to approve five more selective licensing areas in the Wirral.

Private landlords have been battered

Elsewhere in the meeting, the council discussed the Property Pool Plus scheme and proposed policy changes to better address local housing needs, rising homelessness demand, and longer social housing waiting lists.

The report on the policy recommendations includes amending the discretion criteria within the policy for applicants for social housing.

However, while Mr Cox praised the work that went into the report, he argued it does not paint the full picture.

He told the meeting: “The reality is that since 2017, private landlords have been absolutely battered by subsequent governments and it’s about to continue.

“It’s not what the report is about, but over the next 12 months, it says there will be a 24% reduction in private landlords due to the upcoming legislation they have to deal with. Some of it is for the better, some of it most definitely for the worse. In the five-year plan, they’re talking about a 33% reduction.

“There’s not a single word in that report that says what is driving homelessness. The reality is it’s only going to get worse.”

He added that it would be helpful to see data from the council on how many people are being forced to leave the private rented sector because their landlord is selling up, and are then turning to the council for homelessness support.

Share This Article