Council’s selective licensing scheme branded ‘nothing but a cash grab’ by landlords and tenants

A council has decided to press ahead with a selective licensing scheme despite warnings it could drive up rents for tenants.

Thurrock Council in Essex says the scheme will help raise standards across the private rented sector.

However, a consultation on the scheme reveals landlords and tenants believe the scheme is “nothing but a cash grab” and will only lead to higher rents in the area.

Paper applications will incur a £500 surcharge

Thurrock Council has confirmed that its selective licensing scheme will go live in certain areas in January next year.

The council says it carried out a consultation between May and June this year to gather the views of tenants, landlords and residents. According to the council, a majority of respondents (60%) supported the scheme, with 29% opposed.

However, a closer look at the report tells a different story, with many residents warning that the selective licensing scheme could lead to higher rents.

Landlords will be required to pay a fee of more than £1,000 for the scheme. This is split into three parts: £236.98 for application processing, £562.16 for additional scheme costs, and a further £235.76 when the licence is issued.

Paper applications will incur a £500 surcharge, which many landlords have described as unfair.

The fee is nothing but a cash grab

The report reveals more than three-quarters of landlords and letting agents (75%) felt the fee was too high.

One landlord told the report: “The fee is nothing but a cash grab and will only lead to higher rents in the area. I have found that most of the properties with anti-social tenants and poorly maintained are local authority housing which I assume are already subject to these licence fee “level of standards”.”

Another resident told the report the selective licensing scheme could cause landlords to sell up: “I don’t agree with the fee at all. The cost will be passed onto the tenants and rent for homes around here are already over £1700 a month. More landlords will want to sell up because of the additional fees leaving a further shortage on what already is a hard to come by area to rent in. The extra checks will cause more stress on tenants and estate agents.

One resident also objected to the £500 paper surcharge being so high and called for it to be decreased.

The charge will be passed down onto the tenant

The council claim the scheme will raise standards and protect tenants.

Cllr Mark Hurrell, cabinet member for social housing, said: “This new scheme is a step forward to raise our private rented housing across Thurrock and ensure landlords are held to the same standard of responsibility.

“This scheme is significant for Thurrock as nearly a quarter of all homes in the borough are privately rented. I am pleased that this new scheme will give us the tools to ensure that the private rented sector plays its proper part in providing safe, secure, and well-managed homes for Thurrock residents.”

However, the consultation reveals tenants raised concerns over the scheme.

One tenant told the report: “This charge will be passed down onto the tenant, making already high rent, unaffordable. Me and my family would no longer be able to afford an increase. I’m really unsure how charging landlords would also reduce crime and improve property conditions.

“The money made for this licence would quickly get swallowed up by other needs, therefore there is no assurance that this charge will help.”