Illiterate Maths of Nottingham Selective Licensing

by Readers Question

18:12 PM, 22nd September 2018
About 3 months ago

Illiterate Maths of Nottingham Selective Licensing

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Illiterate Maths of Nottingham Selective Licensing

To all Landlords, I worked out a detailed time sheet for the likely average cost of Selective Licensing for Nottingham Landlords.

Including the paperwork, running around, arranging extra certifications, small works associated with them, checking paperwork of tenants, keeping up with reports etc. we are looking at £2400 (conservative estimate) over 5 years including the license fee.

So unless Landlords put up their rents by £40 per month, they are going to be out of pocket. A far cry from Nottingham city council figure of £2 per week or so.

In Inland Revenue terms, the loss to the exchequer equates to nearly £10 million per annum for Nottingham.

Over-reaching on SL policy by 85% , which Nottingham has done, will mean nearly £7 million per year is lost to the Inland Revenue in Nottingham. This includes taxation lost and reinvestment lost

If Nottingham had kept to areas where the government criteria for implementing SL were strictly applied, this £7m loss would have been near negated.

This calculation does include the slight gains of tidy streets that might result in deprived areas, but again this could have been achieved in very different way by alleviating poverty and its markers. This still is not being tackled by SL, in fact it is being exacerbated.

Landlords, feel free to use these type of figure to show the mathematical incompetence of Nottingham and the hit on the exchequer. Three cheers for Nottingham being mathematically illiterate and attempting social reform.

As always, the poor tenants will suffer the most. This is a massive tenant tax.

Thanks,

R. hood
Friar tuck (he is good at maths)

ps. only basic assumptions are made in this calculation, the end figures may be even worse.



Comments

AA

10:26 AM, 23rd September 2018
About 3 months ago

Assuming 40% tax - £2400 / 5 = £480 p.a.
£480 - £192 = £288 / 52 = £5.50 per week.
Tax is definitely not my subject but when I have an expense I always look at it in this format. Makes it easier to digest.

Monty Bodkin

11:29 AM, 23rd September 2018
About 3 months ago

"Nottingham city council figure of £2 per week or so."

Lets put this smoke and mirrors to bed.

Their working;
£480 discounted fee divided by 5 years divided by 52
= £1.85 per week.

Now lets look at someone investing in Nottingham in 4 1/2 years time;
£780 fee (no discount available now) divided by 26 weeks
= £30 per week

This is one reason why blanket licensing will make rental conditions worse. On a sliding timescale, law abiding landlords will increasingly be deterred from investing in Nottingham.

Who will take their place? Slum landlords.

Gromit

11:54 AM, 23rd September 2018
About 3 months ago

Reply to the comment left by AA at 23/09/2018 - 10:26I don't think tax comes into the equation, assuming all the extra costs are deductible against tax (which they should be). So the extra income will be wholly offset against the extra costs unless the Landlord chooses to inflate the rent or has calculated the costs incorrectly.
So the author of this thread is correct £2,400 of extra costs over 5 years is £40 per month.

To a tenant renting a 1 bed flat at £400pcm that's going to be a 10% increase. Why don't the media realise this?

Old Mrs Landlord

12:45 PM, 23rd September 2018
About 3 months ago

Reply to Friar Tuck: no need to coin the phrase "mathematically illiterate" which doesn't really make sense, the word you require is innumerate. (OML - she is literate).

Mick Roberts

12:53 PM, 24th September 2018
About 3 months ago

Councillor Urquhart is proud of the work she's done pioneering Selective Licensing which is making hundreds homeless. All to get at the minority bad Landlords and tenants, while the majority good Landlords and tenants suffer paying extortionate costs having to have increased rents to cover Urquharts ridiculous £780 per tenant.
Not once has she engaged with good Landlords to ask them what they think the solution might be.
As an outsider, she can see where the welfare reforms are going wrong, just as we can see where she is going wrong-And she won't listen just like the Govt don't listen to her.
I house 350 people in Nottingham, some with me 20 years, and she's not come to talk to me or my good tenants once.
She's fixated on the bad Landlords which is clouding her judgement to sensible solutions.
She still hasn't answered why Nottingham Selective Licensing is £780, yet other councils can do for £200, alleviating homeless.
Brilliant Monty, Yes slum Landlords will take the places of the good ones going. The slum landlords haven't paid their fee & hoping they ain't gonna' be found.
The Media in Nottingham to be fair, have got a grasp of the situation now, I've managed to turn tenants thoughts round, where now the majority of tenants are seeing this is one big rip off by the Council against the good tenants & the good Landlords to get at the minority bad ones.
There's not a day goes by, where tenants aren't talking about themselves or their mate who's had a rent increase cause of Nottingham Selective Licensing Tenant tax, &/or the Landlord selling.
http://www.selectivelicensingtruth.co.uk


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