Landlord Licensing Schemes – Raising Standards or Raising Funds?

Landlord Licensing Schemes – Raising Standards or Raising Funds?

9:41 AM, 9th August 2013, About 11 years ago 118

Text Size

WARNING – this article might make you want to cry, it might make you want to laugh and it will probably make you angry, and for many different reasons depending on who you are. Licensing - Raising Standards or Raising Funds?

This is one of those articles which I would like to be read by every landlord, every letting agent, every tenant and especially every Politician.

I would also like every person who reads this article to leave a comment, share it and help turn it into a HUGE debate.

So what is it all about?

My friend Mary Latham recently wrote a book about the storm she see’s brewing which is heading towards the Private Rented Sector with potentially catastrophic consequences. One of the chapters in Mary’s book is called “Raising Standards or Raising funds”.

There have been many discussions about the effectiveness of licensing which is being introduced into the PRS in it’s various forms and on many occasions, landlords have concluded that licencing has very little to do with raising standards and more to do with Local Authorities raising funds to create “jobs for the boys”

Well you may be pleased to hear that the DCLG have asked Local Authorities to complete a survey about licencing. Have they read Mary’s book one wonders?

When I heard about the survey, intrigue and curiosity got the better of me – what questions were the DCLG asking?

To my surprise,  I managed to get hold of a link to the survey questionnaire, DCLG had used ‘open source’ software for their survey. Being the curious type I obviously felt compelled to take a look, fully expecting to be met with a security screen where I would have to enter a User Name and Password to get any further. I’d have given up at that point as there’s no way I would attempt to hack a Government website. To my surprise though, there was no security! They were using Survey Monkey and that awoke the little monkey in me.

To see the questions being asked I needed to complete the page I was looking at to get to the next set of questions, so I began to fill it in. This is the point at which my curiosity transformed into mischief as I was having a lot of fun with my answers 😉

Here was my opportunity to tell the DCLG what I really think about landlord licencing in the most cynical and mischievous way possible. What an opportunity!

Now before you think about attacking me with some “holier than though” type comments, please remember the DCLG are responsible for the drafting of all of the legislation which has caused the PRS so much grief. Anyhow, enough said on that, it’s done now.

I took screen shots of every page I completed and I have put them together in a slideshow below.

Do take a look and whether you laugh or cry and for whatever reason you get angry, please post a comment or join in the discussion below this article 😉

If I mysteriously disappear, you might just find me at the Tower of London LOL

I hope you will appreciate the irony of my answers!

[thethe-image-slider name=”Raising Funds or Raising Standards”]

Note for tenants – More licensing = higher rents!


Share This Article


Comments

Terry Lucking

7:33 AM, 12th August 2013, About 11 years ago

In my opinion there is already sufficient statutory legislation in place. What is needed is more EHO’s on the street and a visit to every dwelling once every 5 years. Maybe a mandatory licence for all rental properties for say £100 annually. In Peterborough alone it would generate over £1m annually - surely enough to add 10 EHO's with admin back up and systems.

Perhaps a scheme whereby trained qualified agents can licence landlords properties and private self managed landlords pay their local council for licensing on a 5 yearly basis and make it clear to all renters that they should demand to see the licence and check it against a national government controlled register.

We should consider having automatic fines in place for specific breaches (gas tests)in the same way as we have for parking and speeding offences. Keep a national log of anyone with property offences and prevent the transfer of property until the penalty has passed/spent.

Perhaps my ideas will not result in tax revenue that they maybe planning thru the back door.

7:39 AM, 12th August 2013, About 11 years ago

Reply to the comment left by "Mark Alexander" at "11/08/2013 - 09:56":

The flat that isn't contribututing any service charges is a problem, the alcoholic tenant still in situ despite a Prohibition Order is still a problem, and the disrepair of the property is still a problem. Apart from that, no problem!

The lender knows about the bankruptcy.

7:45 AM, 12th August 2013, About 11 years ago

Reply to the comment left by "Ben Reeve-Lewis" at "11/08/2013 - 10:24":

Hi Ben,

You are very welcome! Just one question. If the landlord is made aware of the anti-social behaviour committed by his tenants but doesn't even bother to serve an eviction notice, isn't this a tacit sign that he/she endorses such behavior? Leasehold block management rely on individual landlords serving such notices.

Ben Reeve-Lewis

8:07 AM, 12th August 2013, About 11 years ago

Reply to the comment left by "Sharon Crossland" at "12/08/2013 - 07:45":

No It doesnt Sharon and the logic is basic law not even housing law. How can you be done for something that someone else did?

Admittedly it makes sense for decent responsible landlrods to take action but the problem is most times any action will be under Ground 14 (Nuisance, immoral purposes etc) and that means a court hearing. Also Ground 14 is a discretionary ground, so even if the landlord proved the case the judge still has to find it 'Reasonable' to grant a possession order. When councils and housing association go on these grounds they usually end up merely with a Suspended Possession Order, which is granted with the aim of moderating the tenant's behaviour.

I still think it is worth doing but I think it is something that council's should help landlords with as its quite legally fiddly.Of course a landlord could use a solicitor but this whacks the cost up, which is probably why landlords dont get involved. Its in the council's interest to have these problems sorted so why not a partnership approach? But I tried that with the gun incident and look what happened.

Not many people know that councils also have the option of serving injunctions in the public interest under Section 222 of the Local Government (Miscellaneous Provisions) Act 1972, where ASB regulations arent feasible.

8:37 AM, 12th August 2013, About 11 years ago

Reply to the comment left by "Don Holmes" at "11/08/2013 - 16:37":

I found this comment very interesting. The one thing I don't get though is why, on the one hand good landlords don't want to be 'penalised' by the cost of licencing but on the other hand they want councils to spend money they haven't got on more enforcement measures. I also don't get the observation that 'if society wants a decent PRS then society should pay for it' (or words to that effect). Society as a whole does not care one way or the other about the PRS as it doesn't use it. Those that do care about it are the professional landlords offering good housing and reasonable and affordable rents and the good tenants who want a nice home.

It's all too easy to focus on negative points to promote ones own interest. If you take the observation about Scotland licencing, where a quarter of the properties have yet to be licenced, doesn't this mean that three quarters are? That's three quarters more than we have here.

However, my main concern is that where councils blanket licence, i.e. Newham, then landlords who don't want to pay (for whatever reason) will purchase properties in other boroughs where there isn't any licencing. I believe the NLA representative for East London said he would do so himself.

This is like moving on groups of troublemakers by dispersal orders to another area. It deals with the initial problem but only moves it. It doesn't deal with the heart of the issue. Nor at the moment does the PRS, certainly in terms of fragmentation!

Ben Reeve-Lewis

8:42 AM, 12th August 2013, About 11 years ago

Reply to the comment left by "Sharon Crossland" at "12/08/2013 - 08:37":

Sharon you said "This is like moving on groups of troublemakers by dispersal orders to another area. It deals with the initial problem but only moves it."

This is what I believe is driving the Newham Logic. Its a roundabout way of cleansing your borough. I recently attended a housing forum in Ashford Kent, with Marion from the NLA and one presenter talking about their licensing programme said it was having the same effect. He wasnt championing it in that respect but experienced council workers can read between the lines

Mark Alexander - Founder of Property118

8:47 AM, 12th August 2013, About 11 years ago

Reply to the comment left by "Sharon Crossland" at "12/08/2013 - 08:37":

Sharon, I can assure you that the rouges will be in the 25% of landlords which have not become licensed in Scotland. Decent people will obey the law, rogues and criminals will not. The rogues and criminals are not being dealt with. Therefore, GOOD landlords are paying money for nothing. For Shelter to admit that landlord licensing in Scotland is unlikely to ever work there is clearly a very big problem. The purpose of this thread is to consider effective alternatives.
.

Joe Bloggs

9:11 AM, 12th August 2013, About 11 years ago

Reply to the comment left by "Ben Reeve-Lewis" at "12/08/2013 - 08:42":

hi ben
the supposed ASB problems in newham are greatly exaggerated. it was impossible to verify the supporting data as lbn would not release on the grounds of DPA. licensing was driven by the mayor, who for idealogical reasons wants to drive out landlords and encourage family housing and particularly owner occupiers. hence the article 4 direction. in truth it has very little to do with ASB. newham landlords have been stitched up.

Ben Reeve-Lewis

9:21 AM, 12th August 2013, About 11 years ago

Reply to the comment left by "Joe Bloggs" at "12/08/2013 - 09:11":

I know Joe, this is one of the cases where the whole shebang came directly from Rockin Robin Wales, trying to transform his borough. Idealogically driven as you say.

I'm South East London born and bred and I've seen so many changes in my life. Growing up my bit had a dreadful reputation. Millwall football violence, muggings etc. I was watching an old episode of Minder a few weeks back where there was a running gag in it about going to South East London and the shock on all the West Londoner's faces. Dave at the Winchester club saying "South London???? There's some wicked people down there Arfur" haha

But in the past few years you are more likely to get short changed in a delicatessen than get mugged. The East London Line gives us a hotline to Islington and Brick Lane and all the young trendies who cant afford in Shoreditch or fashionable Hoxton are moving to Brockley and Honor Oak, the kebab emporiums noticably changing into cheese shops or tapas bars.

And what with housing benefit caps rubbing up against London rents while many homelessness units are farming people out to Manchester, South Wales, Hull, Stoke etc its easy to see how much of the old working class London will go the same way with a bit of a nudge. I'm sure the Newham Mayor prefers the idea of running a borough that is aspirational and largely middle class. Easier to police the PRS in a place like that, which means less staff

Mark Alexander - Founder of Property118

9:26 AM, 12th August 2013, About 11 years ago

Reply to the comment left by "Terry Lucking" at "12/08/2013 - 07:33":

I can see a few problems with that suggestion Terry.

1) Why should good landlords pay to police bad landlords for the benefit of tenants and society as a whole?

2) Who could trust the Councils to spend the money on employing more EHO's? In Salford they collected £700k and spent £1 million administering it! No change to standards and just a bit of propaganda based on an winning a similar number of enforcement cases to pre-licensing. The same thing is happening in Scotland and Newham.

Please take a look at the alternatives suggested in this thread. I appreciate that you might not have time so you may want to wait a few days as I'm in the process of consolidating them all into one new article.
.

Leave Comments

In order to post comments you will need to Sign In or Sign Up for a FREE Membership

or

Don't have an account? Sign Up

Landlord Tax Planning Book Now