Landlords’ association warns council’s selective licensing plan is ‘unlawful’

A landlord association has urged a council to pause its upcoming selective licensing scheme, branding it “unlawful” and claiming evidence was withheld during the consultation process.

The Eastern Landlords Association has written to Housing Secretary Steve Reed and Great Yarmouth Borough Council, warning it is prepared to launch legal action.

The association has received backing from local MP Rupert Lowe, who has warned the scheme could force landlords to sell up.

The organisation’s move follows that of Leeds Landlord Lobby Group which has announced a GoFundMe campaign to help fund a judicial review over the city’s selective licensing scheme which it also calls ‘unlawful, disproportionate and damaging’.

Could not scrutinise evidence available

In a joint letter to the council, the Eastern Landlords Association and the Voice of Landlords Association (VOLA), a national body that brings together landlord groups from across the country, set out their concerns.

Chair of the Eastern Landlords Association, Paul Cunningham, claims the only data supporting the selective licensing scheme was withheld throughout the consultation period.

Mr Cunningham explains: “This ensured that the foundational evidence supporting the justification of the scheme was unavailable to consultees who, without access to the methodology, assumptions, raw data and outputs of the modelling, could not scrutinise the evidence base and feedback on this prior to the councils vote to green light the scheme.

“It is impossible for the council to argue that they have met Section 80 (9) of the Housing Act requiring councils to consider representations made, as withholding this modelling actively prevented transparent consultation.”

The letter also claims the modelling was out-of-date and inaccurate, arguing the council’s use of the 2019 English Housing Survey could lead to property hazard “predictions” rather than assessments based on current conditions.

The letter says: “It is clear from the easily accessible and publicly available English Housing Survey (EHS) data, that the Category 1 Hazards in the private rented sector have drastically reduced between 2018/2019 (The basis of the council’s model data supporting the need for Selective licencing) and the latest available data at the time of consultation which will have been the 2024 EHS, showing the Category 1 Hazards in the PRS have reduced by 29% in the same time period.

We therefore assert that the council simply have no basis to implement selective licensing and to do so based on inaccurate and out of date is a breach of the Housing Act, and their powers to implement selective licencing.”

Burdensome licensing regime

Mr Cunningham adds the council failed to take into account the upcoming Renters’ Rights Act, which will abolish Section 21 evictions and launch a Private Rented Sector Database.

Mr Cunningham says: “The reforms under the Renters’ Rights Act have the potential to achieve many of the vague objectives of the selective licensing scheme (improved property conditions, better management and accountability) without imposing a burdensome licensing regime on the entire private rented sector in the area, as well as the council itself. The council has a duty to consider all reasonably available options before designating an area for licensing under the Housing Act and has to consider these options and any justification for not using them to reach a robust decision.

“Ignoring the advent of the Renters Rights package amounts to a failure to consider alternatives in accordance with the guidance.”

Treating landlords unfairly is not the way

The Eastern Landlords Association has received support from Great Yarmouth MP Rupert Lowe, who warns the selective licensing scheme will do more harm than good.

In a post on Facebook, Mr Lowe said: “This selective licensing scheme from the council is simply not the answer. Of course, I support better housing conditions in the constituency, but treating landlords so unfairly is not the way. They will simply sell their houses, driving up rent and even opening the door to HMOs being bought up. We do NOT want that. Trust me, we have enough illegal migrants in the constituency already.

“I’ve listened to a lot of views on this and it’s clear that the council’s scheme is poorly thought out. It won’t work, and it won’t deliver for tenants or landlords.

“I am happy to work together with the council, local landlords and affected constituents to try and come up with a better way forward that will benefit tenants, landlords and the wider community.”

The selective licensing scheme is set to come into effect in parts of Great Yarmouth on the 1^st of April this year.

Good landlords have nothing to fear

When approached by Property118 for comment, the council told us they have complied with legislation and good landlords have nothing to hear from selective licensing.

A spokesperson for GYBC said: ‘’In preparing its proposals for a selective licensing scheme in Great Yarmouth, the council followed nationally recognised best practice with the aim of producing a scheme that will deliver significant improvements for the quality of life of thousands of people renting homes in the town by ensuring legal standards for safe homes are met. The public consultation the council carried out was transparent and very well participated in.

“The council considered the views of more than 275 respondents before producing its proposal. The consultation saw the council make a number of changes to the proposal, including reducing the cost to landlords. Selective licensing schemes already operate successfully across wide parts of the country and no one should lose sight of the fact that the only purpose of introducing a selective licensing scheme is to improve the quality of housing for people in our communities. Good landlords have nothing to fear from a selective licensing scheme, wherever they operate, and the council is confident its proposal meets all the necessary legal requirements for its introduction.’’