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0:01 AM, 24th January 2023, About A year ago 34
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A new selecting licensing scheme is to go to the government for approval – but councillors don’t want landlords to add the licensing fee to a tenant’s rent.
That’s the call from Nottingham City Council which says it ‘does not believe landlords will need to increase tenants’ rent to cover the cost of a licence application’.
Councillors say the licence should be factored into a landlord’s business plan and any previous rent rises should cover the fee.
The scheme is set to begin in August 2023 which would, the council says, give landlords time to plan.
However, one of the city’s biggest landlords says that tenants are aware that they will be paying the cost of the new licence.
Mick Roberts, who is one the city’s largest landlords, told Property118: “All smart tenants know that their rent pays for everything.
“And if landlords are already charging 70% of the market rent to look after long-term tenants, which just about pays for the current outgoings, do the council think he is going carry on charging that cheap rent?
“Even after the council gives that property/tenant an £800+ charge?”
Nottingham’s new selective licensing scheme will mean that landlords must prove their properties meet required standards, the council says.
Coun Toby Neal, the council’s portfolio holder for housing and human resources, said: “People renting privately have a right to expect a decent standard of accommodation.
“Many of the 45,000 plus privately rented properties in the city are well-managed but, as part of the first scheme we still find properties that are to a very poor standard.
“Homes with damp and mould, homes with no smoke alarms or hot water or heating; so there is more work to be done.”
Mr Roberts said: “Toby Neale has never housed anyone in his life and says ‘We can’t see landlords putting rents up’.
“Many of us landlords are 100% putting rents up to pay for this.
“Nottingham Council has created an outgoing on a house that was spick span and had money spent on it.
“That outgoing needs paying for, never mind the laborious unnecessary admin involved.”
He added: “Mr Neal says there are some bad houses – well go get them then, don’t hurt the 80% that have zero problems.
“The council is wrecking low-earning tenants’ lives.”
Mr Roberts continued: “The new licensing scheme starts in August 2023 and, to date, they have managed to make improvements to less than 2% of properties during their current licensing scheme.
“That means that 98% of tenants who will have seen their rents increased will have received nothing in return.
“In fact, money that could have been spent on improvements will have been spent on licensing fees.
“In my opinion, the proposed licensing scheme is a politically motivated attack from a council that cannot be trusted and are either too stupid to realise or simply not bothered about the facts that their unnecessary licensing scheme is going to push up the cost of renting a house in Nottingham higher than it needs to be.”
However, Mr Roberts also says that he won’t put up rents – if he can pay all the licensing fees in one go without spending hundreds of hours filling in paperwork.
He says that the total fee would be £57,000 and he tells the council: “Ring me tomorrow, I’ll pay your £57,000 and I PROMISE to give zero tenants a rent increase if that is ALL I have to do.
“No paperwork. No form filling in. No inspections. No hundreds of hours sending you documents and forms.”
He added: “This is for your sake, not mine.
“Some of you councillors are aware I wish to sell many of my houses but can’t because licensing has stopped tenants from moving.
“And most of my tenants are aware they are paying far too cheap a rent which doesn’t pay for 2023’s outgoings – which is why all other landlords’ rents have gone up.”
Rod
14:24 PM, 24th January 2023, About A year ago
Reply to the comment left by Crouchender at 24/01/2023 - 12:27iHowz have written to Greenwich asking them to explain why they felt they had met the criteria for renewing their licencing scheme.
https://ihowz.uk/additional-hmo-licensing-scheme-for-the-greenwich/
We will be taking a look at Micks "mates" at the Nottingham licencing team with our friends at EMPO and expect to take similar action.
iHowz are pushing for progress on the White Paper proposals for the Property Portal, supported by an ombudsman scheme.
When all compliance is available in the same way as EPCs, it will help deny criminal and substandard operators access to the market while making it easier to identify them.
Any additional checks can be certified by surveyors or other independent assessors, as happens in Southampton. This ensures ALL properties are inspected while costs are lower and outcomes more certain.
https://ihowz.uk/southampton-licensing/
C CA
15:11 PM, 24th January 2023, About A year ago
Reply to the comment left by Raz at 24/01/2023 - 12:41
Please rent a German type of property to this Idiot by mistake placed as public administrator "councillor"
Mr Councillor, go to Germany and lecture them that you are working hard for the 2% to the expenses of the 98%
Tell your Council and the TENANTS OUT THERE do not need pay increase that any increase in cost should already be included in the past increase..
Well done Mr Roberts, by making it public your comments many Tenants will go on learning how much they can rely on the Council... perhaps tenants organisation and the Shelter of life should refocus their MISILES TO THE REAL ENEMY OF THEIR WELL BEING !!!
Jeff Simms
17:02 PM, 24th January 2023, About A year ago
Remember that there are more tenants than landlords that vote. Councillors know there are more votes in bashing landlords.
Layla .
17:41 PM, 24th January 2023, About A year ago
"Councillors say the licence should be factored into a landlord’s business plan and any previous rent rises should cover the fee."
Best green light ever, I'm putting the rent up now for whatever they might plan to do next.
Crouchender
18:04 PM, 24th January 2023, About A year ago
Reply to the comment left by Layla . at 24/01/2023 - 17:41
Don't forget they will also slap a penalty on for minor things because they can (and need to generate income) so again the tenant will have to cover that cost eventually via rent rises.
Simple maths...
Higher regulation=Higher rent
Keith Owen
18:16 PM, 24th January 2023, About A year ago
Reply to the comment left by Raz at 24/01/2023 - 12:41
Your understanding of the German rental market is a little skewed. In my experience (I was a tenant in Bavaria from 2000-2021) the rental market is most definitely in favour of the tenant.
Yes, most properties are totally empty, including the kitchen (our property had just a couple of hot/cold pipes sticking out of the wall when we moved in, nothing else - no cupboards, no shelves, no cooker, just an empty room). But thats typical of all properties, not just rental. Germans are in the habit of taking their kitchen with them when they move, and adapting it to fit their new place. So (unless they were a first time renter) all Germans would have a kitchen to fit into a new rental place. In fact, they would be most annoyed if the kitchen wasn't an empty room, because they don't want to have to put up with someone else's kitchen.
Rents are not cheap, but they are strongly controlled. It's extremely difficult for a landlord to increase rents - they must prove that other similar properties in the same area are cha4ging significantly higher rents and provide evidence. A tenant can appeal to the equivalent of a local ombudsman if they disagree with the increase, and these almost always side with the tenant. Landlords can increase the rent if they do major renovation work, but no higher than the average rent for similar properties in the area. Our rent went up once in 21 years of renting the same property, after we'd been there about 17 years.
It's also extremely difficult for a landlord to remove a tenant, unless they intend to sell the property. There's no equivalent of a "no fault" eviction. If you pay your rent and look after the property, you're safe. It's illegal for a landlord to try and evict a tenant in order to let a family member live in the property, for example.
The tenant is not responsible for any repairs, that's the responsibility of the landlord. The tenant is allowed to put up shelves redecorated, etc without the approval of the landlord. When the tenant vacates a property, they are expected to return the property to the state it was in when they moved in, but in order to remove any potential future conflict, most tenants will insist that the property is fully redecorated before they move in. Most landlords will do this anyway, because they know what to expect.
Tenants are not responsible for any legal certification relating to the property, that's the responsibility of the landlord.
Incidentally, although not a legal requirement, most landlords will market via an agent. German administrative paperwork is notoriously laborious and most landlords do their best to avoid it. We found our property via a makler, but from then on we dealt directly with the landlord for rent, repairs etc.
Most of these agents will take potential tenants to view a property, and if they express serious interest in renting, they will be introduced to the neighbours. We met all six families in our cul-de-sac. The agent will then go back later to speak to the neighbours, and get their opinion. If the neighbours didn't like you, you can expect some "problem" to crop up in your rental application. Its not legal, and it probably doesn't happen much in cities any more, but its an informal way of vetting the tenants and giving some measure of protection to the agent should the tenant turn out to be bad.
I don't know about anyone else here, but that's not a system I would want to be a landlord in. Having been a tenant in both England and Germany, and a landlord in England and USA, I'd much rather be a tenant in Germany and a landlord in England!
Rod
18:22 PM, 24th January 2023, About A year ago
As they say on good investment platforms
Investments and the income from them may go down as well as up and you may get back less than the amount you invested. Past performance is not a guide to future.
The problem with assuming landlords are cash cows is, when the investment ceases to be profitable, most investors will sell up and find a better performing asset.
SimonP
19:49 PM, 24th January 2023, About A year ago
"Councillors say the licence should be factored into a landlord’s business plan and any previous rent rises should cover the fee."
What a ridiculous and illogical statement to make.
On that basis, the same case can be made for council tax increases since previous taxes should cover all future outgoings, even if they were not on the horizon at the time?
And utility comanies should have known that costs would increase and therefore their charges in previous years should have been factored in so that current gas and electric bills are not impacted negatively.
Mick Roberts
8:17 AM, 25th January 2023, About A year ago
Reply to the comment left by Martin Thomas at 24/01/2023 - 12:03
That's it, where do they get £800+ from
Mick Roberts
8:19 AM, 25th January 2023, About A year ago
Reply to the comment left by Rod at 24/01/2023 - 14:24
Keep up the good work Rod, if I can help, please get in touch, but you seem far more articulate than me.