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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.”
Mick Roberts
8:27 AM, 25th January 2023, About A year ago
For their permission to ask the Govt, Nottingham Labour City Council has just published their Consultation findings.
https://committee.nottinghamcity.gov.uk/documents/s141766/Appendix3SL2ConsultationReport.pdf
https://committee.nottinghamcity.gov.uk/ieListDocuments.aspx?CId=177&MID=9491#AI47427
Amazing they can admit this Page 9:
over 600 properties were inspected by the Council, with over 270 improved through
pre-licensing inspections (before March 2020, national lockdown) 27,292 licences were issued
That's around 1% of houses improved meaning 99% of tenants had rent increases to pay for Selective Licensing & didn't need it or got nothing in return.
Raz
9:42 AM, 25th January 2023, About A year ago
Reply to the comment left by Keith Owen at 24/01/2023 - 18:16
First of there are fixed term approx 2yr leases (with no obligation to renew) or open term leases. Tenants have to give minimum of 3 months notice to leave- not only landlords - this notice period increases with long term leases (up to 9 months) but the tenants would have been in for 8years+ at that point! You CAN evict after 2 months arrears - yes they can pay it back within the 2 months and the eviction is terminated, but if this can only happen once within a 2yr period - not endless rounds of eviction notice/court arrears/ paid off crap that happens with s8. You can also evict for breaches of contract, and for the use of a family member (Eigenbedarf). It is written in most contracts under are the 'house rules' and what conditions rent can be increased. You can't increase in 1st year but you can increase by up to 15% in a 3yr period if it can be justified. Every area has it own Mietschutzverein (local housing association) which can help with bad landlords and bad tenants without having to resort directly to legal action. Landlords are really only responsible for critical malfunctions or defects - small leaks, minor repairs etc are up to the tenants (depending on the terms of the lease). Yes system can be biased towards tenants, but hardly any more than it is in UK, but renting also isnt seen as a 'bad' thing in the first place. If you want to sell, the tenant has the right to remain in situ and have the right to purchase the property before it is sold to anyone else - with the sole exception of the landlord’s family members. A new owner will take the place of the existing landlord in the rental lease and cannot terminate the contract nor change the amount of the rent outside the terms already agreed, but the sale price isn't reduced because there is an existing tenant.
Keith Owen
9:58 AM, 25th January 2023, About A year ago
Reply to the comment left by Raz at 25/01/2023 - 09:42
Your experience clearly differs from mine
Paul Cunningham
21:01 PM, 25th January 2023, About A year ago
Gt Yarmouth imposed selective licensing in part of its Borough three years ago. Even after their consultation which had massive opposition to the scheme. This same Council has just been criticised for failing to maintain its own housing stock.
I run the local landlords scheme and can confirm that most rents were increased to cover the the cost which to date has had no benefit . The Council have engaged a private company, Homesafe, who have no connection to the area to manage the scheme with three mandatory inspections during the 5 year period.
The then NLA actually supported the councils proposition.........
GYGLA
Gt Yarmouth Landlords Association
Mick Roberts
5:53 AM, 26th January 2023, About A year ago
Reply to the comment left by Paul Cunningham at 25/01/2023 - 21:01
Yes, looks like 67% opposed this scheme, but still they press ahead increasing rents for tenants who were paying cheap rent.
Ha ha same as Nottingham, they've been employing Birmingham Inspectors to get more inspections done before they go to Govt for permission.
Luke P
10:15 AM, 26th January 2023, About A year ago
Reply to the comment left by Mick Roberts at 26/01/2023 - 05:53
The >90% majority of local residents and 100% of black residents opposed the recent changing of a London street name during the consultation...but the council went ahead and changed it anyway. Consultation rules are what need looking at.
cashcow
15:57 PM, 26th January 2023, About A year ago
Reply to the comment left by Luke P at 26/01/2023 - 10:15
It will always be 'black boy lane' to me. Hackney council are creating a problem that negatively effects those it seeks to protect.
My rents are going up for the first time to cover these preposterous licensing fees but you can only raise rents to the market level and at this time with the exit of so many Landlords there is an increasing shortage of supply this = increase rent opportunity ,which is all we have to keep us from having to sell up.
Well done councils 'sledge hammer to crack a nut.'
Mick Roberts
17:12 PM, 26th January 2023, About A year ago
Reply to the comment left by Luke P at 26/01/2023 - 10:15
Yes someone said to me yesterday (excuse my interpretation of this), that Govt just say It's a consultation, not a referendum, not a vote.
Mick Roberts
17:15 PM, 26th January 2023, About A year ago
Reply to the comment left by cashcow at 26/01/2023 - 15:57
Yes,
Many of us are still charging these cheap rents ie. £550 when all surrounding rents are £850. And if one does manage to leave, & we want to sell, we think twice & think What? I can get another 3k per year & it tempts us to have just another few more years on that house ha ha. These rents are a dream for some of us that the Council are creating v's the hassle we now have.
Gromit
17:31 PM, 26th January 2023, About A year ago
Reply to the comment left by Mick Roberts at 26/01/2023 - 17:12
Definition: "consultation". - a charade authorities conduct to create an illusion of democracy, to be ignored if the outcome doesn't coincide with the authorities wishes, and celebrated as democracy in action if it does agree.