Letting agent slams selective licensing as ‘cash cow’ for councils

A letting agent in North Yorkshire has criticised local authorities over selective licensing schemes, describing them as a “cash cow” that causes landlords to leave the PRS.

Speaking to Teesside Live, Guisborough-based letting agent Alistair Oswin, says “all selective licensing schemes do is push landlords out of the market.”

The site also had views from other contributors, with a councillor blaming landlords for failing to tackle anti-social behaviour.

Selective licensing is a cash cow for local authorities

Councils claim selective licensing schemes address issues such as poor housing conditions and anti-social behaviour.

However, Mr Oswin disagrees and says these schemes are only designed for councils to make a profit.

Mr Oswin told Teesside Live: “Housing associations must also be held accountable. From my perspective, selective licensing is a cash cow for local authorities.

“It drives landlords out of the sector, reduces supply, and pushes up rents.”

Passing the buck and blaming landlords

However, a councillor in Brotton, claimed landlords are not doing enough when it comes to anti-social behaviour and defended selective licensing schemes.

Councillor Barry Hunt told Teesside Live: “There are persistent issues in the area and it’s just a certain few [tenants] that are causing the bother and we are getting a bit fed up. If a landlord has someone in a property that is continually abusing the situation, they should be held responsible, they are getting the money every week.”

However, a Teesside Live reader points out landlords should not be to blame and the scheme is just another tax for landlords.

The reader says on the site: “If it’s always the same people, then why haven’t they been arrested? This is just passing the buck and blaming landlords, also if it’s just a few, why punish the good landlords?

“All this does is drive them out, resulting in fewer available rental properties & higher rents. It’s always the people at the bottom of the chain (tenants) who lose out. Selective licensing doesn’t work, it’s just yet another tax. Use existing regulations and the law to fix the situation.”

A private tax

A spokesperson for Redcar and Cleveland council told Teesside Live: “We are currently assessing the data and encouraging residents to report issues to us. If the data tells us that selective licensing is necessary, we will consider it.”

In nearby Middlesbrough, selective licensing schemes are in place in North Ormesby and part of the Newport ward, and have been criticised by landlords who say it is a “private tax” that is forcing them to keep rented homes empty.