Scrap the S-crap-ped Selective Scheme

Scrap the S-crap-ped Selective Scheme

9:56 AM, 5th March 2021, About 7 months ago 9

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Manchester City Council has quietly announced that they are making a proposal for Selective Licence Schemes in areas of Manchester. They hail that it will:

Make more people want to live in the area – Make people want to stay in the area for longer – Cut the length of time houses are empty increasing the rental income for landlords – Increase property values as the area improves – Reduce crime and antisocial behaviour

It’s because its in areas that are:

Low demand for houses – with few people wanting to live there
Significant and persistent problems with antisocial behaviour
Houses that are in a poor condition
People who only rent houses for a short period of time
High levels of crime
Deprivation – examples include low income, poor health.

For more details click here

I happen to own property in one of the areas and would disagree. In fact approx. 2 years ago it was part of a regeneration scheme where the council bought them for £15,000.

Just before the pandemic, they were regularly being on the market for £90-£100k. Either MCC got plenty back or not enough when refurbish expenses are taken into account. Either way, it seems MCC now want to extract money from landlords. But wait. Haven’t we heard of this scheme before?

Liverpool implemented a scheme back in 2015, charging the same amount – £650 for the first property, then £550 for everyone after that.

The “successful” scheme issued more than 37,000 compliance actions and prosecuted nearly 250 landlords since the scheme began.

However, the challenge, raised by the Residential Landlord’s Association, includes among other points the claim that most of these ‘breaches’ are plainly regarding administrative errors, including a failure to be in possession of paperwork. They also suggest “that evidence shows licensing is not needed across the city. Many wards do not have high figures for hazards”

So eventually The Government’s final decision to reject the renewal of the legislation was based on a judgement that the application for renewal contained no robust evidence to support the existence of low housing demand in the city.

Maybe MCC haven’t heard of the “success of Liverpool Scheme. Or Luton’s :
https://www.landlordzone.co.uk/news/exclusive-shocking-story-behind-councils-failed-selective-licensing-bid/

Or any other areas you may know of. Let me know of any others nationally and when I comment back to MCC it might be worthwhile to educate them.

James



Comments

by Happy Landlord

12:02 PM, 5th March 2021, About 7 months ago

For any LA thinking of undertaking this criminal activity for the first time ever I withdrew from buying a property in an area where this scheme is coming in. I shall also be selling property in areas where this scheme is in operation - not only is it a penalty against good landlords it also reduces the rental stock and increases rents to tenants but left leaning LA's are too blind to understand this.

by Sara Westenborg

13:08 PM, 5th March 2021, About 7 months ago

Stoke-On-Trent City Council were unsuccessful in their attempt to introduce further Selective Licensing across the city in 2019. MHCLG rejected their application in July 2019 - only because a group of landlords and the local landlord association worked together to examine every aspect of their submission/ consultation. Please get in touch if anyone would like email copies of the Councils submission or the Landlords Association submission to MHCLG.

by David Lovegrove

20:09 PM, 5th March 2021, About 7 months ago

Do not Manchester City Council already operate Selective Licensing in four separate areas of the City ?
It might be interesting to collect data as to the success or otherwise of these schemes both in terms of improvements and there financial viability.

by jonney

11:39 AM, 9th March 2021, About 7 months ago

I have been invested in Manchester for some time and had to apply for over 20 licences when they introduced selective licencing for a large area (Gorton). The licences were for 5 years and when they expired in 2012 the scheme was not renewd because it did absolutely nothing apart from create bureaucracy and costs.

They are aiming at a smaller area this time but there is no low demand for buying as the houses get snapped up nor for renting as nothing stands empty for over a week.

The council has enough power to enforce the regulations without once again creating more bureacrcy and cost. Everyone affected needs to take part in the consultation and not just leave it for others.

by Heather G.

13:33 PM, 9th March 2021, About 7 months ago

Reply to the comment left by Sara Westenborg at 05/03/2021 - 13:08
Hi Sara, I'd be interested to see the submission to MHCLG. Lambeth are consulting on introducing Additional HMO licensing with ridiculous conditions, and Croydon are trying to reintroduce borough-wide licensing yet have no proof that the previous 5 year scheme produced any benefits. I'm trying to fight both so would be grateful for any help. Thanks.

by Sara Westenborg

17:44 PM, 9th March 2021, About 7 months ago

Reply to the comment left by Heather G. at 09/03/2021 - 13:33
Hi Heather - what is your email address & I'll forward it. Thanks, Sara

by James D

19:06 PM, 10th March 2021, About 7 months ago

Reply to the comment left by Sara Westenborg at 05/03/2021 - 13:08
Yes please send any information. I wish to include all of this in my "feedback" to :
https://secure.manchester.gov.uk/info/200024/consultations_and_surveys/8113/proposal_for_having_licences_for_privately_rented_properties/3

by James D

19:07 PM, 10th March 2021, About 7 months ago

Reply to the comment left by jonney at 09/03/2021 - 11:39
Yes please send any information. I wish to include all of this in my "feedback" to :
https://secure.manchester.gov.uk/info/200024/consultations_and_surveys/8113/proposal_for_having_licences_for_privately_rented_properties/3

by Sara Westenborg

19:23 PM, 10th March 2021, About 7 months ago

Please let me have your email address. Thanks, Sara
Sara@yourstudentac.com


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