Selective licensing blamed as Nottingham faces alarming homelessness figures

Selective licensing blamed as Nottingham faces alarming homelessness figures

0:03 AM, 21st December 2023, About 10 months ago 35

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Shocking new figures reveal Nottingham has the highest rate of homelessness across the county.

Data from Shelter reveals 2,700 people across Nottinghamshire will be homeless this Christmas. This includes around 1,340 children who are stuck in temporary accommodation such as B&Bs.

One landlord says selective licensing is to blame for the high levels of homelessness in Nottingham.

Figures are no surprise

The figures reveal a stark reality in Nottingham, with one in every 162 people left without a place to call home.

One local housing charity in Nottinghamshire says the figures are “no surprise”.

Andrew Redfern the chief Executive of Framework, told the Nottingham Post: “These are shocking figures. Unfortunately, they are no surprise.

“At the sharpest end of homelessness, we are seeing an increase in rough sleeping exacerbated by the Home Office’s asylum decisions which are resulting in people being evicted from their accommodation.

“Meanwhile the Department for Work and Pensions continues its plan to create a hostile environment for supported housing and this will further increase rough sleeping in the New Year.

“Councils have a legal duty to house families and people who are vulnerable but a housing shortage has seen an increased use of B&Bs in areas like Nottingham.”

Led to tenants being made homeless

Earlier this year, Nottingham’s selective licensing scheme was slammed by an external auditor who said the scheme has led to tenants being made homeless.

Leading Nottingham landlord Mick Roberts raised the objection that led to the auditors stepping in and he said: “The auditor’s report hits the target when it says that licensing fees do put rents up and the scheme has seen landlords leave the rental sector.

“That means tenants are being made homeless and the council not having the data on the issue doesn’t disguise the fact that Selective Licensing, which the council claims is to improve properties does, in fact, lead to tenants being made homeless. How many people must become homeless before the council wakes up and sees what’s happening.”

Scheme is not designed to make a profit

Also, a recent Property118 investigation revealed rents across Nottingham have soared in recent years.

According to the Office for National Statistics (ONS), rents in Nottingham have rocketed by nearly £200 since the introduction of the selective licensing scheme.

The council introduced the first back in August 2018, when rents in the city were £664. However, rents have been increasing rapidly since the scheme has been implemented.

When approached for comment, Nottingham council did not dispute that rents in the city have gone up after licensing was introduced but, told us that selective licensing is not to blame and the reason is down to recent interest rate hikes.

“The increase in rents that are quoted from the ONS data 2018 to 2023 might have something to do with the huge spike in interest rates in the past couple of years, pushing up mortgage payments for thousands of landlords.”

The council added the scheme is not designed to make a profit.

“Selective licensing is not income-generating – councils are not permitted to make a profit. Licence fees solely cover the costs of setting up, operating, and delivering the scheme in the city.”


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David100

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10:00 AM, 21st December 2023, About 10 months ago

My local council have had Landlord licencing for about 6 years. The total benefit to the tenants.............is that I (their landlord) am on a register, that they can look up. You know............in case they didnt know who they were sending their rent to every month! The cost of the scheme, is used to administer the scheme.....and produce a list (that was never needed or asked for), in the least efficient way humanly possible.

Robert M

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10:21 AM, 21st December 2023, About 10 months ago

Reply to the comment left by David100 at 21/12/2023 - 10:00Spot on David100.

Regardless of whether a selective licencing scheme is designed to make a profit or not, it still adds costs on to the provision of rented housing, and as the landlord needs to cover their costs via rental income received, then they are forced to increase their rents (failure to cover their costs would lead to trading insolvent, which I believe is unlawful).

When will government (both central and local) realise the bl***y obvious, that if charges are heaped on landlords (via onerous regulations, selective licencing, additional taxes, etc) then there is a knock on effect to the supply of housing and the amount of rent that has to be charged, and thus the affordability to the tenants.

Trapped Landlord

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12:28 PM, 21st December 2023, About 10 months ago

I'm sure if you was to ask Nottingham's council leaders the reasoning behind their homeless epidemic, you would be greeted by nothing more than , " Greedy landlords hiking rents ", and no mention of increased borrowing costs , " Widespread miss use of section 21 " and no mention of the facts its a legal vehicle and one of the only straightforward ways of regaining YOUR OWN property back in a time where landlord bashing has become a national obsession. In other words, if we can keep stick our fingers in our ears and keep screaming this is not about raising our revenues and all about raising standards for tenants then who can really argue with us ?

NewYorkie

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13:24 PM, 21st December 2023, About 10 months ago

What, exactly, will Shelter be doing to help the 2,700 people across Nottinghamshire who they claim will be homeless this Christmas?

Michael Booth

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14:28 PM, 21st December 2023, About 10 months ago

My local council is using selective licencing in what they call problem areas with no change what so ever slowly creeping into my area which is ok l even live in the area , already advised tenants to start looking for new home has will be selling up.

Cider Drinker

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14:33 PM, 21st December 2023, About 10 months ago

Rents will rocket again when the Renters Reform Bill is introduced (and before it’s introduced as landlords prepare).

Small Portfolio Landlord

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15:36 PM, 21st December 2023, About 10 months ago

Interesting that the council state that rents have risen due to spikes in interest rates.They went up to 0.25% in November 2021 - 3 years after the introduction of selective licensing and rents were going up from then - not just 3+ years later. They can't even get their story straight.

Mick Roberts

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16:11 PM, 21st December 2023, About 10 months ago

Reply to the comment left by David100 at 21/12/2023 - 10:00
Ha ha David
in case they didnt know who they were sending their rent to every month!

In 2018 when Nottingham Imbecile Council Selective Licensing came out, they were INSISTENT on us putting Letting Agent down if we dare even have one call with the agent. Correct address on Companies register etc.
Now on the new 2023 scheme, it appears the Council don't give a hoot if Letting Agent managing it or not.

Mick Roberts

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16:12 PM, 21st December 2023, About 10 months ago

Reply to the comment left by Robert M at 21/12/2023 - 10:21
That's exactly it Rob.
Govt & Council's making a lot of people homeless.
Rob, bell me 3 Jan, I may some UC news (if u don't know already) so u can help your homeless tenants even more.

Mick Roberts

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16:12 PM, 21st December 2023, About 10 months ago

Reply to the comment left by Trapped Landlord at 21/12/2023 - 12:28
Nottingham Labour Council Leaders are blaming interest rates-It would never be their Selective Licensing £890 charge & these 2022 conditions:
Most of u r very good. But are u perfect? Read Licensing conditions and tell yourself:
1. Could u comply with all them.
2. Would u take any tenant on that wasn't the most prim proper person ever?
3. If u was a landlord getting older, would u want to be dealing with that for EVERY house EVERY tenant?
4. Could u be doing with giving out 200 pages to each tenant each house.
5. Would u take a Benefit tenant on after being told u had to comply with them conditions?
Selective Licensing conditions Feb 2022
https://docs.google.com/document/d/1sD_HRl57ANNw4PBAb-FGRU7h-0Qby9Vm5xLioH_nA7c/edit?usp=sharing

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