Council pushes ahead with selective licensing despite landlord concerns

Despite concerns from landlords and tenants over the cost of selective licensing and its impact on rents, the council has decided to press ahead with the scheme.

North Lincolnshire Council has announced plans to introduce selective licensing in part of the East Marsh ward in Grimsby.

The local authority claims the scheme is necessary because East Marsh is among the 1% most deprived wards in the country.

Majority of landlords disagreed with the scheme

North Lincolnshire Council carried out a consultation to decide whether to implement the scheme and claimed 60% of the 202 residents who took part in the survey were in support of the scheme.

However, the council admits the majority of landlords disagreed with the scheme, and tenants and landlords also raised concerns over the cost of the scheme and whether it will impact rents.

The council claims they are “mindful of the impact of the licence fee on landlords” and says it will seek to operate the scheme as efficiently as possible.

The council adds: “A proposed review of the fee structure and delivery mechanisms will be undertaken to ensure it’s value for money. The fee structure must cover only the costs of running the proposed scheme on a cost-recovery basis.”

The council says: “Selective licensing must be delivered at no cost to the council, with licence fees paying for all revenue costs, including staffing and associated costs.”

Housing Minister Matthew Pennycook has previously warned councils must not profit from selective licensing schemes.

However, a previous report by Property118, reveals Nottingham City Council spent millions of pounds on selective licensing and failed to ringfence the scheme.

Social housing landlords and their properties will be exempt

North Lincolnshire council claim the scheme will be introduced to tackle anti-social behaviour.

According to the council, East Marsh also has some of the highest concentrations of private rented accommodation, high levels of anti-social behaviour, poor property conditions, and frequent reports of nuisance noise and fly-tipping.

The council says: “Cabinet members agreed that if the council does not introduce selective licensing then the area will not experience an improvement in housing conditions, which will continue to impact tenants and wider residents.”

Cllr Stewart Swinburn, Portfolio Holder for Housing, Infrastructure and Transport, adds: “We have listened to people in the East Marsh and they want better living conditions, they want to sleep safe in their beds, and they want to not have to worry about poor housing conditions or high crime impacting their lives.

“Selective licensing will enable conditions for good and sustainable homes, allowing residents to live a healthy life, nurturing our children and building their future, supporting our adults and contributing to clean and safe streets.”

However, in an unfair double standard, the council say they will punish private landlords with large fines who do not comply with the regulations, while registered social housing landlords and their properties will be exempt from selective licensing.

Under the Housing Act 2004, social housing landlords are generally exempt from selective licensing.

Housing charity Shelter says: “Properties let by local authorities and private registered providers of social housing (PRPSHs) do not need to comply with the licensing requirements.”

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