Selective licensing fees could force Blackpool landlords to sell

A councillor has warned that landlords in Blackpool could sell up as they struggle to pay “massive selective licensing fees.”

In Blackpool, the selective licensing fee costs £772 for a five-year licence, although some discounts are available.

However, Reform councillor Emma Ellison warned that landlords are struggling to set up a payment plan, as they must pay the full fee within the first 12 months, even though the scheme lasts for five years.

Causing landlords a lot of problems

Cllr Ellison told a council meeting that she has been contacted by a number of landlords struggling with the payment plan for selective licensing. She pointed out that even though the licence lasts five years, landlords have to pay the full fee within the first 12 months.

She said: “I know a lot of landlords are often viewed as having plenty of money and being terrible landlords, but that’s not the case. Many landlords are doing a really good job and genuinely looking after their tenants.

“There has been a lot of concern over this licensing scheme, particularly regarding the payment of the fees. Landlords need to set up a payment plan over the first 12 months, even though the licence lasts for five years.

“It’s causing landlords a lot of problems. Many are reporting that they might have to sell their properties because they can’t pay these massive fees, which are often being passed directly onto tenants through higher rents.

“If landlords can’t find the money to pay the fees, ultimately that’s what will happen. Is there any way we could look at extending payment plans beyond 12 months? Many landlords simply don’t have that kind of money available, and it is causing significant stress and tension.”

Don’t pass on costs to tenants

In response, Cllr Paula Burdess, cabinet member for community safety, street scene and neighbourhoods, claimed there are discounts available and landlords should contact the council.

She said: “The reason it gets expensive is because of the size of the portfolio. Individually, the charge per property is £772, which is paid over two payments.

“The first being larger and the second is less than half of the payment on the second instalment, that’s where discounts are allowed.

“Where there has been a late application then landlords won’t get the discounts.”

“I’m assuming they’re worried they can’t pay because they have a sizeable portfolio. In cases of genuine hardship, we will work with individual landlords to work out a payment plan. We are not going to see our landlords go to the wall at all. We are more than happy to work with them and work out terms.”

Cllr Burdess said the fee should not be passed on to tenants. She explained: “When you break it down, the cost per month for each property is very small, which doesn’t need to be passed on to the renter.”

Fees are pushing landlords to the brink

However, Cllr Ellison pushed back, arguing that for many landlords, finding £772 is challenge, particularly for those with multiple flats, as additional costs apply per unit.

She said: “Finding £772 in a short space of time is quite difficult. If a landlord has a number of flats, it’s not just the £772, there’s also £95 per unit, so the costs really add up.

“Just because someone owns a few blocks of flats doesn’t mean they have hundreds of pounds lying around. These fees are pushing landlords to the brink.

“Many landlords are often assumed to be wealthy, but they still have mortgages, and legislation like Section 24 means they can’t offset all of that against their earnings. A lot of landlords are saying they are breaking even or even making a loss.”