Will Nottingham fine landlords for increasing rents to cover licensing?

by Readers Question

9:08 AM, 18th December 2019
About 10 months ago

Will Nottingham fine landlords for increasing rents to cover licensing?

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Will Nottingham fine landlords for increasing rents to cover licensing?

I read an article about the council checking that the renting cost/ prices are kept down. Nottingham City Council will apparently fine any landlord that increases the rent cost because of licensing. The reason for this pressure on landlords from the Council is that the licensing is covering a 5 years period.

Nottingham City Council are forgetting a big issue – landlords do not have not 5 years to pay the licencing fees. Nottingham City Council demand the payment from landlords upfront and that is all.

It would be easy if landlords are giving the opportunity to pay for the licensing in yearly quotes, also, it does not take into account if a property is empty or how long it is empty for.

On top of the licensing cost and payment demands from the Council, there is the price increasing on the licencing. It is clear that all the charges are going to be paid for by the tenant one way or another. The Council is ensuring more and more people will be in hardship thanks to their policies.

Nottingham Council cannot expect landlords to keep rents the same.

Also, the Council is forgetting the prices of traders for fixing or keeping the property in rentable condition are expensive. Lucky if you have someone to help you with DIY or major works charging you a rate that match inflation levels.

Cabeaz


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Comments

Neil Patterson

9:16 AM, 18th December 2019
About 10 months ago

Also see Mick Roberts last article: Selective licencing report Nottingham did not want you to see

>> https://www.property118.com/selective-licencing-report-nottingham-did-not-want-you-to-see/

Throughout all the consultation events and meetings that the Selective Licensing Team have had with the private landlords they have constantly reiterated to them that the licence fee should not be passed on to their tenants by way of a rent increase.

Landlords, both themselves and through the Landlord Associations they are involved with, are aware of other selective licensing schemes across the country. However, they feel that the cost of the licence in Nottingham is far more than many of the other schemes are charging. Admittedly, if landlords are DASH registered the fee is reduced and they accept that only half has to be paid initially with the other half becoming required at the point the licence is issued but even so, again, for some landlords where margins are very tight, the fee together with the cost of remedial works can make the property unviable financially.

Dylan Morris

10:01 AM, 18th December 2019
About 10 months ago

Luckily my area hasn’t yet introduced this money making nonsense so I’m not too knowledgable on this subject, but from what I’m reading here Nottingham Council are not only introducing a mandatory licensing fee they are capping rents at a zero increase over 5 years ? If so surely this does not comply with the licensing criteria set down in the central government legislation ?

Monty Bodkin

10:05 AM, 18th December 2019
About 10 months ago

"Will Nottingham fine landlords for increasing rents to cover licencing?"

No, because they have no power whatsoever to do so.

Monty Bodkin

10:12 AM, 18th December 2019
About 10 months ago

An obvious consequence;

https://www.nottinghampost.com/news/nottingham-news/selective-licensing-blamed-nottingham-reaching-3435063

Nottingham has seen the highest percentage rise in rent compared to anywhere else in the country - with a controversial licensing scheme being blamed for the hike.

Luke P

10:27 AM, 18th December 2019
About 10 months ago

As Monty says, they have no power to do such a thing and even if they did, proving any rent increase was because of licensing would be very difficult.

It reminds me of when my local council decided to charge the entire borough for their garden waste bins (that they already had and had been using happily for several years). I think they wanted £35pa and virtually the whole town decided against paying, so they had to collect virtually all the bins. They then tried to say people would be fined for putting the garden waste -that which used to be separated out into the brown bin- in their general waste bin.

The bloody idiots...you can put anything you like in the general waste bin!

They are still storing thousands of used, stinking brown bins in a warehouse somewhere.

The point is the attitude of we will force you to conform to our ideology and how it will not work.

Tim Rogers

10:29 AM, 18th December 2019
About 10 months ago

Like Dylan, the joys of this money making scam have not yet reached my area. But given the weight of evidence as to the negative effects, the hopeless implementation, lack of inspections, level of revenue taken and other associated reports, I believe the criteria that need to be reached, prior to permission being granted by the minister to allow selective licencing, have been well and truly breached by Nottingham Council.

Is it not time to correlate all the data and apply to the minister to have the permission revoked?

Dylan Morris

10:35 AM, 18th December 2019
About 10 months ago

I could be wrong but I guess that Nottingham is a Labour run council ? Just out of interest are any of these quantitative easing (money printing) schemes being run in Tory controlled areas ?

Rob Crawford

10:42 AM, 18th December 2019
About 10 months ago

Rent fee controls are beyond local government remit. This is scare mongering delivered by civil servants who have not consulted legal counsel and who do not wish to feel guilty about increasing rents because of the licensing they have imposed. Any cost associated with a rental property must form part of the calculation from which the rent is defined - that's business!

Dylan Morris

10:48 AM, 18th December 2019
About 10 months ago

In answer to my own question just googled and Nottingham Council has 55 councillors of which 50 are Labour. Never realised they were so popular.

Chris @ Possession Friend

10:53 AM, 18th December 2019
About 10 months ago

Reply to the comment left by Dylan Morris at 18/12/2019 - 10:48
An advertising campaign to TENANTS, ( not Landlords ) needs to be mounted, There are more Tenants than Landlords and we ( landlords need their support in this.
The ponzi - Licensing schemes are touted to be for the benefit of Tenants in helping to ensure standards are maintained. However, this is rarely achieved by Licensing schemes.

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