By Matt Jarram, Local Democracy Reporter
Landlords claim they will have no other option but to increase Nottingham tenants’ rents if a controversial city licensing scheme is implemented.
Nottingham City Council set up the Selective Licensing programme in August 2018 to improve rented properties and crack down on rogue landlords.
The scheme meant around 32,000 private-rented properties across Nottingham needed a licence, and those who refused to apply faced fines of up to £30,000 or prosecution through the courts.
Having a licence means the council can check properties are safe to rent and can crack down on bad landlords who leave homes in poor or unsafe conditions.
But concerns were raised by some property owners that good landlords were paying the cost for bad landlords, and the licensing fee would only be passed to tenants in rent increases.
Fees for the scheme have risen since it was first introduced, now ranging from £670 to £890 per property. The scheme comes to an end in July 2023, before a new scheme is considered.
Since the scheme was first implemented, the council says 666 improvements have been made to 446 properties.
The local authority says benefits so far include rogue landlords leaving the market, a speedier resolution to anti-social behaviour cases and thousands of homes improving their EPC (energy performance certificate) ratings.
Council papers for an Executive Board meeting on Tuesday, May 24, state: “The scheme will end in July 2023 and the evidence supports a second scheme in order to build upon the first and continue to deliver the benefits which are already being seen in the city’s private rented sector (PRS).
Councillors at the meeting said selective licensing had been a success.
Cllr David Mellen (Lab), leader of the council, said: “This scheme has been very effective in the ward that I represent. A lot of people live in private-rented accommodation – sometimes I get to visit those houses.
“Some of them are very good but others are less so and being able to have some kind of encouragement for landlords to bring private rented households up to a decent standard and give tenants’ a decent place to live is really important. I am in favour of a second scheme for our city.”
Cllr Linda Woodings (Lab) added: “I have spent some time with the (council) team that do these inspections and seeing the standards of properties they are encountering. This is not an extension, it is a brand new scheme.
“It is quite clear with the enforcement side and compliance checks that take place that there is so much more work to do in certain areas of the city to improve the standards.
“It is a deterrent for tenants’ to report repairs to their house.”
It will now go out to public consultation between June to August this year before a final decision is reached.
Giles Inman is the business development manager at East Midlands Property Owners Group, based in Lenton, which represents around 600 landlords.
He says continuing to charge landlords for the scheme means “most will have no other option than to pass on the costs to tenants” especially if the cost of the scheme rises as it has done in previous years.
He says landlords’ costs – such as maintenance and creating energy efficient homes – is also going up.
He told the Local Democracy Reporting Service: “We are considering forming a committee to draft our own submission on behalf of landlords – we are considering going against that renewal.
“The costs associated with complying with the licensing scheme translates into higher rents (for tenants). There is no question about it.
“You have utility bills going through the roof and huge strains on tenants paying gas and electricity to heat their homes.
“Bills are going to be twice as expensive in December than they were in January for those that are not on a fixed tariff. This is really not the time if ‘we are all in it together’ to be putting more costs on tenants.
“Landlords are trying to keep costs for the tenants as low as possible. This is the last thing we need right now. We know the council are going to move forward with this.”
