Local authorities exist to improve housing stock in their area; however, licensing is not the best way to improve standards across the private rented sector. Because of this, Propertymark is voicing concerns with local authorities and local representatives from up and down the country.
Was it an admirable aspiration, or is it too ambitious?
One of the biggest issues is the lack of resources available for the enforcement of such schemes to effectively ensure standards are being met. Previously a stumbling block has always been inadequate staffing levels which has meant all aims have failed, meaning compliant landlords are paying the (sometimes hefty) price, whilst rogue landlords continue to operate under the radar.
Therefore, Propertymark is urging the UK Government to provide more funding for local authority enforcement and ensure councils produce information about their enforcement activity.
For example, one of the largest licensing scheme proposals is in Brent, which will cover borough-wide and operate in 21 of the 22 wards, only excluding the Wembley Park ward. The PRS is huge in Brent making up 45.6 per cent of total housing stock. In total there are around 50,000 PRS properties within the scope of the scheme so to base an estimate of on one staff member visiting three properties per day, it would take over 50 years to complete checks on every property which is a completely unrealistic number to ensure were compliant.
Some local authorities are proposing hefty fees for licenses that last five years such as £652 per property and up to £1,215 per property for landlords with Houses in Multiple Occupation. For landlords who own several properties, such as a block of flats the costs can be substantial. However, councils such as Merton have acknowledged the high cost for these landlords and offer discounts for multiple licenses within one unit in their proposed scheme.
Another concern around the local authorities’ resources is the time taken for them to process licenses and their ability to deal with the admin which is leaving many landlords frustrated and uncertain around their entitlements whilst being processed. When engaging with members, some mentioned during the Tower Hamlets consultation that it took months to receive them.
Charging forward in their aim of improving standards, some local authorities are acknowledging the difference being part of an accredited organisation makes. Landlords are much more likely to be clued up on the requirements asked of them through their own personal membership of a body or group or by using an agent who is a member of an organisation such as Propertymark.
Some local authorities are offering discounts for those that are members of a number of approved bodies including ARLA Propertymark which we believe should be taken up by more councils in order to limit the costs for good landlords.
As more and more schemes pop up, we’ve engaged with our members and responded to consultations on selective and additional licensing schemes for areas such as Brent, Manchester, Merton, Redbridge, Middlesborough and Tower Hamlets.
We’ve previously encouraged the London Rental Standard and co-regulation models as alternatives to licensing and we will continue to engage with all levels of politics and government to ensure local authorities are targeting their scarce resources appropriately and good agents and landlords are not burdened with overzealous licensing schemes.
* Tim Thomas is Policy and Campaigns Officer at Propertymark *
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