Agenda item

Joint report of the Corporate Director for Development and Growth and the Corporate Director for Commercial and Operations

Graham De Max, Housing Strategy and Partnerships Manager and David Hobbs, Operations Manager at Nottingham City Council, presented a report informing the Committee of the analysis work that has been completed to inform a decision to consult on a proposal to introduce a selective licensing scheme for privately rented houses. The following information was highlighted:

(a)  Executive Board have approved the proposed designation in principle and a public consultation process is now underway (between January and March 2017);

(b)  The proposed use of selective licensing powers will provide an opportunity to effectively influence higher standards of privately rented houses and to ensure effective management through more extensive control;

(c)  the Council currently runs a mandatory licensing scheme for Houses of Multiple Occupancy (HMO) with three or more storeys or, 5 or more occupiers, and a discretionary scheme of additional licencing which covers HMO’s of 2 storeys or more, or, 3 or more occupiers;

(d)    the Council is currently consulting on a proposal to introduce a citywide selective licensing scheme that will cover all of the Private Rented Sector (PRS), it is thought that this will bring over 40,000 properties into the licensing scheme within Nottingham City. The consultation runs until the end of March and feedback can be given here: http://www.nottinghamcity.gov.uk/consultation-engagement-and-surveys/#housing ;

(e)  this scheme aims to drive up standards of homes, improve living conditions and reduce levels of deprivation for residents and contribute to reducing levels of antisocial and criminal  behaviour by tackling Rogue Landlords and working with landlords and tenants to provide advice and assistance;

(f)  the scheme will require the use of 75 additional staff members who will be funded through the licence fee. Out of the additional staff resource, 10 members of staff will carry out proactive work in identifying landlords around the city.

Following questions and comments from the committee the following information was highlighted:

(g)  no other local authority has been successful in introducing a city wide scheme. Most recently, in 2015, Redbridge Council had their application refused by the Secretary of State;

(h)  if the scheme is approved, there will be a legal requirement for landlords to apply for a licence with a fine for those who do not. Recent legal changes have empowered councils to issue civil penalties and issue fines without needing to pursue court case;

(i)  there is no legal obligation to report private rented arrangements so it will be challenging to ensure that the necessary licenses are obtained. Despite this challenge, the Council will continue to build its intelligence;

(k)  selective licensing fees are restricted by the government and are only allowed to cover the cost of running the licensing scheme. Licences for HMO’s currently stands at £910 per property over 5 years, the fee for the selective licensing scheme has been set at £600 per property over 5 years. Discounts of up to £140 can be claimed by landlords accredited through DASH or Unipol;

(l)  the total cost for implementing the scheme of the 5 years is be £22 million, although cost neutral for the Council. Executive Board will need to consider whether the £600 licence fee is likely to be passed onto the tenant as part of their decision;

(m)  the Council will run training sessions for landlords as part of the licence which will involve a classroom type session, lasting one day;

(n)  views from other, partnership agencies, such as Nottinghamshire Police and Nottinghamshire Fire Service are also being sought. Views would be welcomed from residents and tenants associations but individual responses would be more representative.

RESOLVED to thank Graham De Max and David Hobbs for their attendance and to note the content of their informative report.