Easier landlord licensing schemes ‘Makes no sense’

Local authorities in England and Northern Ireland are to get powers to implement selective licensing schemes without seeking approval from the Secretary of State.

The new rules take effect from 23 December with councils still needing to consult with the public for at least 10 weeks before implementing a scheme.

Local mayors will play a role in decision-making on selective licensing and councils must provide regular updates to the Ministry of Housing, Communities and Local Government on the scheme’s progress.

However, there are fears over how the new rules and the planned landlord database under the Renters’ Rights Bill will work together.

‘It makes no sense’

Chris Norris, Policy Director for the National Residential Landlords Association, said: “It makes no sense that whilst planning to create a national database of private landlords, the Government now wants to make it easier for councils to license landlords as well. Ministers must clarify how they plan to prevent the two schemes from duplicating each other.

“A failure to do so risks them becoming nothing more than cash cows.”

He added: “The Government’s plans will remove important safeguards against misuse of council licensing powers. It absolves ministers of any responsibility and will give local authorities free rein to blanket entire towns with unnecessary and costly schemes.

“Data from 2021 to 2023 shows that seven of the top ten most proactive councils issuing improvement notices to private sector landlords did not have selective licensing schemes in place. This clearly demonstrates that licensing schemes do not automatically lead to higher levels of enforcement by councils.”

PRS needs less selective licensing

Propertymark’s head of policy and campaigns, Timothy Douglas, said: “The private rented sector needs less selective licensing not more with the additional costs and duplication of rules that it brings.

“To this end, there are enough laws covering high standards for rented property, but it’s the lack of capacity of local authorities to actively inspect property and enforce these rules that is the main issue.

“Licensing means councils spend all their time administering schemes, rather than enforcing against rogue, criminal landlords.”

Phase out licensing schemes

Mr Douglas continued: “The Renters’ Rights Bill offers an opportunity to phase out licensing schemes, provide councils with the resources they need and endorse professional letting agent and landlords alongside the introduction of the Decent Homes Standard and Private Rented Sector Database.

“However, it would seem that the UK Government is failing to recognise the benefits of doing this and not providing local authorities with the much-needed investment they need to enforce the wide range of legislation that already exists.”

The government’s announcement on new rules for selective licensing schemes is on the .gov website.

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