EXCLUSIVE: Latest selective licensing plan is ‘contrary to government’s own guidance’ say landlords

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A council’s plans to expand its selective licensing scheme while Coronavirus is wreaking havoc is reckless and could lead to a lack of housing stock, say East Midlands landlords.

Gedling Council in Nottinghamshire has launched a consultation to expand the Netherfield pilot scheme into Colwick, Carlton Hill, Daybrook and Newstead Village.

But only 5% of the 662 properties in the pilot scheme had problems requiring immediate action, according to the council, although 86% of these had hazards that needed work to protect health and safety.

Regional landlord group EMPO believes the consultation is contrary to MHCLG guidance asking local authorities to suspend this kind of activity until the crisis is over.

“Experience in Nottingham shows landlords pass the cost of licensing onto tenants in the form of higher rents,” says its business development director Giles Inman (pictured left).

“This increases tenant financial hardship and unmanageable demand for social housing.”

He says letting agents have reported landlords disposing of good quality housing stock over the last two years as a direct impact of selective licensing.

Local agent David James adds: “We still have client money sat in our client’s account in relation to licensing applications submitted in 2018. How can they justify extending this scheme when they haven’t even processed the 600-odd applications from the last two years?”

EMPO believes that the council already has extensive powers to deal with landlords renting dangerous housing, but council leader John Clarke insists the scheme has raised many renters’ living standards.

He says: “We want to create safer communities for our residents and reduce hardship and inequality and this scheme will help contribute towards that ambition. We also want to reduce anti-social behaviour and fear of crime and we have seen this happen during the pilot scheme in Netherfield.”

The consultation ends in January and, if approved, could be implemented mid-2021 – depending on the Covid situation.

Read our exclusive interview with Giles Inman.

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Scottish Parliament to consider rent caps following u-turn

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Pauline McNeill the Scottish Labour communities and equalities spokesperson, who had campaigned for the proposal by way of a member’s bill, says she welcomes the MSP’s change of heart.

Holyrood Parliament’s local government committee had said it was dropping its plans for the Fair Rents (Scotland) Bill due to a lack of time before May’s election, but it appears this will now go ahead.

The proposals put forward in the Bill would give private tenants the right to apply, at any time, to a rent officer for a “fair open market rent” to be determined; a similar process to that used for regulated tenancies under the Rent Acts in England.

If enacted the Bill apply to residential tenancies not lodgers, and would make private landlords enter detailed information about their properties in the Scottish Landlord Register, including the monthly rent charged. Rent officers would decide what is a fair rent taking into account the local market and the condition of the property.

The change of heart from the local government committee follows pressure from Scottish Labour MSPs and Mike Dailly at Govan Law Centre.

Pauline McNeill told The Herald, Scotland:

“I was very concerned about the position of back-benchers like myself who put years of effort into a bill proposal only for it to be dropped by a committee.

“For that reason, I was very pleased that Mike Dailly, of his own accord, took a petition to the Court of Session on behalf of his client Jayne Ely.

“I am absolutely delighted that the Local Government Committee have now had a change of heart… Scotland needs more than ever an effective set of laws that give tenants the right to have their rent assessed and action to curb above inflation rate increases.

“I call on the Scottish Government to listen to renters in these difficult times and support this bill as a first step in serious law reform in the private rented sector.”

James Dornan, Convener of Holyrood’s local government and communities committee, said:

“The proportion of households in private rented housing now stands at just under 15 per cent.

“As the private rented sector in Scotland has grown over the last couple of decades there have been various reforms to tighten the regulation of landlords and give tenants more rights. But the stated ambition behind this Bill is to change the balance of power further. It would cap rent increases to one per cent plus CPI and to allow tenants more scope to challenge rents.

“We are keen to hear views about whether this further change is necessary and whether the provisions in the Bill are workable and will have the intended impact.

“We also want to find out what the financial impact of this Bill would be upon private tenants, landlords, the wider rented sector and others, and we welcome the opportunity to hear views on this proposed legislation.”

The Scottish Government has published (October 2020) updated versions of the Model Private Residential Tenancy Agreement, with supporting documentation, along with a guide to help landlords with the Rent Arrears Pre-Action Requirements (Coronavirus) (Scotland) Regulations 2020 – https://www.legislation.gov.uk/ssi/2020/270/contents/made

Proposed Fair Rents (Scotland) Bill – Proposal & Consultation Document

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EPC clearly wrong so can Assessor be made to change it once issued?

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Just had an EPC done on a flat. Last EPC rating was a D now its an F – so essentially now unrentable!

The Assessor for the latest report has deemed it 2 mtsq bigger than the last report yet there has been no structural change and also listed it as a Ground floor flat when the last report stated it was a top floor flat.

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BREAKING: MP launches Bill to outlaw pet discrimination by landlords

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A Bill aimed at banishing the no-pet clause for rented homes has had its first reading in the Commons with cross-party support.

Conservative MP Andrew Rosindell’s Dogs and Domestic Animals (Accommodation and Protection) Bill aims to give tenants the right to live with their pet – provided they can prove they are responsible and caring.

He says the Government’s aim of removing no-pet clauses from its model tenancy agreement is a step in the right direction, but that it doesn’t go far enough.

“For most people, being separated from their dog is no different from being separated from their brother or sister,” says Rosindell.

“Sadly, pet owners who move into rented accommodation face the reality that their family could be torn apart, because most landlords in Britain have unnecessary bans or restrictions on pet ownership.”

The Romford MP aims to ensure that landlords’ concerns are met by making pet owners pass the test of responsible ownership; they’ll have to get a certificate from a vet before moving in, confirming that they have a healthy, well-behaved animal and are considered to be a responsible owner.

For dogs, a checklist would include being vaccinated and microchipped and being responsive to basic training commands.

Rosindell (pictured, left) points to France, Belgium, Germany and Switzerland which have all outlawed blanket restrictions on pets in rented accommodation.

He adds: “The no-pet clause means that someone cannot have a dog over for even a short period for fear of recriminations or even losing their home. Such discrimination must now end.”

The Bill – known as Jasmine’s law after a Weimaraner owned by the Adams family in Surrey which can’t live in a rented house – is backed by 11 other cross-party MPs including Andrea Leadsom and Tim Farron, and gets its second reading on 29^th January.

Read: How insurance can be affected by tenants with pets.

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Brighton clamp-down on HMOs continues with £14,000 fine

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Three months after launching one of the most stringent HMO licensing rules in the UK, Brighton & Hove council has now secured the prosecution of a student landlord including a fine of £14,000.

Londoner Shirley White had applied for an HMO licence three years ago to operate her Brighton property as a student HMO but this had been rejected both on existing density grounds and because one of the rooms was below the local minimum size requirements of 7.5 sq m.

In June the council’s density rules were intensified, making it even more difficult to secure HMO licenses in many parts of the city.

White appealed unsuccessfully in February this year and was taken to court by the council.

At a hearing this week at Brighton Magistrate’s Court White pleaded guilty to operating an unlicensed HMO and was fined £14,000 based on the extra income she had earned from the property, plus costs of £2,000.

“Unlicensed and unapproved HMOs have significant negative impacts on communities such as Higher Bevendean,” Ward councillor Daniel Yates (left) told Brighton & Hove News.

“The numbers of licensed HMOs in their area meant that this HMO could not gain the correct planning permission and I’m delighted to see the landlord paying the price for flouting the rules for a quick buck.

“The sooner this property resumes offering a family home the better.”

During a planning inspection visit it was established that White had rented out the £340,000 property to three students and a professional for £1,752 a month.

Read: HMO tenancy agreements – what you need to include.

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Help bring a Judicial Review against Bailiffs refusing to enforce warrants

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The infamous words of Jenrick at the start of the pandemic: “No renter who has lost income due to coronavirus will be forced out of their home, NOR WILL ANY LANDLORD FACE UNMANAGEABLE DEBTS”

Nothing more was heard about landlords only incessant campaigns for Private landlords not to evict

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EICR again – Which one is correct?

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In the NAPIT booklet EIRC Codebreakers 18th edition version Section 5.12.3 it states cables in walls not protected less than 50mm deep not RCD protected will be C2 failure.

In the Electrical installation condition reporting:

Classification codes for domestic and similar electrical installations Issue 5 it says on Page 14;

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EXCLUSIVE: Why selective licensing doesn’t work

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Reading the housing news, I see several local councils are proposing to introduce more selective licensing schemes (SLS).

My eyes rolled when I saw that.

Over the years I’ve had a number of properties which have been subject to such schemes. Stamping out anti-social behaviour and improving the quality of local housing stock were their main objectives, they claimed.

Signing away several thousands of pounds (the cost of each council varies, but it’s usually around the five-hundred-pound mark with the scheme lasting up to five years), I queried the council on their Key Performance Indicators (KPIs) and how they would judge the scheme was a success.

Having been on three different schemes now, I can tell you not one council has ever come back to me with those results. Not one council has ever shown me how the schemes work.

Out of the schemes I’ve been on, one ended a couple of years ago. That scheme got 66% of landlords to sign up. That means 34% of landlords did not sign up.

Property standards

What, I asked, were they going to do about this? Surely those who didn’t sign up were the ones to worry about? If a license was required to rent out a property and almost a third were still unlicensed (and to my knowledge, unchecked), how would this improve property standards – one of the main tenets of the scheme?

I never got a decent reply, they told me they were looking into it. After several enquiries over the course of a couple of years, I gave up.

A bit like when I asked what improvements did they get from the introduction of the scheme and how they felt they met their KPIs?

Silence. Stonewalled.

And so when I read yet more councils are planning to introduce SLS, I can’t help but wonder maybe other people have different experiences? Perhaps other councils are doing it better?

Basic information

So I made a point of speaking to other landlords about their experiences. Most of them signed up, sent money and then after a few weeks got a license in the post. Many were not even asked to provide the most basic property information – the latest gas safety check!

How then can a council deem a property is of an acceptable standard when they haven’t even got the CP12 on file? How can councils claim they are ‘improving standards’ when most are not visiting a property, let alone requesting basic information?

I try to be a good landlord and I’m happy to engage with local councils about improving areas and housing standards, but to me these schemes appear to be based upon a presumption that ‘something should be done’ rather than asking: what needs to be done?  

Any future SLS, if it is to be successful, needs to be transparent, accountable and clear about KPIs, willing to publicly share information and engage with private sector landlords.

The Secret Landlord

The Secret Landlord has been renting, refurbishing and selling properties across the UK for almost two decades. Her book, ‘Parasite? The Secret Diary of a Landlord’ is out today.

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