Nottingham City Council is proposing another new licensing scheme for landlords in a move which one industry representative has branded "astonishing". The authority is preparing a scheme which will apply to landlords of Houses in Multiple Occupation (HMO), defined as a private rented property shared by three or more people from more than one household.
The concept involves the council requiring landlords of HMOs to obtain a licence for their rented properties, with such a scheme having first been introduced in parts of Nottingham nearly ten years ago. But the new scheme, which would run for five years if approved, will apply across the city.
The council said its current scheme has had a positive impact on HMOs, including in areas such as insufficient waste management and anti-social behaviour. But Giles Inman, business development manager at EMPO, the largest landlord's association in the East Midlands, questioned the need for another scheme.
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He said: "You would have thought that after 10 years, the schemes would have achieved their desired outcomes by now and clearly that isn't the case. I find it quite astonishing that the council want to have another extension of the scheme.
"Landlords are running a business and just like any other business, they have to pass on their increased costs. These licencing schemes are an extra cost for landlords and it's the poor old tenants that end up with higher rents.
"In a cost of living crisis I think we should be trying to reduce the burden on people with low incomes as much as possible. We ought to be sitting down and discussing whether this really is the best strategy to deal with the issues that the council wants to."
But in papers to be presented at a meeting of its executive board, Nottingham City Council argues that its current licensing schemes have been effective. A report into its HMO licensing so far says that 2,379 licences were issued in the first scheme whilst 1,961 have been issued so far in the second, which will soon come to an end.
The report said in terms of compliance with the standards set out under the scheme, two-thirds of properties that were non-compliant at first inspection were then improved. The council said this "demonstrates the intervention of a visit to the property can bring properties up to standard whilst avoiding the need for further enforcement actions".
Councillor Toby Neal, the city council's portfolio holder for housing and human resources, said: "This housing licensing scheme, along with others, is a major part of our plans to improve all types of private rented housing in the city. We believe people renting privately have a right to expect a decent standard of accommodation, which is safe, well managed and maintained."
One of the key ambitions of the scheme is to reduce crime and anti-social behaviour. But Pete Gill, who has run a private rentals business in Nottingham for around 30 years, said: "The council seems to want to pass the buck on to landlords for anti-social behaviour.
"Not just for HMOs, but across the board I think these schemes become a bit of a stigma for landlords. I haven't sat down to work it out but these schemes do lead to extra costs for landlords and they do have to be passed on."
Mr Inman added: "At the end of the day we rent out to adults. They are individuals that have responsibilities and we as landlords have very little legal power to direct or instruct their behaviour.
"We have tenancy agreements and so they know what clauses are within those but when it comes to tackling serious anti-social behaviour, that should not be a matter for the landlords. There is also the issue that if someone is presenting with serious anti-social behavioural tendencies, landlords may not have the necessary skill set to deal with those."
Nottingham City Council said its licensing schemes are just one aspect of its work to improve property conditions in the area and in terms of anti-social behaviour, the authority said this work has included specialist teams dealing with the issue and a community protection service involving Nottinghamshire Police. On the broader aims of the scheme, Cllr Neal added: "Poor housing conditions and poor property management can have a serious impact on people's health and wellbeing, as well causing problems for local neighbourhoods that see higher crime and anti-social behaviour rates.
"The council believes the introduction of a new licensing scheme would not only bring benefits for tenants and local communities, but also landlords who, by obtaining a licence, will be able to clearly demonstrate to prospective tenants that they meet required standards." The council said it cannot make a profit from the scheme and that licence fees will be used for the operating costs, compliance and enforcement.
If approved at Tuesday's executive board meeting, a consultation on the additional HMO scheme would run from March 1 until May 24, coming into effect for five years from next January if it went ahead. It comes as the council also seeks to draw up a new selective licensing scheme, which covers private rented properties with one household, with the current one due to expire in July.
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