Licensing schemes under fire as sector warns of harm to tenants

Propertymark's position

We advocate for policies that effectively improve housing standards without imposing undue burdens on landlords and letting agents, and believe that engagement and support, rather than blanket licensing schemes, are more effective in achieving these goals. We have long highlighted the importance of collaboration between local authorities and landlords to address housing issues constructively.

We urge policymakers to consider the potential unintended consequences of licensing schemes and to explore alternative approaches that balance the needs of tenants with the practical realities faced by landlords and letting agents.

Landlords challenge council motives

The Portsmouth and District Private Landlords Association has launched a parliamentary petition contending that the scheme is being misused by the council to generate revenue and impose unnecessary regulations, rather than genuinely improving housing standards.

The group argues that the licensing requirements are excessive and have serious consequences for  property owners and tenants. Leading the campaign, local landlord Simon Fletcher, stated that the cost of a selective scheme, both the licence fees and the work that goes into dealing with the council by landlords and agents, has to be borne through higher rents, reduced maintenance expenditure, or both.

Common sense prevails in Blackburn

Meanwhile, Blackburn with Darwen Council has decided to postpone its proposed selective licensing scheme, which would have affected over 1,100 properties in the Hollins Bank area.

The decision came after consultations revealed significant concerns from landlords, tenants, and letting agents, who feared that the £724 licence fee would lead landlords to exit the market or pass costs onto tenants, thereby reducing the availability of affordable rental housing.

Leading councillor, Quesir Mahmood, suggested that if 10% of landlords in the proposed licensing zone sold up, 115 households would require alternative accommodation or be at risk of homelessness. Instead, the authority plans to offer advice and support for landlords, including those considering selling, and will target further legal action on known rogue landlords.

Implications of the Renters' Rights Bill

The ongoing debates around local licensing schemes are occurring alongside the national discussion on the Renters' Rights Bill, currently progressing through Parliament. This legislation aims to introduce significant reforms, including the abolition of 'no-fault' evictions under Section 21, the implementation of periodic tenancies, and stricter enforcement of housing standards.

While the Bill seeks to enhance tenant protections, there are concerns that it may overlap with or duplicate existing local licensing efforts. For example, both the Bill and local licensing often set similar property management standards and compliance checks. This duplication could lead to confusion, increased costs, and greater administrative burdens for landlords and letting agents.

Supporting members

As well as continuing to campaign against licensing schemes at local and central government levels, we provide resources for letting agents to ensure they can remain compliant with current legislation.

Additionally, we have created a template that members can use to respond to  licensing consultations in their area.