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Pause for thought on Selective Licensing scheme for Landlords

by Ian Shires on 20 March, 2018

Walsall Council’s ruling Coalition responded earlier this year to concerns about the conditions of some of the private rented properties in and around our town centre.

Poor living conditions, overcrowding and in some cases downright dangerous were the only words which could describe what we saw. So proposals were put forward to introduce a Landlords Selective Licensing scheme.

So what does this mean? Well such a scheme is a powerful tool which allows councils to control the behaviour of private landlords. However the use of such a scheme is subject to considerable constraints. Councils can only use it if certain conditions are met and we have to prove that by introducing a scheme a number of specific housing problems will be reduced.

The process of setting up the scheme began last February and sufficient evidence had been collected to begin consultation with landlords in the affected area along with tenants and their neighbours in early November last year.

The results of the consultation came before Cabinet at its February 14th meeting where members agree to set up the scheme. Corporate Overview and Scrutiny Committee wanted a closer look and called the decision in. This entails the Portfolio Holder with responsibility for Housing issues being questioned at a special meeting of the Scrutiny Committee. Members can also call for evidence other relevant people, in this case some Landlords who felt that they hadn’t been fully consulted.

Although plenty of evidence was put forward by the Cabinet member to show that extensive consultation had taken place the Overview and Scrutiny Committee remained to be convinced and asked Cabinet to take another look.

Cabinet met on 19th March 2018 to consider its position. The Cabinet member with responsibility for Housing began by thanking the Overview and Scrutiny Committee for their recommendations however it was thought that the consultation carried out was indeed robust and provided the Cabinet with sufficient information to give conscientious consideration to introduce the scheme.

However whilst the seeking legal advice it had come to light that between the Cabinet decision and tonight a ruling by the Court of Appeal on the 21 February (after the original Cabinet decision) may fundamentally change the scheme leaving the Cabinet no choice but to re-consult in the light of the new ruling.

It was made clear that this scheme was not going away. It will go ahead following the re-consultation.

Speaking during the meeting I did express my disappointment at the Scrutiny process for only considering the case for the Landlords, ignoring the plight of some tenants living in appalling conditions. I pointed out the research conducted by the Department for Communities and Local Government which found that:

  • Ten per cent of housing stock in England is privately rented
  • Some of the poorest housing conditions in the housing sector as a whole are in the private rented sector
  • Thirty per cent of landlords only rent out one property
  • Some landlords have no consideration for, or participation in, the communities in which they operate, and this can have a huge impact on neighbourhoods.

The majority of private landlords do provide a decent service, but the practices of a minority give the whole sector a bad name.

If I were a landlord, and I’m not, I would want to see something like this put in place to protect my image. It’s a small price to pay to improve the lot of those having to suffer the results of living under a poor landlord and to protect the reputations of all those good private sector out there.

We eagerly await the outcome of the re-consultation and the setting up of the selective licensing scheme.

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