Consultee - landlords and residents
Issue raised: fees will be passed on through rent increases to tenants
Consideration: we are mindful of the impact that charging a fee to landlords could have in terms of rents and charges to tenants and agree that it is inevitable that in many cases fees shall be passed on to tenants through rents.
The £695 standard fee to be charged amounts to £2.67 per week across the lifetime of the scheme. A range of discounts shall be included within the final scheme, including discounts for accredited landlords and landlords who own multiple properties, which would reduce the potential weekly cost in many cases.
Plus, there will also be a discount for landlords who had the same property licensed within the previous designations of Scarborough North and Scarborough Central.
Also, it is important to note that the fee covers a licensable property for five years and does not apply to each individual tenancy. Given that a high proportion of the stock in this area are typically flats, this means that costs are typically spread out over a number of units for many landlords.
We are very mindful of the impact the fee could have on landlords who own single units of accommodation and fees shall be structured in such a way to provide a reduction in cost to those landlords.
Rents within the identified area are about 35% lower than the Borough average and 50% lower than the national average.
Ultimately however, the council needs to decide whether the need to provide additional regulation to improve the standard of private rented accommodation within the areas (for the benefit of tenants) out-weights the cost of fees and rents.
Issue raised: wrong area/should be extended to other areas/why this area again/why have certain streets been included?
Consideration: the area has been chosen following extensive data analysis, which identified it as still meeting key indicators set by the government for designating a Selective Licensing scheme.
An analysis of adjoining areas was also undertaken, and as a result, some adjoining streets have been included in the proposed designation, which were not previously licensed.
Extending Selective Licensing to other areas can only be done if data demonstrates that they meet the indicators as set out by the government for Selective Licensing.
We have commissioned consultants to undertake a study to assess the private rented sector across the whole of North Yorkshire. This includes identifying locations where there is a concentration of private rented properties and there is a connection with other factors such as deprivation, health inequalities, energy efficiency, and so on.
The outcome of this, is that there may be other areas within North Yorkshire, which may need to be considered for Selective Licensing.
Issue raised: proposal is just a money making scheme for the council
Consideration: by law, the council cannot use fee income to pay for anything other than costs associated with the administration of the Selective Licensing system. Fees shall be used to pay for additional staff to carry out inspections.
Consultee - landlords, residents and Landlord Association
Issue raised: landlords will sell properties or convert to holiday lets
Consideration: it is acknowledged that some landlords may sell properties or convert to holiday lets. However, this trend has already happened in recent years, mainly due to other pressures and market factors.
Evidence from previous schemes has also shown that in a high proportion of cases where a landlord sells a property that it has been purchased by another landlord for rented property, and has been re-licensed as a result.
Consultee - residents
Issue raised: needs to be regular inspection and effective enforcement
Consideration: the purpose of Selective Licensing is to help the council tackle issues associated with poorly managed private rented property in a more proactive, effective and co-ordinated way.
All licensed properties within the licensed area will receive at least an initial inspection and follow up inspections will also be undertaken where required.
We are very mindful of the need to ensure that the scheme is delivered in a meaningful way and that issues identified through the licensing process are dealt with effectively, including through, where needed, the use of enforcement action against landlords.
We have prosecuted landlords in our previous and current licensing schemes both for failing to apply for a licence and for breaches of licensing conditions. We have also undertaken other enforcement action, such as Improvement Notices and Prohibition Orders of landlords in the licensing area.
Issue raised: concern whether the scheme would address anti-social behaviour
Consideration: it is important to note that Selective Licensing is being taken forward within the context of an enhanced level of joint partnership working between key agencies, including the police and fire service. The Community Impact Team pools resources, powers and expertise where needed. The work of this team is vital in supporting us to tackle anti-social behaviour in the area and very much compliments the proposed licensing regime.
Issue raised: concerns over fly tipping or rubbish dumping within the area and general environment
Consideration: Selective Licensing shall help to resolve problems with waste as it places an additional obligation on landlords to ensure that refuse is disposed of properly and that the external areas of properties are maintained to a reasonable standard.
Whilst Selective Licensing won’t specifically tackle fly tipping, the extra resources provided by the scheme within the area, will mean that problems of fly tipping will be more regularly identified and we will be able to support other services to address fly tipping in the area.
We will also give consideration to explore options around a wider neighbourhood renewal approach within the Selective Licensing area, which would complement Selective Licensing and bring meaningful environmental improvements to the area.
Consultee - landlords
Issue raised: blanket approach - responsible landlords are being penalised to cover costs to tackle bad landlords
Consideration: the legislation does require that all landlords within a given area are required to operate with a licence and it is accepted that within that model some responsible landlords shall be captured by this system. However, the needs analysis undertaken also shows that a very large proportion of the stock within the area is poorly managed and of an inadequate standard and the need to tackle these issues outweighs the cost of additional regulatory burden on responsible landlords.
The proposed scheme is to the benefit of the whole community, including responsible landlords, who over time may see the value of their stock portfolio and rental income increase when issues affecting neighbouring properties such as anti-social behaviour are tackled in a more co-ordinated way.
The final scheme shall include discounts to responsible landlords who are members of any of the following bodies:
- National Residential Landlords Association
- Safeagent
- Propertymark
- Eastern Landlords Association
- Association of Residential Letting Agents
Consultee - landlords and Landlord Association
Issue raised: fees are too high or are an unfair tax on landlords
Consideration: as previously mentioned, the £695 standard fee to be charged amounts to £2.67 per week across the lifetime of the scheme. A range of discounts shall be included within the final scheme, including discounts for accredited landlords and landlords who own multiple properties, which would reduce the potential weekly cost in many cases.
There will also be a discount for landlords who had the same property licensed within the previous designations of Scarborough North and Scarborough Central.
Also, it is important to note that the fee covers a licensable property for five years and does not apply to each individual tenancy. Given that a high proportion of the stock in this area are typically flats this means that costs are typically spread out over a number of units for many landlords.
We are very mindful of the impact the fee could have on landlords who own single units of accommodation and fees shall be structured in such a way to provide a reduction in cost to those landlords.
Consultee - Landlord Association
Issue raised: concerns that it is not within the remit of landlords to address anti-social behaviour
Consideration: licensing conditions reflect this and will require a copy of an anti-social behaviour plan on request and for licence holders to co-operate with the council, the police and other agencies in tackling anti-social behaviour.
Issue raised: a need for regular monitoring of outcomes of the scheme to show improvement and wider impacts of the scheme
Consideration: an annual review of the current schemes will be undertaken. The annual report reports on the following indicators:
- applications received and licences issued
- inspections undertaken and outcome of inspections including Category 1 hazards identified and resolved
- enforcement and tackling anti-social behaviour
- wider benefits/impacts including property values/rentals, turnover of stock and empty homes, displacement to other areas, landlord engagement, and so on
All of these indicators will be monitored on a regular basis and will form part of the evaluation/review process of the scheme during the final year of operation. Also, feedback on the current schemes will be provided to landlords through the Landlord Forums.
Issue raised: anti-social behaviour comes from other sources
Consideration: it is acknowledged that anti-social behaviour comes from a range of sources, especially as the proposed area covers both the town centre and the main tourist heart of Scarborough.
However, there is also widespread evidence of anti-social behaviour from private rented sector properties within the proposed area. We have worked with our partners including the police to address anti-social behaviour from residents and visitors to private rented sector properties over the course of the previous Selective Licensing designations. We will continue to take a joint approach to addressing such issues over the course of the designation.
Issue raised: concern whether the council has enough resources as this is a larger scheme than previously
Consideration: we have developed a financial and workflow model which identifies the level of resources required to undertake the scheme. This model has been used for the previous licensing schemes and has proved to be accurate in resourcing the scheme appropriately.
Even with the larger scheme, there will only be three full time equivalents required to operate the scheme across it’s lifetime. We currently employ four Selective Licensing Officers on our current designations and these staff will be gradually moved across onto the current scheme when the scheme starts. As a result, there will only be a need to recruit a half full time equivalent extra post for the scheme.
Issue raised: rogue landlords would not apply
Consideration: we are able to use a range of sources, including council tax records, to identify private rented properties and landlords within the designated area. We also have an effective process for chasing up landlords who have not applied and have also prosecuted landlords who have failed to apply.
Also, as the proposed scheme covers two previous licensing schemes, we already have contact details for the majority of landlords who will have properties in the area. We have therefore been able to identify what we believe are all landlords operating in a licensing area, and have been able to ensure that they have applied for a licence.
Issue raised: suggested discount for association members
Consideration: the final scheme shall include discounts to responsible landlords who are members of any of the following bodies:
- National Residential Landlords Association
- Safeagent
- Propertymark
- Eastern Landlords Association
- Association of Residential Letting Agents
Issue raised: more clarity required from the council on enforcement activity and proposals to increase enforcement activity across North Yorkshire
Consideration: all licensed properties within the licensed area will receive at least an initial inspection and follow up inspections will also be undertaken where required.
We are very mindful to ensure that the scheme is delivered in a meaningful way and that issues identified through the licensing process are dealt with effectively, including through, where needed, the use of enforcement action against landlords.
We have prosecuted landlords in its previous and current licensing schemes both for failing to apply for a licence and for breaches of licensing conditions. We have also undertaken other enforcement action, such as Improvement Notices and Prohibition Orders of landlords in the licensing area.
The council through funding from the DLUHC Pathfinder Project has been able to increase its resources across the whole of North Yorkshire, which has benefited, in particular, locations where there has been limited resources for enforcement previously.
Our aim is to double enforcement actions across North Yorkshire over the next three years.
Issue raised: supply of privately rented sector could reduce and low income families could be priced out of the area
Consideration: the supply of privately rented sector accommodation has reduced generally over the last three to five years due to a range of factors, including landlords changing their properties from rented to holiday lets. This has led to reduced supply and increased rents.
Whilst this remains a risk, due more to underlying market factors, the proposed area has some of the lowest rental values both within North Yorkshire as a whole and within the town of Scarborough. It is unlikely then that we should see households displaced to other areas as a result.
Issue raised: what support can the council provide to landlords to improve the condition of their stock, especially improving energy efficiency
Consideration: one of the key priorities with the council’s draft Housing Strategy is to support the de-carbonisation of the whole housing stock including properties in the private rented sector.
We will provide advice and support to landlords on energy efficiency measures, including support to access all energy efficiency grants and funding that will be available to private landlords.
Issue raised: concerns over linking fly tipping and rubbish dumping specifically to private rented sector properties
Consideration: it is accepted that there are challenges to identifying those individuals who are fly tippers and rubbish dumpers. However, with over 50% of the households within the area being privately rented, it would be a reasonable assumption that a proportion of the rubbish dumped will be from private rented sector properties.
Whilst Selective Licensing won’t specifically tackle fly tipping, the extra resources provided by the scheme within the area, will mean that problems of fly tipping will be more regularly identified and we will be able to support other services to address fly tipping in the area. We will also give consideration to explore options around a wider neighbourhood renewal approach within the Selective Licensing area, which would complement Selective Licensing and bring meaningful environmental improvements to the area.