Agenda item

This report provides an update on the Borough’s property licensing schemes and how they are being used to improve housing standards in the private rented sector.

Valerie Simpson (Interim Strategic Lead for Environmental Health and Regulatory Services) introduced the report which provided an update on the Borough’s property licensing schemes and how they were being used to improve housing standards in the private rented sector.

Providing context, Councillor Lisa Homan explained the Private Rented Sector had expanded rapidly in the last 10 years and now accounted for approximately a third of the borough’s housing. The Committee noted that to improve standards, a selective licensing scheme had been introduced in 2017 which applied to approximately 20% of the streets in the borough.

Dawood Haddadi (LBHF Team Manager, Private Sector Housing) provided a presentation which covered a number of aspects including:

• Property Licensing
• Risks and Challenges
• Types of Licensing
• Case Studies
• Online applications management system

Councillor Zarar Qayyum asked about mandatory and discretionary licences and what the differences were. In response, Dawood Haddadi explained that the Housing Act 2004 placed a duty on local authorities to licence certain types of Houses in Multiple Occupation (HMOs), to improve standards in the private rented sector. This duty of mandatory licensing only applied to HMOs which were occupied by five or more persons forming two or more separate households. In 2016, officers carried out a detailed survey of housing conditions in the private rented sector and found that a significant proportion of properties were substandard and did not meet the criteria for licensing.  Following extensive consultation with landlords, residents and other major stakeholders, the Council introduced two discretionary licensing schemes to raise standards in the private rented sector which could operate for up to five years. These were:

• The additional licensing scheme, regulated housing standards in HMOs that do not fall under the mandatory licensing criteria. The whole borough was designated as licensing area under this scheme.
• The selective licensing scheme was introduced in one hundred streets where the Council demonstrated ‘significant’ and ‘persistent’ anti-social behaviour i.e. fly tipping and rubbish accumulation. The scheme requires all private rented properties to hold a selective licence. This included family homes that are rented.

Councillor Zarar Qayyum noted that 250 properties had been inspected so far and asked how long this had taken. In response, Dawood Haddadi explained that inspections had started in 2017. Given the high volume of inspections required, it was noted that officers prioritised their inspections based on the information provided by the applicant and local intelligence that officers received relating to the property.

Councillor Lisa Homan confirmed the Council was taking a proactive approach to property licensing and there were a number of officers working in cross functional teams to support the private rented sector. It was noted that the illegal internal conversion of ex-Council properties was a growth area and raising overall standards was a slow and gradual process.

Councillor Rowan Ree asked which landlords needed a licence. In response, Dawood Haddadi provided details the mandatory element of the licensing scheme and explained the changes which had been made when the additional licensing scheme was introduced. Councillor Rowan Ree asked whether a landlord would be aware they needed to hold an HMO licence to operate. In response, officers confirmed that this was a widely known requirement and potential landlords would be made aware of the requirement at the time of purchase. 

The Committee discussed the growing trend of portfolio landlords operating in high value areas and whether there were lots of properties which required a licence which still needed to be found. In response officers provided details of the validation process which needed to be completed and confirmed that there

were local guidelines for housing standards in HMOs and non-HMOs. It was noted that by applying the Council’s licensing schemes, officers could ensure that accommodation was maintained above minimal national standards that did not adequately reflect the built form, size, layout and type of HMO that was typically found in the borough.

The Chair asked what happened in those cases where the landlord held a single property rather than a portfolio. In response, officers explained that the licensing process was particularly bureaucratic in the way in which it had been set up and all landlords would need to seek guidance from the PSH team and be guided through the process. The Chair asked whether there was guidance on HMOs on the Council’s website. Officers confirmed guidance was available but the website could be reviewed.

Action: That officers review the Council’s website information on HMOs and refresh the content as appropriate.

Councillor Ann Rosenberg asked in those cases where a resident was steered towards the PSH and was subsequently made homeless, whether the Council had an obligation to rehouse them. Mark Meehan (Chief Housing Officer) confirmed that in these cases the resident would be steered back in to the housing system.

In relation to the whole licensing scheme, the Chair asked whether there was a known number of properties that officers were working towards processing and if they had identified those landlords which needed to apply for a licence. Dawood Haddadi confirmed that landlords still need to self-identify and there was a six-month transitional phase when mandatory licensing was first introduced in April 2006. Some of the achievements of the selective licensing scheme so far includes:

-       First Council to have an intelligent form

-       Meet with portfolio landlords

-       Portfolio landlord accounts set up

-       Licensed 1400 properties

-       Worked with landlords to update conditions

-       Agreed with RPT to have 100% EICR (Electrical Installation Condition Report)

-       Artificial intelligence data gathering on properties and landlords

-       Oversees landlords policy

-       Able to inspect properties based on risk

-       FOIs responded to much faster and easier as a result of Rocktime

Summarising the discussions, the Chair confirmed that it would be useful to learn more about the 100 streets which had been selected for the additional licensing scheme, as well as what guidance was available for smaller landlords.

The Chair commented that the effectiveness of the property licensing scheme would become apparent in the next year or so, due to the amount of enforcement activity. Concluding his remarks, the Chair confirmed that, moving forwards, it was essential that the quality of private rented sector accommodation was improved.

Action: The officers provide a further update on private sector housing – property licensing during the 19/20 Municipal year.

RESOLVED

That the Committee reviewed and commented on the report.