Member Article

My Property Box seeks reassurances over proposed £25.5m landlord licensing scheme

My Property Box is calling for reassurances from Durham County Council over how it will use millions of pounds raised from the proposed widespread introduction of selective licensing, suggesting that now may not be the time to impose more costs on private landlords.
The local authority could generate up to £25.5m if it decides to impose the scheme on 51,000 private rental properties. It is currently consulting over the measure which will require private landlords to apply for a licence costing around £500 for each rental property they own in each of 43 proposed designated areas.
Ben Quaintrell, founder and managing director of the Darlington-based letting agency – which represents private landlords across the North East and North Yorkshire - is seeking assurances that all money raised from the licences will be ring fenced to improve the housing stock and raise management standards. He is also urging councils across the region not to treat the scheme as a simple tax on private landlords, especially in the current economic climate caused by the coronavirus crisis. Durham County Council says the fees will cover the cost of processing and administering the licence - which is non-transferable and must be renewed every five years. Selective licensing gives councils the power to regulate privately rented housing in areas of high deprivation, crime, anti-social behaviour and migration or low housing demand. The initiative is designed to improve the condition and management of rented homes, with the aim of raising the health and wellbeing of tenants and curbing anti-social behaviour. Under the scheme it’s an offence to let a property within a selective housing area without a licence and any landlord failing to comply faces prosecution and an unlimited fine. Other councils in the region operating selective schemes include Middlesbrough Council in the North Ormesby and Newport areas and Hartlepool Borough Council, which introduced the scheme in 13 streets. Similar plans were dropped by Stockton Borough Council which had sought to introduce a £945 licence in central Stockton and parts of Thornaby in favour of a private landlord-led scheme, Private Landlords Supporting Stockton. Mandatory conditions of the licence require that gas and electrical supplies and associated appliances meet safety standards along with furniture and that smoke and carbon monoxide detectors are fitted. It also sets out standards governing tenancy management, energy performance and waste removal. Ben Quaintrell, founder and managing director of My Property Box, said: “I support any initiative that improves the standard of both rental properties and their management. “However, selective licensing has attracted a great deal of criticism among landlords who claim it merely penalises honest landlords who sign up for the scheme while failing to hold rogue landlords, who ignore it, to account. “There is a danger that it could be viewed as a revenue-raising exercise and that the extra costs incurred by the landlord are simply passed to the tenant. This is troubling, given the financial implications that the coronavirus has had on many people, with tenants front and centre when raising concerns. “Many councils already possess existing enforcement powers to tackle poor housing conditions and management and I would prefer to see the money from the licence spent directly on practical improvements to properties, rather than being spent on the administration of yet another system. “Private landlords who find themselves with property in selective licensing areas can ensure that they are fully compliant with all requirements by using the services of a reputable letting agency.” The Durham County Council consultation over selective licensing ends on 27 April.

This was posted in Bdaily's Members' News section by News Gathering .