Controversial licensing scheme to improve housing to be investigated

A Devon council is investigating the potential for a controversial licensing scheme for landlords to try to improve the quality of housing in certain parts of its patch.

North Devon Council says it has closed down some houses of multiple occupation (HMOs) where living conditions were “atrocious,” but wants to establish if there is a strong case for ‘selective licensing’ in areas with high levels of deprivation.

Under the scheme, landlords must have licences for each of their rental properties within a designated area, and must meet a minimum standard of accommodation.

The government says it is a tool so residents have access to safe homes, improving community conditions and health outcomes. They aim to “create safer neighbourhoods, better access to homes, more welcoming communities, and improved living conditions and property management”.

But the scheme is contentious. It involves charging landlords between £750 and £900 over a five-year period and extra paperwork. Fines for failing to comply can be reach £30,000.

Some property experts say it runs the risk of increasing rents, with many landlords who are financially squeezed passing on licensing costs to tenants.

It is a concern shared by some councillors at North Devon Council’s strategy and resources committee.

Cllr Pru Maskell (Con, Braunton West and Georgeham) said landlords are selling up because of the pressure and it is becoming “less and less desirable” to be in the marketplace. Introducing selective licensing might push more landlords into holiday lets and there would be fewer homes for rent.

Officers expect some casualties, but unless the council undertakes a feasibility study and consulted landlords, they would never know.

Before proposing a selective licensing scheme (SLS) and embarking on a consultation, the council must identify the problems affecting the area concerned and demonstrate that problems exist.

Twenty per cent of councils in England have introduced SLSs.  Areas designated can have problems of anti-social behaviour (ASB), high levels of crime, poor housing conditions and deprivation.

The 2021 Census shows 20 per cent of households in North Devon rent from private landlords.

North Devon Council often cites poor housing as a contributory factor to deprivation in areas like the centre of Ilfracombe.

The council’s lead member for housing, Cllr Graham Bell (Lib Dem, Braunton East), said there is no evidence that more landlords are selling up because of selective licensing in other areas.

He said some very good landlords do not get the recognition they deserve.

The North Devon and Torridge Housing Crisis Group are not concerned about losing good landlords, he told the committee.

The councillor, who recently spoke at the Local Government Conference on the council’s efforts to tackle temporary accommodation needs, said similar schemes elsewhere had reduced ASB, seen rogue landlords brought to justice, and rent rises had been minimal.

“Potentially it is a benefit… we are trying to improve people’s lives and it does seem to work,” he said.

The committee asked officers to conduct a feasibility into a SLS scheme for areas of North Devon which meet the criteria.