Reading Council has given the go-ahead for an additional licensing scheme in the town – and defended the rising costs set to hit landlords.

The scheme should be formally declared next March and implemented in June, with landlords expected to pay £950 as an incentive for applying early, rising to £1,250 a few months later, subject to budget-setting by the full council in February.

A council report explains that although feedback from its consultation was that the proposed fee levels were too high - along with fears about the impact of this being passed on in rent increases - proposals were amended to achieve cost recovery and cover running costs.

Reading has also approved a selective licensing scheme which will be introduced in the Battle ward in 2027, followed by Park ward in 2029, and would possibly extend to Redlands.

Discount

Landlords who rent properties through its rent guarantee scheme will be offered a much bigger discount for getting a selective licence: £250 compared to the £750 standard rate and £650 for members of an accredited landlord scheme.

In the report, Stuart Taylor (pictured), principal environmental health officer, says the concerns around costs being passed on and landlords exiting the market were also shared by Rent Guarantee Scheme (RGS) and homeless prevention teams.

The scheme matches people who need homes with landlords who have properties to let - who get the rent directly from the council in advance. It also guarantees to pay up to six weeks’ rent as a tenancy deposit, to cover costs if your property is damaged by tenants.

“In order to mitigate this, we propose to offer a heavily discounted fee to RGS landlords - this particularly affects the selective licensing scheme in Battle ward. These properties are generally let below market rents and the reduction is to incentivise and retain landlords onto the scheme.”

The report adds that nearly 40% of Reading’s housing stock is in the PRS, with more than 3,000 HMOs, 37% of which are likely to have serious hazards.