Local authorities will no longer have to ask the Secretary of State for permission to introduce selective licensing schemes in England and Northern Ireland, it has been revealed.
The decision, which has been published within an update to guidance issued to local authorities, removes one of the main stumbling blocks that councils face when seeking to introduce larger selective licensing, a process that often delays schemes for months while a decision is made in Whitehall.
Housing minister Matthew Pennycook (pictured) hinted heavily in July that this would happen, saying central approval of schemes was ‘under review’.
The decision is part of Labour’s ‘devolution drive’ and consequently, from next week (23rd December 2024) the requirement to seek Secretary of State approval will be withdrawn.
Some strings will remain. The Ministry of Housing, Communities and Local Government says that a “local housing authority must, however, still satisfy all statutory requirements contained in Part 3 of the Housing Act 2004”.
These are that a selective licensing scheme can only be introduced if there are problems with low housing demand or significant and persistent problems with anti-social behaviour linked to the private rented homes in that area.
The new guidance also says that: “In addition, local authorities will be expected to consult for a period of at least 10 weeks on the proposed designation”.
Also, local mayors must be involved in decision making, and councils must also regularly update the ministry on their scheme’s progress.
The ministry has also issued a separate statement, saying it wants to: "Give councils stronger tools to improve their housing markets...so local authorities can take more action to tackle specific and persistent issues in private rented sector properties.
Together, this amounts to a rewiring of local government’s constitutional status, under the presumption that councils have the knowledge and expertise to govern their places."
Previously, councils have been required to seek the Secretary of State’s approval for their scheme if it covers more than 20% of their geographical area or affect more than 20% of privately rented homes in the area, a rule that has been in force since April 2015.
“It makes no sense that whilst planning to create a national database of private landlords, the Government now wants to make it easier for councils to license landlords as well," says Chris Norris (pictured), Policy Director for the National Residential Landlords Association.
"Ministers must clarify how they plan to prevent the two schemes from duplicating each other. A failure to do so risks them becoming nothing more than cash cows.
“The Government’s plans will remove important safeguards against misuse of council licensing powers. It absolves ministers of any responsibility and will give local authorities free rein to blanket entire towns with unnecessary and costly schemes.
“Data from 2021 to 2023 shows that seven of the top ten most proactive councils issuing improvement notices to private sector landlords did not have selective licensing schemes in place. This clearly demonstrates that licensing schemes do not automatically lead to higher levels of enforcement by councils.”
Lucy Tiller (pictured), Public and Policy Affairs Manager at the Renters Reform Coalition, says: “This is good news – we’ve long been calling for the government to make it easier for councils to extend and set up landlord licensing schemes, which are an important line of defence for renters.
"Private renting is different everywhere, so it’s important councils are empowered to tackle local problems and drive up standards. We look forward to seeing more detail about these changes.”
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