Housing minister Matthew Pennycook has hinted heavily that councils will be given powers to introduce large licencing schemes without government approval as part of Labour’s push for greater devolution.

Since 2015, new or renewed schemes in England which cover more than 20% of a local authority’s private rented stock or geographical area need the government’s green light.

In a written Parliamentary question, Labour MP Dan Carden asked whether the Ministry of Housing, Communiities and Local Government planned to return landlord licensing powers to local authorities.

Pennycook replied: “Local housing authorities can introduce selective licensing of landlords in targeted areas to tackle specific problems, if the statutory requirements are met.

“We will keep this 20% threshold under review in light of our proposals for devolution and supporting improving rented sector standards.”

In January 2021, Christopher Pincher, then-Housing Minister, said 11 schemes in ten local authorities covering more than 30% of the local PRS stock or geographical area had required approval since 2015.

Since then, many councils have been given the green light for schemes covering more than 20% of PRS stock including Peterborough, Brent, Nottingham and Southwark. Blackpool Council is one of the authorities waiting for approval.

The Levelling Up, Housing and Communities Committee inquiry into Reforming the Private Rented Sector repeated the recommendation made in its 2017-18 inquiry to remove Secretary of State permission. The committee said: “It should be for local government, unencumbered by too much central control, to decide the best way to enforce housing standards.”

The NRLA has questioned the need for selective licensing after the new property portal is introduced, while Clive Betts MP, former chair of the committee that scrutinises the Department of Levelling Up, Housing and Communities, told its conference that the portal would probably mean that fewer requests to operate blanket licencing schemes would be submitted by local authorities.