Letting agents have slammed plans to ease licensing rules that will mean local councils can introduce large selective schemes without government approval.

Propertymark believes there are already enough laws covering high standards in the private rented sector, while the Renters’ Rights Bill offers an opportunity to phase out licensing schemes.

Since 2015, councils have been required to seek approval from the Secretary of State for their scheme if it covers more than 20% of their geographical area or affects more than 20% of privately rented homes - one of the main stumbling blocks that often delays schemes for months. The decision to do away with the requirement is part of Labour’s ‘devolution drive’ and takes effect on 23rd December.

Propertymark’s head of policy and campaigns, Timothy Douglas (main image), says the main issue is local authorities’ lack of capacity to actively inspect properties and enforce these rules. “Licensing means councils spend all their time administering schemes, rather than enforcing against rogue, criminal landlords,” he explains.

The body argues that the Renters’ Rights Bill offers an opportunity to phase out licensing schemes, provide councils with the resources they need and endorse professional letting agent and landlords alongside the introduction of the Decent Homes Standard and Private Rented Sector Database. “However, it would seem that the UK government is failing to recognise the benefits of doing this and not providing local authorities with the much-needed investment they need to enforce the wide range of legislation that already exists,” adds Douglas.

Lack of enforcement

Isobel Thomson (pictured), chief executive of letting agent accrediation scheme safeagent, says: “When combined with the budgetary pressure on local government and the significant income-raising potential, we could see a raft of new schemes being implemented over the next few years. 

“safeagent is concerned about the lack of effective enforcement and how local government will have capacity to resource further regulatory burdens when many councils are already experiencing a lack of expertise and staff shortages.

"In addition, there is a concern as to how to limit the upward trajectory in selective licensing fees which ultimately drives up the cost of private renting."

The Ministry of Housing, Communities and Local Government says a “local housing authority must, however, still satisfy all statutory requirements contained in Part 3 of the Housing Act 2004” such as problems with low housing demand or significant and persistent problems with anti-social behaviour linked to private rented homes in that area.