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Nottingham City Councils Executive Board update- Selective & HMO Addtional licensing

Article by Giles Inman on Apr 18, 2018 View in browser

Nottingham City Councils Executive Board update- Selective & HMO Addtional licensing

The cost burden to the Private Rented Sector in Nottingham will be significant as landlords and agents will not be able to absorb all the costs associated with these schemes as part of the cost of running their business. Regrettably, landlords will be left with little choice other than to impose above inflationary rent increases across the City as a way of recouping some of these costs back.

The Executive Board for Nottingham City Council agreed and finalized their decision to commence a citywide Selective Licensing Scheme on, Tuesday 17th April, with the scheme commencing 1st August 2018.

 At this meeting the Councillors also agreed to push forward with a public consultation to renew the licensing scheme for smaller Houses in Multiple Occupation (HMOs) as the current scheme comes to an end on the 31st December 2018.

 The Selective Licensing scheme will impact over 32,000 family homes representing 91% of the non-HMO rental market across Nottingham. The Council’s argument for the scheme is to Improve the standards in the private rented sector and to ensure effective management of these properties through more extensive control. They believe the scheme will contribute to tackling and reducing Crime, Disorder, and Anti-Social Behaviour (ASB) and will help the Council engage, build and nurture positive relationships with new and existing landlords.

The Council intend to inspect up to 50% of the properties throughout the 5-year licence period to ensure they are meeting their obligations to protect and safeguard tenants from rogue landlords.

 The submission for Nottingham’s citywide scheme was made on 6th October 2017 to the Ministry Housing, Communities Local Government (MHCLG) and on 8th February 2018 the Council was notified by MHCLG that the Designation may proceed, and the Council have now confirmed the scheme would come into effect from 1st August 2018.

The fees will range from £480.00 to £780.00 depending on the accreditation status of the landlord. The fees can be paid in two parts; on licence application and then on notification a licence will be issued.

 Licence applications will only be accepted online from 1st July 2018, with the scheme coming into force on 1st August 2018. Applications must be made before 1st August 2018 to prevent a risk of heavy fines. The licence holder must ensure all enclosures including a DBS certificate and EICR certificate accompany the online application. There is an extensive range of conditions the landlord will be responsible for ranging from developing a robust plan to tackle anti-social behaviour to dealing with tenant rubbish.

Nottingham is in its final year of the five-year HMO Additional Licensing scheme that is due to end on December 31st, 2018. A recent Council review of the existing scheme (January 2014 to May 2017) demonstrates some measurable success and effectiveness. However, it shows that even as the scheme is in its final stages, a lack of engagement with the scheme and non-compliance from landlords persists and that further compliance and enforcement action is required to achieve the scheme outcomes.

The upcoming public consultation will propose new areas of Sherwood, St Ann's, New Basford and the City Centre for licensing as these areas have met the Council statistical test. These "new" areas contain c.150 HMOs of the type licensable under Additional Licensing. It is further proposed section 257 buildings currently under the existing HMO Additional licensing scheme be transferred into the Selective licensing scheme.

 The proposal on fees for the HMO Additional Licensing from 1st January 2019 will be as follows: 

  • Standard fee for a licence will cost £1,370 per property
  • Accredited fee for a licence will cost £1,000 per property
  • A Less compliant landlord licence fee will cost £1,720 per property (The Council will review the history of the licence holder and if additional works or interventions were required then the licence holder will have to pay the higher fee)

The cost burden to the Private Rented Sector in Nottingham will be significant as landlords and agents will not be able to absorb all the costs associated with these schemes as part of the cost of running their business.  Regrettably, landlords will be left with little choice other than to impose above inflationary rent increases across the City as a way of recouping some of these costs back.

 To help landlords and agents understand the implications and complexities of these schemes EMPO is hosting a number of two-hour workshops in Nottingham. 

The objective of the Selective Licensing workshop is to explain, step-by-step, exactly what landlords need to do to initially get their properties licenced, along with the ongoing requirement to manage and maintain their properties within the scope of the scheme. 

There will be Q&A’s along the way, and attendees will leave with a full practical understanding of what is required in time for the August 1st deadline.

The dates and venue are as follows:

Monday June 18th 2018 (1:30pm – 3:30pm, 4:30pm – 6:30pm)
Tuesday July 10th 2018 (11:00am – 1:00pm, 1:30pm – 3:30pm, 4:30pm – 6:30pm)

Castle Cavendish Works, Dorking Rd, Nottingham NG7 5PN

£10.00 per delegate

EMPO members FREE

To reserve your place CALL- 0115 950 2639

If you want more information concerning the schemes, please call Giles on 0755 264 2030