News

With effect from 23 December, councils will no longer need Secretary of State approval to implement larger selective licensing schemes. It will revert to being a local decision for councillors, as is the case with additional licensing and forms part of the Government’s devolution strategy.

Commenting on the changes, Isobel Thomson, chief executive of 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.

“While fee income must be invested back into scheme delivery, the ability to fund staffing costs and overheads from a new scheme will help to reduce cost pressure on the general fund. Local decision-making on the implementation of schemes would be seen as a positive but must not be regarded as a green light for blanket licensing.

“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.

“It is also important that full recognition is given to the important role of landlords in meeting housing need and how this new, further expansion of selective licensing, coupled with the implementation of measures in the Renters’ Rights Bill, could add further to the current sense of uncertainty among some landlords.”

Read the full changes on the Government’s website