The introduction of another selective licensing scheme in Nottingham will create an exodus of landlords, the local landlord group warns.

East Midlands Property Owners Group (EMPO) believes many tenants could fall into arrears when the cost of living crisis forces them to face a decision whether to pay even higher utility bills in October or the rent.

It warns landlords will be forced to pass costs onto renters or might decide to call it quits. 

“This is not the time for a sensible council to be considering another costly scheme,” Giles Inman (pictured), EMPO’s business development manager tells LandlordZONE.

“Very little has been achieved in the last five years, anti-social behaviour hasn’t been reduced and inspections have only found a small percentage of hazards.”

Licence costs

Nottingham Council is consulting on a new scheme which would take effect in August 2023, after approving plans last month. A licence is expected to cost £820 for five years with a proposed fee of £630 for accredited landlords.

Under the previous scheme – which is currently being audited – just 666 improvements were made to a total of 446 properties. Inman says it issued 30,000 licences at £890 and landlords are questioning if they’re getting value for money.

Every landlord selling rental properties cites licensing as one of the reasons, he adds. “Selling up is the number one conversation topic, followed by EPCs. They’re very angry about selective licensing – the mood is a lot more hostile this time than it was five years ago.”

Read: the complete guide to letting an HMO property.

EMPO is currently considering whether to draw up a formal response which would involve going to the government with a submission.

toby neal

Councillor Toby Neal (pictured), new portfolio holder for housing and human resources, told Nottinghamshire Live: “The first scheme has helped improve property conditions, management standards and helped to make homes safer through the removal of dangerous hazards such as electrical and gas safety, damp and mould, as well as slip, trip and fall hazards.”

Read more about HMOs.

7 COMMENTS

  1. How is a licensing scheme selective when it encompasses the entire city?

    How is 2% of properties receiving improvements value for money?

    How is raising £25 million from tenants to fund their Housing Dept fair?

    All my tenants got last time was a rent rise and all they will get this time is another one!

    • The amount of landlord crying over a cost to them (& you make it clear you are going to shirk it onto your tenants) of £10-13per month, per property (630 or 820 divided by 5 years x12 months) is embarassing.

      Would you be in favour of double Rent Repayment Order penalties and halving license fees? That way the criminal landlords would get punished more and good landlords less…

      As you say, this Selective scheme is not very selective – usually they are restrained to 20% of a council area – this one (Nottingham) has to get specific sign-off from the Secretary of State to get round this rule (probably in relation to some horror-show landlord stories in the city).

      • You are the emarassing one.
        To suggest that LL shouldn’t increase rent to offset increased costs.
        Its called BUSINESS.

        For a LL to maintain PROFIT costs have to be paid for by the user.

        Or are you seriously sugesting LL accept reducded PROFIT to meet all the increased cost burdens imposed on the PRS!!!??

        It is ALWAYS the end user that will pay for increased costs.

        If not then it would not be worthwhile remaining in BUSINESS.

        Thenwhere would tenants live!!?

      • Have you worked how much it had cost on licensing charges to achieve less than 700 improvements? This is more about fund raising thinking landlords are cash cows. Another rogue council screwing money from wherever it can grab it.

    • If you are still in the PRS you will have to justify rent increases.

      Tenants are to be given the facility to OBJECT to your rent increase justification.

      You may have to reveal your personal and business ciecumstances to your tenant to justify your rent increases!!!

      Bloody OUTRAGEOUS!!!

  2. Radio 4 today had an article discussing the new proposals where one of their “selected” guests in response to a question over Landlords getting out of the market said “we don’t want private landlords anyway” which went totally unchallenged. This about sums up the general media and Government view of private landlords so they deserve all the wonderful so called “professional landlords” which were referred to in the interview which I am sure really look after their tenants and charge really low rents!

  3. If any council introduced a scheme where my properties are ( I am selling them all as and when they become vacant ) I would raise the rent and call it a council tenants tax and let them deal with the publicity, as far as this vendetta goes I have got to the stage where I could not care less whether I am prosecuted or not.

LEAVE A REPLY

Please enter your comment!
Please enter your name here