Thousands could face £770 rent hike if council changes landlord rules

[dutchman]

The National Landlords Association says 'selective licensing' costs are likely to be passed on to tenants



Thousands of people renting in Coventry could be forced to fork out an extra £770 a year if council plans to change rules for landlords go ahead.

That is the warning from the National Landlords Association (NLA) as Coventry City Council considers whether ‘selective licensing’ should be rolled out across the St Michael’s area of the city.

The scheme would see private landlords in areas of St Michael’s, such as Hillfields and areas around Gosford Street, forced to pay the council a £773 licence fee for every property they own.

Council officials say forcing properties to be licensed would improve living conditions for some who rent and help reduce anti-social behaviour by forcing landlords to make those letting properties sign up to terms of rental.

Landlords would be expected to ensure that gas, carbon monoxide, electrical, furnishing and fire safety measures are provided and kept in proper working order.

At the moment just those living in the St Michael’s area of the city - but only those outside the ring road.

There are an estimated 3,200 rented properties which fall into this area.

Any landlord renting a property in this area would be eligible to pay the £773 licence fee, although there are some exceptions - including properties rented by local housing associations such as Whitefriars.

According to the National Landlords Association, if the cost of providing housing is pushed up it will almost inevitably be passed onto tenants by landlords through increased rents.

Chris Norris, head of policy at the NLA, said: “Licensing schemes very often fail to provide any benefit for tenants or the community at large.

“Instead licensing schemes can have the detrimental effect of increasing the cost of providing homes and pushing up rents.

“Ultimately it is the tenants who are likely to suffer the most as the costs of obtaining licenses are passed on to them.”

If the £773 licence cost is passed on, it would mean almost £65 extra being added to the monthly bills of renters in the area.

The average rent for a two-bed house in Coventry is just under £110 a week according to the latest government figures.

That means tenants in the area could be hit with a whopping 13.6 per cent rent rise if selective licensing is given the go ahead.

The increase is likely to be hugely significant for those living in St Michael’s which is listed as the fourth most deprived area in the city and among the top seven per cent of the most deprived areas in the country.

There are an estimated 3,200 privately rented properties in St Michael’s outside the city centre - 44 per cent of the properties in the ward compared with the national average of 21 per cent.

The licence fee would bring in roughly an extra £2.5million for the council which it says would be used to cover the cost of running the scheme.

It is not yet clear if the scheme would be rolled out elsewhere in the future, but if the council wanted it to cover more than 20 per cent of the city it would need permission from the government.

Chris Norris, from the NLA, said: “The NLA is not necessarily against licensing schemes, so long as they are used appropriately and in a targeted fashion.

“Selective licensing can be an effective tool for councils in improving standards in housing when carried out properly and fully resourced.

“However local authorities such as Coventry Council should be aware that selective licensing is a housing policy, not a social policy, and should not be seen as the sole response to deep-rooted problems such as anti-social behaviour, which councils often cite as a reason for introducing schemes.”

He added: “We believe a far more effective means of improving standards in the private rented sector is through better co-operation between councils and landlords, which can be bolstered through landlord accreditation.”

Coun Linda Bigham, cabinet member for community development, said: “We are consulting with residents and landlords about a selective licensing scheme for St Michael’s.

“This has been introduced in other parts of the country. It means that tenants would be able to expect better standards of accommodation.

“If the scheme is agreed then landlords would be expected to have a licence and we believe that this will have a beneficial impact on the neighbourhoods in and around Hillfields.”

The idea is currently open to public consultation which will run until Sunday, November 6.

For more information click here.

There are drop-in sessions planned.

For residents: Monday September 26 from 2.30pm to 4.30pm at the Hope Centre, Sparkbrook Street, Hillfields.

Tuesday October 4 from 6pm to 8pm at the Watch Centre, 12 Victoria Street

For students: Monday October 10 from midday to 2pm at Coventry Students’ Union, The Hub, Jordan Well

For landlords: Tuesday September 13 from 6.30pm to 8pm at the Lord Mayor’s Hospitality Suite, Council House, Earl Street

[rebbonk]

The licence fee would bring in roughly an extra £2.5million for the council which it says would be used to cover the cost of running the scheme.

If the scheme is cost neutral on these figures there is something very wrong. The council will be making a profit out of this, mark my words.

[Melisandre]

First congestion charge now this do they think this is London or are they just wanting rich people here and where will it stop or are they secretly saving to buy themselves expensive second houses abroad