Landlord claims Cities Licensing scheme is forcing up rents

The situation described by Mick Roberts, Nottingham’s biggest private provider for homeless benefit tenants, highlights a complex issue involving the impact of council licensing schemes on the rental market, particularly for vulnerable individuals.

Here are some key points based on the information provided:

1. Rising Rents: Mick Roberts attributes the increasing rents in Nottingham to the licensing fees imposed by Nottingham City Council. He claims that landlords, in order to compensate for these fees, are raising rents, making it difficult for tenants, especially those already struggling due to the cost-of-living crisis.
2. Supply and Demand: The claim that licensing fees are leading landlords to sell their properties, thereby reducing the supply of rental homes, adds another layer to the issue. A decrease in the supply of rental properties could potentially exacerbate the homelessness problem, as mentioned by Mick Roberts.
3. Impact on Low-Income Tenants: Mick Roberts argues that the licensing schemes are affecting vulnerable, low-earning tenants who cannot afford the increased rents. This situation may force some tenants to become homeless or relocate, further contributing to Nottingham’s homelessness issue.
4. Effectiveness of Licensing Schemes: Mick Roberts questions the need for new licensing schemes and suggests that they are causing more harm than good. He believes that if the previous licensing scheme was successful, there would be no need for a new one.
5. Council’s Response: The Nottingham City Council defends its licensing schemes, stating that they are based on national guidelines and are designed to ensure high living and safety standards for tenants. The council argues that these schemes empower tenants and provide protection against bad landlords.
6. Purpose of Selective Licensing: The council emphasizes that Selective Licensing was introduced to improve the quality of accommodation for tenants and enhance protection against substandard landlords. It allows landlords to demonstrate their commitment to providing quality housing while giving tenants clear expectations regarding maintenance, safety, and property management.

The situation raises broader questions about the balance between regulation and its potential impact on housing affordability, as well as the effectiveness of licensing schemes in achieving their intended goals. It also underscores the importance of ongoing dialogue between landlords, tenants, and local authorities to address these concerns and find solutions that benefit all parties involved.