Plans to renew a citywide selective licensing scheme for the private rented sector in Liverpool have been controversially rejected by the Government following campaigning by a major landlords’ organisation.
Liverpool City Council had proposed renewing its licensing scheme for another five years, with the current scheme due to end on 31st March 2020. This would require landlords to licence all their rental properties in the city. Government approval is needed where licensing schemes cover more than 20 per cent of a council area.
In Liverpool the private rented sector accounts for up to half of the housing in some areas and covers 55,000 properties in total. The council claims the decision will severely hamper its efforts to drive up standards in the sector and keep vulnerable tenants safe, particularly in relation to fire safety.
The council says 70 per cent of inspected properties in Liverpool have been found to be in breach of their licence conditions since the scheme was launched in 2015, uncovering serious hazards such as fire, electrical safety and excess cold.
The council has carried out over 37,000 compliance actions, issued more than 2,500 legal and fixed penalty notices and prosecuted almost 250 landlords. Liverpool claims it has been responsible for 389 per cent of the 460 per cent national increase in prosecutions of private landlords between 2012 and 2018.
But the Residential Landlords Association opposed the council’s plans, saying the need for licensing was not evidenced in all areas of the city. It claimed most ‘breaches’ were for administrative errors; that where hazards had been identified these were limited to a number of wards where the council should focus its actions; that the proposed £100 increase in the cost of a licence was not justified and financial burdens on landlords meant they were already planning rent increases.
The council has now demanded more information on how the Government’s decision was reached. It could legally challenge the decision if it remains dis-satisfied with the response it receives. Its anger could only have been made worse by a decision just a week later to renew a similar five-year scheme in the London Borough of Waltham Forest, which operates in 18 of the council’s 20 wards. The east London council has obtained 94 prosections.
Decision challenged
Mayor of Liverpool Joe Anderson said: “This decision is not only ill-thought through and short-sighted, it also puts the lives of some of our most vulnerable tenants at risk. It flies in the face of the Government’s tough talk on housing standards, particularly around fire safety in rented properties.
“Over the last five years our officers have come across people whose landlords are happy to take their rent while allowing them to live in appalling conditions with unsafe electrics, gas supply and no fire doors to protect them in the event that a blaze breaks out.
“The Landlord Licensing scheme has enabled us to create a team to be able to hit the streets every day and carry out inspections of properties and bring rogue landlords to book. It is not just about raising housing standards – it is about protecting and saving lives.”
However, the Government’s decision was welcomed by RLA policy manager John Stewart, who said: “Liverpool’s application for a second new citywide scheme was doomed to failure. A much more focussed approach is required, and we welcome the rejection of the citywide scheme.
“The RLA made it clear that the council’s evidence failed to justify a citywide scheme on the basis of low demand. The council’s own statistics showed increasing house prices and lower void periods across many areas of the city.
“In addition, the operation of the current selective licensing scheme left much to be desired, with long waits for licences and a focus on minor, often administrative breaches, rather than tackling the worst property management and conditions.
The council ran a consultation exercise on its proposals before submitting its application last year. It said it had received the backing of Merseyside Police, Mersey Fire and Rescue Service and the majority of residents who responded to the consultation.
By Patrick Mooney, Editor