Agenda item

The Mayor and Executive Member for Adult Social Care and Public Health submitted a report for Executive’s consideration.

 

The purpose of the report was to present the evaluation report for the Newport 1 Selective Landlord Licensing Scheme which came to an end on 12th June 2024. The report also sought approval to consult on the proposal for further designation of Newport 1 area as Selective Landlord licensing area and the proposed fee of £998.

 

Executive approval was required as the schemes were delivered via a legislative framework that required organisational approval to start formal consultation prior to implementation.

 

The Housing Act 2004, gave local authorities powers to introduce Selective Landlord Licensing (over a five year period) for privately rented properties in areas experiencing low housing demand and/or significant and persistent anti-social behaviour. The purpose of such a scheme was to improve standards of property management in the private rented sector, and when combined with other measures, should lead to improved physical, social and economic conditions.

 

ORDERED that Executive consider the Evaluation Report on the Newport 1 Selective Landlord Licensing Scheme and approve:

 

1.    The commencement of appropriate consultation on the proposal to the designation of the selective landlord licensing scheme in the Newport 1 for a further five years.

2.    The consultation to include the proposed fee of £998 for a 5-year licence to cover the cost of delivering the scheme in the designated area.

3.    The results of the consultation be presented to Executive for consideration to determine whether or not to designate the area as a selective licensing area. 

 

OPTIONS

 

Do not renew the SLL designation/new designations and carry out alternative interventions to replace of a formal scheme.

 

Alternatives to Selective Licensing were considered in 2014, 2019 and 2023 prior to the designation of the current Selective Licensing areas. These included voluntary registration and the use of traditional enforcement tools. These would have required significant additional investment by the Council to achieve any sustainable change across the area.

 

There was a need to ensure that proactive assessment of properties and an increased focus on renting and management practices was sustained.  While Selective Landlord Licensing was not intended to be indefinite, a shift to an alternative non-regulatory approach or only relying on traditional reactive enforcement tools were not considered appropriate to sustain or progress the improvements achieved.

 

Traditional interventions did not provide the level of engagement with landlords necessary for the desired improvements. Landlord take up of previous accreditation schemes had been very low, they tended to only engage with responsible landlords who saw a value in being part of a scheme. An example of a non-mandatory scheme is the Stockton Pluss model which was run by landlords.  Stockton Council figures show that they had 80 members for this scheme with 539 properties and not all landlords who opposed their SLL scheme joined the accredited scheme.

 

Short term proactive enforcement projects could have an impact but were not sustainable without significant investment from existing revenue budgets or grant funding.

 

A pilot project undertaken in early 2023 to carry out proactive housing inspections in a selected area of Central ward found it very difficult to engage with landlords and tenants. This was detailed in the Evaluation report.

 

It was proposed that the recommended action was the most appropriate course to ensure a sustainable and cost-effective solution to improving management standards in the private rented sector in the designated area within Newport 1, and that a formal consultation was commenced.

 

REASONS

 

The SLL schemes in both North Ormesby and Newport 1 schemes had resulted in improvements in the living and environmental conditions for those living in those areas and contributed to reductions in antisocial behaviour. A further designation of Newport 1 Selective Landlord Licensing scheme would continue to ensure that property standards were maintained, anti-social behaviour issues related to tenants were reduced and managed and that landlords were held accountable for the costs of both licensing and the property management improvements. The existing SLL designation was self-financing and, in line with the recommended changes to the scheme, the new designation would work in the same way.

 

The designation would require all privately rented properties within the identified boundary, subject to statutory exemptions, to apply to be licensed for up to five years and comply with the licence conditions.

 

The proposed fee of £998 enabled the Council to ensure the scheme was self-financing, it was calculated on the staffing requirements for the administration and regulation of the selective landlord licensing scheme.

 

The current boundary for the SLL scheme was to be maintained to ensure complete coverage of the area in relation to improved housing standards, environmental conditions and reduction in crime and anti-social behaviour.

 

Prior to designating an area, the Council was required to undertake a minimum 10-week statutory consultation with local people, businesses, landlords and partners. Developing the designations and designation for Selective Licensing in the areas identified, enabled the Council to sustain the improvements already achieved in Newport 1 and prevent further decline in those areas.

 

In 2018 a Middlesbrough Council Scrutiny Panel reviewed the North Ormesby 1 scheme. The Panel were fully supportive of the scheme:

 

·         They recognised the achievements made through SLL in the North Ormesby ward, including improving community confidence which has led to increased reporting of anti-social behaviour and crime to the SLL team.

·         They were complimentary of the work achieved and applauded the Selective Licensing Team for their efforts.

·         The Panel also learned that in November 2017, the team had been awarded Outstanding Contribution to Prevention at the Cleveland Community Safety Awards.

 

Throughout the investigation, the Panel made reference to the issues within Gresham and University wards and the increasing number of private rented housing properties. The Panel were of the opinion that the excellent work achieved since the introduction of Selective Licensing in North Ormesby and hoped that any future schemes would mirror this model.

 

Consideration was being given to the next steps in terms of rolling out SLL to other areas of the town which met the criteria. A further report would be brought to Executive seeking approval for the next steps.

 

An internal audit was conducted during July-Sept 2023 which focused on the Selective Landlord Licensing Schemes currently operating in the areas of North Ormesby and Newport 1.  The purpose of this audit was to provide assurance to management that procedures and controls within the system ensured that:

           

·         The scheme was well administered, and the financial model was fit for purpose.

·         The performance of the project was monitored and the Council’s objectives were met.

 

Auditors concluded that:

·         The SLL Schemes were well administered, the financial model was fit for purpose, and that performance of each of the schemes was monitored to ensure that the Council’s objectives were met. 

·         A sound system of governance, risk management and control existed, with internal controls operating effectively and being consistently applied to support the achievement of objectives in the area audited.

·         Their overall opinion of the controls within the system at the time of the audit was that they provided Substantial Assurance.

 

The Statement of Policy and Procedure for Selective Landlord Licensing (SPPSLL) was published on the Council’s website and clearly set out the requirements of the schemes, and was appropriately reviewed, updated, and approved. The aims and objectives of each of the schemes provided links to the Council’s Strategic Plan and to the improvement of housing. The Selective Landlord Licensing (SLL) team worked in close partnership with other Council services and external agencies to maximise the benefits of the schemes.