Agenda item

-        Strategic Director of Neighbourhoods and Adult Services to report.

Further to Minute No. 6 of the meeting of the Cabinet Member Councillor Akhtar, Deputy Leader, introduced a report by the Strategic Director of Neighbourhoods and Adult Services, which presented the provisions of the Housing Act, 2004 that allowed for a Local authority to make a charge for the service of enforcement notices.

It was proposed that the discretionary power be adopted with the effect of introducing a charge for specific private sector housing enforcement action carried out by the Safer Neighbourhood’s Community Protection Unit.

It was important to note that the aim of the enforcement activity carried out by the Council was to improve the quality of the housing across the district and protect tenants.  However, as a consequence of this proposal, there was the potential for an increase in the income generated by the team through enforcement activity.

Councils, however, were required not to use Section 49 as an income generating tool. Only justified notices which complied with the Enforcement Policy may be served and any charge made, must accurately reflect the Councils costs in preparing that notice.  

Recovery of the fee would be via established sundry debtor arrangements and the charge in cases of non payment may be placed against the property as a local land charge.

In the year 2009/10, sixty-one relevant notices were served and it was anticipated that the charge itself would prompt landlords to react more quickly, reducing the number of notices required to be served. As an illustration, if it was assumed that a 50% reduction in notices served, thirty notices at an average cost of £400 would produce an income of £12,000.

Section 49 of the Housing Act 2004 gave the local authority the discretion to charge for the service of notices. There was no maximum limit to the level of the charge, however, the charge must be justifiable and reasonable. Section 49(6) provided that the appropriate national authority may impose a limit through regulation at any time.  Further to this guidance recommended that consideration of the personal circumstances of the proposed recipient of the demand for payment should be considered.  There may be circumstances which resulted in a reduced charge or no charge being made at all.  This discretion would be embedded in approval procedures.

The recipient of the notice had a right to appeal against the notice and the charge. A tribunal may make an order to reduce, quash or require repayment of any charges made. 

Charging for notices must not be seen as a potential source of generating income. Enforcement action must only be taken where it was appropriate to do so. The Council was at risk of being challenged where a disproportionate number of notices have been served inappropriately to generate income.

The current delegation of Council powers to the Director of Housing and Neighbourhood Services in respect to the Housing Act 2004 covered the introduction of the charging regime.

Recommended:-  (1)  That the introduction of a charging system be adopted under Section 49 of the Housing Act, 2004 with respect of the service of Improvement Notices, Prohibition Orders, Emergency Remedial Action, Emergency Prohibition Orders and Demolition Orders.

(2)  That the relevant Notices only be served in accordance with the principles of the Enforcement Concordat and the Council’s General Enforcement Policy.

(3)  That the General Enforcement Policy be amended with the introduction of Section 3.7.

(4)  That owner occupiers be exempt from the proposed charging regime.

(5)  That the introduction of the charging system be with effect from 1^st August, 2011.