Agenda item

Councillor Beck introduced the report stating that the existing Selective Licensing Scheme was half way through its stated timescale and hoped that further reports on this subject would be brought back to Improving Places Select Commission on an annual basis.

 

Much opposition was seen when the decision was taken to implement this scheme; however, the data in the report reflects a positive picture and an improvement in the standard of houses in the area.

 

Matt Finn, Community Safety and Street Scene Manager presented the report.

 

Background

Detailed within a report to Improving Places Select Commission, 5^th April 2017 (item 65), the Council introduced designations for four Selective Licensing areas, namely Eastwood, Masbrough, Dinnington and Maltby South East. The designations were made in order to address the decline of conditions within the private rented sector in these areas. Maps of the designated areas are shown at Appendix A.

 

The objective of the scheme is to improve conditions affecting the health of tenants within the private rented sector caused by poor management of the stock. Poor housing conditions have a significant impact on the health of tenants, particularly those that are vulnerable particularly the young and elderly.  In the long term, Selective Licensing is anticipated to improve morbidity and mortality in the private rented sector by addressing directly the housing conditions that affect the health of tenants, by forcing improvements by landlords.

 

Additionally, the schemes are expected to stabilise communities through improving the conditions of properties, making private rented accommodation more attractive to longer term tenancies. Subsequently, this is likely to contribute to reduced tenant turnover, low housing demand and anti-social behaviour. 

 

Within designated areas, all privately rented properties must be licensed and comply with a set of licence conditions.  The costs of the licensing scheme are borne entirely by the property owners through a licensing fee of £592 per property, covering a five year licensing period.  If landlords fail to licence a property or do not comply with licence conditions they can be prosecuted, or face other sanctions including Management Orders and Rent Repayment Orders.

 

The private rented sector is growing in response to the demand for lower cost housing outside of the social rented sector, and the Council is committed to supporting and promoting private landlords to provide quality and affordable properties.  However, there are concerns that the private rented sector is falling below the minimum expected legal standards described in the Housing Act 2004.  In some areas the significant increases in the private rented sector, high rates of empty properties, short term tenancies and anti-social behaviour are having a negative impact on those communities.

 

In some areas the significant increases in the private rented sector is combined with severe risks to the health of tenants, high rates of empty properties, short term tenancies and anti-social behaviour, which have a negative impact on those communities. Indeed, in some areas the private rented sector accounts for up to 60% of the housing market, becoming a significant part of the overall housing market in the borough.

 

Revised estimates based upon investigations and a detailed mapping exercise suggests there are 2,400 licensable properties across the four Selective Licensing Areas. So far 1,942 properties are registered with an average of 50 new applications per month.  Although significantly higher than initial estimates in 2015, which stood at 1,254 properties based on 2011 data, all the remaining unlicensed properties are expected to be brought within the scheme by mid-2018.  

 

Selective Licensing is a tool to drive long term improvement and it is no surprise that each designation has a five year life time. In 2020 the current designations will end, before which, the Council will need to decide whether the designations have achieved or are on course to achieve their aims, whether the achievements can be sustained without licensing or whether additional licensing designations need to be put in place to ensure the sustainability of improvements.

 

The critical objective of Selective Licensing to improve housing conditions to protect the health and safety of tenants is fully recognised by Government. Indeed, there have been recent amendments to the criteria that allow Council’s to make Selective Licensing designations specifically to benefit deprived areas. The Council will need to consider the benefits that can be brought to improve the lives of some of our most vulnerable individuals and families in deprived areas, through extending the number of areas designated where there are a high proportion of private rented properties.

 

The Selective Licensing schemes have been developed through two distinctively focussed phases:-

 

·                May 2015 to September 2016: Administration of applications; processing of licences; recruitment to essential posts.

·                October 2016 onwards: continued administration and processing; enforcement; inspections of licensed properties; investigations of unlicensed properties.

 

Enforcement

 

Enforcement within Selective Licensing areas, although focusing on making properties safe for tenants through tackling unlicensed properties and inspecting licensed properties and forcing compliance with legal requirements, draws in wider tools and powers to tackle nuisances, anti-social behaviour, illicit tobacco and food safety.

 

Additionally, significant referrals of issues are made to a wide range of Council teams and partner Agencies from concerns relating to bins through to modern slavery.

 

The targeted areas of work covered under the Selective Licensing scheme as well as enforcement  includes;

 

Unlicensed Houses

Inspections of properties

License Condition Compliance

Gas Safety and Fire Safety

Electrical Safety and Excess Cold,

Illicit Tobacco and

Nuisance and Anti-social behaviour.

 

At the start of the scheme, 90% of the properties did not meet the required standards. As a result of the scheme, improvements are demonstrated by a reduction in

 

·                the number of unlicensed properties in the area

·                anti-social behaviour including domestic noise reduction

·                the turnover of empty properties which results in a reduction of

·                fly tipping

 

Areas which demonstrate a low demand for properties prevents the formation of communities by the high turnover of tenants.

 

P29  2.4 Clarification was asked for in relation to

 

·                IMO allows the Council to take over the property if the owner persists in not licensing the property or it is deemed the landlord is not suitable to manage the property. The Council can take over the management of the property and receive rent due on it. This is viewed as a last resort. 

·                RPO allows the Council to pursue individuals for unpaid rent whilst the property was unlicensed. Any income was paid back to the Government, however under new legislation starting in February 2018; the Council will be able to keep any reclaimed rent. 

·                The license fee is £529 per property, which is paid on joining the scheme, regardless at what stage in the scheme the landlord joins. There are no refunds provided. The fee is reviewed on an annual basis. There has been no change to the license fee since the start of the scheme.

·                Of the 90% of properties which did not meet the required standards, how many landlords does this relate to? Further information on this to be provided by Matt Finn. A Selective License Area aims to reduce the number of bad landlords in the area, if they do not concur to the rules of the scheme, they will move out of the area to the benefit of the community. Another aim of the scheme is to change the behaviours of landlords and encourage them to look after their property and the behaviour of their tenants.

·                36% of properties have been identified as “high risk” This risk is partly mitigated by the fact that the details of the landlord are included on the licence application and this information is shared with other partner agencies such as South Yorkshire Police.

·                Selective Licensing aims to improve standards in the private rented sector and there are thresholds after which landlords can be prosecuted for non-compliance, which is after the first warning letter from RMBC if still no compliance from them, then there is a fine of £500 issued.

·                The inclusion of food hygiene as part of the Selective Licensing Initiative is critical as part of a healthy home is having an appropriate place to prepare food safely. In some cases, modifications have been required to properties to include a kitchen to allow this to happen.

·                Currently there are 458 properties unlicensed. This number will reduce once the mapping exercise relating to the ownership of properties is completed.

·                P32, 4.4 – Are there any Landlords who have been served with prohibition notices. One of the properties served with a prohibition notice was occupied at the time. The notice was served as part joint working with South Yorkshire Police.

·                The length of time to issue a license is between 8 to 10 weeks but it is not a perquisite to have all the checks in place before the license is issued.

·                It is proposed that in the near future a stakeholder event including landlords, tenants, and members of Rotherham Federation etc. take place, to find out their opinions in relation to the Selective Licensing Initiative. A Selective Licensing Steering Group has been established.  It was requested that the results of this event be brought back to Improving Places Select Commission.

·                Outside of the Corporate Performance Plan it is important to identify local measures which can be viewed as a barometer of the progress and impact of Selective Licensing. This information is to be shared with Members/Tenants and the wider community.  This point was viewed and a critical element when considering new areas to adopt the Selective Licensing Initiative. Any further decisions will be based on actual evidence. It is also important to share information and experiences to promote the special measures that are available for authorities to use in certain circumstances.

·                An example of how Selective Licensing could improve an area by reducing the number of bad landlords in the area. A bad landlord relies on the rental income from their property. Through the Selective Licensing Initiative the property is closed down, due to the landlord not improving the property and so forcing a sale. It is possible to identify the number of rented properties available in an area, but only the National Census information will identify the number of properties in the private occupier sector.

 

·                There are different types of landlords with a variety of reasons as to why they become landlords. In order to form a community, a number of issues need to be addressed.

·                The Council as a landlord is working with its own stock bringing each property in line with the Decent Homes Standard.

·                P37, 7.1 point 2. Relates to the appendix D which is about the inspections of properties carried out in the four areas. Clarification was asked for as to why there was such a difference between the levels of inspections carried out and is it more difficult to undertake inspections in some areas.  There have been some changes in staff along with changes to the work priorities.

·                What other measures is the Council putting in place to help raise the quality of an area? All input from the Council comes at a financial cost, which is difficult in the current climate. The Council does have a role via Community Enforcement and Planning Enforcement (Domestic and Retail)

·                No mention of involvement of the Fire & Rescue Service in the Selective Licensing Initiative and could this be looked at.

·                A request was made in relation to future reports on this topic, if the presentation of the statistics could be shown in a standard format.

·                Congratulations were extended to the Cabinet Member and the Officers working on this initiative for the success to date and the justification for this area to be designated as a Selective Licensing Area is the 90% of properties which failed the initial inspection.

·                There are still some parts within Selective Licensing areas with ongoing issues, which have been identified through the reporting of issues by tenants and organisations. It is important to continue reporting issues to ensure that these can be addressed through wider enforcement activities and additional activities e.g. CCTV to enhance the detection of fly tipping occurrences.

·                Clarification of the £220,000, awarded on 1^st April 2017. In total
£1.3m awarded to the Council and all bids submitted have been awarded. £220,000 has been ring fenced to Rotherham Ethnic Minority Alliance to assist the initiative. Funding was approved in August 2017 and ends on 31^st March 2019

·                With the expansion of the Higher Education provision at Rotherham College it is anticipated that increased housing provision will not be needed in the initial year but as the provision continues in future years it is likely that increased accommodation will be required.

 

Resolved:-  (1)   That the licensing schemes be noted and any other benefits be considered further that could be delivered to other areas through further designation.

 

(2)  That a report be presented to Cabinet and the Commissioners’ Decision Making Meeting with options for implementing Selective Licensing into other areas of the Borough.

 

(3)  That work with colleagues in Public Health take place to identify and include within the Selective Licensing Framework indicators relating to health.

 

(4)  That minutes from the Selective Licensing Steering Group meetings be received (for information only).

 

(5)  That an update report be received in six months relating to unlicensed properties in the current Selective Licensing Scheme.