Recommendations & Conclusions
5 items
4
Recommendation
Forty-Ninth Report - Regulation of priv…
Rejected
Local Authorities are constrained by the Department’s approach to licensing landlords. In 2010, the Department introduced legislation allowing local authorities to require licences from landlords for more properties that the minimum requirements (the only properties that need licenses are larger houses in multiple occupation—those with at least five people from …
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Local Authorities are constrained by the Department’s approach to licensing landlords. In 2010, the Department introduced legislation allowing local authorities to require licences from landlords for more properties that the minimum requirements (the only properties that need licenses are larger houses in multiple occupation—those with at least five people from more than one household). However, these licence schemes are subject to Secretary of State approval if they cover over 20% of a council’s local area or rented housing stock. The Department told us that local authorities find selective licensing to be a useful tool for proactive enforcement action and intelligence gathering. However, to apply for a licensing scheme, local authorities need a good understanding of their local private rental market, which is hard to gather without already having a scheme in place. The time and resource needed to produce an application, and the requirement for schemes to last only five years, present further barriers to local authorities. The Department says it offers a dialogue with local authorities to help them apply for licensing schemes, but local authorities say there is poor communication and limited feedback. Given regulation is managed and delivered locally, it is not clear why the Department restricts the use of larger schemes or on what basis it rejects them. Recommendation: As part of its planned reforms, the Department should assess whether current arrangements for licensing schemes are working, and whether alternative arrangements may be more efficient and effective.
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Government response AI summary
The government considers current arrangements for licensing schemes strike the right balance, allowing local authorities to use selective licensing effectively without placing undue burdens on landlords where additional licensing schemes are not needed.
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HM Treasury
12
Conclusion
Forty-Ninth Report - Regulation of priv…
Rejected
In 2010, the Department introduced legislation allowing local authorities to require licences from landlords for more properties than the minimum requirements (the only properties that need licenses are larger houses in multiple occupation—those with at least five people from more than one household).26 The Department told us that local authorities …
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In 2010, the Department introduced legislation allowing local authorities to require licences from landlords for more properties than the minimum requirements (the only properties that need licenses are larger houses in multiple occupation—those with at least five people from more than one household).26 The Department told us that local authorities find selective licensing to be a useful tool for targeting enforcement action and intelligence gathering.27
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Government response AI summary
The government considers current arrangements for licensing schemes strike the right balance, allowing local authorities to use selective licensing effectively without placing undue burdens on landlords where additional licensing schemes are not needed.
Read full response →
HM Treasury
13
Recommendation
Forty-Ninth Report - Regulation of priv…
Rejected
In 2015, the Department added a requirement that selective licensing schemes covering over 20% of a council’s local area or rented housing stock must be approved by the Secretary of State. It told us it introduced this requirement to ensure robustness and consistency in the way licensing schemes are used.28 …
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In 2015, the Department added a requirement that selective licensing schemes covering over 20% of a council’s local area or rented housing stock must be approved by the Secretary of State. It told us it introduced this requirement to ensure robustness and consistency in the way licensing schemes are used.28 However, given regulation is managed and delivered locally, it is not clear why the Department restricts the use of larger schemes or on what basis it rejects them.29
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Government response AI summary
The government disagrees with the recommendation to assess the current arrangements for licensing schemes, stating that the current balance allows effective use of selective licensing without undue burdens on landlords. However, they will work with local authorities and the Local Government Association to develop a …
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HM Treasury
14
Conclusion
Forty-Ninth Report - Regulation of priv…
Rejected
To apply for approval for a selective licensing scheme, local authorities need a good understanding of their local private rental market, which is hard to gather without already having a scheme in place.30 The time and resource needed to produce an application, and the requirement that schemes last only five …
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To apply for approval for a selective licensing scheme, local authorities need a good understanding of their local private rental market, which is hard to gather without already having a scheme in place.30 The time and resource needed to produce an application, and the requirement that schemes last only five years, present barriers to local authorities.31 The Department says it offers a dialogue with local authorities to help them apply for licensing schemes, but local authorities say there is poor communication and limited feedback, as well as a concern that the process is not sufficiently open and transparent.32 24 C&AG’s Report, para 10, 16 and 3.13 25 Q 2 26 C&AG’s Report, para 3.14 27 Q 36 28 C&AG’s Report, para 3.14 29 Q 51 30 Q 37 31 Q 2 32 Q 44 Regulation of private renting 11
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Government response AI summary
The government disagrees with the recommendation to assess current arrangements for licensing schemes, stating that the current system strikes the right balance.
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HM Treasury
15
Recommendation
Forty-Ninth Report - Regulation of priv…
Rejected
Long wait times, made worse during the COVID-19 pandemic, are also a barrier to local regulation.33 For example, Liverpool City Council had a city-wide scheme from 2015 to 2020 that was popular locally, which lapsed while the Department was considering the Council’s application to renew the scheme for another five …
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Long wait times, made worse during the COVID-19 pandemic, are also a barrier to local regulation.33 For example, Liverpool City Council had a city-wide scheme from 2015 to 2020 that was popular locally, which lapsed while the Department was considering the Council’s application to renew the scheme for another five years. Several months later the Department rejected the application. The council subsequently produced a new application for a narrower scheme which eventually the Department approved, but the slowness of the process left the council with no scheme at all for nearly two years.34 33 C&AG’s Report, para 3.14 34 Qq 38–50 12 Regulation of private renting 2 Improving the sector for renters Renters’ right to a safe and secure home
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Government response AI summary
The government disagrees with the recommendation to assess current arrangements for licensing schemes, stating that the current system strikes the right balance.
Read full response →
HM Treasury