Source · Select Committees · Public Accounts Committee
Recommendation 13
13
In 2015, the Department added a requirement that selective licensing schemes covering over 20% of...
Conclusion
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
Government Response
Not Addressed
HM Government
Not Addressed
4: PAC conclusion: Local Authorities are constrained by the Department’s approach to licensing landlords. 4: PAC 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. 4.1 The government disagrees with the Committee’s recommendation. 4.2 Selective licensing schemes when used as part of a wider, well planned, coherent initiative, can be an effective tool for LAs to drive better outcomes for good landlords and tenants. 4.3 LAs currently have powers to introduce selective licensing of privately rented homes to address problems in their area, or any part of them. LAs are required to obtain confirmation from the Secretary of State for any selective licensing scheme which would cover more than 20% of their geographical area or would affect more than 20% of privately rented homes in the local authority area. 4.4 The government considers that this strikes the right balance, by allowing local authorities to use selective licensing effectively without placing undue burdens on landlords where additional licensing schemes are not needed. 4.5 The department has simplified the selective licencing application form and will continue to help local authorities to produce a good quality application to support their introduction of schemes. 4.6 The government will work with local authorities and the Local Government Association to develop a selective licensing best practice sharing support for LAs to learn from each other to achieve the most from their selective licensing schemes. 4.7 The Private Rented Property Portal will provide access to information about privately rented properties and tackle one of the biggest and most time-consuming barriers faced by local councils when enforcing standards: that is, identifying poor quality and non-compliant properties and who owns them.