Source · Select Committees · Public Accounts Committee
Recommendation 14
14
To apply for approval for a selective licensing scheme, local authorities need a good understanding...
Conclusion
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
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.