Better alternatives to raise standards
We advocate for a regulatory framework which seeks to support and educate landlords about improving their properties rather than punitive measures that are difficult to enforce and place unnecessary financial and administrative burdens on good landlords and agents.
It is also a concern that local authority resources are tied up dealing with applications from compliant landlords and agents whilst unscrupulous agents and landlords who require more attention and enforcement go undetected.
Evidence of success is lacking
Councils must consider any new additional or selective licensing schemes as part of their wider housing strategy, and we are disappointed that proposals rarely include details of other measures already in place, or performance data for any existing licensing schemes.
We routinely call on councils to provide information about how many property inspections have been completed, the number of sanctions implemented, and how this has impacted standards. It is telling, for example, that Enfield Council has proposed to renew a scheme that has already been running for five years, suggesting that it has not met its objectives.
Additionally, local authorities should clarify the proportion of PRS housing in the designated areas and how this contributes to the problems being addressed. Borough-wide schemes are becoming more common, but this blanket approach fails to pinpoint the root cause of the problems being experienced.
Unreasonable costs and fees
Schemes often require a significant investment from council budgets, and it is unclear if they deliver value for money for residents or result in cost-effective improvements to PRS housing.
By law, local authorities are not permitted to profit from additional or selective licensing schemes, so the fact that Wandsworth has proposed fees of £850 for a selective licence and £1,450 for an additional licence demonstrates how expensive the activity is.
Landlords continue to be affected by ongoing mortgage costs and the cost-of-living crisis, as well as the impact fees could have on the ability of landlords to improve standards. Our members have also told us that it’s a common concern that the costs can be extremely high for landlords especially those who have larger portfolios of properties.
Negative impact on supply and rent costs
Our research paper, A shrinking private rented sector, found 53% of buy-to-let properties sold in March 2022 left the PRS, and that there were 49% fewer PRS properties to let in March 2022 compared with 2019.
Most landlords have only a small number of properties and are more vulnerable to increasing costs. This means they are at greater risk of being forced to sell their properties and exit the market, further shrinking the supply of much needed homes and leaving remaining private tenants with higher rents.
Landlords who remain in the market are more likely to reduce their spending on maintenance and divert future investment to areas outside the licensing zone, leading to fewer, more expensive housing options for people in certain communities.
Engagement and support for agents and landlords
Propertymark strongly recommends local authorities focus on building better relationships with property agents and landlords. Providing access to information, education, and support is a more credible way to gain buy-in and raise standards over the long term.
We recognise that the councils in Enfield, Reading and Wandsworth have made positive efforts to improve engagement through local landlord forums and accreditation schemes, and we have offered to work with them to build on this with the input of our members.
