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Selective Licensing Scheme Blamed for Soaring Rents

Amidst the debate surrounding the impact of selective licensing schemes on tenants and rent prices, one Nottingham landlord is making bold claims, attributing massive rent increases in the city to the selective licensing scheme introduced in 2018.

The landlord, Mick Roberts, highlights new figures from the Office for National Statistics (ONS) that reveal a staggering surge in rents by nearly £200 since the scheme’s inception. Nottingham City Council initiated the selective licensing scheme in 2018 and recently introduced another, denying responsibility for rent hikes and attributing them instead to rising interest rates.

Roberts asserts a direct correlation between the licensing scheme and the sudden uptick in rental costs. From an average of £664 in 2018, rents have spiked to £859 per month by October this year, signifying a nearly 30% increase within the timeframe of the scheme’s implementation.

Landlord vs. Council: Blame Game Ensues

Mr. Roberts vehemently disputes the Council’s denial of the scheme’s impact on housing supply, emphasizing, “If you ever wanted any evidence that selective licensing puts rents up, it’s here in black and white. How can the council deny this?”

The cost for a license in Nottingham stands at £890 per house, leading landlords to voice concerns over the financial burden, especially for those managing multiple properties. The Council, however, deflects blame, citing interest rate hikes as the driving force behind the surge in rents.

Nationwide Impact and Differing Perspectives

The rent escalation due to selective licensing isn’t limited to Nottingham alone. Newcastle also witnessed a 20% increase, with rents soaring from £800 to £963 post-implementation of a similar scheme in 2020.

While councils like Newcastle’s argue that these schemes weed out negligent landlords, voices from the National Residential Landlords Association (NRLA) oppose this stance. They claim such licensing schemes lack effectiveness and propose that local authorities utilize existing powers to address property standards and support responsible landlords.

The Lingering Debate

Amidst conflicting viewpoints, councils persist in expanding these licensing schemes, while critics argue they cause more harm than good. The rift between landlords, councils, and associations continues, with the fundamental question unanswered: Are these licensing schemes truly aiding tenants and landlords, or are they exacerbating financial strains in an already challenging housing market?

The debate rages on, leaving landlords and tenants across the country grappling with rising costs and uncertain housing futures.

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