In a fervent plea to the local authority, Dawn Smith, representing a coalition of Blackpool landlords, has issued a stern warning that exorbitant licensing fees may force them to pass the financial burden onto tenants. Smith asserts that the proposed fee of £722 per property for the selective licensing scheme is untenable for many landlords and could lead to a mass exodus from the rental market.
“I simply cannot afford the selective licenses, so my tenants will have to pay,” Smith declared in an interview with the BBC, highlighting the potential repercussions of the looming financial strain on landlords.
Blackpool Town Council is pushing to implement a selective licensing scheme encompassing 11,000 properties, despite facing considerable opposition. According to consultations, 77 per cent of landlords expressed their disapproval, while only 61 per cent of tenants supported the initiative.
The council, spanning eight wards in the town, justifies the scheme as a means to “improve the quality of private sector properties.” The proposal is contingent on the approval of Housing Secretary Michael Gove.
Citing recent enforcement actions, Blackpool Council contends that one in three rental properties investigated exhibited hazards such as cold and damp rooms. The council’s report underscores the imperative to enhance the quality of private sector properties as a strategic housing goal of the licensing initiative.
The private rented sector currently constitutes 31 per cent of Blackpool’s total housing stock, significantly surpassing the national average of 21 per cent. Landlords argue that the proposed licensing fees, particularly the £722 charge for a single five-year license, are unjustifiable and may lead to detrimental consequences for both landlords and tenants.
Discounts are being offered for properties meeting locally-imposed standards or possessing an A, B, or C Energy Performance Certificate (EPC) rating. Additionally, early applicants within the first three months of the scheme may benefit from reduced fees.
As the debate intensifies, the fate of the selective licensing scheme rests in the hands of Housing Secretary Michael Gove, while landlords and tenants anxiously await the resolution of this contentious issue that could significantly impact the local rental market.
NetRent Comment
This should come as absolutely no surprise to Blackpool council or to to any council that introduces licencing fees. But it seems to come as a complete shock to councillors up and down the country.
Landlords are in business and like any business they will, ultimately, pass their costs onto their customers. In this case the customers are tenants. The problem for Blackpool and every other council in the UK is that there is a massive shortage of rental property. Councils desperately need private landlords to house the vast numbers of homeless people who are waiting for accommodation.
Blackpool are not working with landlords, they are actively seeking to confront and antagonise them. How is that helping to house your homeless Blackpool council?