Housing Regeneration
Selective Licensing
in Cliftonville West and Margate Central
Tanya Wenham
Housing Regeneration Manager
Richard Hopkins
Housing Regeneration Team Leader
21 March 2013
Is selective licensing the best option?
 Distinct area in district with significant issues compared to the
rest of the district?
 Evidence of high level of private rented sector?
 Large amount of resources directed to deal with issues in the
area?
 Evidence of crime and ASB?
 High levels of empty properties?
If yes – where do you begin?
 Look at the guidance and the Housing Act 2004
 Look at the criteria for making a designation and gather the
evidence to support each element.
 Determine if low housing demand or ASB or both
 Identify what activity has already been undertaken and why this
has failed
 Determine how selective licensing will improve the area
 Identify how this fits with local policies and strategies – in
particular housing strategy
Low housing demand
 A selective licensing designation can only be made if one or
both of the sets of general conditions have been satisfied
 The first set concerns “Low Housing Demand”:
– That the area is, or is likely to become, an area of low housing
demand; and
– that making a designation will, when combined with other measures
taken in the area by the local housing authority, or by other persons
together with the local housing authority, contribute to the
improvement of the social or economic conditions in the area.
Anti-social behaviour
 The second set concerns “Anti-social Behaviour”:
– that the area is experiencing a significant and persistent problem
caused by anti-social behaviour;
– that some or all of the private sector landlords who have let premises
in the area (whether under leases or licences) are failing to take action
to combat the problem that it would be appropriate for them to take;
and
– that making a designation will,
when combined with other
measures taken in the area by
the local housing authority, or by
other persons together with the
local housing authority, lead to a
reduction in, or the elimination of,
the problem.
Drafting the proposal
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Prepare draft proposal
Include map of area and addresses
Ensure all sections of the Act have been covered
Present the evidence visually/mapped
Set objectives – what do you want to achieve with the
designation?
 What other activity is being undertaken to support the
designation and the objectives?
 Set proposed fees
 Identify how you will ensure compliance
Setting fees
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Can only recover the costs of processing a licence
Can’t include enforcement costs
Can’t include inspection costs
Must identify what the fees will be spent on
Can only be used to cover the costs of processing the licence
i.e. officer time and associated costs such as postage, printing,
publicity of scheme to encourage compliance
 Not a mechanism for income generation
Consultation
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Minimum 10 week consultation
Area of challenge
Full communications plan to ensure maximum exposure
Make feedback easy
Workshops, fliers, speak to community and engage with
landlords, advertise and publicity, public meetings
 Purchase land registry info to write to all property owners
 Ensure staff and Members are fully trained on objectives and
purpose to give consistent message
 Be prepared for negativity
After consultation
 Review all comments
 Amend proposal to take account of consultation responses
 Consider all possible options before decision to designate is
made
 Ensure correct decision making process is followed
Resources
 Need to be prepared to provide up front funding for set up and
preparing proposal
 Don’t underestimate resources required in dealing with
consultation
 Any fee income should be ring fenced and may not be spent if
scheme is subject to judicial review
 Need to consider level of resource to ensure delivery of
objectives within the 5 year designation, including inspection
programme
 Need to engage partners to deliver ASB elements
Judicial Review
 Lodged in the High Court by the Southern Landlords Association (SLA)
in March 2011
 Long wait for initial decision
 Autumn 2011 – JR may go ahead
 Spring 2012 – JR set for 30-31 October 2012
 Decision handed down in November 2012
 JR dismissed
 Thanet District Council’s decision to designate on the basis of both
ASB and low housing demand confirmed as lawful
Impact of Judicial Review
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Delayed full implementation by 2 years
Unable to undertake full enforcement during this period
Unable to use fee income to cover staff costs
Compliant landlords wanting to see action against noncompliant
 Limited ability to instigate significant change in the area
Implementation
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Application process
Licence conditions
Encouraging compliance
Enforcement and inspection
Penalties
Resources needed for delivery
Monitoring and measuring success
Where are we now
Applications
 Landlords MUST apply for a licence
 Must be accompanied by the correct fee (£442/£546)
 Online application process provided by GOV.UK
 Paper application forms can be provided if necessary
 Applications must include property plans, gas safety records,
and a copy of the tenancy agreement
 Proposed licence holder/manager must be a fit and proper
person
Application types
 There are two types of application
 DWELLING application
– For single houses or flats
– If the dwelling is a flat, the licence will only apply to the individual flat
and not to any common parts
 BUILDING application
– For applicants who own the freehold of a building and one or more
flats within it
– Licence will apply to all flats under the control of the freeholder and the
common parts
Licence conditions
 Conditions are attached to all licences
 Some are mandatory (prescribed by the Housing Act 2004)
 Conditions may be set to regulate management, use and occupation
(less scope than HMO licensing)
 Licences contain around 18 conditions relating to:
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Maximum permitted occupation
Tenant referencing
Written statement of the terms of occupation (tenancy agreements)
Anti-social behaviour
Waste management
General management
Amenities and space heating
Furniture, gas and electrical safety
Security and fire safety
Duty to notify council of changes
ASB licence condition
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The licence holder/manager must take all reasonable steps
available to them to tackle ASB being perpetrated by their
tenants and visitors.
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The licence holder/manager must co-operate with the Police
and Council officers.
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The tenancy must include a clause, or clauses, requiring the
tenant to refrain from ASB and take all reasonable steps to
prevent their visitors from engaging in ASB.
Encouraging compliance
 Early application discount (until 31 July 2011)
 Discount for accredited landlords
 Stage payment system for larger landlords (10+ properties)
 Publicity (website banners, newspaper adverts)
 Engagement (landlord events, landlord focus group, etc.)
Approach to enforcement and
inspection
 Gathering information
(land registry, Your Home Your Health, housing benefits, complaints,
public representations, referrals from other departments and partner
agencies)
 Typical procedure involves two reminder letters
 Reminders often result in a new application
 Inspection not part of the application process
 Programmed inspection regime starting shortly
 HHSRS to be completed
 Licence conditions checked
Penalties
 It is an offence not to licence a property that is subject to
selective licensing
 Maximum fine £20,000
 It is an offence not to comply with the conditions of a selective
licence
 Maximum fine £5,000 per offence
 Defence of “reasonable excuse”
 Revocation of licence (as person may no longer be fit and proper)
 Rent repayment orders
 Interim and final management orders
 Section 21 notices (Notice to quit)
Resources needed for delivery
 Considerable landlord support needed (expect a large number
of long telephone conversations)
 Large number of defective applications
 Strict prescribed licensing process (no short-cuts – need to
make it efficient)
 Team Leader, eight officers, and three admin working on
licensing
 Do not underestimate resources required – unlikely to be viable
without additional staff
Monitoring and measuring success
 Set up your systems to be able to record relevant activity
(designated area may not match ward boundaries)
 Liaise with ASB unit, the Police and other departments to ensure
that they can give you the information you need
 Relevant data can be drawn from a range of sources, including:
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PSH activity
ASB complaints
Crime
Waste complaints
No. of empty properties
Council Tax/Housing Benefit
Where are we now?
 Over 800 applications made in respect of 1400 dwellings
 Over 1100 dwellings currently subject to a licence
 Enforcement underway – first batch of prosecutions in near
future
 Currently advertising in Kent on Sunday (full page advert)
 Closer working relationship with ASB/Police
 Problem properties sold
 Tenant referencing scheme going live in April
Questions?