How will the new Landlord Licensing Scheme affect landlords in Liverpool?

Government approves new Liverpool Landlord Licensing Scheme

How will the new Landlord Licensing Scheme affect landlords in Liverpool?

The Government has approved a comprehensive Landlord Licensing scheme covering around 80 per cent of privately rented properties in Liverpool.

The scheme is based on poor property conditions, targeting the 16 wards in the city where at least one in five homes is owned by a private landlord.

Around 45,000 of the 55,000 properties in the original city-wide scheme – which ran from 2015-2020 – are covered, giving the council additional powers to drive up standards and keep vulnerable tenants safe, such as tackling fire and electrical safety hazards, excess cold and damp.

The wards included are: Central, Riverside, Greenbank, Kensington, Picton, Tuebrook & Stoneycroft, County, Anfield, St Michael’s, Princes Park, Kirkdale, Old Swan, Warbreck, Wavertree, Fazakerley and Everton.

We caught up with Vicki from Inside Liverpool to get the lowdown. Inside Liverpool are experts when it comes to investing in residential property in Liverpool, and there's not a lot that they don't know about the nuances of each area, right down to individual streets.

Vicki said, "I took part in the consultation process at the end of 2020 and it was clear that the council were going to push ahead with this, it was just a case of figuring out what areas the licence would cover. So now you know.

"Like the original scheme, this new licence will last for 5 years, and whilst we don’t know the exact cost of this licence, we do know it will be more than the previous one and so, if you are a portfolio landlord, this could hurt a great deal next Spring.

How much will it cost?

"Whilst we haven’t been given any more guidance on fees just yet, we do know the licence will be more expensive than last time (and will likely be in line with Sefton’s licence, £500-£700 depending on accreditation)

"We also know what discounts were available the last time around and were privy to some whispers of ways we may benefit from other discounts for this new licence.

• Early-bird – there may be a discount for early adopters of the licence, so get ready with those applications to take advantage if there is similar this time around.
• Co-Regulation – The last licence was discounted for RLA members (now known as NRLA) so becoming a member of this may provide discounts again this time round.
• Agents – With the previous licence, some letting agents could get a discount on fees which they usually passed on to their landlords, so this might be possible again this time.
• Energy Efficient Homes – During the consultation period, the council suggested they may give discounts for more energy efficient homes, which ties in with the government’s plans for MEPS – so if getting your house up from a D to a C is achievable, or if you have made improvements to your house and just not had a new EPC rating done, it might be good to do that now.
• Multi-Unit Blocks – Another whisper during the consultation was around freehold buildings converted to flats where all units are owned by the same landlord. Last time, each property was full price which seemed a tad unfair, so here’s hoping they continue with that discount idea."

Why the new scheme, and how successful was the last one?

A consultation carried out before the application was submitted in January this year found tenants, residents and partners were generally supportive of the proposal, with landlords and agents against.

The new application follows the rejection in January 2019 by the Government of a proposal for a citywide scheme, which was based on low housing demand.

An evaluation of the 2015-2020 city-wide licensing scheme found:

Over 34,000 inspections of licensed properties had been completed, which identified 65 per cent of properties were not fully compliant on the first visit.

Identification of 4,350 cases of the most serious category 1 and 2 hazards including disrepair and excess cold affecting the health and wellbeing of residents.

Issuing of more than 2,500 legal notices, 169 formal cautions and 197 written warnings.

More than 300 successful landlord offence prosecutions and issuing of 87 civil penalties.

The scheme is pivotal to the success of the City Plan, which commits partners to making sure all residents live in safe, inclusive and welcoming neighbourhoods.

The scheme will be introduced from April 2022 and will run for five years.

More details on the fee for landlords will be revealed in the near future.

Landlords/Agents requiring more details about the scheme should contact privatesector.housing@liverpool.gov.uk

Cabinet Member for Strategic Development and Housing, Councillor Sarah Doyle, said: “This is brilliant news for tenants living in poor housing conditions.

“Too many vulnerable people in our city are in poor housing conditions, paying rent to a landlord who doesn’t carry out essential maintenance to keep them warm and safe.

“The Landlord Licensing scheme will give us regulation of private rented houses, so that we can take action when concerns are raised.

“There is a raft of evidence which shows that council intervention forced bad landlords into taking action to improve their properties. Poor electrical and fire safety standards, as well as damp and anti-social behaviour, contribute to poor health and mental wellbeing.”

Cabinet member for Neighbourhoods, Cllr Abdul Qadir, said: “Our new scheme will be one of the largest in the country, covering the vast majority of properties under the original programme, ensuring landlords meet their obligations, such as putting in smoke detectors and fire doors as required by law.

“The council will make no profit from the scheme. Every single pound we get from landlords will be ring-fenced, paying for our team to be out on the streets every day inspecting homes, chasing disrepair.

“We are determined to take the strongest action against those landlords who refuse to manage and keep their properties safe.”

https://liverpoolexpress.co.uk/government-approves-new-liverpool-landlord-licensing-scheme/