Nottingham landlord blames council's licensing for soaring rents

One city's licensing schemes for landlords are causing rents to soar and pushing renters onto the streets, according to a landlord who houses hundreds of people.

Mick Roberts, Nottingham's largest private landlord for benefit tenants, said he has been in the private rented sector for decades but holds the council responsible for the recent rise in rents.

He claims that Nottingham City Council's fees force landlords to raise rents to avoid making a loss.

The rent rise then affects more tenants who struggle to find an affordable home.

'Affects the vulnerable low-earning tenants'

Speaking to the Nottingham Post, Mr Roberts said: "This really affects the vulnerable low-earning tenants that couldn't afford anywhere as it was.

"It's supposed to be making houses better for tenants, but it's definitely making houses more expensive for tenants.

"They (the council) are just making their own rules up without asking the people affected."

He continued: "They are blinded by a few bad landlords they have seen. They think all tenants can't stand landlords."

Nottingham has the highest homelessness rate

Mr Roberts spoke out after Shelter, the homeless charity, revealed recently that the city has the country’s highest homelessness rate.

He says the licensing costs prompt many landlords to sell up, shrinking the availability of rental homes.

Renting a property in Nottingham has gone up by 20%, and tenants are paying £970, on average.

The Office for National Statistics says England’s rent costs have increased by 6.1% - that’s the biggest rise since 2006 when records began.

Every rented property will need a license

Every property in Mr Roberts’ portfolio will need to be licensed at a cost of £890 each, and he said: "If the last licensing scheme was so successful then why do we need a new one, or if the last scheme that rubbish, then why are they bringing a new one in?"

The licensing fees lead him and other landlords to put up rents and 'tenants cannot move anymore whatsoever with interest rates and everything else'.

He adds: "We did not need this; the tenants did not need this."

Mr Roberts told the Post that landlords are leaving Nottingham’s PRS because of the licensing fees, extra costs and the hassle of registering.

He said: "That's what licensing does, it makes them pack it up and then vulnerable tenants have to pay more."

Licensing schemes for landlords

Nottingham's council runs mandatory licensing, additional licensing and selective licensing for rented homes in the city.

The latest selective licensing scheme started on Friday 1 December, and mandates most private rented homes be licensed.

A spokesperson from Nottingham City Council told the Post: "Selective licensing schemes are based on national guidelines and operate all over the country, including a number of major cities like Nottingham.

"They exist precisely to empower tenants and demand the highest living and safety standards of landlords."

The spokesperson continued: "The council introduced selective licensing in August 2018 to give tenants in more than 30,000 privately rented homes across the city better-quality accommodation and greater protection from bad landlords.

"It also allows landlords to demonstrate that they provide good accommodation for renters, while tenants know what is expected of their landlord in terms of maintenance, safety and management of their home.

"Where problems arise, it means we can take swift action to ensure landlords address them or, in the worst cases, prosecute and remove their right to hold a licence."

'Lots of landlords around the country who will agree'

The managing director of Accommodation for Students, Simon Thompson, said: "There will be lots of landlords around the country who will agree with what is being said by Mr Roberts.

"Licensing schemes put up rents because landlords will pass on the extra cost.

"But there is some debate over whether tenants even benefit because councils don't inspect every property to ensure standards are being met."

He added: "More councils are creating licensing schemes to improve rented housing, they claim, but the schemes are expensive and landlords who commit a small error are hit with huge fines.

"There has to be a better way to check standards because the good landlords comply, and criminal landlords aren't inspected.

"Some landlords are saying that the proposed landlord register might be the answer but only if licensing schemes are dropped as a result."