Housing RegenerationSelective Licensing in Cliftonville West and Margate Central

Tanya WenhamHousing Regeneration Manager

Richard HopkinsHousing 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

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

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

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

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 non-

compliant Limited ability to instigate significant change in the area

Implementation

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:– 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

The licence holder/manager must take all reasonable steps available to them to tackle ASB being perpetrated by their tenants and visitors.

The licence holder/manager must co-operate with the Police and Council officers.

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:– 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?