APPENDIX B
SELECTIVE LICENSING IN NORTH ORMESBY
FEES RE-CONSULTATION REPORT
10 JULY 2015
WRITTEN RESPONSES IN FULL
1 / Please let me have the documentation used in determining the cost of the licence fee and inform me of exactly how it is to be used. I am sure that will include a full breakdown of costs. It will show how £290 covers the cost of making the appropriate enquiries, thus leaving £290 for e remainder of the service, which can't include much, given the fact that a simple enquiry takes up 50% of the fee! As the previous licensing scheme in Gresham was not properly thought through (potentially legally challengeable); you will be fully aware that indeed not every landlord was asked to join the scheme before it ran out. I would also like to know who is responsible for this and what staff are going to be engaged and precisely their job roles. This is a lot of money for what I know will be not a lot in return. I am sure you have all of this information to hand. So it shouldn't take too long in providing it.2 / We have very few residential properties outside Hartlepool. Can you please confirm what streets the licensing covers?
3 / I think getting selective Licensing is a very important issue for the future of North Ormesby and if changes have to be made to comply with recent case law then those changes should be made to comply with legislation. North Ormesby residents need selective licensing as a first step to bring landlords under control and to begin to improve the area for it many elderly residents and to encourage people back to occupy the many empty homes that are targets for vandals and thieves.
4 / I …wish to learn the full extent of my exposure with the properties I own in that area and what catchment will be covered. Can you also explain to me if as a very early adopter and a loyal member of the Middlesbrough Shield Project, I can apply for dispensation. Can you identify to me the benefits I will receive having paid for and earned a license Can you share your experience and case studies of the Selective Licensing activity in Middlesbrough and the benefits this has bought, as from my recent experience speaking to prospective tenants looking to rent from me is that housing standards, anti-social neighbourhood issues and rogue landlords still in operation has not improved along with the reputation of the area as an undesirable place to live - with this program what assurances can be given that these issues will be eradicated and that services to tackle the above put in place.
5 / We think your idea is absurd in wanting Landlords to pay £580 per single occupancy fee on rented houses, some Landlords will have to pay tens of thousands of pounds which they can ill afford. We as Landlords are finding it difficult to pay mortgages ect when sometimes we do not get paid by the tenants, another obsurd rule the government done when the decided to give the tenants the rent money. Your proposal for Landlords to pay a fee could and will find that Landlords will just not rent the properties out and let the area go to ruins as it is now, how can Landlords find the extra money you propose out of the blue when some are struggling to find tenants and pay mortgages. I for one will not rent out my houses if this proposal goes ahead, it NEVER WORKED in Gresham so why do you think it will work in this area North Ormesby, it is just another way for the council to raise extra money due to the government cutting your grants. You need to reconsider this ludicrous idea you have and scrap it altogether, if you do decide to proceed with it, I will take this council to the human rights court as you are discriminating us and singiling us out to prop up your deficit in your budget. This will not help the tenants or the Landlords it will only make the area a no go area for Landlords and that will mean you will then get less income for the council. We are not idiots and no what the council are tyring to do in trying to raise funds for your deficit. I hope to receive an answer to my email for my records so I can approach my local MP with my and many other Landlords concerns.
6 / I must place on record as a property owner in the area my strong objection to these proposals. I would be grateful if the council would further evidence under which of the elements set out in the March 2015 document Selective Licencing for the rented sector- a Guide for Local Authorities are the criteria for this proposal. Placing the onus onto the landlords/property owners of such a large fee for a licence is punitive for the vast majority of owners and all the responsible landlords in the area. Why can`t the Local authority use the information it already has on particular bad landlords and target them under existing legislation? If they are not complying now why does the council believe they would be more likely to comply under these new measures? The British Property Federation is sceptical of the assumption on which private rented sector selective licensing is introduced by some Local Authorities. They do not consider it realistic to expect the worst landlords who already actively try and avoid engagement with the Local Authority to sign up to a licensing scheme. It invariably ends up increasing the regulatory burden on landlords and providers who are transparent, forward thinking and already offer high levels of property management. Our property rents at £350 a month for a two bedroom family home and was renovated from a derelict premises in 2013 to provide accommodation for a low income family. For 2014-15 tax year after the removal of costs, repairs and missed rent by the tenant our overall declared income from the premises was less than £500 for the year in total. This fee would cause us to be operating the premises at a loss and as a landlord that takes their responsibilities seriously and has invested in regenerating this area this would be totally unfair. Consequently in the long term this measure would force us to consider selling the property. Any such sale as a business proposition would only attract those individuals looking to make a profit but cutting corners and therefore exacerbating the situation the council is trying to avoid. Further partnership working between the relevant authorities and the Police would be a more effective way forward targeting those individuals and landlords at fault. It should also be noted the high fee suggested is also far in excess of fees charged in London boroughs for similar properties worth five times more. This is patently unfair and it would be wrong of the council to suggest the costs to them in dealing with these applications in the North east is 10% higher than that of London boroughs. I would be grateful if you could keep me advised of any further proposals on this issue or any proposed public meetings.
7 / We are not private landlords as such, as we provide a rent free property to our club steward as part of his job, so would we have to apply for a licence?
8 / I have just received your email with regard to the proposed Fees if the scheme is accepted (Hopefully it is Not !!) & I find them absolutely extortionate! Landlords are struggling now with charges & Fees etc & the only winner in this is the Council, Nothing is gained by the Landlord. My family have had properties in other Selective Licensing areas & we have never seen any advantage to the Landlord. As I have previously said the Council are the only “winners “ & it is only another easy way of obtaining money for the Council! I do hope that you take my experienced views into account when making your decision.
9 / This is just one example (referring to email to Council, below) of what we have to live with thanks to some of the private landlords. This disgusting sight and smell has been on-going for at least a year. I was hopeful it was finally being sorted until this morning when I went into the alley to recycle. “…last week I was pleased to see a workmen clearing the bags of rubbish from the yard of the above property and presume he cleared all of them and this morning I’ve seen some more bags of rubbish so I am assuming the tenants haven’t been told to stop this disgusting anti social behaviour. Can Environmental Services contact the landlord and also remind him/her that their property needs securing with a back wall.”
10 / i live in North Ormesby which is the nicer side shall i say which is all of a sudden is becoming like Beaumont rd we are getting the people from the other side of north ormesby drifting over in the private lets and we are being dragged down. we have alcoholics sitting on the front steps drinking all day and we now have a family moved in which, don't seem to have any respect for the area i.e.: rubbish being dumped, at 5am when i walked the dog this morning before i went to work there on their front step was a paddling pool, bike armchair and fridge what had been left out all night and black bag rubbish dumped on the grass verge also in the beck which runs the length of Alphonsus st was two black bags which have appeared very recently grant it there is other rubbish in the beck which i did report to the council a while ago in the beck also. I have lived in North Ormesby for the most of my life i used to live in xxx but came back to my roots I'm very worried now we have tried to keep the non desirables at bay but they seem to have taken a liking to where we live can you please help us we would like some sort of a residents action group were we have a say aswell because before long our area will not be a nice place to live anymore.
11 / Is it too late to add any comments now? Because I don't rent my property as a business (Am only trying to pay my mortgage and debts ) I didn't think I had to respond so quickly
12 / We have previously complained about the unfairness of Selective Licensing. In our opinion, "the selection criteria" i.e. a Local Authority Ward is unspecific and whilst we appreciate that you are constrained by data items available and computer systems in place, it should be possible with current systems to select by postcode and target the specificstreets where it was outlined to us there is a problem. We also feel that landlords like ourselves, who are already complying, indeedexceeding, the standards outlined to achieve a licence are being financially penalisedand dis-incentivised.We previously put forward three suggestions for charging(amongst other comments, suggestions and questions for which we have seen no response on the authorities web site - do you intend to publish a written response or are you just paying lip service to public consultation?). Those suggestions were:
Charging mechanism weighted more heavily towards landlords who are non-compliant on inspection
OR
Charging weighted inversely to property purchase price – in other words property banding on purchase price with lower value properties being levied a higher charge for licence thus providing a disincentive to purchase low value properties in the rental market leaving those properties vacant for home owner purchase.
OR
Excluding newer properties within 10 year NHBC licence period or being more selective with licencing by postcode.
We also feel it is unfair for payment to have to be made in two instalments. If the licence is valid for five years, then why aren't the costs spreadover this period in the same manner as council tax and utility bills. Even HMRC collectoutstanding tax in two six monthly instalments forecasting only twelve months ahead. At the public meeting we attended you pointed out to us that it only equates to £2 per week per property. Over the five year period we accept that this is not excessive provided that it is paid over time however to expect payment up front for several properties owned is not feasible or affordable and consideration needs to be given to this.Our viewremains that those landlords who are respectable and already merit award of alicencewillpay its costs and the disreputablewill not. The documentation you previously provided plus this subsequent e-mail has not reassured us that you will achieve anything more than implementing an inspection regime with associated administration overheads and costs that serve no beneficial purposeand penalises the honest landlord.
13 / We have two properties in the North Ormesby area since renting them we have had good and bad tenants of which we have always tried to resolve any problems with anti social problems etc we do appreciate you do get good and bad landlords. Over the past year or so we have been working with a company called xxx.
They do all the relavant checks References etc and monitor the tenant along side us, they also check the properties for standards etc as much as we think it is good the council like to make sure that properties are maintained and lanlords are keeping on top of any anti social behaviour we can not understand why we are having to pay for a licence i am sure most landlords we see it as another form of taxation. Rent on properties in the North Ormesby Area for two / three bedrooms are ranging from about £100 /£120 per week we keep our rents low at £80 per week as to makes it affordable for tenants and also for the council to help cut down on housing benefit payments, along side the council tax that has to be paid if property is empty or getting maintained the licence fee will be another expence on top of everything else. Over the years private lanlords have lost thousands of pounds when the payments of benefits were changed direct to tenants, rent money goes towards maintaing properties insurance etc, you then have a knock on affect when properties become empty, they are empty for longer so the more expences the longer it takes to accumulate money to make sure the property is liveable for the next tenant. We hope you find this feedback helpful.
14 / Having read through your letter and proposed charges and fees for selective licensing in North Ormesby i am a little confused as to who it applies to, and what it is for. Is the licensing the same as Hartlepool council's selective licensing for areas with anti social behaviour? If so are only certain areas / streets of North Ormesby liable for the license as with hartlepool? As landlords we have 3 properties in North Ormesby and we have refurbished them to a high standard and carefully vetted the tenants we have in, looking at the fee's for licensing we certainly would not look to buy any more properties, and may even look at having to sell the ones we own as the costs would outweigh any benefits. I feel that this is a cost that as a landlord who takes good care of the property and tenant is an unfair cost.
15 / I am writing with regard to the fee structure for the Fit and Proper Person Check. This is acceptable; however the proposal licence fee of £580 per single occupancy is too much when a landlord owns several single occupancy flats in one building. I consider that there should be a discount in the same way as there is for HMOs.
16 / We have no objection to the fit and proper person charge of £20. However, we would find it impossible to comply with the charge for the licence fee. We have seven properties at North Ormesby, six owned by one owner and the seventh by another. Of the six, three are unoccupied and require work for damage caused by intruders, and we are under pressure from you already to pay Council Tax of about £300 per month for the three empty houses, the only income for the owners being from the other three. We would simply not be able to find seven times £580 in advance for a 5 year period. The…is long past retirement age and would hardly continue for more than a year(s). We have no problem with a “pay as you go” basis but we simply cannot commit £580 times seven for a non transferable licence. There is a problem here as there is a profusion of empty properties in North Ormesby and I believe it would be difficult for an owner to find new agents
17 / I have concerns that proactive legitimate landlords who already are in contact with referencing bodies and respond to any building or tenant issues in a fast and positive way are being made to pay for the actions of less diligent landlords. Since I started property development 12 years ago I have had few issues in the North Ormesby area apart from ones helped by the lack of local knowledge by government and council officials. This appears to be a one way system.
Issue one. Benefits be paid direct to the tenant even when tenant requests payment to landlord as they have various responsibility issues.
Issue two. Council no longer allows council tax relief during re-refurbishment period between tenant changeover meaning unscrupulous landlords do not vet new tenants or spend time bringing property back to a good standard it is easier just to put anyone in who will accept poor standards and avoid cost of refurbishment and council tax liability a recipe for dropping standards.
Issue three. Proposed selective licensing again as with items one and two I see no obvious benefits to the landlord only additional costs in a very tight industry.
I am a working class man who got in to this industry due to…. but in the present climate where various stealth taxes seem to be imposed without return I would not recommend any youngsters to join the world of small businesses.
18 / I refer to my email of 23rd March to which I have not had any detailed response. I re-iterate my comments and do not considerthat you have carried out any proper evidence based assessment or you would have sought to at least have discussed the matter with me.
If you are still intent on taking this matter forward then I suggest you adopt a process which engages properly with relevant parties.
In the case of Gresham you will need to make a refund in the light of the Hemming case to which you have referred.
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