RLA : RPI : Limited licensing promise precedes Queen's Speech

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Limited licensing promise precedes Queen's Speech - December 2003 / January 2004

Landlords can allow themselves a small sigh of relief that although the Government is pressing ahead with its Housing Bill, it has made a commitment not to introduce licensing of all private sector landlords.

The Bill was included among the 30 intended and draft measures outlined in the recent Queen's Speech setting out the Government's legislative programme for the next session of Parliament. The Office of the Deputy Prime Minister had previously issued a release confirming that the Housing Bill would go ahead. The announcement was accompanied by a response to the controversial Select Committee report on the Bill.

Among other things the committee called for proposed selective landlord licensing powers to be extended to all local authorities.

This was rejected out of hand. The Government is not seeking to introduce the licensing of all private sector landlords, said the department. 'The selective licensing provisions in the draft Bill seek to provide powers to license landlords in areas where their behaviour, or that of their tenants, has a significant impact on the wider community. Evidence suggests that these problems have been particularly prevalent in areas of low housing demand, but the provisions of the Bill do allow licensing in non-low demand areas where problems exist.

'However, all licensing, whether or not in low-demand areas, will have to be a targeted measure against a significant problem from the private rented sector'.

There was also Government praise for voluntary landlord accreditation schemes which the Select Committee had rubbished as unlikely to fail to capture the worst landlords.

'The Government applauds the growth of interest in voluntary accreditation schemes, and the setting up of the Accreditation Network UK, as a joint effort by local authorities, universities and landlords' bodies to raise standards and encourage training in the sector', came the response. 'But the Government agrees with the committee that HMO and selective licensing will be required to tackle the worst problems in the sector'.

A suggestion that mandatory licensing of HMOs should be extended to all properties, not just those of three or more storeys with five or more resident was rejected out of hand.

'The Government does not accept this recommendation. Whilst the Government recognises that risks in HMOs are not simply determined by the number of storeys and occupancy, they are important factors and provide a starting point for establishing the core categories of HMOs to be subject to mandatory licensing. The Government is keen to ensure a balance between required and undue regulation. Licensing will place burdens on landlords and local authorities alike and it is for that reason that we are keen to ensure mandatory licensing targets the highest-risk properties'.

However, it warned that 'if it becomes apparent that a wider scope for mandatory licensing is justifiable, as suggested by the committee, the Government will amend the licensing regime accordingly'.

'Over 80 per cent of housing in England is in the private sector. It is vital that the Government's policies help to ensure that home owners and private sector tenants have access to well managed and well maintained houses that are in decent condition, to support the Government's aim of thriving, inclusive and sustainable communities in all regions', said Deputy Prime Minister John Prescott.

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