In a move poised to redefine the landscape of the private rented sector (PRS), the UK government has doubled down on its commitment to fostering a vibrant, secure, and high-quality rental market.
This renewed focus comes as local authorities gain greater autonomy to implement selective licensing schemes, empowering them to tackle localized housing challenges without requiring prior approval from the Secretary of State.
Central to the government’s vision is a PRS that not only meets housing demand but does so with professionalism, offering tenants safer homes and greater security of tenure.
Recognising the sector’s pivotal role in addressing diverse housing needs, the government remains a strong advocate for voluntary measures such as landlord accreditation and forums.
ELEVATE STANDARDS
These initiatives are designed to elevate standards across the sector, ensuring that landlords are equipped to deliver high-quality accommodation in response to increasing demand.
Selective licensing – a mechanism enabling local authorities to regulate privately rented properties within designated areas – has emerged as a critical tool for addressing specific housing-related issues. These issues include, amongst others, low housing demand or areas at risk of becoming such; persistent anti-social behaviour problems and substandard housing conditions.
Under these schemes, landlords must obtain a licence for each property they rent out within designated areas.
This ensures compliance with regulations and provides local authorities with a framework to address localised issues effectively.
GENERAL APPROVAL
But from 23 December 2024 local housing authorities in England will no longer need confirmation from the Secretary of State to implement selective licensing schemes of any size.
However, this newfound autonomy comes with stringent expectations. Authorities must adhere to statutory requirements outlined in Part 3 of the Housing Act 2004 and conduct comprehensive consultations lasting at least 10 weeks. These consultations must engage local residents, landlords, tenants, and other stakeholders likely to be affected, fostering transparency and accountability.
LESS LICENSING, NOT MORE
Timothy Douglas, Head of Policy and Campaigns at Propertymark, says: “The private rented sector needs less selective licensing not more with the additional costs and duplication of rules that it brings.
“To this end, there are enough laws covering high standards for rented property, but it’s the lack of capacity of local authorities to actively inspect property and enforce these rules that is the main issue. Licensing means councils spend all their time administering schemes, rather than enforcing against rogue, criminal landlords.”
“The Renters’ Rights Bill offers an opportunity to phase out licensing schemes.”
And he adds: “The Renters’ Rights Bill offers an opportunity to phase out licensing schemes, provide councils with the resources they need and endorse professional letting agent and landlords alongside the introduction of the Decent Homes Standard and Private Rented Sector Database.
“However, it would seem that the UK Government is failing to recognise the benefits of doing this and not providing local authorities with the much-needed investment they need to enforce the wide range of legislation that already exists.”
