Plans published by Liverpool City Council threaten further regulations and cost for landlords in the area. The Council is consulting on its wish to introduce Selective Licensing across the whole city, giving landlords and tenants living and working in the private-rented sector in Liverpool until 16th June to have their say.
There are approximately 5000 landlords with 50,000 properties in the City area and the proposed cost of a licence has been set at £500.00 per property. Over the course of a license’s five-year lifespan, this would raise a very healthy £25 million from law abiding landlords and tenants.
If approved, anyone found to be letting property without a valid license would be subject to a fine of £20,000. Any landlord with a license found to have breached relevant conditions could also find themselves faced with a lower, but still substantial, £5,000 penalty.
According to the Housing Act 2004, the Council has the option to introduce a licensing scheme if they can prove it is necessary to combat anti social behaviour (ASB) or that conditions of low-demand exist in the area. In the case of Liverpool, the Council has opted to hang their case on the view that declining population in the City has resulted in low-demand. In fact they have based their entire business case on the need to demonstrate that low-demand exists.
I am sorry to say that as landlords we have little opportunity to argue against licensing at this stage, the necessary burden of proof is low and stacked in favour of local authorities determined to license their respective areas.
However, all is not lost and there are still ways in which we can shape the form of licensing, its scope and spread. What we need to do now is prove that there is a healthy demand for rental properties across most of the wards within the City boundary. It would seem to me to be difficult to say that there was a low demand from tenants for properties in; City Centre properties, the Dock Apartments, Childwall, Woolton, Aigburth, Allerton, any of the Queens Drive wards. Living and working in Liverpool I certainly see plenty of demand for property in much of the City.
We need to tell the council about the true state of the private-rented sector in Liverpool. There will be areas of low- demand, of course, but there are also vibrant and desirable areas where people want to live and landlords want to go about their business without the burden of further regulation.
This is why we also need to look to our tenants to strengthen the case against arbitrary licensing. It is they who will ultimately carry the cost, by way of rents, of the licence fees. This will likely be worsened by a marked reduction in available properties in the private rented sector as landlords leave the area in search of better investment opportunities.
Tenants are invited to take part in the consultation and their voices will be listened to, the NLA has produced a fact sheet to advise to landlords regarding the consultation and a sample letter to encourage tenants to participate. You can receive a copy of these free of charge by calling Liverpool Representative Tom Reynolds on 07771734128.
Remember this licensing scheme is going to affect every landlord in the Liverpool City Council area and will probably spread across neighbouring towns in future. Do not ignore this. Act now!