Lack of supporting evidence It is not accepted that there is evidence to support the requirement of Sec 56 (2) Housing Act 2004

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Imogene Jacobs
5 years ago
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1 DASH Services Response to Nottingham City Council s consultation on proposed designation for additional licensing under Section 56 of the Housing Act 2004 Introduction DASH Services operates the DASH Landlord Accreditation Scheme and represents Landlords who have been compliance checked to ensure a good standard of management and have received training. These are landlords who have a commitment to good and improving standards and it is essential to have the support of this group when considering any scheme for improving housing standards. This submission is based on views expressed to DASH and a survey of our members which included a multiple choice questionnaire and more in-depth interviews with DASH Landlord Accreditation Members. Respondents to our survey tended to be larger portfolio members with over half having more than five properties. The vast majority would require more than one additional licence so are substantial investors in the area. All respondents are in the student market. Collectively they are significant contributors to the sector which the proposed designation is targeting for improvement. Consultation The majority of respondents do not believe that the consultation process has been sufficiently thorough to enable an informed decision on the making of the designation. There has been a narrow opportunity to comment on the proposals which have not necessarily reached all stakeholders. It also appears that consultation is at a later stage of the development of the scheme and not at a stage where alternatives can be properly and fully considered. Needs for Proposed Scheme The area is dominated by the student market and all our respondents to our survey are in student landlords. Landlords feel that this is a means to regulate their market specifically and that taken together with the article 4 direction the student market is being specifically targeted by the use of regulation for the entire market. They believe that other means have not been sufficiently tried to improve conditions in their market and that general powers intended to regulate the entire market are being used to regulate their specific market. Lack of supporting evidence It is not accepted that there is evidence to support the requirement of Sec 56 (2) Housing Act 2004 The authority must consider that a significant proportion of the HMOs of that description in the area are being managed sufficiently ineffectively as to give rise, or to be likely to give rise, to one or more particular problems either for those occupying the HMOs or for members of the public. There is a widespread belief amongst DASH landlords that there is insufficient evidence for the making of the designation. 1

2 Housing management in the designated area has not been demonstrated to reach the level required by the Act, nor has it been demonstrated that it is higher than for all other sectors, either geographically, tenant type or house type. Analysis of the methodology for this assessment reveals several assumptions which are arguable and there is no demonstrable dataset that indicates an increased level of complaints. Several subjective assumptions are made in compiling and analysing the data and in particular: There is an admission that the database has insufficient information.this evidence was gathered as there was limited recorded data regarding HMO issues in Sneinton stored on the Flare database. A comparative analysis with other houses within Nottingham was decided against Complaints that are not linked to a HMO on our Flare database have also been removed. Police data was also utilised from (only) two police beats The criteria and its interpretation for inclusion of data is not stated, merely We have only included complaints data which we believe fits within the Housing Act and CLG guidance. The level of complaints received from the area have not been properly analysed or evaluated and it has not been demonstrated 1. that this is disproportionate within Nottingham 2. nor that they are a reflection of housing conditions. Complaints can be generated for other reasons. It can be argued that a well informed and empowered group of tenants, such as students, may be expected to have a higher level of complaints. This is an unsafe assumption and alone, cannot be used as evidence of poor management. Our survey data indicates that landlords have experienced no problems of Anti- Social Behaviour associated with their properties. Collectively these landlords manage a large number of properties in the designated area and this is evidence that the area is not suffering from poor management but is being effectively managed. Other Options It is the belief of DASH landlords, we consulted, that Nottingham City Council has not considered whether there are any alternative courses of action available to them that might provide an effective method of dealing with any assumed problems in the area as required by Section 57(4) (a). Furthermore it appears that landlords have little confidence that additional licensing designation will significantly assist them to deal with the problem as required by Section 57(4) (b) should they exist in the future. The previous range of services and activities to improve the property conditions and management of HMO properties operated by the Council and in particular the: The Good Landlord Scheme. HMO registration (a pre-cursor to HMO licensing). both failed to achieve any improvement due to a lack of resources and commitment and a failure to operate these within a strategic context. It is felt that the proposed 2

3 designation will suffer from the same problems and similarly fail if it is not demonstrated that Nottingham City Council has learned from the failure of these initiatives. DASH Landlord Accreditation is of the opinion that there has been insufficient use of accreditation to promote professionalism in landlords. There has been a lack of strategic use of the established accreditation schemes, DASH and Unipol. Having recognised the benefit and power of self-regulation The Nottingham Standard is being developed, however this service will not be fully operational until end of June 2013, thus not enough time to have a real impact on the designated area. Accredited landlords believe that there has been inadequate enforcement against the worst landlords as evidenced by the lack of regulatory activity in this field and the large number of landlords that require mandatory licences that have still not applied for one. Our survey indicates that a majority of DASH landlords believe that Nottingham City Council have made little or no effort to satisfactorily use enforcement in the area and none believe that a significant effort has been made to regulate the worst HMO landlords. Respondents experience of licensing is that it is an administrative exercise that penalises responsible landlords while allowing the criminal landlords to continue providing substandard accommodation. An additional licensing scheme must show clearly how all landlords requiring a licence will be found and proportionate enforcement action taken against them. There is a cost to this that will be borne by the responsible landlords. There is an expressed belief by DASH landlords that this is a method of raising revenue for enforcement which is not allowed. DASH submits that charges for Part 1 Housing Act enforcement should be used to pay for increased levels of enforcement as this would target criminal landlords and not deter responsible landlords. In particular there was no support for an additional licensing scheme but some support for a scheme which was developed in combination with accreditation. There is strong support for no changes with enhanced enforcement against the worst landlords, an option which has not been adequately considered. Nottingham City Council has failed to provide corporate incentives that will achieve both increased membership and support Nottingham City Council s strategic housing objectives. There is no reduction in the HMO licensing fee for accredited landlords or for any landlord that has demonstrated willingness to improving standards or professional development. Effectiveness of Proposed Scheme It is the general belief of DASH members that the additional licensing scheme will have no effect on housing conditions. There is a significant effect on respondent s plans to invest in the area with over half planning to reduce or significantly reduce their investment in the area. This is an important consideration as the effect of making the designation will be to reduce the number of proven effective and responsible landlords from the area and in consequence increasing the number of less experienced and criminal landlords. There has been no analysis of the effect of the proposals on the market and professionalism of landlords in the area and our 3

4 survey indicates that making the designation would be counterproductive and actually be a significant factor in reducing standards in the area. The consultation document prepared by Nottingham City Council has a section on the potential benefits of the proposed designation but does not consider the risks and threats. It is evidence that a proper consideration of the effectiveness of the scheme has not been made as required. Housing Strategy Section 57(2) of the Act requires that Nottingham City Council must ensure that making a designated additional licensing area is consistent with the authority s overall housing strategy. The authority does not appear to have a current Housing Strategy and the only strategy available on their web site is for The reference to additional licensing within this document provides no indication as to how additional licensing is integrated into the other strategies and policies. There is no provision for its relationship to the use of accreditation and specifically the development of Unipol. There is no relationship between this part of the strategy and anti-social behaviour, homelessness and empty property strategies. Such consideration are necessary under Section 57(3)(a) of the Housing Act 2004 which requires that the authority must also seek to adopt a co-ordinated approach in connection with dealing with homelessness, empty properties and anti-social behaviour affecting the private rented sector, both (a) as regards combining licensing under this Part with other courses of action available to them, and (b) as regards combining such licensing with measures taken by other persons. Even if the available Housing Strategy document is the current housing strategy it fails to satisfy this requirement. The Nottingham City Council consultation paper discussion on how additional licensing fits with other strategies does not adequately show how this will provide a coordinated approach. Our submission is that a raising of standards by licensing has not been demonstrated. It does not demonstrate how it contributes to the homelessness strategy other than to fail to negatively impact. However our survey indicates that there may be a shortage of much required good quality HMO one bedroom accommodation if additional licensing is adopted as HMO landlords stated they would withdraw from the area. This impact on homelessness has not been properly considered. There are existing provisions for referrals between the Local Authority and Police in respect of Anti-Social Behaviour and the proposals will not add to them. 4

5 Summary Based on the response of this consultation DASH and the good landlords it represents are of the belief that: additional licensing will not achieve its aims the conditions have not been met for designation it will have a negative impact on housing conditions and supply in the proposed designated area this consultation is placed on hold for at least 2 years to allow sufficient time for The Nottingham Standard to achieve its target. 5

6 DASH Services' Response to Nottingham, City Council's consultation on the designation of a proposed additional licensing area for HMO The tables and charts below are the result of a survey of DASH accredited landlords carried out online using Survey Monkey between 12th and 17th May These responses form the basis of and support the representations made by DASH in their response to the request for comments on the proposed scheme in their consultation questionnaire. Profile of Respondents Q.1 How many properties do you own in total? Properties Owned Percentage Number Over Total Properties owned Over 5 6

7 Q.2 How many properties do you own that will require an additional HMO licence? Properties requiring an additional licence Additional Licences required Percentage Number Over Over 5 Q.3 How would you best describe your tenants in the HMOs that will be covered by the proposed additional licencing scheme? Type of tenants Number Unemployed 4 1 Employed with some benefits 8 2 Employed with no benefits 16 4 Students Total Perceived Conditions in Area Unemployed Employed with some benefits 7 Employed with no benefits Students

8 Q.4 Do you believe that there is a problem with housing conditions in HMOs that will require an additional licence? I believe that there is Percentage Number No Problem A slight problem A moderate problem A serious problem A severe problem Perceived Housing Conditions No Problem A slight problem A moderate problem A serious problem A severe problem 8

9 Q.5 Have you experienced or had any complaints of any Anti- Social Behaviour from or about your tenants in the HMOs that will require an additional licence? I believe that there is Percentage Number No Problem A slight problem A moderate problem A serious problem A severe problem Anti-Social Behaviour No Problem A slight problem A moderate problem A serious problem A severe problem 9

10 Nottingham City Council's activities Q.6 Do you believe that Nottingham City Council have made adequate efforts to deal with the problems in the HMOs that are covered by the proposed additional licensing scheme? I believe that Nottingham City Council have made Percentage Number No effort Little effort A moderate effort Significant effort Every effort possible Efforts to deal with problems No effort Little effort A moderate effort Significant effort Every effort possible 10

11 Q.7 Are you being adequately consulted on the proposed additional licensing scheme? In my opinion Nottingham City Council are Percentage Number Not consulting at all Having some consultation Are fully consulting Consultation Not consulting at all Having some consultation Are fully consulting 11

12 Perceived Effect of Proposals Q.8 What effect do you believe the proposed additional licensing scheme will have on the housing conditions in those houses that will require an additional licensing? I believe the proposed licensing scheme will make housing conditions Percentage Number Significantly worse Worse Will have no effect Better Significantly better Effect on conditions Significantly worse Worse Will have no effect Better Significantly better 12

13 Q.9 Has the proposed additional licensing scheme effected your plan to invest in the area? Percentage Number Plan to significantly reduce investment Plan to reduce my investment Has had no effect on my plans Plan to increase my investments Plan to significantly increase investments Effect on Investment Plans Plan to significantly reduce investment Plan to reduce my investment Has had no effect on my plans Plan to increase my investments Plan to significantly increase investments 13

14 Landlords Preferred Options Q.10 Which ONE of the following options do you prefer Percentage Number A combination of a better Accreditation Scheme alongside additional licensing Develop and improve the Landlord Accreditation Scheme Introduce an additional licensing scheme for the area Make no changes More resources for enforcement against the worst landlords Other (Please specify) Preferred Options A combination of a better Accreditation Scheme alongside additional licensing Develop and improve the Landlord Accreditation Scheme Introduce an additonal licensing scheme for the area Make no changes More resources for enforcement against the worst landlords Other (Please specify) Other "The legislation is already in place to root out the worst landlords. With the right will, this can be achieved without the good landlords having to pay. Additional licencing is just a broad brush stroke to penalise all landlords. The councils approach should be more targeted." "Council cannot cope with current workload. Charge 1,000 fee but can't even be bothered to inspect the property. This is a Tax on landlords" "Selective licensing in known high HMO areas." 14

Additional HMO Licensing 2018

Additional HMO Licensing 2018 Consultation Document Bath and North East Somerset Council Housing Services This consultation document seeks views on proposals to implement an additional licensing scheme