PROPOSAL FOR DISCRETIONARY LICENSING SCHEMES IN THE STAPLETON ROAD AREA

PROPOSAL FOR DISCRETIONARY LICENSING SCHEMES IN THE STAPLETON ROAD AREA Introduction In Bristol, privately rented housing accounts for 21% of the City s housing stock (Bristol Private Sector House Condition Survey 2011) and the size of the sector continues to grow as fewer people are now able to buy their own home. In the proposed licensing area there is a much higher than average concentration of privately rented housing with 41% of the total housing stock in the area in this tenure (according to Council Tax records April 2012). The concentration of private rented dwellings in this small geographical area inevitably brings its own problems, as the private rented sector is generally considered to be the worst housing sector in relation to property conditions and management. This can have a negative effect on the neighbourhood and encourage anti-social behaviour. In 2011, following a series of violent incidents, Stapleton Road was labelled in national media as one of the worst streets in the country. This followed three unconnected incidents resulting in loss of life. Stapleton Road lies within the Easton and Lawrence Hill wards of the city, a culturally diverse area thriving with local businesses and residential streets. The area suffers from higher than average levels of deprivation and to a certain extent had become accepting of a higher level of crime and disorder than found elsewhere in the City. In the proposed area for selective licensing (see Appendix 7) you are twice as likely to suffer from Anti Social Behaviour and crime rates are double the citywide average according to Avon and Somerset Police data from 2011-12. In some parts of the proposed area the crime rates are even higher for example sexual offences are more than 15 times higher than the citywide average. The series of events in 2011 changed things, the level of violence was unprecedented, the impact on the community was significant and long term change was required. A residents and traders group was formed to work with agencies to bring about that change. Easton ward has been identified as one of the wards with the highest incidence of non decent housing in the private sector and a higher than average number are vulnerable households, i.e. those with older, very young or disabled people in the household, or means tested benefit recipients. Many large residential properties in the area have been adapted to meet the demand for housing and in some cases the standard of housing is in poor condition. This has led to large numbers of properties, and HMO's (Houses in Multiple Occupation) in particular, housing individuals involved in crime often with drug addictions with little or no support. Landlords receiving significant rental income have been unwilling to improve standards due to the chaotic lifestyles of their tenants have little interest in seeking change. 1

Avon and Somerset Police are frequently involved with individuals in private rented accommodation while tackling crime and anti social behaviour problems, working with partners to manage issues and identify appropriate solutions. It is vital that private landlords themselves become a part of this process and if they fail to engage there is some remedy to force them to act. Private landlords are themselves a key component of the process; they need to play their part in actively managing their properties and tenants and as a consequence contribute to the long term benefit of the community. A licensing scheme is crucial to ensuring that landlords play their part in making Stapleton Road and the surrounding area a great place to live and work. Before making a designation the authority must take reasonable steps to consult the local community and other persons who are likely to be affected by the designation and give them the opportunity to make their views known. The consultation period will run from May 30 th 2012 until 9 th August 2012. The responses must be analysed and if either selective or additional licensing is found to be appropriate, a report will be put to Bristol City s Cabinet on the 27 th September to formally designate an area. Proposed areas for Licensing Schemes: The proposal is to designate the following area for Discretionary Licensing Schemes. This is made up of four Super Output Areas (SOAs). Super Output Areas are relatively small geographical areas designed for the collection and publication of small area statistics enabling the comparison of like sized areas across the country. Each SOA has a population of between 1000 and 1500 in each and sit within Ward boundaries. There are a total of 3906 dwellings in the proposed area (924 in St Jude s, 1068 in Stapleton Road, and 1040 in St Marks Road and 874 in Robertson Road). Of the 3906 dwellings, 3009 are in the private sector and 1610 of these are privately rented (Council Tax records April 2012). Additional Licensing Scheme Area Selective Licensing Scheme Area 2

Discretionary licensing is the collective term used for Additional and Selective licensing schemes in the Housing Act 2004 (HA2004). The aim of Additional Licensing is to tackle poor management and improve housing conditions in HMOs that are not covered by HMO mandatory licensing requirements in the HA2004. Selective licensing aims to address areas of abandonment and / or tackle antisocial behaviour (ASB) of tenants living in the private rented sector. When properties are neglected or badly managed the impact on tenants and the local community can be considerable. Discretionary Licensing will enable the Private Housing Team and partners to work with landlords to raise standards in the private rented sector and to significantly reduce the impact of large concentrations of private rented accommodation on the surrounding neighbourhood. A Local Authority can designate areas as Selective and/or Additional licensing, subject to meeting certain criteria. Evidence must be collected to prove the need for the scheme(s). Local community, business, landlord and statutory agency views on the proposals are sought through a consultation exercise in the proposed area. The SOAs along and surrounding Stapleton Road have been identified as being particularly suitable for designation as a discretionary licensing area, as they have a history of poor housing, high levels of deprivation, anti social behaviour including crime generally linked to drug dealing and prostitution. Avon and Somerset Police have been trying to improve the area under the project A Safer Stapleton Road but have not been able to tackle effectively their dealings with private landlords. The police see the designation of discretionary licensing schemes as the missing piece of the puzzle for dealing with the problems of antisocial behaviour and poor management of HMOs. The local authority has powers under the Housing Act 2004 to ensure that certain landlords hold a licence for their property(s) and they will need to be fit and proper persons and meet licence conditions or face legal action. Background information One of the themes from Bristol s Housing Strategy 2010-2015 is Early Bird intervention. The Strategy aims to use a holistic approach to housing advice, early intervention and prevention to deal with problems before they become a crisis with the aim to improve housing conditions. One of the headline actions mention carrying out targeted intervention in the private rented sector, to better meet housing need and the provision of affordable housing. The consultation undertaken for the Private Housing Policy Statements 2011-2014 identified issues in the private rented sector, particularly those tenants who have experienced shared housing where problems of nuisance and dispute resolution were highlighted. Many new or inexperienced landlords require guidance and information on how to manage their properties. The quality and performance of some Letting Agents was considered poor. Training and advice is offered in partnership with local landlord / agent associations and the West of England local authorities. Landlords and agents should be encouraged to follow best practice. The action plan 3

also noted that there should be targeted action to deal with those properties in the private rented sector which is in poor condition, particularly in deprived areas. This work should be in partnership with local communities and agencies and use enforcement action to achieve this where appropriate. The Private Housing Enforcement Policy 2009 identifies the need to target action at specific issues. This could be by area, landlord or property type. Bristol City Council s Private Housing Service s experience in project managing and coordinating previous schemes is significant. The delivery of projects, such as two major, ten year housing and environmental improvement schemes (Easton Renewal Area / St Agnes & St Werburgh s Renewal Area), Single Regeneration and European projects were managed and coordinated by us. These brought together a wide range of services for the benefit of residents in the community and included refurbishment of private sector housing stock, shopping area and infrastructure improvements, together with ensuring other service providers prioritised these area action projects for action. The multi-disciplined approach enabled advice, guidance, support to be made available and mechanisms were established for Fast Track referrals to other agencies and providers. Unfortunately the Easton Group Renewal Area did not cover Stapleton Road itself and Group Repair did not extend to HMOs. Close collaborative working is currently in place with external and internal service providers, including, Housing Solutions, Housing Benefits, Anti Social Behaviour and Empty Properties teams, Registered providers and Bristol Energy Efficiency Scheme in dealing with issues relating to tenancies, homelessness, anti social behaviour, properties being left empty and energy efficiency in the home. An accreditation scheme has been in operation for private landlords in Bristol since 2006 and incentives have been offered to encourage landlords to bring their properties up to standard and promote good practice. In partnership with Avon and Somerset Police targeted security improvements are undertaken of privately owned/ rented properties, and with the Centre for Sustainable Energy to improve energy efficiency. There are currently 1426 accredited properties in Bristol but only 18 of these are in the proposed discretionary licensing area. Experience has also been gained in leading co-ordinated schemes through Home Action Zones and Bristol Energy Efficiency Scheme (BEES) working pro actively in a multi disciplined approach with a number of partners and agencies. Home Action Zones target poor housing conditions or housing and health issues in a defined area for a short period of time, working with Public Health, Police, Avon Fire and Rescue Service and other council departments. 1190 private properties have been inspected and offered various forms of assistance and improvements either directly or through referral to partner agencies. BEES operates by targeting areas in Bristol pro actively for a short period before moving on to another area. The scheme identifies and installs insulation measures to improve the energy efficiency of private housing stock. Over the last ten years more than 1000 private dwellings per year have received energy efficiency improvements through this scheme. 4

The City Council have successfully operated a mandatory HMO licensing scheme for six years, covering over 1400 larger properties. Many of the existing resources and procedures could be adopted and used for discretionary licensing schemes. The experience that has been gained from the above schemes, the commitment to work pro actively to deal with problems before they reach crisis point and the proven ability to co-ordinate partnership working, will assist the City in delivering a successful discretionary licensing scheme. Case officers have been trained to identify needs for minor disabled adaptations and fuel poverty to enable referrals to be made to the correct agencies. This practice would be replicated to train officers to identify Anti-Social Behaviour, homelessness or poor landlord behaviour and to have mechanisms in place to refer to the correct agencies to deal with as appropriate. Additional Licensing Additional licensing can be introduced where HMOs are being poorly managed and causing problems for tenants and other local residents. The designation includes those HMOs not covered by either mandatory HMO licensing or by Selective Licensing schemes i.e. those dwellings with two or more households but in buildings which are less than three storeys high. There are only 13 of the citywide total of 1400 mandatory licensable HMOs in the area to be considered for Additional Licensing. However based on Council Tax and House Condition Survey data, the likelihood is that there are approximately 125 HMOs that could require a licence under an Additional Licensing scheme. The police have already achieved some success with their actions under A Safer Stapleton Road and various drugs and vice projects in this area. The Private Housing Service has used Accreditation to try to improve standards but there are still those landlords who do not co-operate with such voluntary scheme. These landlords would be required to comply with basic standards of accommodation and management regulations under a discretionary licensing scheme. The Licensing requirements available to the local authority under a discretionary scheme to deal with poor landlords can be used to compliment the legal powers of the police particularly where we apply the Fit and Proper Person criteria for poorly managed accommodation. Non compliant landlords must meet the criteria or will cease to operate legally and also face enforcement action and risk prosecution. Selective Licensing Section 80(6) HA2004 contains the criteria to be taken into account when deciding whether an area has a problem with ASB in the private rented sector: (a) that the area is experiencing a significant and persistent problem caused by antisocial behaviour; (b) that some or all of the private sector landlords who have let premises in the area (whether under leases or licences) are failing to take action to combat the problem that it would be appropriate for them to take; and (c) that making a designation will, when combined with other measures taken in the 5

area by the local housing authority, or by other persons together with the local housing authority, lead to a reduction in, or the elimination of, the problem. Private sector landlord does not include a registered social landlord within the meaning of Part 1 of the Housing Act 1996 (c. 52). An area can be deemed to be suffering from significant and persistent ASB if there is evidence it suffers from: Crime tenants not respecting the property, in which they live and engaging in vandalism, criminal damage, burglary, robbery/theft and car crime. Nuisance Neighbours intimidation and harassment, noise, rowdy and nuisance begging, street drinking, prostitution and kerb crawling, street drugs market within the curtilage of the property. Environmental Crime tenants engaged in graffiti and fly posting, fly tipping, litter and waste, nuisance vehicles, drugs paraphernalia, fireworks misuse in and around the curtilage of the property. Partner agencies including Avon and Somerset Police, Safer Bristol, Bristol City Council Landlord Services and Registered Providers have already had some considerable success trying to improve the area and reduce crime. However, they experienced difficulties in tackling problems in the private rented sector and engaging with the private landlords particularly where a few properties are causing disruption and problems for other residents. The proposed licensing schemes are supported by Avon and Somerset Police. The problems which private rented properties present in the proposed area need additional measures to be introduced to deal with these issues. Each complaint in itself would not be considered significant to require a discretionary licensing scheme to be introduced, however when all of the problems are considered as a whole, the problems being caused locally, is considered sufficient for a discretionary licensing scheme to be proposed. The additional powers available to the statutory agencies if a discretionary licensing scheme is implemented, would add considerable additional enforcement powers to enable targeted action to be taken in the private rented sector. A Selective Licensing scheme would require nearly all private rented property owners to apply for a licence and help landlords deal with issues concerning the behaviour of their tenants which could be controlled by better management of the tenancy. Working pro-actively in a defined area which is experiencing significant ASB in a coordinated, way with other agencies will allow referrals to be fast tracked to deal with issues in the Private Rented Sector quickly before the problem becomes unmanageable. Training officers to identify instances of ASB whilst inspecting for housing standards and management compliance can have a far greater effect than the police response to reports of crime. Good working relations with the agencies who deal with all aspects of ASB will ensure an efficient response to the problem and avoid duplication of actions. Licence conditions can be imposed on the licence holder 6

imposing restrictions or prohibitions on the use of occupation of parts of the building and require reasonable and practicable steps to prevent or reduce ASB by persons occupying or visiting the house. Resources Additional staff resources to manage the proposed licensing scheme(s) will be required. The additional cost to the local authority in managing the licensing process can be recovered through a licence fee, paid by the landlord. Fees Fees will be calculated to recover the costs of the proposed new scheme. A fee structure has been drawn up in consultation with our Finance department. See Appendix 6. The fee proposal forms part of the consultation and the proposal is to have a similar format to mandatory licensing where there is a higher fee set for non compliant landlords who have unlicensed properties and a reward system for compliant landlords. Properties requiring a licence Mandatory HMO licensing requires all three storey HMOs occupied by five or more households in two or more households to be licensed, these are excluded from discretionary licensing as are properties with a temporary exemption notice. Additional licensing can be applied to some or all of the HMOs in the area. An HMO is a property occupied by three or more persons in two or more households; a household could be a single person or persons related to each other. HMOs are legally defined in Part 7 of the Housing Act 2004. HMOs that are buildings converted to self-contained flats may contain both owneroccupied and rented flats that could be owned by different landlords. Because of the possibility of there being a number of long leaseholders, as well as the freeholder, such buildings may present difficulties for licensing in identifying who the most appropriate person would be to be the licence holder as no one person has responsibilities for all parts of the building. Therefore, it is proposed that Additional licensing should apply to all HMOs except these buildings. However, individual privately rented flats that are HMOs within these buildings must be licensed. Therefore, it is proposed that Additional licensing should apply to S257 HMOs other than those not wholly owned by the same person(s). For these HMOs individual privately rented flats that are HMOs within these buildings must be licensed under Additional licensing scheme. Flats that are not HMOs would be licensed under Selective licensing. Selective licensing applies to privately rented houses (includes part of a building) let as single tenancies and includes buildings with two or more dwellings each let on a single tenancy. HMOs let to persons on individual tenancies are therefore not licensable under a selective licence scheme, but such properties may well be the source of anti-social behaviour. Consequently, to ensure all privately rented 7

accommodation is included in an area it would be necessary to run both schemes concurrently, subject to the evidence criteria being met for each. In areas where both schemes are designated Additional licensing would be applied to all HMOs and Selective licensing to all other privately rented accommodation. In this way a clear distinction can be made as to which scheme applies to different types of property. The table below summarises which properties would require a licence depending on which scheme(s) is/are designated in an area: Scheme(s) Additional and Selective (concurrent) Properties Buildings that are HMOs, but excluding converted buildings in self contained flats (S257 HMOs) not wholly in the same ownership - Additional licensing. Flats in purpose built blocks and converted buildings that are HMOs - Additional licensing. Houses let under a single tenancy - Selective licensing. Buildings with two or more self contained flats each on a single tenancy - Selective licensing. A self contained flat let under a single tenancy in a part of a building not subject to Additional licensing - Selective licensing. Additional only Buildings that are HMOs, but excluding converted buildings in self contained flats (S257 HMOs) not wholly in the same ownership. Flats in purpose built blocks and converted buildings that are HMOs. Selective only Houses let under a single tenancy (includes an HMO let under a joint tenancy). Buildings with two or more self-contained flats each on a single tenancy. A self contained flat let under a single tenancy in a part of a building. Definition of an HMO The following is a summary of the HMO definition in Section 254 Housing Act 2004 taken from the Communities and Local Government publication: A guide to the licensing and management provisions in Parts 2, 3 and 4 of the Housing Act 2004 DRAFT. In order for a building, or part of a building, to form an HMO it must fall within the meaning of one of the following descriptions: a building in which more than one household shares a basic amenity e.g. a bathroom, toilet or cooking facilities. This is called the standard test ; 8

a flat in which more than one household shares a basic amenity (all of which are in the flat) e.g. a bathroom, toilet or cooking facilities. This is called the selfcontained flat test ; a building that has been converted and does not entirely comprise of selfcontained flats. This is called the converted building test ; a building which is comprised entirely of converted self-contained flats and the standard of the conversion does not meet, at a minimum, the standard required by the 1991 Building Regulations, and less than two thirds of the flats are owner occupied. This type of building is also known as a section 257 HMO. Discretionary Licensing Conditions There are statutory conditions that must be applied to all licences issued under discretionary schemes. These are contained in Schedule 4 of the Housing Act 2004 and relate to provision of certificates for gas safety, safety of electrical appliances, smoke alarms and the need for written tenancy agreements. In addition, the local authority may apply other conditions to regulate the management, use or occupation of the property. These conditions can include measures to deal with the antisocial behaviour of tenants and their visitors in relation to the residential use of the property. Other conditions may relate to the maintenance of facilities and restrictions on the occupation of the property. It is considered essential that the emphasis of the conditions for Additional and Selective licensing schemes should be to improve tenancy management as this will contribute to a reduction in antisocial behaviour by tenants. Consequently, landlords who do not tackle problem tenants can be targeted. Mandatory conditions must be applied to all licences issued under discretionary schemes. These are contained in Schedule 4 of the Housing Act 2004 and relate to gas safety, safety of electrical appliances, smoke alarms and the need for written tenancy agreements. See appendix 4 In addition, the local authority may apply other conditions to regulate the management, use or occupation of the property. These conditions can include measures to deal with the anti-social behaviour of tenants and their visitors in relation to the residential use of the property. A condition requiring compliance with Bristol City Council s Code of Good Management Practice (appendix 3) will be central to how these properties should be managed; this includes a section on good neighbourliness. This Code is also used in the mandatory HMO licensing scheme and Bristol s Accreditation scheme and noncompliance can lead to removal of a person s fit and proper person status for persistent poor management using a points system. In addition, specific conditions are proposed that will require the licence holder to tackle anti-social behaviour. These are: - obtaining references before issuing new tenancies and responding honestly to other landlords requesting a reference. 9

new tenancy agreements to include clauses allowing the landlord to take reasonable steps to tackle anti-social behaviour; a requirement to respond constructively to any valid report about anti-social behaviour received from neighbours or the Council; the licence holder to take all reasonable steps to deal with antisocial behaviour perpetrated by occupiers and/or visitors to property; must take reasonable and practicable steps if the property is used for illegal or immoral purposes; to inspect the property every three months or more regularly where anti-social behaviour has been reported. HMOs licensed under an Additional licensing scheme must comply with standards prescribed under Section 65, these are contained in The Licensing and Management of Houses in Multiple Occupation and Other Houses (Miscellaneous Provisions) (England) Regulations 2006 and relate to heating, washing, kitchen and fire precaution facilities; these standards have been incorporated into Bristol s mandatory HMO licensing standards (appendix 4). For consistency of approach to HMOs in the city it is proposed to include a condition for HMOs in discretionary licensing schemes to also comply with these standards. Maintenance of these facilities is part of the Code of Good Management Practice. Before granting a licence under an Additional licensing scheme a local authority must also consider the level of occupation in the HMO. Consequently, a condition relating to this and other relevant conditions in the mandatory HMO scheme should be included as under the mandatory scheme. All proposed Additional licensing scheme conditions are contained in appendix 1. The standard of facilities and the level occupation are not considerations for granting a licence under Selective licensing. Whilst conditions requiring facilities and regulating the level of occupation may be applied, it is considered preferable to keep the number of conditions to a minimum and rely instead on other provisions of the Housing Act 2004 to address any hazards caused. All proposed Selective licensing scheme conditions are contained in appendix 2. Appendices: Appendix 1: Additional Licensing Conditions Appendix 2: Selective Licensing Conditions Appendix 3: Code of Good Management Practice Appendix 4: HMO Mandatory Licensing Standards Appendix 5: Fees Structure and Table Appendix 6: Additional Licensing Area and Street Index Appendix 7: Selective Licensing Area and Street Index Appendix 8: Private Sector House Condition Survey 2011 10