Decision Maker: Housing, Neighbourhoods and Leisure Committee
Decision status: For Determination
Is Key decision?: No
Is subject to call in?: No
Further to Minute 24 of the meeting held on 21 February 2024, the Committee received a report on improving housing conditions and management in the private rented sector by implementing a discretionary licensing scheme. The report examined the available evidence and presented options for future service delivery for private sector housing regulation, including the implementation of discretionary licensing schemes. The aim of the schemes would be to drive change and provide better homes for residents, which national evidence showed had positive impacts on physical and mental health and for families, better educational outcomes. The Council currently operated a licensing scheme for larger houses in multiple occupation with five or more occupants, this was the national mandatory licensing scheme. Discretionary licensing under the Housing Act 2004 contained provisions for the Council to designate discretionary licensing schemes, of which the larger ones would require Secretary of State approval.
The report stated that a statutory consultation exercise with residents, private landlords, businesses and other key stakeholders had taken place on proposals for Boroughwide additional licensing and a phased introduction of selective licensing. The areas to be included in a potential scheme were based on the evidence provided by a Stock Condition Report. The evidence gathered from Stock Condition Survey, and from the consultation exercise found:
· That nearly 40% of the housing stock was in the private rented sector.
· That there were over 3,000 houses in multiple occupation (HMO).
· 37% of HMOs were likely to have serious hazards (under the Housing, Health & Safety Rating System).
Following the consultation and evaluation of a range of evidence, the report recommended that the Council should implement a Boroughwide Additional Licensing Scheme alongside the phased implementation of a Selective Licensing Scheme. This would drive up conditions and improve the management of the private rented sector. The recommendation for the phasing of the schemes would take into account:
· The size of any scheme as this would determine whether Secretary of State permission was required;
· The significant limitations in the labour market around qualified Environmental Health staff to undertake the work;
· whether it would enable a focussed and targeted approach to achieving the outcomes.
Consideration had been given to the consultation responses, including the practicalities of setting up additional and selective licensing schemes, which had resulted in the following proposals:
· implement selective licensing of all rented properties in Battle ward with the date for designation postponed to 2027 to reduce the officer resource required before that date.
· deferring the decision to include Park and Redlands wards to allow the implementation and evaluation of earlier phases.
· to retain a Boroughwide Additional Licensing Scheme, though the date of implementation was likely to be later in 2025 to allow for recruitment and other preparations (see timetable in Appendix 3).
· to agree the licence fees as set out in paragraph 1.9 and Appendix 2 of the draft report for the Additional (HMO) Licensing Scheme and apply a discount for properties which were part of the Council’s Rent Guarantee Scheme.
The report had appended the financial implications; proposed fees; indicative timetable; fees comparison; consultation responses; and an evaluation of the options for an additional licensing scheme designating a HMO licensing scheme only and a selective licensing scheme designating a selective licensing scheme only; and a summary of the Renters Reform Bill.
Resolved:
(1) That the consultation outcome on the implementation of additional and selective licensing schemes in Reading be reviewed and acknowledged;
(2) That a phased implementation of discretionary licensing schemes consisting of a Boroughwide Additional Licensing Scheme alongside the phased implementation of a Selective Licensing Scheme commencing with Battle ward be approved;
(3) That the proposed timescales set out in Appendix 3 to the report be noted and the Assistant Director, Planning, Transport & Public Protection, in consultation with the Lead Councillor and the Assistant Director of Legal & Democratic Services be authorised to make such designations;
(4) That the resource required to implement the schemes, particularly staffing as set out in section 13 and Appendix 1 to the report be noted.
(5) That the Additional HMO Licence fee set out in Appendix 2 to the report be approved.
Publication date: 05/12/2024
Date of decision: 13/11/2024
Decided at meeting: 13/11/2024 - Housing, Neighbourhoods and Leisure Committee
Accompanying Documents: