The Committee received a report which presented options for future regulation of private sector housing, including the implementation of discretionary licensing schemes.  The following documents were appended to the report:

·         Appendix 1 - Metastreet Stock Condition Survey.

·         Appendix 2 - Renters Reform Bill Summary of Proposals.

·         Appendix 3 - Comparison of scheme criteria and conditions which may be attached.

·         Appendix 4 - Indicative timetable for Consultation and potential approval of a scheme(s).

·         Appendix 5 - Financial implications – Proposed fees.

·         Appendix 6 - Financial implications - Fees comparison with other local authorities.

·         Appendix 7 - Financial implications – Predicted income and expenditure.

The report noted that the Council currently operated the national mandatory licensing scheme for larger houses in multiple occupation (HMOs) with five or more occupants.  The Housing Act 2004 included provision for local authorities to also designate Discretionary Licensing schemes to improve conditions and property management in the private rented sector.  Evidence showed this had positive impacts on residents’ physical and mental health and better educational outcomes for children.  Discretionary schemes covering greater than 20% of a local authority’s geographical area or housing stock would require Secretary of State approval.

The report set out at Appendix 1 a Stock Condition Report, the findings of which included that: nearly 40% of housing stock in Reading was in the private rented sector, rents and property possession were above average for England, there were over 3,000 HMOs of which 37% were likely to have serious hazards (under the Housing, Health & Safety Rating System), and HMOs had the highest rates of Anti-Social Behaviour when compared to other tenures.  This highlighted the scale of poor housing conditions, deprivation, anti-social behaviour and other issues linked to the private rented sector in Reading.  Based on the evidence provided by the Stock Condition Report the report recommended that a statutory consultation exercise with residents, private landlords, businesses and other key stakeholders be undertaken on proposals for boroughwide additional licensing and a phased introduction of selective licensing.

The report explained that additional licensing was a discretionary power to declare all or part of the local authority’s area subject to its controls for no more than five years.  It would cover ‘smaller’ HMOs that were currently outside of the mandatory licensing requirements and/or buildings converted into self-contained flats if that conversion was not in accordance with building regulations 1991 or later.  It was proposed to consult on introducing additional licensing across the Borough.

Another discretionary power was a selective licensing scheme to require all private landlords in a designated area to have a licence, with the aim of ensuring that rented properties were of a decent standard and give tenants confidence that houses and flats in a designated area would be healthy and safe to live in.  The report proposed a consultation on a selective licensing scheme to cover Park, Redlands and Battle wards which were anticipated to have the highest rate of private rented properties with serious hazards.  This geographical area would be under the 20% threshold that would trigger the requirement for Secretary of State approval.

Resolved:

(1)       That the evidence in the commissioned Stock Condition Report, highlighting the scale of poor housing conditions, deprivation, Anti-Social Behaviour and other issues linked to the private rented sector in Reading be noted;

(2)       That the Director of Economic Growth and Neighbourhood Services be authorised to commence a statutory consultation exercise with residents, private landlords, businesses and other key stakeholders on proposals for boroughwide additional licensing and a phased introduction of selective licensing, and to propose areas to be included in the consultation on these designations based on the evidence provided by the Stock Condition Report;

(3)       That the initial report findings in Battle, Park and Redlands wards, based on the evidence provided by the Stock Condition Report, be noted;

(4)       That a further report on the outcome of the consultation be submitted to the Committee, setting out recommendations as to whether to designate additional and selective licensing schemes and their scope and scale.