So, what exactly does licensing achieve?

Landlords in the Private Rental Sector are used to having to manage multiple compliance regulations. It is claimed that the Renters (Reform) Bill will address some of the complexity via the creation of a Property Portal with which Landlords must register themselves and the details of their properties. The government says this single portal will help landlords understand their responsibilities and demonstrate compliance. What is less clear is whether the proposed legislation will mean the end of Selective or Additional Licensing schemes. As the bill trundles through parliament, the government has promised a review of the efficacy of such schemes.

The key question is whether such schemes improve the quality of rental homes. Compliance specialist Yuno has conducted a survey of local authorities in England and Wales to examine this question. Its whitepaper on the subject makes interesting reading – largely because it’s hard to draw a conclusion either way. The study acknowledges that, over time, the standard of homes has improved but there is no clear cause and effect.

What’s perhaps more concerning is that those areas where housing standards are the poorest have the lowest usage of licensing schemes. If they work, why aren’t they being implemented?

Landlords will also be confused by the huge variation in the cost of such licensing schemes between local authorities.  In London boroughs, checking against an England-wide Decent Homes Standard, Selective Licensing ranged between £500 and £900 (and was most expensive for boroughs with a lower median rent). Additional Licensing showed no correlation with rent and varied between £560 and almost £1,700.

Looking at the data from the Yuno study, one conclusion seems obvious to us. Landlords are not being allowed a level playing field. Perhaps the Property Portal will deliver that, but not if local authorities are still permitted to add their varied conditions and billing arrangements on top.