Selective Landlord Licensing in Gateshead Consultation Presentation - - PowerPoint PPT Presentation

Selective Landlord Licensing in Gateshead

Consultation Presentation The Private Sector Housing Team

The H The Hous

• using

ng A Act 2004 2004

• 1. Mandatory licensing
• 2. Additional licensing
• 3. Selective licensing

Legal Legal c criter eria:

• 1. That the area is, or is likely to become, an area of low

housing demand, or

• 2. That the area is experiencing a significant and persistent

problem with anti social behaviour (and a lack of appropriate action by private sector landlords)

Legal al C Contex text & t & Requi quirem ements ents

Legal al C Contex text & t & Requi quirem ements ents

To be considered for licensing an area must also:

• Contain a high proportions of properties in the private

rented sector in relation to the total number of properties in the area, occupied under assured tenancies/licenses And 1 or more of the following,

• Poor housing conditions in private rented homes
• The area has recently experienced or is experiencing an

influx of migration

• The area is suffering from high levels of deprivation
• The area suffers from high levels of crime

Low Housing Demand (LHD)

In deciding if an area is, or is likely to become an area of LHD, the LHA must take into account;

• The value of residential premises in the area
• The turnover of occupiers of residential premises
• The number of residential premises available to

buy/rent and the length of time unoccupied.

• The general appearance of the locality

Licensing Information

• Schemes can last for up to five years
• The Council is required to assess the impact of a scheme during the five years. A

scheme can be revoked earlier or the Council can consider if the area should be redesignated for a further period.

• A licence holder must be ‘fit and proper’ as do any proposed manager
• Certain properties and tenancies are exempt
• An applicant must demonstrate satisfactory procedures relating to property and

tenancy management

• Attached to a licence are conditions to ensure the effective management of the

property and tenancy

• An applicant must be the most appropriate person to be the licence holder
• Failing to apply for a licence or comply with licence conditions is an offence
• The existing Central Phase 1 scheme was designated in Autumn/Winter 2011 and

was implemented in May 2012.

• The scheme is due to end on 17th May 2017
• There is a further scheme in place in parts of Swalwell – expires April 2018

The Proposal

The Avenues Scheme Commencement: Phased introduction over three years Area 1 (Spring 2018) Area 2 (Spring 2019) Area 3 (Winter 2019 - subject to ongoing consultation). Proportion privately rented: approximately 69%

The Proposal

Schem heme commen encem ement ent : Winter 2017 Num umbe ber of

• f hom

homes es: 320 Propor

• rtion
• n p

privat atel ely rented: ed: approx. 70% Central Phase 1 – Re designation

Strategic Context

Gateshead’s Long Term Sustainable Community Strategy – Vision 2030 Core Strategy and Urban Core Plan for Gateshead (2010-2030). Bensham & Saltwell Neighbourhood Action Plan Housing Strategy 2013-18

What hat s step eps s so

• far

ar hav have not not s suf ufficiently remedie edied i d issue ues

• Clearance and New Housing Development
• Financial assistance for property improvements
• The Private Rented Property Accreditation

Scheme

• Landlord Engagement
• Community Safety Partnership
• Action under Part 1 of Housing Act 2004 (the Act)
• Dealing with Statutory Nuisance and Noise
• Empty property leasing

Evidence Base

The e follow

• wing

ng infor

• rmat

ation

• n helped

ped to formul ulat ate e our propos

• posal

al: High h conc

• ncent

ntrat ations

• ns of privat

ate e rent nted ed stoc

• ck
• Saltwell has the highest proportion of PRS in Gateshead.

Avenues – 0.094% borough area – 9% of total PR housing Re designation – 0.0015% borough area - 1.6% of total PR housing Tenure

Avenues % Re-Designation %

Privately Rented 890 69% 229 72% Empty Properties 96 7% 37 12% Owner Occupied 259 19% 44 14% Gateshead Housing Company and Registered Social Landlords 44 3.5% 5 1.5% Commercial Premises 20 1.5% 2 0.5% Community Facilities 1 <0.1% 0%

Total 1310 100% 317 100%

Evidence Base

High c gh conc

• ncentration
• n of
• f pr

privately rent ented pr prope

• perties

es (Not

• te 3)

3) Note 1-Private Sector Housing/Council Tax data March 2017, Note 2-Land registry data, Note 3-Council tax data, Note 4-Police data 2017, Note 5, IMD 2015

Low Lower er av aver erage e pr proper

• perty pr

prices (Note 2

e 2)

• Note 1-Private Sector Housing/Council Tax data March 2017, Note 2-Land registry data, Note 3-Council tax data, Note 4-Police data 2017, Note 5, IMD 2015

Evidence Base

Low Lower er av aver erage e pr proper

• perty pr

prices (Note 2

2)

• Gateshead Borough

£126,171

• Saltwell

£124, 582

• Lobley Hill & Bensham

£116, 568

• Proposed Avenues scheme area(NE8)(Note 6) £100,500
• Proposed re designated area(Note 6)

£75, 250

Note2, Land Registry Data Note 6 – Hometrack 2017

Evidence Base – The Avenues

Tur urnov

• ver of
• f oc
• ccup

upan ants (Note 3):

• LSOA 8251

4th highest turnover in the Borough

• LSOA 8252

6th highest turnover in the Borough

• LSOA 8253

3rd highest turnover in the Borough

Note 1-Private Sector Housing/Council Tax data March 2017, Note 2-Land registry data, Note 3-Council tax data, Note 4-Police data 2017, Note 5, IMD 2015

Evidence Base – The Avenues

Pres esenc nce e of Empty prope

• perties

es (Note 3):

• Proposed Avenues scheme area

8.1%

• Gateshead Borough

3.6%

Note 1-Private Sector Housing/Council Tax data March 2017, Note 2-Land registry data, Note 3-Council tax data, Note 4-Police data 2017, Note 5, IMD 2015

CRIME & ASB – THE AVENUES

Higher Crime and ASB Incidents Youth ASB (Note 4): Saltwell 5th highest level in the Borough All ASB (Note 4): Saltwell 5th highest level in the Borough Crime Saltwell 6th highest level in Borough

Note 1-Private Sector Housing/Council Tax data March 2017, Note 2-Land registry data, Note 3-Council tax data, Note 4-Police data 2017, Note 5, IMD 2015

How does licensing help?

• Dedicated resource to investigation/resolution
• Partnership/joined up working – co ordinated

approach

• Licence Holders/Landlords required to participate –

respond reasonably and proportionately

• Conditions
• LH training and support
• Tenant referencing/vetting (consideration being

given to provision of this service within SLL areas)

Evidence Base – The Avenues

Private Sector Housing reported incidents 13-16 Private Sector Housing reported incidents, Housing 13-16

How does licensing help?

Improved housing standards – accreditation/programmed inspections/licence conditions Effective communication channels Target environmental issues via increased tenant contact Influence Council policy and procedure

Evidence Base

Lev Levels of

• f Dep

eprivation(Note 5):

Gateshead B head Borough

• ugh

73/326 most deprived in England Propos posed ed Avenues enues ar area ea Top 10-20% and 20-30% most deprived Propos posed r ed re designat gnated a ed area Top 10%, Top 20% & Top 30% most deprived (based on income, employment, education and skills, health/disability, crime, barriers to housing and services and the living environment?

Note 5, IMD 2015 Note 1-Private Sector Housing/Council Tax data March 2017, Note 2-Land registry data, Note 3-Council tax data, Note 4-Police data 2017, Note 5, IMD 2015

www.gateshead.gov.uk/imd

De Depriv ivatio ion Hous

• using

ng

• Enforcement action- Overcrowding, poor condition housing – leading

to improved health and well being of households – link to employability, sustaining employment and income

Cr Crim ime Tenants vetted prior to being offered a tenancy

• Improved property management - leading to improved health and

well being of households

• Information gathering/sharing – joint operations with police and

immigration to crack down on crime- helping mitigate deprivation.

How does licensing help?

Phase 1 Redesignation Assessment Process

Public consultation – seeking the views of stakeholders

– final evaluation report to be published in advance of expiry

Review of LHD and ASB indicators from pre licensing to date Review of the impact of licensing on management and property conditions

Evidence Base – Phase 1 Redesignation

Redesignation – The Evidence

Rental Values

Average rental values have increased, yet remain lower than the Borough average

Redesignation – The Evidence

Multiple Occupant Turnover

Substantial reduce in turnover since 2012 to 6.9 (56% reduction) Rate remains more than double the Borough Average of 3.2% Highest single turnover – Saltwell Place, Trevethick Street Highest multiple turnover – 17-109 Saltwell Rd and 1-64 Hyde Park Street

Redesignation – The Evidence

The number of complaints made to the LA has reduced since 2012 – more than half from 2012 to 2017

Redesignation – The Evidence

Despite reductions since 2012 complaint levels remain higher than

• ther areas.

There are hot spot areas of demand/ongoing challenges

Redesignation – The Evidence

Ini nitial dat data anal analysis con

• nfirms;
• Substantial reductions in multiple occupancy turnover
• Reductions in complaints of ASB reported incidents to LA and police
• Reductions in empty property complaints
• Reductions in housing condition concerns/complaints from private tenants
• Substantial increase in the number of homes meeting the legal minimum

standard

• Problem landlords have been excluded/deterred from further investment
• Licence holders given advice, support and training
• Certain hotspot locations of ongoing demand and challenges that require
• ngoing intervention
• Area as a whole continues to demonstrate low housing demand and issues

with ASB primarily due to these hotspot locations

The Future

Proposed Redesignated Area

Proposed Scheme Aims & Objectives

To

• reduc

educe l low

• w hous

housing dem deman and d by by rai aising ng s stan andar ards w within t the pr he private e rent ented s sec ector leadi eading t to

• impr

prov

• vements i

in n the ov he over erall s soc

• cial

al and ec and econom

• nomic c

condi

• nditions

ns in n an an ar area. ea.

• To reduce the turnover of occupants to create stable communities
• To reduce the number of empty properties and the length of time they remain

unoccupied

• To reduce levels of anti-social behaviour linked to tenants in the private rented

sector.

• To improve private rented property conditions and the number of accredited

homes

• To reduce problems with private rented housing that contribute to high levels of

deprivation via improving housing conditions

• To improve the management of properties in the area
• To increase the number of tenants who manage their tenancy well
• To stabilise/increase rental values of private rented properties
• To stabilise/increase the value of residential premises
• To support the private rented sector in its provision of well managed properties

and tenancies an assist those seeking to live and currently living in private rented accommodation.

The Future – Learning from Experience

• Licensing Enforcement Policy
• Licence Application Meeting
• Tenant Meeting
• Model Standards
• Property inspection during application process
• Unannounced Property Inspections
• Civil Penalty Charges for Unlicensed Properties
• Revised Licence Conditions (responding to neighbourhood issues)
• Development of Online Access
• Increased agency/partner working
• Proportionate increase in staff – more Officers on site
• Consideration to a Tenant Vetting/reference service

Proposed Fee Structure (both schemes)

Early Application Fee

£550

(complete application received prior to scheme live date, or in lead up to property being purchased, managed or let) Standard Fee

£750

(complete application received within 28 days of becoming licensable) Late Standard Fee

£850

(complete application received more than 28 days of property becoming licensable) Chased Application Fee

£1000

(complete application received more than 28 days of becoming licensable and application had to be pursued) Accreditation discount

£100 (18%)

Charge for each incomplete/deficient application

£25

Charge for failing to return requested property/licence information mid scheme

£25

Categori gories es

• Safety C

Cert rtif ific icates (gas, electric, PAT testing)

• Fire S

e Safet ety y (smoke detection, furniture and furnishings)

• Ant

Anti Soc Social Beha Behaviour (vetting's, procedures)

• Tenanc

nancy Mana nagem gement ent (tenancy agreements, inventories, waste disposal)

• Licenc

cence M e Managem nagement ent (fit and proper criteria, use of agents)

• Miscel

scellaneous aneous / /Speci ecial (UK resident, accreditation, training)

Proposed Licence Conditions

Questions

• Proposed area scope
• Fee structure
• Implementation
• Licence conditions

Borough Analysis- Low Demand/ASB and Complaints

Lower Super Output Areas Overall Rank Private rented properties Sold property rank Property transaction rank Rank long term voids Multiple turnover rank Youth ASB 14-15 rank - Police ASB Rank 14-15 Police Criminal damage rank-Police Private Housing Complaints 2103-16 Rank totals

Bensham South 1

15.9 11.0 3.3 10.6 13.3 0.8 1.7 3.6 16.7 76.8

Kelvin Grove 2

16.7 11.2 3.7 8.2 11.7 1.9 1.8 3.3 11.8 70.3

Swalwell/Metro Centre 3

14.8 10.9 3.1 13.6 8.3 1.1 2.2 5.5 9.2 68.9

The Avenues 4

15.4 10.4 2.6 7.8 12.8 0.9 1.2 3.1 13.0 67.3

Birtley/Birtley Industrial 5

13.5 10.4 3.3 9.0 6.9 5.6 3.0 5.6 8.9 66.0

Sunderland Road 6

16.5 9.0 3.3 8.3 10.1 1.3 2.2 4.1 9.8 64.7

Chopwell North 7

10.6 12.5 2.4 11.9 5.8 1.3 1.0 3.9 15.1 64.6

Bensham South (2) 8

13.5 10.7 3.6 8.9 10.8 1.0 1.2 2.7 11.8 64.1

Shipcote 9

13.7 11.0 3.5 5.6 10.5 1.4 2.2 3.1 12.5 63.6

Bensham Central 10

11.4 9.6 3.1 4.4 11.6 2.0 2.1 2.9 11.3 58.3

Benefits for ALL

• Increased Council resource dedicated to area over five year

period.

• Well managed private rented homes
• Reducing anti-social behaviour/crime
• Improved image and perception of the area
• More stable private rented sector – less turnover of occupants
• Co-ordinated response to problems using multiple agencies

Positive economic future for the local community and local businesses.

• Protection of vulnerable people who may be living in poorly

maintained homes

For Landlords

• Advice and Support – licence conditions and effective

tenancy/property management

• Clear set of guidelines to achieve a benchmark of property

management

• Free training – licence condition compliance and sector

updates

• Unscrupulous landlords eliminated from operating in the

area – less competition

• Less overheads/costs – encourages responsible tenants to

stay leading to less advertising and tenant find costs, reduced periods of vacancy

• Stable rents and property values as area improves
• Improved landlord/tenant relationships
• Ability to make better informed choices before offering a

tenancy

For Tenants

• Increased visibility of landlord
• Improved living conditions
• Improved landlord/tenant relationships
• Fit and proper landlord
• Advice and support on tenancy rights and housing matters

Exemptions

– Residential Social Landlords – Other regulated buildings – Holiday lets – Tenancies under a long lease – Family members – Business premises or those under a Prohibition Order