Issue - meetings

RESOLVED: That the Committee

a)    Support the business case as proposed to introduce licensing of flats over commercial property.

b)    Would like to receive further updates as part of its 2015-16 work programme.

4.1      Roz Spencer (Co-ordinator, Rogue Landlords Taskforce) gave a presentation to the meeting. The key points to note were:

§  The South East London Housing Partnership (SELHP) plus LB Lambeth have held their inaugural Licensing meeting.

§  LB Southwark are already out to consultation on their licensing scheme, whereas Greenwich and Lambeth have not yet reported to their Leader/Cabinet.

§  The report that came to the December 2014 meeting laid out the present situation, established the importance of evidence and asked the questions. Since that meeting, officers have begun to turn data into intelligence, and analysis into evidence

§  Across London, 5 boroughs have proceeded with an additional licensing scheme, focusing on small Homes with Multiple Occupation (HMOs); or localised selective scheme in anti-social behaviour (ASB) hotspots. Informally, SELHP and LB Lambeth are aligning around these two components.

§  Lewisham work:

o   Commissioned two new databases, by using statistical analysis undertaken by consultancy Mayhew Harper working for other London boroughs – this is expected to be ready in April 2015.

o   reviewed primary survey research commissioned by SELHP and LB Lambeth into the experiences and perceptions of private tenants and their landlords and agents which reported in October 2014.

o   Mapping of the poorest private rented sector (PRS)

§  The results have shown that:

o   ‘Continuing attrition’ of the Local Housing Allowance sector is expected to occur as landlords relet to higher income earners when those claiming some housing benefit leave. Non-mandatory HMOs are the poorest income earners.

o   People paying highest rents are less satisfied than median rent payers.

o   Those who are paying the highest rents are not necessarily on highest incomes.

§  The results did not find  the following:

o   Housing Benefits claimants less likely to say there is ASB in there area.

o   No strong spatial pattern of poor standards except where damp and mould more prevalent close to border of inner/outer London benefit rates and in six secondary & tertiary shopping areas (Deptford, Lee, Hither Green, Brownhill Road, Sydenham and Brockley).

§  The key risks of licensing are that the current shortages of rented stock accessible to low income households gets worse; and skill shortages for low income jobs locally could be a problem. However, the risks with the status quo is that the worst private rented housing is not effectively regulated.

§  License fee income can only be used for the administration of a licensing scheme – including compliance monitoring - but must not be used to finance enforcement activity.

§  The early indications for costs from modelling for a licensing scheme are estimated at:       

o   Whole Borough Selective Scheme over five years: £4.2m

o   Localised additional licensing of private rented flats and HMOS over commercial premises over 5 years: £2.4m

§  Conclusions are:

o   The worst PRS is over commercial premises.

o   A licensing scheme can provide a portfolio solution for regulation.

o   The costs of running a selective scheme in comparison to an additional scheme seem to be quite variable.

o   The risk  ...  view the full minutes text for item 4