Agenda item

Resolved: the committee noted the report and agreed to refer its views to Mayor & Cabinet in the following terms:

Having considered a comprehensive officer report and presentation on the development of an evidence base to support an application for a borough-wide selective licensing scheme, the Housing Select Committee expresses its strong support for the submission to the Secretary of State for approval to implement such a scheme. The committee notes the increasing number of families and individuals relying on the private rented sector to provide a home, and the evidence showing the links between the private rented sector and crime and anti-social behaviour, and expresses its support for the scheme’s aims of tackling rogue landlords, improving standards in the sector, and improving security, stability and decency for residents in private rented accommodation. The committee also notes and praises officers for the extensive data analysis carried out to develop an informed evidence base to support the application to the Secretary of State.

Nicholas Stabeler (Private Sector Housing Agency Manager) introduced the report. The following key points were noted:

4.1       Officers delivered a presentation on proposals for a borough-wide selective licensing scheme. The proposals will go to Mayor & Cabinet in April 2019 for authorisation to go to consultation between May and August 2019.

4.2       If the scheme is approved, there will be a £400k upfront budget commitment. This would be fully recovered from the scheme’s licensing fee.

4.3       No borough-wide licencing schemes have been implemented following the requirement to get approval from the Secretary of State. Some schemes have been renewed to cover selected areas.

4.4       Mayor and Cabinet will also be asked to consider the case for implementing an additional licensing scheme to cover all HMO (houses of multiple occupation) properties across the borough. An additional licensing scheme would not require Secretary of State approval.

4.5       An additional licensing scheme would allow the council to license HMOs that aren’t covered by the mandatory licensing scheme, which only applies to PRS properties with five people over two households sharing facilities. This additional scheme would allow the council to license any PRS property with three people over two households sharing facilities, whether or not it is above commercial premises. The administrative cost of licensing HMOs is significantly greater than other PRS properties because of the number of inspections and potential risks.

4.6       The intention of a borough-wide licensing scheme is: to improve standards in the private rented sector (PRS); tackle rogue landlords; improve security, stability and decency for residents in the PRS; help tenants feel safe in their homes through advice, support and effective enforcement; support local landlords during and after the 5 year scheme. The intention is to inspect 100% of all licenced properties over the term of the scheme.

4.7       Officers have carried out extensive data analysis of the private rented sector and the relationship with issues such as deprivation, crime and anti-social behaviour (ASB).

4.8       Analysis estimates that there are around 31,000 PRS properties in the borough – an increase of around 4,000 since the 2011 census. All wards (except Downham, 16%) have 19% or more PRS housing. 19% is the national average.

4.9       All wards in Lewisham are within the most deprived 40% of the country.

4.10    Lewisham Central, New Cross, Rushey Green, Bellingham, and Brockley, have shown persistently high levels of ASB from 2016 to 2018.

4.11    There is a very strong relationship between the amount of PRS in a ward and the amount of ASB. 15% of PRS properties have had an ASB incident recorded within 10 metres. 28% of PR properties have had an ASB incident recorded within 25 m. Both figures are higher than other tenures.

4.12    Lewisham Central, Rushey Green, New Cross, Brockley, Blackheath, and Evelyn wards have crime rates higher than the national average. The wards with the highest crime rates also have the highest number of PRS properties.

4.13    Proposed licensing fees for the borough-wide selective licencing scheme would be based on council tax banding, ranging from £575 for a Band A property to £750 for a Band H property. There would be an early-bird discount rate to encourage landlords to sign up early.

4.14    If approved, a selective licencing scheme can only be applied for a maximum of five years. The scheme will be reviewed on an ongoing basis to ensure that it is achieving its intended aims.

4.15    The committee noted the link between PRS properties, ASB and crime and asked if this had been looked into.

4.16    One theory, noted by officers, is that the PRS properties have a higher turnover which leads to more ASB environmental incidents such as fly tipping (mattresses etc.) as people move in and out of properties.

4.17    The committee noted the importance of getting a fair balance between tenants and landlord input into the consultation on the proposed scheme.

Resolved: the committee noted the report and agreed to refer its views to Mayor & Cabinet in the following terms:

Having considered a comprehensive officer report and presentation on the development of an evidence base to support an application for a borough-wide selective licensing scheme, the Housing Select Committee expresses its strong support for the submission to the Secretary of State for approval to implement such a scheme. The committee notes the increasing number of families and individuals relying on the private rented sector to provide a home, and the evidence showing the links between the private rented sector and crime and anti-social behaviour, and expresses its support for the scheme’s aims of tackling rogue landlords, improving standards in the sector, and improving security, stability and decency for residents in private rented accommodation. The committee also notes and praises officers for the extensive data analysis carried out to develop an informed evidence base to support the application to the Secretary of State.