Cash-strapped councils squeeze £327m from landlords
Cash-strapped local councils have raked in more than £300m in fees from controversial landlord licensing schemes, new figures suggest.
A rising number of private landlords are now required to have a licence regardless of how many tenants live in their property – the cost of which can vary between local authorities. This comes after Labour handed down new powers to introduce the schemes at their discretion in December.
Waltham Forest council, which earlier this year warned of a £23m deficit, has pocketed the highest amount across all types of scheme, according to figures provided by Kamma, a data analytics firm. The east London council, which charges landlords between £700 and £1,000 a year, introduced additional charges in 2020.
Councils across England and Wales have made £327m through licensing schemes in total. The highest-earning councils were all in London, but Nottingham City council, which charges up to £512 a year and declared itself bankrupt in November, has made £15m in fees, the second highest of any council.
Chris Morgan, of Kamma, said: 'This data shows the true scale of licensing fees and their growing impact on the private rental sector.'
'With councils generating hundreds of millions from these schemes and enforcement efforts intensifying, landlords and agents must factor compliance costs into their business models.
'As more local authorities introduce new schemes, staying ahead of these changes is now essential.'
The 2006 Housing Act has always required landlords to obtain a mandatory licence for 'houses in multiple occupation', those with five or more tenants.
The Act also allowed councils to implement additional licensing schemes, which apply to HMOs with three or more people forming two or more households, and selective schemes, which apply to all rental properties regardless of the number of people living in them.
In December, councils in England were given new powers to introduce a selective licensing scheme without first gaining the Secretary of State's permission.
They have become more popular among councils seeking additional revenue streams in recent years – casting wider nets so the schemes apply to thousands more properties.
This is despite the upcoming Renters' Rights Bill, which will from this summer include a nationwide licensing scheme.
Theresa Wallace, of the Lettings Industry Council, a trade body, said: 'My view is that we need minimum standards in rental properties. However I am not sure selective schemes meet the objective.
'Unfortunately, though, I do believe they are meant to wash faces, they are an income stream for local councils. They've seen other local authorities making that sort of money – that's why so many of them have jumped on board.
'But just because you have a selective licence doesn't mean your property is safe.'
Failure to obtain the correct HMO licence can result in landlords being fined and forced to repay rent to tenants. In London, landlords have been ordered to pay hundreds of thousands, according to council data.
But Ms Wallace said many of those being caught out were simply making a human error, and that it was difficult for landlords with properties in different local authorities to know whether they needed a licence.
She said: 'There is inconsistency between all of the councils so it is hard to manoeuvre as a landlord and make sure you're getting it right.
Ms Wallace suggested the introduction of a private rental sector (PRS) database would reduce the need for licensing schemes, but added that 'councils won't want to lose the income'.
Waltham Forest council and Nottingham City council were both approached for comment.
The Local Government Association, which represents councils, was approached for comment.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Sun
11 minutes ago
- The Sun
Grooming gangs national inquiry demands grow as Tories force vote on new probe into ‘disgusting' crimes
LABOUR MPs will be put under pressure as Tories force a vote on holding a national grooming gangs inquiry. The Conservatives are tabling an amendment to the Crime and Policing Bill which calls for a statutory inquiry into the scandal later this month. 3 3 They say Labour's plan for five local inquiries is inadequate because the scale of abuse was much wider. And they do not have the power to summon witnesses and requisition evidence. It will put Labour MPs in a tricky position as some have gone against the party to call for a national inquiry. And it could trigger a Red Wall rebellion. Shadow Home Secretary Chris Philp said: 'We now know that these disgusting crimes were deliberately covered up by the police and local authorities simply because the majority of the perpetrators were of Pakistani heritage. 3 "The young girls - some as young as 12 - had their lives ruined. 'The cover-up has to end and those who hid these crimes held to account. 'It is disgraceful that not a single person has been punished for the cover-up. 'Every decent Labour MP who cares about this should vote for our amendment in Parliament.'
Powys County Times
2 hours ago
- Powys County Times
Abbott calls Starmer's immigration comments ‘fundamentally racist' at rally
Backbench Labour MP Diane Abbott has criticised Sir Keir Starmer's comments on immigration as 'fundamentally racist' at a protest rally, suggesting the Government was copying the rhetoric of Reform UK. Thousands of trade unionists, campaigners and activists gathered to 'send a message' to the Government at a demonstration over spending cuts and welfare reform in central London on Saturday. Former Labour Party leader Jeremy Corbyn and Ms Abbott were among those who gave speeches at the rally outside Downing Street following a march. Organisers The People's Assembly accused the Government of making spending cuts that target the poorest in society. The Prime Minister said the UK risked becoming 'an island of strangers' when he unveiled plans for tighter controls on immigration in a major speech last month, leading to a mixed reaction from different parties. Addressing the protest crowd in Whitehall, Ms Abbott – who was previously suspended by Labour in 2023 before being allowed to run in last year's general election – said there was an international struggle to 'fight the rich and the powerful (and) to fight the racists', including in her own party. The Hackney North and Stoke Newington MP said: 'I was very disturbed to hear Keir Starmer on the subject of immigration. 'He talked about closing the book on a squalid chapter for our politics – immigrants represent a squalid chapter. 'He talked about how he thought immigration has done incalculable damage to this green and pleasant land, which, of course, is nonsense – immigrants built this land. 'And, finally, he said we risk becoming an island of strangers. 'I thought that was a fundamentally racist thing to say. It is contrary to Britain's history. 'My parents came to this country in the 50s. They were not strangers. They helped to build this country. 'I think Keir Starmer is quite wrong to say that the way that you beat Reform is to copy Reform.' Reform's leader Nigel Farage previously said his party 'very much enjoyed' Sir Keir's speech, as it showed he was 'learning a great deal' from them. Representatives from the National Education Union, Revolutionary Communist Party, Green Party and the Rail, Maritime and Transport (RMT) union could be seen at the demonstration's start point in Portland Place. The large crowd then set off towards Whitehall shortly before 1pm. Many of the protesters were holding placards that read 'Tax the rich, stop the cuts – welfare not warfare'. Other signs being held aloft said 'Nurses not nukes' and 'Cut war, not welfare'. Mr Corbyn, who also criticised Sir Keir's 'island of strangers' comments, told protesters at the rally: 'As the wars rage around the world – the killing fields in Ukraine and Russia, the abominable, deliberate starvation of children in Gaza and the genocide that's inflicted against the Palestinian people continues – surely to goodness we need a world of peace. 'We need a world of peace that will come through the vision of peace, the vision of disarmament and the vision of actually challenging the causes of war, which leads to the desperation and the refugee flows of today.' The Independent MP for Islington North urged protesters to 'go forward as a movement of hope, of what we can achieve together (and) the society we can build together'. The People's Assembly said trade unionists, health, disability, housing and welfare campaigners with community organisations came together for the protest under the slogan 'No to Austerity2.0'. A spokesperson said: 'The adherence to 'fiscal rules' traps us in a public service funding crisis, increasing poverty, worsening mental health and freezing public sector pay. 'Scrapping winter fuel payments, keeping the Tory two-child benefit cap, abandoning Waspi women, cutting £5 billion of welfare by limiting Pip and universal credit eligibility, and slashing UK foreign aid from 0.5% to 0.3% of GDP, while increasing defence spending to 2.5% of GDP, are presented as 'tough choices'. 'Real tough choices would be for a Labour government to tax the rich and their hidden wealth, to fund public services, fair pay, investment in communities and the NHS.'
Daily Mirror
2 hours ago
- Daily Mirror
Voters overwhelmingly back tax on wealthy to protect public services
A poll commissioned by the Trades Union Congress (TUC), found the public support tax increases on the wealthy and big businesses by a margin of almost two to one - 58% to 28% Voters overwhelmingly back taxing the wealthy more in order to protect public services, a new poll found today. The research, commissioned by the Trades Union Congress (TUC), found the public support tax increases on the wealthy and big businesses by a margin of almost two to one - 58% to 28%. And the number rises among people who switched their vote from the Tories to Labour in last year's election - where a mammoth 71% said they supported the idea, compared to 23% who did not. And Labour voters who are now strongly considering voting Reform also backed it by 61% to 32%. The new polling comes ahead of the Spending Review, which the TUC says can be the "next key step" in the government's plan to rebuild Britain and deliver industrial renewal. The TUC said the findings highlight the public's appetite for rebuilding public services - and suggested a "fairer" tax system should be part of plan. General Secretary Paul Nowak said: 'The Spending Review can be the next key step in the government's plan to rebuild Britain and deliver industrial renewal. 'Communities are still crying out for meaningful change after more than a decade of Tory austerity and neglect. 'That's why the government must stay on track – building on the positive start it made at last year's Budget by providing sustained funding for our public services and infrastructure. 'The global outlook is challenging, but leaving our decimated public services without sufficient investment would risk both future growth and public trust." The poll also found nearly 6 in 10 voters - 59% - believe the wealthiest don't pay their fare share. And a clear majority - 56% - said big businesses don't pay their fare share. More than two thirds (67%) said there were too many tax loopholes that could be exploited by the wealthy. Asked how more could be raised from the richest, two thirds backed an annual wealth tax on estates over £10 million. Some 63% backed a windfall tax on banks, and half said they supported increasing capital gains tax - the tax people pay on the profits from selling assets like property. 'The message from voters is clear," Mr Nowak said. "They want the government to protect and rebuild our public services. 'If that means asking the wealthiest to pay more, the public are behind it. People are fed up with a system where those with the broadest shoulders don't pull their weight.' Pollsters Hold Sway surveyed 2000 adults in Great Britain online between 30 May and 2 June.
