Big response to plan targeting rogue landlords

More than 1,000 responses have been received regarding Newcastle City Council’s plans to license more rental accommodation in Jesmond and elsewhere, ostensibly to improve conditions and crack down on ‘rogue’ landlords. But the consultation process does not appear to have changed opinions about the merits of the proposal, with landlord groups in particular still voicing opposition.

The council has provided JesmondLocal with figures showing more than 200 people attended public meetings from November 2018 to January 2019, while 676 submissions were received through its consultation website, along with 350 other comments posted on the site.

The council declined to say whether the respondents were largely for or against the proposed changes. This information will be released around the time that the council’s cabinet considers the proposals in July.

A council spokesperson said: “We are pleased with the level of response we have received to the consultation and will use these to inform our proposals for licensing schemes.” 

The schemes will see the number of licensed properties increased from about 740 currently to more than 18,000. Landlords will have to pay up to £750 for a five-year licence and install smoke detectors, get an annual gas safety certificate, ensure electrical appliances are safe, deal promptly with complaints about disrepair and pest infestation, and take steps to deal with anti-social behavior.

As JesmondLocal reported, when the proposals were first announced, reactions included relief from residents in poorly-maintained flats and criticism from landlords, who said they were being unfairly targeted and that rents would increase.

The consultation process has not changed their minds. The Residential Landlords Association (RLA) made a written submission opposing the changes and also attended a consultation meeting. According to communications manager Sally Walmsley, “this was more of a listening event – where the council outlined its proposals – with little opportunity for discussion.”

Walmsley added: “Licensing schemes such as this simply serve to increase costs for good, compliant landlords, with criminal landlords likely to just ignore the scheme entirely and continue operating below the radar.”

The RLA also questioned the council’s legal standing to regulate a home’s condition and contents, arguing this is covered by other legislation.

The National Landlords Association (NLA) also voiced its disapproval. Local authority policy officer Gavin Dick told JesmondLocal: “We responded to the consultation and don’t believe that the proposed scheme will be effective. At the time, we suggested that the council look at alternatives and that they need to create a more cohesive way of working between individual departments. We hope the council fully considers all submissions to the consultation before they make their final decision.”  

Dick has previously described the proposals as a “tax” on landlords that will see rents go up and repairs delayed.

Criticism also came from John Henderson, the managing director of Jesmond’s Acorn Properties, which manages 250 properties and finds tenants for about 2,000 properties.

Henderson attended two out of the three public consultation meetings, while a colleague attended the third. While calling the underlying idea of licensing a “first-class idea”, he said: “The problem I have is the way they’re doing it. I think the money [that will be raised] is far too excessive and I think that they’re yet to justify it.”

Henderson added: “Perhaps my biggest concern is that the whole idea seems to be around hitting the good landlords that are potentially a soft target, and the council in my mind have failed to bring up a strategy for bad landlords.”

Henderson said he saw the licensing scheme as a revenue stream for a council facing budget cuts. (The council recently acknowledged it will have to slash spending by a further £60m by 2022.)

The Jesmond Residents Association (JRA) made a written submission, and committee member George Gibson said the JRA approved the principle of expanded licensing, but was concerned that “we already have many HMOs [homes in multiple occupation] in Jesmond, and the council seem unable to enforce the rules which already apply.” Gibson previously told JesmondLocal that “particularly on anti-social behaviour, similar rules are already in place for the HMOs, and the council don’t seem to have the ability to enforce them.”

If the cabinet agrees in July to move ahead with the scheme, there will be a formal three-month notification period. The earliest the scheme would be in place would be January 2020.