Government approves council’s PRS licensing scheme renewal
A London borough has been allowed to renew its groundbreaking private rented sector (PRS) licensing scheme.
The government has given the green light to Newham Council to continue the scheme, which was the first of its kind when it was set up in 2013.
However, the Department for Communities and Local Government (DCLG) has excluded the Queen Elizabeth Olympic Park area, which covers 3% of the borough.
Under the scheme, which requires all landlords to license all their properties for private rent, the Labour-led authority has instigated 1,225 prosecutions for housing-related crimes – 60% of the London total.
It has also recovered more than £3.1m a year in unpaid council tax, served 2,834 notices to address hazards in the PRS and banned 28 landlords from operating in the borough.
Liverpool City Council, Waltham Forest, and Barking and Dagenham have also introduced similar schemes.
Legislation brought forward in 2015 requires government permission for selective licensing schemes covering more than 20% of a local authority area or PRS market.
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Newham Council – which is home to 41,000 PRS households – said the government’s application process is “bureaucratic”, leading to lengthy waits and high costs for local authorities.
Sir Robin Wales, mayor of Newham, said: “The government has finally recognised the success of Newham’s scheme, but it is ridiculous that ministers took so long to conclude that protecting tenants and driving up standards is a good thing.
“This democratically elected council should not have been forced to spend so much time, and dedicate so many resources, to justifying something so self-evidently successful.”
He called for the government to remove the rules requiring councils to gain approval for new licensing schemes.
There will be a two or three month gap between the end of the old scheme and the start of the new scheme in Newham, with the council blaming ministers for an “unnecessary delay in reaching a decision”.
A spokesperson for the DCLG said: “The Secretary of State has announced the approval of the London Borough of Newham’s selective licensing scheme.
“It has been determined that a blanket-wide scheme for the whole borough would not be appropriate, and will exclude the Olympic Village area. Selective targeting is just that - it needs to be targeted."
Update: at 16.01pm, 05/12/17: The story was updated to include a comment from the DCLG.
