Decision - Private Sector Housing HMO Licensing Update

20.1    The Committee considered the report of the Executive Director  Environment, Development and Housing which outlined options to extend coverage of the HMO licensing scheme and widen to scope of the existing schemes to address issues that continued to be raised in relation to management, standards and anti-social behaviour in relation to the expanding private rented sector in the city.  The report outlined circumstances set out in the Housing Act where a local authority may consider establishing a Selective Licensing Scheme or any further designation of Additional Licensing subject to statutory requirements in relation to consultation, evidence base and resourcing any new schemes.   The report was presented by the Head of Housing Strategy & Development – Private Sector Housing. 

20.2    Councillor Wilson referred to paragraph 3.11 and asked if the service requests were the result of the licensing scheme or the public having more information about their rights.  Councillor Wilson referred to paragraph 3.12 in relation to the loss of private rented sector accommodation as a cause of homelessness.  She asked how the council should respond to this situation and whether the council should be talking to landlords. 

20.3    The Head of Housing Strategy & Development replied that service requests were in addition to HMO licensing.  In relation to homelessness, there were preventative strategies.  The City had a high proportion of private rented housing and this led to a disproportionate impact. 

20.4    The Chair reported that the council carried out a great deal of work with people who were homeless and also worked with landlords.

20.5    Councillor Meadows referred to paragraph 1.2 in relation to the receipt of 1965 valid additional licence applications.  She asked how many of these related to new licenses.  Councillor Meadows referred to the graph in paragraph 3.5.  This showed that the households living in homes rented via private landlords or letting agencies had increased from 579 to 1259 in Moulsecoomb & Bevendean between 2001 and 2011.  Councillor Meadows was concerned that landlords were removing families in order to attract students as this was more lucrative business.  Councillor Meadows asked how the council could influence this issue in order to free up homes for families. 

20.6    Councillor Meadows referred to paragraph 3.25 in relation to the mandatory licensing scheme.  The graph showed that Moulsecoomb & Bevendean had 93 licences.  She asked if these were full licences and how this information was captured.  Councillor Meadows was concerned that landlords might change the business model and move to student accommodation. 

20.7    Councillor Meadows referred to the enforcement programme targeting unlicensed HMOs on page 41 of the agenda.  This section referred to 1000 dwellings having been identified which may be licensable but where licence applications had not been received.  Councillor Meadows asked how proactive the council were in receiving more information on the 1000 dwellings.  Councillor Meadows referred to the map on page 68 which she noted showed a problem with HMOs in her ward.

20.8    The Chair replied that paragraph 1.2 referred to new licenses.  5000 family homes were occupied by students.  Sussex University had recently put in a planning application to expand which had been rejected.  There was concern that the nature of whole areas was changing and many houses in the BACA area no longer had children living in them.   There were good landlords but it was clear that there was more money in moving out families and changing to student accommodation. 

20.9    The Chair mentioned the problem of party houses.  When students moved out in the holidays, some houses were used as party houses.  This was a  particular problem in Hanover where the houses had no sound proofing. The Chair was talking to Development Control about this issue and he stressed that residents should be asked to let the council know of any unregistered HMO’s. 

20.10  Councillor Daniel stressed that problems in student accommodation caused community tension.  It would help to reduce stress if the same tenants were retained in the properties.  Rubbish was cleared out in the summer holidays and she saw the inconsiderate dumping of waste by landlords.  The Chair agreed this problem was the fault of letting agents and landlords. There needed to be the proper registration of letting agents.  

20.11  Councillor Mears concurred with the views expressed about student accommodation. Councillor Mears referred to licensing fees and asked where savings were coming from.  Councillor Mears asked if there was likely to be a judicial review.  

20.12  The Head of Housing Strategy & Development – Private Sector Housing explained that the licensing scheme had to self fund.   Fees had to generate enough to cover staffing costs.  The council would not be subject to a review on the first scheme.  The scheme needed to be robust.

20.13  Councillor Wakefield thanked the Head of Housing Strategy & Development for a thorough report.  She stressed that the current generation were renting and that not only students but young professionals were living in HMO’s.  Many people had no choice but to live in an HMO.   

20.14  Councillor Peltzer Dunn asked if there would be a further report as the current report was for noting.   He stressed that it was vital to understand the impact of other discretionary schemes.  He asked why more people needed to be re-housed from private accommodation.  He stressed that registration placed a substantial impact on landlords.  This might drive out the smaller landlords.  A future report needed to address these issues.

20.15  The Chair referred to the table on page 37 of the agenda.  This showed that the five most common special conditions applied to additional licensed HMOs were structural fire work, fire alarms, other fire works. Management/repairs and loft insulation.  These were improving health and safety and reducing the carbon footprint.

20.16  RESOLVED – (1) That the progress with the implementation of the Additional Licensing scheme in the five Lewes Road wards since the commencement of designation on 5 November 2012 be noted.

(2)               That the legal parameters around further Additional Licensing and Selective Licensing schemes be noted and that it be agreed that a detailed options paper be reported to a future Housing Committee on extending coverage and / or widening the scope of discretionary licensing schemes in the City.