The National Residential Landlords Association has expressed fierce opposition to proposals that would grant councils greater power to introduce selective licensing schemes for Houses in Multiple Occupation (HMOs). This backlash follows a recent report from the House of Commons Housing Select Committee, which called for expanded council powers to regulate the private rented sector across England.
The committee's report proposed significant changes, including allowing councils to impose 10-year licensing schemes on HMOs and requiring landlords to make physical improvements to properties as a condition of their licence. Currently, selective licensing schemes are subject to government approval if they cover more than 20% of the local private rented sector or 20% of the geographical area.
Ben Beadle, Chief Executive of the NRLA, said: “We fundamentally reject the idea that it should be easier for councils to introduce landlord licensing schemes.” While acknowledging some positive recommendations from the committee, such as improving transparency in local enforcement and using a Private Rented Sector Database for compliance, Mr Beadle argued that widespread licensing would duplicate information already available through this database.
The debate over HMO licensing comes at a difficult time for the buy-to-let sector. Figures show a 14% drop in bank lending to smaller property investors, adding financial pressure on landlords. With average two-year fixed mortgage rates standing at around 5.91%, borrowing is becoming more expensive for landlords and potentially leading to higher rents for tenants.
The dispute reflects broader tensions within the private rented sector regarding regulation. Landlord organisations typically favour targeted enforcement against rogue landlords rather than broad-brush licensing schemes that affect compliant property owners. A recent court ruling in Portsmouth, where landlords successfully challenged certain HMO licensing conditions, highlights ongoing resistance to what some see as excessive regulation.