Landlord ‘exit’ persuades northern town to suspend licensing plan
Blackburn with Darwen Council puts selective licensing scheme on hold after warning that landlords may decide to sell their properties if it goes ahead.
In an unusual move a major northern town has suspended plans for selective licensing amid fears landlord propety owners will sell up and quit the sector.
Blackburn with Darwen Council had proposed a scheme covering more than 1,100 properties in the Hollins Bank area near the centre. But after a consultation with letting agents, landlords and tenants, the council has decided to put the plan on hold.
Most landlords and tenants were against the scheme, in an area that features low demand properties, and a high tenant turnover.
Unhappy
In a report to the council’s Cabinet, Quesir Mahmood, Executive Member for Growth and Development, says: “Landlords were generally unhappy with the proposals and felt that the Council had already made their decision, and could be using this action to punish them.
“Landlords also questioned the proposed licence fees to be charged and asked how they would be used to provide support and resources for landlords,” he says.
“The proposed licence fee charge could directly impact tenants, as landlords would undoubtedly push additional costs onto their tenants through increased rents.”
Landlords may decide to sell their properties if refurbishment costs are high.”
And he warns: “A further concern which could arise is that landlords may decide to sell their properties if refurbishment costs are high, or legislation becomes cumbersome.
“This will result in reduction in availability of rental properties for those unable to access affordable rental homes.”
Re-housing required
The report says that if 10% of landlords decide to sell their properties or end tenancies, this could result in around 115 individuals or families requiring re-housing.
Demand in the local PRS was now higher and there were less empty properties than when the licensing scheme was proposed, the report says.
And instead of introducing a licensing requirement, the council will “develop advice and support for landlords, including those considering leaving the market, offering training for landlords and focusing legal action specifically on rogue landlords”.
Read the report here
… coming to a Town near you, Soon !