Selective licensing schemes not only help boost financial returns and drive up standards, but they help reduce anti-social behaviour and improve public health, a new report by Nottingham Council has claimed.

The independent Social Return on Investment (SROI) study examined Nottingham’s selective, additional and mandatory landlord licensing schemes, which collectively cover around 79% of the city’s private rented homes.

It found that the schemes generated £114.9million in “social value” from a £24.9million investment between 2020 and 2024, equivalent to £4.62 returned for every £1 spent.

Nottingham Council says the study is the first of its kind in Britain, having examined one of the largest licensing operations outside London. It covered everything from smaller single-household rental properties to shared HMOs occupied by students and multiple tenants.

It moves the debate beyond whether licensing works, to what difference it truly makes.”

The study found the council issued more than 33,000 licences during the five-year period, and carried out more than 30,000 inspections and investigations.

It also identified more than 7,400 unlicensed landlords and properties requiring licences, and employed around 100 staff within its licensing department, which is fully funded through licence fees.

Councillor Jay Hayes (pictured), Executive Member for Housing and Planning, says the findings move the debate “beyond whether licensing works, to what difference it truly makes”.

Data sharing

It also claims licensing schemes can be used to influence everything from landlord behaviour and housing standards to crime, anti-social behaviour, public health and neighbourhood stability.

It says this can be achieved by sharing data between licensing officers, police, universities, safeguarding bodies and other local agencies, including the use of inspections to identify wider welfare concerns inside privately rented homes.

The report concludes that “the key lesson for the future is not whether licensing makes a difference, but how to optimise its reach and effectiveness”, while also calling for expanded “data-led targeting”, improved data sharing and more “targeted interventions” to maximise the future impact of licensing schemes.

You can read the full report here.