• Nottingham Selective Licensing Scheme:
  • Nottingham City Council introduced a selective licensing scheme in 2018 and implemented another this month.
  • The Office for National Statistics (ONS) figures show that rents in Nottingham have increased by nearly £200 since the introduction of the scheme.
• Rental Increase in Nottingham:
  • Mick Roberts, a prominent landlord in Nottingham, claims that the ONS figures reveal a significant surge in rental costs after the selective licensing was introduced.
  • The average monthly rent in Nottingham in October 2023 is £859, nearly a 30% increase from 2018.
• Selective Licensing Costs:
  • The current cost for a selective license in Nottingham is £520 for the first payment (Part A) and £370 for the second payment (Part B), totaling £890 per house.
• Council Response:
  • Nottingham City Council, while not disputing the rent increase, denies that selective licensing is to blame. Instead, they attribute the rise to recent interest rate hikes affecting mortgage payments for landlords.
• Landlord Perspective:
  • Mick Roberts argues that selective licensing has a clear impact on housing supply and contributes to the upward spiral of rent prices. He disagrees with the council’s assertion that interest rate hikes are the primary cause.
• Selective Licensing in Newcastle:
  • Newcastle City Council also introduced a selective licensing scheme in April 2020, covering five areas and expanding to two more in October 2021.
  • The ONS data indicates a 20% increase in rents in Newcastle from April 2020 to October 2023, rising from £800 to £963 per month.
• Council’s Rationale:
  • Newcastle City Council justifies the selective licensing schemes, stating that they aim to drive out bad landlords and improve property conditions. The schemes are seen as a way to reward good landlords and address issues related to poor standards.
• NRLA’s Perspective:
  • The National Residential Landlords Association (NRLA) argues that selective licensing schemes may not offer an effective solution to property management. They emphasize the need for local authorities to use existing powers to tackle issues related to poor standards.
• Debate on Selective Licensing:
  • The article concludes by highlighting the ongoing debate on the effectiveness and impact of selective licensing. While councils expand such schemes, there are differing opinions on whether they contribute to higher rents and whether they are the most suitable solution.

The debate raises questions about the effectiveness and implications of selective licensing schemes, with stakeholders having varying perspectives on their impact on rental prices and property management.