Landlord Registration and HMO licensing
1. Purpose of Report
The purpose of this report is to inform Members of the improvements in performance made in the administration of Landlord Registration and the Licensing of Houses in Multiple Occupation since the restructure of the team that undertakes this work. This report also advises Members of recent legislative changes in relation to Landlord Registration and the Licensing of Houses in Multiple Occupation. Finally, this report seeks the agreement of this Sub Committee to return the determination of House in Multiple Occupation license applications, including consideration of the enhanced fit and proper person test, to our Council’s Licensing Panel.
2. Recommendations
Members are asked to:-
2.1 note the improvements in performance in relation to the administration, inspection and enforcement of Licensing of Houses in Multiple Occupation and Landlord Registration set out at section 3.4 of this report;
2.2 note the implementation of the Private Rented Housing (Scotland) Act 2011 and Part 5 of the Housing (Scotland) Act 2006 described at section 3.5 of this report; and
2.3 agree to recommend to the full Council that decisions regarding House in Multiple Occupation licence applications, including consideration of the enhanced fit and proper person test previously agreed by this Sub Committee, are delegated to our Council’s Licensing Panel.
3. Considerations
3.1 Landlord Registration
3.1.1 Since 2006 all private landlords are required by law to register with their local authority. This gives tenants assurance that landlords are fit and proper people to let property, and gives the local authority a better picture of the private rented sector in their area.
3.1.2 The aim of Landlord Registration is to ensure that all private landlords in Scotland are fit and proper to be letting residential property. This requirement helps local authorities to remove disreputable landlords from the market and protects tenants and communities from the impact of antisocial behaviour and mismanaged property.
3.1.3 Mandatory registration gives local authorities an effective means of dealing with the worst performing landlords who can cause misery to other tenants, neighbours and communities. These landlords tarnish the image of the great majority of landlords (and agents) who operate lawfully and would wish to see the negative image of their business replaced by recognition of the vital role they play in a modern housing market. By targeting action on the worst landlords and agents, mandatory registration will help to improve the reputation, image and professionalism of the whole private rented sector.
3.1.4 A study was published by Shelter in 2009 evaluating how the Landlord Registration scheme was operating in each local authority area in Scotland. This analysis concluded that many Councils did not resource this work properly which meant they were unable to effectively carry out their statutory duties. The study went on to reveal that 25% of properties were unregistered nationally. Our Council’s Housing Need and Demand Assessment estimated that up to 30% of private rented properties were un-registered in Dumfries and Galloway.
3.2 Licensing Houses in Multiple Occupation
3.2.1 A House in Multiple Occupation licence is required in the circumstances set out below:
· where a property is occupied by three or more persons from three or more families
· the property is occupied as their only or main residence or in some other manner specified by Scottish Ministers by order; and
· where a house, premises or a group of premises with shared basic facilities, or some other type of accommodation specified by the Scottish Ministers by order.
3.2.2 The purpose of licensing Houses in Multiple Occupation is to achieve, and maintain, high standards of service in this part of the private rented sector. It does this by ensuring that the property owner, or their agent, meets the statutory definition of a fit and proper person. In addition, the licensing regime ensures that Houses in Multiple Occupation comply with regulatory standards.
3.3 Landlord Registration and Licensing Houses in Multiple Occupation Team
3.3.1 On 17 August 2010 our Council’s Resources Committee agreed “to establish a new post of HMO Licensing/Landlord Registration Manager to provide necessary resources to develop a more rigorous monitoring and compliance regime in relation to both statutory schemes, with costs to be met from existing budgets” In addition, it was agreed “to recommend to Planning, Housing and Environment Services Committee/Housing Sub Committee, as appropriate, that they retain oversight on the funding risk associated with income supporting this post” This post has now been filled and, following this, the Private Sector Housing Team has been restructured. These changes have resulted in significant improvements in performance. Prior to the restructure of the team, the administration of Landlord Registration was spread across a number of staff as an addition to their core duties. The new organisational arrangements have resulted in a dedicated team dealing with House in Multiple Occupation Licensing and Landlord Registration throughout the region. The current staffing arrangements are shown below:
1) House in Multiple Occupation Licensing and Landlord Registration Manager
2) House in Multiple Occupation Licensing and Landlord Registration Officer (East and Central)
3) House in Multiple Occupation Licensing and Landlord Registration Officer (West)
4) House in Multiple Occupation Licensing and Landlord Registration Assistant
5) Administrative Assistant (Central)
6) Administrative Assistant (West)
3.3.2 The creation of a specialist team combining Landlord Registration and House in Multiple Occupation licensing functions is best practice and provides the Council with a single point of access to consistent information and advice. However, few local authorities have adopted this approach resulting in significant variations in performance across Scotland.
3.4 Improvements in Performance
3.4.1 At the time of the Shelter study of 2009 there were 3128 landlords registered in Dumfries and Galloway. By 31 January 2012 there were 4922 registrations. This represents an increase of 57%. The amount of fee income generated by these activities has correspondingly increased beyond 2011/12 budget projections. This is primarily attributable to the creation of the new team and an increase in pro active investigation and enforcement work being carried out. Key performance indicators for this service will be developed for input onto Covalent as part of the Planning and Environment Services Business Planning process.
3.4.2 Increased income from fees generated by Landlord Registration and the Licensing of Houses in Multiple Occupation were agreed as a savings target at the meeting of Dumfries and Galloway Council on 18 December 2010. The targets set are shown below:
· 2011/12- £15k
· 2012/13- £31k
· 2013/14- £46k
The target set for 2011-2012 has already been surpassed with £91,090 achieved to date against a budget figure of £79,360.
3.4.3 New and effective relationships have also been established with officers from our Council’s Housing Benefit, Council Tax and Homelessness Services. Establishing officer groups has allowed the sharing of good practice as well as the development of a consistent approach towards engagement with private landlords across services. It is important our Council continues to develop a positive relationship with the private rented sector as well as robustly dealing with enforcement issues.
3.5 Fit and Proper Person Test
3.5.1 This Sub Committee, at its meeting on 2 July 2010, agreed “an enhanced Fit and Proper Person test for both landlord registration and Houses of Multiple Occupation licensing with decisions pertinent to these matters delegated to officers to make assessments and that in certain circumstances the test could be applied retrospectively”
Since this decision was made our Council has put in place new arrangements to determine all other license applications. Our Council’s Scheme of Delegation confirms the Licensing Panel has the authority “to determine individual applications for registration and licenses under the Civic Government (Scotland) Act 1982, the Fireworks (Scotland) Regulations 2004 and other statutory provisions which are not delegated to officers or other Committees, in accordance with approved policies and considerations of notifications to hold public processions in terms of the Civic Government (Scotland) Act 1982.” The implementation of the Licensing Panel in April 2011 prompted discussions with the Service Manager Licensing regarding Houses in Multiple Occupation and the implementation of the decision previously made by this Sub Committee.
3.5.2 When considering licence applications (for example taxi driver, private hire operator, late hours catering and window cleaner licenses) the Licensing Panel considers a range of factors, including objections made by the Chief Constable etc. The Panel then reach a decision whether or not the person is a fit and proper person to hold a licence. To ensure consistent application of the Civic Government (Scotland) Act 1982 by our Council, this report recommends removing the delegation that allows officers to determine whether or not a person is a fit and proper person to possess a House in Multiple Occupation Licence. This will mean that such licence applications will also be determined by the Licensing Panel. In making their decision, the Licensing Panel must consider the enhanced fit and proper person test previously agreed by this Sub Committee along with all other relevant factors. Appeals relating to decisions made by the Licensing Panel are considered by the Sheriff. By adopting a consistent approach with appropriate reasons and explanations given for a decision, this should reduce the likelihood of a successful appeal.
4. Governance Assurance
The Head of Finance & Technology, Operations Manager Legal Services and Service Manager Licensing have been consulted in the preparation of this report and are in agreement with its terms.
5. Impact Assessment
As this report does not propose a change in policy, the formal adoption of a plan, policy or strategy it is not considered necessary to complete an impact assessment.
Author(s)
NAME / DESIGNATION / CONTACT DETAILSJim O’Neill / Strategy and Development Manager / 01387 273162
Ext 62162
Approved by
NAME / DESIGNATION / SIGNATUREAlistair M Speedie / Director Planning and Environment Services /
Appendices - none
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