Introduction: Understanding Brighton Selective Licensing Proposal
Brighton & Hove, known for its vibrant atmosphere and diverse community, is undergoing significant changes in its property landscape. At the forefront of this transformation is its Council’s proposal for selective licensing, stirring discussions and debates among stakeholders. For some, this will be welcome news in the hope that it will improve housing conditions. For others, such as landlords and investors, Brighton selective licensing will be rather unwelcome news since it will inevitably translate to increased operational costs and increased regulatory compliance demands.
Selective licensing is generally designed to cause landlords to be proactive, rather than reactive, in remedying property compliance issues. Schemes require landlords to address issues such as anti-social behaviour, poor living conditions, and inadequate management practices. These measures should, in theory, drive up housing standards and improve tenant experiences. Some councils also insist that the data obtained through licensing regimes allows councils to better understand their existing housing stock and its condition, as well as more easily identify landlords/property managers and predict unlicensed properties.
What It Means for Landlords and Property Investors
Despite the noble intentions behind selective licensing, many landlords and stakeholders have voiced their concerns. Legal & General, a significant player in the property market, has expressed apprehensions about the proposed selective licensing scheme in Brighton. It is concerned about how the scheme will heavily inflate operational costs – specifically for buy-to-rent landlords. Ultimately, this may mean that any additional costs associated with licensing could be passed on to tenants, leading to higher rental prices. Additionally, it fears that increased regulatory burdens could dissuade ‘good’ landlords from entering the market or prompt them to sell their properties altogether, potentially reducing housing availability in the city.
Beyond Brighton: The Impact of Selective Licensing Across England and Wales
Looking beyond Brighton & Hove, many other council areas in England and Wales have implemented similar selective licensing schemes. One apparent success story is that of Newham Council – the first local authority in London to introduce borough-wide Selective Licensing in 2013. In a 2023 report by Centre for London, Newham Council officers reported that licensing fee revenue and licensing scheme data have “driven significant improvements in property conditions and management.” At the time of the report, the Council had 12 dedicated compliance officers who carry out 800-1,000 inspections per month. Between 2013-2021, licensing fees income allowed the council to serve 2,459 improvement notices on landlords, prosecute 1,100 rogue landlords, secure £350,000 worth of rent repayment orders to tenants, and recover £2.5 million in unpaid council tax from unlicensed landlords.
The fact remains, however, that navigating selective licensing compliance poses significant challenges to landlords – demanding time, resources, and expertise. The currently highly dynamic nature of licensing regimes in England and Wales, coupled with the threat of significant fines or even rent repayment orders, makes it more important than ever for landlords to always be informed about regulatory changes.
Navigating Brighton’s Selective Licensing Changes
As Brighton & Hove prepares to embark on its selective licensing journey, it’s essential for stakeholders to understand and adapt to the changes. In today’s increasingly digitised world, leveraging digital tools and technology can prove an efficient and effective solution to streamlining compliance processes. From receiving up to date regulatory information, to digital audits, to scheduling in works and inspections, digital solutions look to be becoming more and more essential for landlords. This can lead to more informed decision-making, effective protection of your assets, and staying ahead of the curve.
For those seeking assistance in managing compliance or staying informed about regulatory changes, Yuno is available to provide comprehensive guidance and support. Visit Yuno’s website to find out more. Let’s work together to build a stronger, more resilient housing sector for our community.
