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The landlord's “exit” persuades the town of Northern to suspend the licensing plan

In an unusual move, major north towns have suspended plans for selective licensing amid fears that the landlord's famous owners would sell and leave the sector.

Darwen Council's Blackburn proposed a scheme covering more than 1,100 properties in the Hollins Bank area near the Centre. However, after consultation with allowing agents, landlords and tenants, the council decided to put the plan on hold.

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Most landlords and tenants were opposed to the scheme in areas that feature low-demand properties and high tenant turnover.

Unhappiness

Quesir Mahmood -Blackburn Council
Quesir Mahmood, executive member of growth and development, Blackburn of Darwen Council

In a report to the Council's Cabinet, Keshir Mahmoud, executive member of growth and development, said:

“The landlord also questioned the proposed licensing fee being charged and asked how it would be used to provide support and resources to the landlord,” he says.

“The proposed licensing fee could undoubtedly have a direct impact on tenants as landlords push additional costs to tenants through increased rent.”

The landlord may decide to sell the property if the renovation costs are high. ”

And he warns. “A further concern that may arise is that landlords may decide to sell their property if the renovation costs are high or if the law becomes a hassle.

“This reduces the availability of rental properties for those who do not have access to affordable rental properties.”

Re-house needs to be re-housed

The report states that if 10% of landlords decide to sell their property or terminate their tenants, this could lead to around 115 individuals or families requiring re-housing.

Local PRS demand is now high, with fewer empty properties than when the licensing scheme was proposed, the report says.

And instead of introducing licensing requirements, the council will “provide training for those considering leaving the market, landlords, and develop advice and support for landlords, including those considering focusing on fraudulent landlords.”

Read the report here

Licensing Scheme Details


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