One of our landlords asked us this week if he was likely to be affected by the Selective licensing scheme which could be brought in by Nottingham City Council.
The proposed scheme which could be brought in during 2018 would see areas with a high proportion of rented homes fall under the licensing requirements – some 32,000 properties. The aim of the licence is to tackle poor housing standards in the private rented sector that do not fall into the HMO category.
Landlords in these areas would see a cost of a licence ranging from £400 to £655 depending on what accreditation they had.
The East Midlands Property Owners Association who represent a large number of landlords in the city have expressed concerns.
Will the Nottingham City Council be able to improve standards in Nottingham’s private rented sector if they are proposing to only visit 50% of the properties where landlords are not accredited?
EMPO believe that the new powers under the Housing and Planning Act now provide the council with the sufficient tools it needs to address the issues that the licensing scheme proposes to resolve. It’s now up to the Secretary of State to authorise this size of scheme so we will see what the decision is.
What is for certain – if the licensing goes ahead it is another cost the landlord will face and this could be the final straw for some investors who may decide to exit the Nottingham private rented sector.
What about my landlord with a property in Bingham? If the licensing goes ahead it could push rents up in the city if landlords try to recover costs and the supply of rented property decreases. Bingham could see an increased demand from tenants which would potentially improve rental yields.
If you are considering investing in property then it’s very important to consider the local climate and ensure you have a good understanding of what tenants are looking for.
For honest advice on realistic returns for buy to let investments contact your local lettings specialist Katie Archer 01949 714101.