Is Licensing Actually Working? The Effects of Licensing on the quality of homes and enforcement!

Yuno is used by the likes of Savills for compliance, notably the licensing monitoring service we offer to them though we cover all residential property and rental compliance.

With the support of Kate Faulkner OBE, we are currently writing a White Paper on Licensing throughout the UK.

Data analysis from PRS compliance company, Yuno compares costly licensing schemes against geographical disparity in properties meeting the decent homes standard.

In the new report, analysis poses questions as to the cost-effectiveness and justifications for wide-ranging fees whilst acknowledging the significant improvements in the quality of privately-rented homes in England and Wales in recent times.

While some attribute these improvements to such licensing schemes, questions linger about potential redundancies or overlaps with the proposed Renters Reform Bill, sparking discussions regarding the role of local authority and national licensing schemes in the Private Rented Sector (PRS).

Paul Conway, CEO and Founder of Yuno commented,

“Our findings reveal that 25% of local authorities in England, and 36% of local authorities in Wales, are enforcing Additional HMO and/or Selective Licensing schemes.
These schemes are far from evenly distributed across regions, prompting the question as to why some regions have a significantly higher proportion of councils enforcing them.”

Backed by Kate Faulkner, OBE, Yuno will be holding a roundtable to determine the effectiveness of the expensive schemes in raising the housing standards.

Conway continued,

“Our data analysis shows a lack of such schemes in regions with a relatively higher proportion of non-decent homes, and a higher proportion of such schemes in regions with some of the lowest proportions of non-decent homes.
‍‍This begs the question as to the role of licensing in causing housing standards to improve. For example, is the relatively high housing standards in London due to a higher proportion of discretionary licensing schemes or because it has a substantial premium homes market?”

Further scrutiny reveals discrepancies in licensing fees among London councils, with some councils charging up to 200% more for identical licenses.

This is evidenced by a distinct lack of correlation between median rental prices and the licensing fees charged by London councils.

In fact, some councils charge more for Selective or Additional HMO Licenses than others do even for Mandatory HMO Licenses. This lack of uniformity poses questions as to cost-effectiveness and justifications for wide-ranging fees.

As discussions surrounding licensing efficacy intensify, stakeholders are encouraged to engage with the data and contribute to the ongoing dialogue.

To apply to join the roundtable, or input, details can be found here: https://forms.gle/tdiYELaF2cPZmbZZ6

Download the full report to see the data for yourself and join the conversation!

Download Link: https://share.hsforms.com/1l_Fr6pkqQRiZwC6E6awJuQ31da6

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