The National Residential Landlords Association (NRLA) has rejected recommendations from MPs that would make it easier for local authorities to introduce selective licensing schemes for houses in multiple occupation (HMOs).
The House of Commons Housing Select Committee published a report calling for expanded council powers to regulate the private rented sector, including the ability to impose 10-year licensing schemes and require landlords to make physical improvements to properties.
Industry opposition
Ben Beadle, chief executive of the NRLA, stated: “We fundamentally reject the idea that it should be easier for councils to introduce landlord licensing schemes.”
Beadle acknowledged some of the committee’s recommendations, including proposals to improve transparency around local enforcement activity and ensure the Private Rented Sector Database helps landlords demonstrate compliance. However, he argued that widespread licensing would duplicate information available through a properly designed database.
“Licensing can be an effective tool when used sparingly and in a focused manner,” Beadle said. “Allowing local authorities carte blanche to apply it will serve only to duplicate the information councils will be able to obtain from a well-designed PRS Database.”
Committee recommendations
The parliamentary report states that whilst local authorities should retain the choice of whether to introduce selective licensing schemes, the government should remove barriers that inhibit their uptake and effectiveness.
The committee recommended that councils be empowered to “set licenses conditions that require landlords to make improvements to the physical state of licensed properties.” The report also suggested extending the duration of licensing schemes to 10 years.
The dispute over HMO licensing comes as bank lending to smaller property investors has dropped 14%, adding pressure to the buy-to-let sector. Earlier this year, landlords in Portsmouth successfully overturned certain council HMO licensing conditions, highlighting ongoing tensions between local authorities and property owners.
Sector implications
The debate reflects broader questions about regulation in the private rented sector, with landlord organisations advocating for targeted enforcement rather than blanket licensing schemes. The outcome of these recommendations could affect how local authorities manage HMOs and the compliance costs faced by landlords across England.