Private Rented Sector Licensing Schemes

Lord Kennedy of Southwark Excerpts

Tuesday 16th October 2018 Lords Chamber

Asked by

[Lord Kennedy of Southwark]

To ask Her Majesty’s Government what plans they have to support local authorities to set up private rented sector licensing schemes.

[Lord Kennedy of Southwark (Lab Co-op)]

My Lords, I beg leave to ask the Question standing in my name on the Order Paper. In doing so, I declare an interest as a vice-president of the Local Government Association.

[The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government and Wales Office (Lord Bourne of Aberystwyth) (Con)]

My Lords, on 1 October, new regulations that extend the mandatory licensing requirements for houses in multiple occupation came into force. We published guidance for local authorities in June and held a series of events with them through the summer. Licensing of HMOs is self-funding, as councils can charge fees for licences to cover their costs. In addition, since April 2017, local authorities have had powers to retain income received through civil penalties and rent repayment orders.

[Lord Kennedy of Southwark]

My Lords, in April the HCLG Select Committee described the current process of application to the Secretary of State to operate a private sector licensing scheme as “not fit for purpose”. It said:

“Decision-making is too slow, lacks transparency, and is overly bureaucratic”.


When are the Government going to remove the 20% cap, return to local authorities the powers that were taken away in 2015 and allow locally elected politicians, who have a far greater understanding of local needs and are directly accountable for their decisions, to decide these matters?

[Lord Bourne of Aberystwyth]

My Lords, the noble Lord will be aware that the great mass of selective licensing schemes do not involve that 20%—it is about eight of just shy of 60. The 20% is there for a reason. On one occasion, in the case of Redbridge, we turned the application down because the proper consultation process was not followed. The application has since been resubmitted and we have approved it. It is there for a good reason and that is the only case we have ever turned down.