Editor's note: This brief was summarised by The Property AI Team from a report by Property118. Read the original article for full details.
Councils Warned Against Profiting from Selective Licensing Schemes
A government minister has insisted that councils must disclose selective licensing fees and must not profit from the schemes. Housing Minister Matthew Pennycook said councils should make details of their selective licensing fees readily accessible to the public.
The warning, reported by Property118, sets out a clear expectation that selective licensing should not become a revenue-raising exercise for local authorities.
The intervention will be of direct interest to letting agents and inventory clerks operating in areas where selective licensing schemes are in force. Selective licensing requires landlords to obtain a licence for each property they rent out within a designated area, and agents are often the first point of contact for landlords seeking to understand their obligations and the costs involved.
The report also notes that a previous Property118 report revealed Nottingham City Council spent millions of pounds on selective licensing. That earlier reporting is referenced in the context of the minister's insistence that councils must not profit from the schemes.
For letting agents, the emphasis on transparency around fees is significant. If councils are required to make fee details readily accessible, agents may find it easier to advise landlord clients on the costs associated with licensing in their area. Inventory clerks working in selective licensing areas may also see an impact, as licensing compliance can affect the condition and management standards expected at a property.
The report does not set out any new enforcement measures, deadlines, or specific figures beyond those referenced. It centres on the minister's stated position that councils must disclose selective licensing fees and must not profit from the schemes.
Agents and clerks operating in areas with selective licensing should continue to monitor their local authority's published fee information and any changes to how those schemes are administered. The Property118 report highlights the government's position on transparency, but further detail on how that expectation will be enforced has not been provided in the source material.
Source: Property118