Welcome to a special edition of landlord link-up newsletter. This edition is the first of two that we hope to publish this year and will focus on Selective Licensing including what’s been achieved to date and the council’s future proposals. The next edition will cover a range of topical issues of interest to all landlords operating in Wirral.
As you may already be aware, Local Authorities have the ability to introduce ‘Selective Licensing’, subject to certain criteria being met. Wirral has used Selective Licensing since 2015 and action taken by the council in the Licensing areas has driven up property standards, with the majority of this achieved through informal action. However, a small number of landlords have been prosecuted for either non-compliance with legal notices and/or not having a licence to operate.
Earlier this year one landlord was formally banned from operating as a landlord. This was the first Banning Order secured by a local authority in North West England (further details provided later in this newsletter). We have come a long way since 2015 and have been fine tuning our interventions in order to maximise the positive impact of Selective Licensing. We hope you enjoy this edition of Landlord Link-Up
Selective Licensing Update
Selective Licensing aims to improve the condition of private rented homes within specific designated neighbourhoods in addition to improving management standards. Landlords operating in these areas are required to obtain a licence from the council and comply with certain agreed licensing conditions. Failure to obtain a licence or comply with minimum standards can result in legal action being taken by the council, although informal action is often taken in order to achieve compliance in the first instance.
Wirral has been using Selective Licensing (three schemes in total) in specific geographical areas since 2015 and, to date, officers have issued over 3500 licences in those areas and carried out more than 1500 property inspections. Around half of the properties inspected required further action in order to meet minimum standards.
Of the current two schemes, the 2019 Selective Licensing Scheme, comprising 4 areas including Hamilton Square, Seacombe St Pauls, Birkenhead and Birkenhead Central, is coming to the end of its 5 year life on 31st March 2024. The 2020 scheme will run until 30 September 2025 subject to an internal review. The council is now considering a new Selective Licensing Scheme comprising of two of the 2019 scheme areas, Seacombe St Pauls and Birkenhead West, along with two further areas, Bidston St James West and Egremont North. This proposal is based on a robust business case and was considered by Members of the Economy Regeneration & Housing Committee on the 17th July 2023. At this meeting it was agreed to undertake a consultation exercise on the proposals, over a 10-week period. This is your opportunity to consider the proposals and let us know what you think. The results of the consultation will be reported back to Members later this year and a final decision will then be made on whether or not to continue with the proposal.
View documents relating to the proposal, including detailed maps and address lists
Why is Wirral Council considering Selective Licensing re-designation in two existing areas and introduction of two new areas?
Wirral has areas of low housing demand and almost one in three properties in Wirral’s private rented sector fails to meet minimum property standards which can have an impact on the health and welfare of tenants and wider communities. Selective licensing aims to improve homes in these areas by ensuring private landlords meet satisfactory standards of tenancy and property management.
The proposed four areas were identified using research from the council's Wirral Intelligence Service which identified key areas that had high levels of poor property conditions, higher than average levels of private rented stock, higher than average property vacancy rates and low housing demand. A full breakdown of the evidence, methodology and findings is included in the Business Case which can be found on the council’s website at www.wirral.gov.uk/selectivelicensing
This evidence is supported by the outcome of a recent survey of residents in the existing Selective Licensing areas which has shown that while there has been an improvement in the property condition, there is still a need for improvement in the external environment to make these areas more attractive.
What are the benefits of Selective Licensing ?
Poor property management has a very negative effect on areas where the housing market is already weak and contributes to high numbers of empty properties, high turnover of tenants and depressed rental and sale values. Poor property conditions can also impact the health and safety of residents.
Selective Licensing will tackle poor management and is expected to deliver lots of benefits including:
Benefits for Landlords
- free tenancy support service
- free bulky waste collections
- free Healthy Homes visits (see below for further information)
- enhanced Empty Property Grants up to £7,000 (see below)
- improved confidence in the market and potential growth in property values
- a level playing field where all landlords in the area are required to operate to the same decent standard
- improved communications with council services
- better understanding of their statutory responsibilities through training and briefing sessions
- improved reputation of private landlords
Benefits for Tenants
- improve the quality of housing and management conditions
- better understanding of the standards they should expect
- better understanding of their responsibilities
- written tenancy agreements, inventories and protected deposits
- confidence that the council will help if licence conditions are not met
- support to maintain tenancies e.g. budget management, benefit checks, fuel debt advice
Benefits for the wider community
- landlords encouraged not to take tenants with poor references
- shorter void periods and less tenant turnover
- improved quality of life, image and desirability of the area
- fewer empty properties and blight
- less anti-social behaviour
- increase in the length of tenancies resulting in more settled communities
- dedicated Healthy Homes Team to improve the health of the wider community
What is ‘Healthy Homes’
Wirral’s Healthy Homes team operates in Selective Licensing areas and supports both tenants and homeowners to help them stay independent, healthy and safe in their homes. The team offer free advice and services relating to a range of health and housing issues. This service is free to all residents in Selective Licensing areas
A selection of quotes from residents receiving support from the Healthy Homes Service
- "I had no idea I could get extra money and equipment to help with my health needs" - Faye, Tranmere
- “The landlord finally did the repairs in my flat” - John, Seacombe
- “I got half my fuel debt wiped off and now save £15 per month on gas too" - Sarah, Birkenhead
- "We feel so much warmer with our new boiler, and it was free" - Charlotte, Egremont
- "A Housing Repairs assistance loan helped us carry out the repairs we couldn't afford" - Bill and Mary, Birkenhead
- "I got the support I needed to help me move to a better home" - James, Tranmere
An example of a successful case dealt with by Jess, one of the Healthy Homes Team Community Workers:
“A landlord reached out to Healthy Homes as they were having difficulty in engaging with one of their long-term tenants, they had noticed that the tenant was not coping with the flat and this was impacting negatively on the condition of the whole block of flats. The landlord felt that using the support of Healthy Homes rather than serving an eviction notice was the best course of action.
Over time I managed to engage with the tenant who was struggling with alcohol addiction, mental health issues and learning difficulties. The flat was in an unhygienic state and the tenant had a poor quality of life. Healthy homes gained access and noted some much-needed repairs within the flat that were reported immediately to the landlord to reduce further damage to the property. Healthy homes supported the tenant and landlord to gain access to complete these works in a timely manner.
I completed a survey with the tenant to highlight support needs, a funding bid was completed to access money to empty and clean the flat for the tenant and referrals to services for the tenant were made for support in reducing their alcohol use, counselling, and to combat social isolation. I also applied to charities to replace damaged furniture within the flat through donations so that the tenant had a couch and a bed to sleep in.
I was also able to identify that the tenant had money owed to them from Council Tax which was recouped. I then made a referral for some extended support to help the tenant manage the flat to reduce the possibility of the flat returning to a poor state.
This intervention saved the landlord money in eviction costs, they rebuilt the relationship with their vulnerable tenant and prevented their tenant being made homeless. The tenant regained a better quality of life, a clean and safe flat and they now have support and routine back in their lives along with extra funds from money that was returned from overpayments. Both tenant and landlord would engage with Healthy Homes again.
Landlord delighted with help received from Healthy Homes
“The Healthy Homes team, and specifically Jessica were fantastic in providing support to our tenant. It was clear the tenant needed some additional help but was finding it hard to seek out that support or even know what he could apply for and who to speak to – with Jessica’s persistence, linking the tenant to Wirral Ways and assisting him in clearing his flat, he is now in a much better place and is in the process of learning the necessary skills to support himself moving forward.”
Empty Property Grants
As part of the council’s commitment to Selective Licensing it has committed to making empty property grant assistance available to owners of properties that have been registered as vacant for Council Tax for a period longer than six months. Owners are eligible to apply for financial assistance toward the cost of refurbishment and reoccupation of their premises. A grant of up to £7,000 for properties within Selective Licensing areas is available to assist with the capital costs of refurbishment and reoccupation either by the owner or a tenant. Since the introduction of Selective Licensing in 2015 over of 60 vacant properties in these areas have been brought back into use with the assistance of Empty Property Grants
Will landlords have to pay for a licence?
The council proposes to recover some costs by charging a Licensing Fee. The cost for a licence has reduced since the initial scheme in 2015 and the council will continue to work hard to streamline costs for future designations and keep the fee as low as possible. The licence fee can only cover the costs associated with administering the scheme
The council also proposes to offer discounts on licence fees in the following circumstances:
- applications made within three months of the property becoming licensable
- energy efficient properties may be eligible for further discount
- landlords with multiple properties
- landlords who are accredited with either a national landlord organisation or who are already accredited with the Wirral Council property accreditation scheme
Charges are also proposed for the following:
- charge for yearly direct debits
- assisted completion of application forms
- completion of a paper application
Licence Conditions
The licence contains a series of conditions the licence holder would need to comply with, including property management, fire safety and anti-social behaviour.
View a full copy of the licence conditions
Landlord comments on selective licensing
"I was initially apprehensive about licensing but actually, the outcome was improvements in the area, better tenant applications and higher achievable rents to help with the array of measures putting pressure on landlords at the moment."
What would happen to private landlords who let their property without a licence or don’t meet the licence conditions?
It is a criminal offence to let a privately rented property in a designated Selective Licensing area without a licence.
Failure to apply for a licence or failure to comply with the conditions of the licence could lead to an unlimited fine on conviction or a Civil Penalty Notice of up to £30,000.
The council, or tenants (including former tenants), may apply for a Rent Repayment Order (RRO) to reclaim up to 12 months’ rent from the landlord where a property is, or was, required to be licensed.
An example of a rogue landlord handed a Banning Order
An example of poor housing conditions at a property let by Frank Morrow. 18 January 2023
A Wirral landlord became the first in the region to be served with a Banning Order, which prohibits him from letting or managing any property to tenants for the next three years.
The order against Frank Morrow from New Brighton was granted on January 10th 2023 by the First Tier Tribunal (Property Chamber) at the Civil Court in Liverpool.
As a result, not only is he banned from letting property, he is also prohibited from being involved in letting agency or property management work in England for a period of three years.
Wirral Council pursued the action against Mr Morrow due to his failure to comply with notices issued to him to remedy hazards that were risking the safety of his tenants and failing to licence properties that were required to be licenced.
This was the first Banning Order obtained by any council in the Liverpool City Region and was the only Banning Order secured under the Housing and Planning Act 2016 in the Northwest Region.
Wirral Council had previously prosecuted Mr Morrow on two separate occasions for failing to comply with improvement notices served on him for poor housing conditions and failing to obtain Selective Licences for both his rental properties situated in Birkenhead Road, Seacombe.
After he was first prosecuted, Mr Morrow was added to the national Rogue Landlord Database to ensure that other local authorities are aware of his conviction to consider whether he should be involved in the letting of properties in other areas of the country.
If the banning order is breached, penalties can include imprisonment for up to 51 weeks and/or an unlimited fine, or a Civil Financial Penalty of up to £30,000.
What are the next steps?
Feedback from consultation will be reported to Members of the Economy Regeneration and Housing Committee, later this year. If the consultation supports a further Selective Licensing Scheme in the proposed four areas and Members approve the proposal, it is expected that the scheme will be operational from 1 April 2024.
Complete the consultation survey at haveyoursay.wirral.gov.uk
Drop In available if you would like to speak to a member of staff about the proposal.
Book your slot on our Selective Licensing Q&A session for landlords on Tuesday 19 September, 1pm to 4pm at Commerce House, Campbeltown Road, Birkenhead, CH42 9HP. Please call 0151 666 3848 or use the email address below.
More information about the consultation process, including how to get involved, is available:
- online www.wirral.gov.uk/selectivelicensing
- email selectivelicensingsurvey@wirral.gov.uk
- by post: Selective Licensing Consultation, PO Box 290, Brighton Street, Wallasey, CH27 9FQ