Selective Landlord Licensing in Gateshead Consultation Presentation The Private Sector Housing Team
Legal al C Contex text & t & Requi quirem ements ents The Hous The H ousing ng A Act 2004 2004 1. Mandatory licensing 2. Additional licensing 3. Selective licensing Legal Legal c criter eria: 1. That the area is, or is likely to become, an area of low housing demand , or 2. That the area is experiencing a significant and persistent problem with anti social behaviour (and a lack of appropriate action by private sector landlords)
Legal al C Contex text & t & Requi quirem ements ents To be considered for licensing an area must also: • Contain a high proportions of properties in the private rented sector in relation to the total number of properties in the area, occupied under assured tenancies/licenses And 1 or more of the following, • Poor housing conditions in private rented homes • The area has recently experienced or is experiencing an influx of migration • The area is suffering from high levels of deprivation • The area suffers from high levels of crime
Low Housing Demand (LHD) In deciding if an area is, or is likely to become an area of LHD, the LHA must take into account; - The value of residential premises in the area - The turnover of occupiers of residential premises - The number of residential premises available to buy/rent and the length of time unoccupied. - The general appearance of the locality
Licensing Information • Schemes can last for up to five years • The Council is required to assess the impact of a scheme during the five years. A scheme can be revoked earlier or the Council can consider if the area should be redesignated for a further period. • A licence holder must be ‘fit and proper’ as do any proposed manager • Certain properties and tenancies are exempt • An applicant must demonstrate satisfactory procedures relating to property and tenancy management • Attached to a licence are conditions to ensure the effective management of the property and tenancy • An applicant must be the most appropriate person to be the licence holder • Failing to apply for a licence or comply with licence conditions is an offence • The existing Central Phase 1 scheme was designated in Autumn/Winter 2011 and was implemented in May 2012. • The scheme is due to end on 17 th May 2017 • There is a further scheme in place in parts of Swalwell – expires April 2018
The Proposal The Avenues Scheme Commencement: Phased introduction over three years Area 1 (Spring 2018) Area 2 (Spring 2019) Area 3 (Winter 2019 - subject to ongoing consultation). Proportion privately rented: approximately 69%
The Proposal Central Phase 1 – Re designation Schem heme commen encem ement ent : Winter 2017 Num umbe ber of of hom homes es: 320 Propor ortion on p privat atel ely rented: ed: approx. 70%
Strategic Context Gateshead’s Long Term Sustainable Community Strategy – Vision 2030 Core Strategy and Urban Core Plan for Gateshead (2010-2030). Bensham & Saltwell Neighbourhood Action Plan Housing Strategy 2013-18
What hat s step eps s so o far ar hav have not not s suf ufficiently remedie edied i d issue ues - Clearance and New Housing Development - Financial assistance for property improvements - The Private Rented Property Accreditation Scheme - Landlord Engagement - Community Safety Partnership - Action under Part 1 of Housing Act 2004 (the Act) - Dealing with Statutory Nuisance and Noise - Empty property leasing
Evidence Base The e follow owing ng infor ormat ation on helped ped to formul ulat ate e our propos oposal al: High h conc oncent ntrat ations ons of privat ate e rent nted ed stoc ock • Saltwell has the highest proportion of PRS in Gateshead. Avenues % Re-Designation % Tenure Privately Rented 890 69% 229 72% Empty Properties 96 7% 37 12% Owner Occupied 259 19% 44 14% Gateshead Housing Company and 44 3.5% 5 1.5% Registered Social Landlords Commercial Premises 20 1.5% 2 0.5% Community Facilities 1 <0.1% 0 0% Total 1310 100% 317 100% Avenues – 0.094% borough area – 9% of total PR housing Re designation – 0.0015% borough area - 1.6% of total PR housing
Evidence Base High c gh conc oncentration on of of pr privately rent ented pr prope operties es (Not ote 3) 3) Note 1-Private Sector Housing/Council Tax data March 2017, Note 2-Land registry data, Note 3-Council tax data, Note 4-Police data 2017, Note 5, IMD 2015
Evidence Base Lower Low er av aver erage e pr proper operty pr prices (Note 2 e 2) • Note 1-Private Sector Housing/Council Tax data March 2017, Note 2-Land registry data, Note 3-Council tax data, Note 4-Police data 2017, Note 5, IMD 2015
Low Lower er av aver erage e pr proper operty pr prices (Note 2 2) • Gateshead Borough £126,171 • Saltwell £124, 582 • Lobley Hill & Bensham £116, 568 • Proposed Avenues scheme area(NE8) (Note 6) £100,500 • Proposed re designated area (Note 6) £75, 250 Note2, Land Registry Data Note 6 – Hometrack 2017
Evidence Base – The Avenues Tur urnov over of of oc occup upan ants (Note 3) : • LSOA 8251 4 th highest turnover in the Borough • LSOA 8252 6 th highest turnover in the Borough • LSOA 8253 3 rd highest turnover in the Borough Note 1-Private Sector Housing/Council Tax data March 2017, Note 2-Land registry data, Note 3-Council tax data, Note 4-Police data 2017, Note 5, IMD 2015
Evidence Base – The Avenues Pres esenc nce e of Empty prope operties es (Note 3) : • Proposed Avenues scheme area 8.1% • Gateshead Borough 3.6% Note 1-Private Sector Housing/Council Tax data March 2017, Note 2-Land registry data, Note 3-Council tax data, Note 4-Police data 2017, Note 5, IMD 2015
CRIME & ASB – THE AVENUES Higher Crime and ASB Incidents Youth ASB (Note 4) : Saltwell 5 th highest level in the Borough All ASB (Note 4) : Saltwell 5 th highest level in the Borough Crime Saltwel l 6 th highest level in Borough Note 1-Private Sector Housing/Council Tax data March 2017, Note 2-Land registry data, Note 3-Council tax data, Note 4-Police data 2017, Note 5, IMD 2015
How does licensing help? • Dedicated resource to investigation/resolution • Partnership/joined up working – co ordinated approach • Licence Holders/Landlords required to participate – respond reasonably and proportionately • Conditions • LH training and support • Tenant referencing/vetting (consideration being given to provision of this service within SLL areas)
Evidence Base – The Avenues Private Sector Housing reported incidents, Housing Private Sector Housing reported incidents 13-16 13-16
How does licensing help? Improved housing standards – accreditation/programmed inspections/licence conditions Effective communication channels Target environmental issues via increased tenant contact Influence Council policy and procedure
Evidence Base www.gateshead.gov.uk/imd Levels of Lev of Dep eprivation (Note 5) : Gateshead B head Borough ough 73/326 most deprived in England Propos posed ed Avenues enues ar area ea Top 10-20% and 20-30% most deprived Propos posed r ed re designat gnated a ed area Top 10%, Top 20% & Top 30% most deprived (based on income, employment, education and skills, health/disability, crime, barriers to housing and services and the living environment? Note 5, IMD 2015 Note 1-Private Sector Housing/Council Tax data March 2017, Note 2-Land registry data, Note 3-Council tax data, Note 4-Police data 2017, Note 5, IMD 2015
How does licensing help? Depriv De ivatio ion Hous ousing ng • Enforcement action- Overcrowding, poor condition housing – leading to improved health and well being of households – link to employability, sustaining employment and income Crim Cr ime Tenants vetted prior to being offered a tenancy • Improved property management - leading to improved health and well being of households • Information gathering/sharing – joint operations with police and immigration to crack down on crime- helping mitigate deprivation.
Phase 1 Redesignation Assessment Process Public consultation – seeking the views of stakeholders – final evaluation report to be published in advance of expiry Review of LHD and ASB indicators from pre licensing to date Review of the impact of licensing on management and property conditions
Evidence Base – Phase 1 Redesignation
Redesignation – The Evidence Rental Values Average rental values have increased, yet remain lower than the Borough average
Redesignation – The Evidence Multiple Occupant Turnover Substantial reduce in turnover since 2012 to 6.9 (56% reduction) Rate remains more than double the Borough Average of 3.2% Highest single turnover – Saltwell Place, Trevethick Street Highest multiple turnover – 17-109 Saltwell Rd and 1-64 Hyde Park Street
Redesignation – The Evidence The number of complaints made to the LA has reduced since 2012 – more than half from 2012 to 2017
Redesignation – The Evidence Despite reductions since 2012 complaint levels remain higher than other areas. There are hot spot areas of demand/ongoing challenges
Redesignation – The Evidence
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