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City of Cardiff Council Cyngor Dinas Caerdydd

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City of Cardiff Council Cyngor Dinas Caerdydd CITY OF CARDIFF COUNCIL CYNGOR DINAS CAERDYDD CABINET MEETING: 17 JULY 2014 INTRODUCTION OF AN ADDITIONAL LICENSING SCHEME IN THE PLASNEWYDD COMMUNITY WARD REPORT OF DIRECTOR OF ENVIRONMENT AGENDA ITEM:14 PORTFOLIO: ENVIRONMENT (COUNCILLOR BOB DERBYSHIRE) Reason for this Report 1. To report on the results of the consultation exercise approved by EBM on the 19th December 2012, and detail the case for declaration of an Additional Licensing Scheme in the Plasnewydd Community Ward of Cardiff in relation to houses in multiple occupation (HMOs) in the private rented sector. 2. To make Cabinet aware of progress with the Cathays Additional HMO Licensing Scheme and to seek authorisation to commence all consultation required for the redesignation of the scheme in 2015. Background 3. A motion was put to Council on 20 November 2008 highlighting the impact of a high student population in certain areas of the City. The motion called for officers to explore how the provisions of the Housing Act 2004 for extending licensing of HMOs might be applied to Cardiff. A Task & Finish group consisting of Officers and Members was established to consider options for moving forward. 4. The Group established that Additional Licensing of HMOs could provide part of an effective solution. It then considered which area would benefit most and what could be reasonably achieved within the time available. It showed that Cathays would benefit most from the introduction of a licensing scheme, although the statistics also suggested Plasnewydd and Gabalfa might merit from the extension of the licensing scheme in the future. 5. On the 4 March 2010 the Council’s Executive approved the introduction of an Additional Licensing Scheme for the Cathays Community Ward of Cardiff. The scheme became effective on the 1 st July 2010 to operate for 5 years. Page 1 of 11 6. Work began in early 2013 to explore the feasibility of extending the Scheme into Plasnewydd and Gabalfa which required updated information on the stock conditions in the areas concerned as well as undertaking a full stakeholder consultation exercise. Legislative Context 7. The Housing Act 2004 radically overhauled the way local authorities regulate standards in private rented housing. From 30 June 2006, the Act introduced a number of new provisions:- • The Housing Health and Safety Rating System (HHSRS) is a comprehensive regime allowing Councils to take action in relation to 29 potential hazards. • Mandatory licensing which requires the Council to operate a licensing scheme for Houses in Multiple Occupation (HMOs). This scheme applies to all HMOs with five (or more) people in properties with three (or more) storeys. • The Act allows the Council to introduce further licensing schemes of private rented properties to meet the needs in their locality. 8. Licence conditions are used to control the ongoing maintenance and management of HMOs and are granted when the Council is satisfied that: The property is suitable (or can be made suitable) for the maximum number of occupants; The licence holder is a fit and proper person and there are suitable management arrangements in place 9. Mandatory licensing cannot deal with all the problems highlighted in the private rented sector because it applies to only a small proportion of the stock and makes little visible impact in an area. Council Powers to Introduce Additional Licensing 10. Under the Housing Act 2004, there are two powers available for the Council to extend licensing to other categories of property:- • Additional licensing powers enable the Council to extend the scope of its HMO licensing to other descriptions of HMO either in all or in part of its district. • Selective licensing powers enable the Council to extend licensing to other types of properties other than just HMOs in an area of the City where there may be issues relating to low housing demand or anti- social behaviour. 11. The Welsh Assembly Government issued a General Approval to Local Authorities in April 2007 to implement additional licensing. This means that no additional approval is required from the Welsh Government if the criteria for the general approval are met. Page 2 of 11 12. Before using these discretionary powers the Council must carry out a thorough appraisal and a consultation exercise with stakeholders and must be satisfied that the following requirements are met: • Criteria 1 - Before making a designation the authority must consult persons who are likely to be affected by the designation and consider any representations. • Criteria 2 - The authority must consider that a significant proportion of the HMOs of that description in the area are being managed sufficiently ineffectively as to give rise, or to be likely to give rise, to one or more particular problems either for those occupying the HMOs or for members of the public. • Criteria 3 - The authority must have regard to any information regarding the extent to which any codes of practice approved under section 233 have been complied with by persons managing HMOs in the area. • Criteria 4 - The authority must ensure that the exercise of the power is consistent with the authority's overall housing strategy. • Criteria 5 - The authority must seek to adopt a co-ordinated approach in connection with dealing with homelessness, empty properties and anti-social behaviour as regards combining licensing under this part with other courses of action available, and as regards combining such licensing with measures taken by other persons. • Criteria 6 - The authority must not make a particular designation unless they have considered whether there are other courses of action available to them that might provide an effective method of dealing with the problem. • Criteria 7 – The Council must consider that making the designation will significantly assist them in dealing with problems in the area. 13. The survey work and supplementary data were not supportive of an additional licensing designation for Gabalfa at this time. It may be appropriate to re-consider the case for Gabalfa in future in conjunction with the analysis of HMO conditions in other wards across the City. The Case for Extension to Plasnewydd Ward Criteria 1 - Consultation Undertaken 14. A Public Consultation Document (Appendix 1) together with an online questionnaire was sent to approximately 7900 residential addresses and 550 businesses in Plasnewydd, as well as to 140 lettings agents across the city and to all landlords via the Cardiff Landlord Forum distribution list, to ascertain stakeholder views. The questionnaire was also made available in paper format for those that requested it. The consultation ran for a period of 6 weeks between 11 th April and 22nd May 2014. 15. Other stakeholders also submitted their views and Appendix 2a lists the comments received and Appendix 2b gives a summary of the electronic survey results. Page 3 of 11 16. Although 61% of private tenants state that they believe their landlord/agent manages their property well, responses show that landlords are failing to provide information on how the bond is protected (only 72% tenants received this), a copy of the gas safety and energy performance certificates (45% and 36% respectively), waste collection data (43%) and general information about responsibilities as a tenant (63%). In terms of the property conditions, over a third of private tenants responding had concerns about their home with the highest reported issues being damp and mould (49%), energy efficiency (30%) and heating (25%). 17. Landlord responses show that 40% had been affected by the introduction of Additional Licensing in Cathays. 35% of respondents stated that they owned mandatorily licensed HMOs in Plasnewydd and 67% of respondents would be affected by the introduction of an Additional Licensing Scheme in the area. 18. Local Ward Members from Gabalfa and Plasnewydd, along with those from Cathays attend an Additional Licensing Working Group to discuss private rented sector issues in these wards, including the potential extension of Additional Licensing. Due to the strong feeling expressed by landlords at the introduction of the Cathays Scheme, it was felt pertinent to invite representatives from the landlord and letting agent sectors to join with Ward Members to oversee the ongoing feasibility study processes. In total 6 landlord representatives and 2 letting agents’ representatives attended the meetings. 19. These joint meetings began in December 2013 and discussed issues including changes to fee structures, findings from the stock condition survey and evaluation of the Cathays Scheme. Criteria 2 – HMOs Managed Significantly Ineffectively 20. In 2005, the Council commissioned a Private Sector Housing Stock Condition Survey. The City was divided into 10 sub areas for the purposes of the survey. Cathays and Gabalfa were combined to form one area (Area 5) and Plasnewydd and Penylan formed another area (Area 7). The survey focused on non-Council housing only, so included owner occupied dwellings, stock owned by Registered Social Landlords (RSLs), vacant dwellings and private rented properties. 21. As this data could not be fully relied upon due to its age, it was decided to undertake specific surveys of a sample of 294 HMOs across Gabalfa and Plasnewydd wards. An external specialist consultant was appointed to undertake this work between October and November 2013. Assessments were also made of the general street scene where these HMOs were located. The findings (see Executive Summary at Appendix 3) show that: • Private rented housing in Plasnewydd has increased by 1,506 dwellings from 29.8% to 55.1% between 2001-2011 (Census data). There are approximately 1969 HMOs in Plasnewydd. Page 4 of 11 • Under the Housing Health and Safety Rating System, Category 1 Hazards were found in over 22% of HMOs surveyed. Category 1 hazards are serious risks to health and safety where the Council has a duty to take action against the landlord. • 11.1% of properties are classed as Band E and lower in terms of their energy efficiency rating.
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