Selective Licensing Proposal for Boscombe East, Boscombe West and East Cliff & Springbourne Consultation Document 9th January 2017 – 1st May 2017 1 INTRODUCTION 1 The Private Rented Sector in Bournemouth 1 The Private Rented Sector in Boscombe East, Boscombe West and East Cliff & Springbourne 1 2 WHAT IS SELECTIVE LICENSING? 2 The Licensing Process 3 Licensing conditions 4 Granting and refusing a licence 4 What happens if a landlord lets a property without a licence? 5 What does the Council have to consider in deciding whether to designate a Selective Licensing area? 6 What are the Potential Benefits of Selective Licensing? 8 3 WHY DO WE THINK WE NEED SELECTIVE LICENSING IN BOSCOMBE EAST, BOSCOMBE WEST AND EAST CLIFF & SPRINGBOURNE? 9 4 WHAT EVIDENCE DO WE HAVE TO SUPPORT THE PROPOSED SELECTIVE LICENSING AREA? 11 Low housing demand (or is likely to become such an area) 11 A significant and persistent problem caused by anti-social behaviour 12 Poor property conditions 13 High levels of deprivation 15 High levels of crime 17 5 DEFINING THE PROPOSED SELECTIVE LICENSING AREA 19 6 WHAT DO WE HOPE TO ACHIEVE? 21 7 WHAT ARE THE RISKS? 24 8 OVERALL HOUSING STRATEGY 25 9 WHAT OTHER OPTIONS HAVE BEEN CONSIDERED? 25 10 PROPOSED LICENCE CONDITIONS 25 Licensing conditions 26 Tenancy management 26 Property management 26 Anti-social behaviour 26 11 LICENCE FEES 26 12 CONSULTATION 29 Methods of consultation 29 How do I respond to the consultation? 30 APPENDIX A- SUPPORTING EVIDENCE 32 Overview 32 1 LOW HOUSING DEMAND 32 Residential Property Values 33 Tenure 34 Empty Properties 36 Conclusion 37 2 ANTI-SOCIAL BEHAVIOUR (ASB) 38 Recorded levels of anti-social behaviour 38 Anti-social Behaviour over time 40 Anti-social behaviour and privately rented stock 40 Perceptions of Anti-social behaviour 41 Conclusion 43 3 CRIME 44 Recorded levels of crime per ward 44 Levels of Crime over time 45 Conclusion 45 4 DEPRIVATION 46 Indices of Deprivation 2015 46 Indoor Living Deprivation 48 Employment Status - Out-of-work Benefits 50 Health of Households 51 Conclusion 53 5 DEFINING THE PROPOSED SELECTIVE LICENSING AREA 53 APPENDIX B- ALIGNMENT WITH COUNCIL STRATEGIES 59 APPENDIX C- OTHER OPTIONS 62 APPENDIX D - PROPOSED LICENCE CONDITIONS 66 1 MANDATORY CONDITIONS 66 Non Mandatory Conditions 68 APPENDIX E- RISK ASSESSMENT 70 APPENDIX F- FINANCIAL SUMMARY 74 1 SELECTIVE LICENSING PROJECT ASSUMPTIONS 74 2 STAFF REQUIREMENT 74 3 PROFIT AND LOSS ACCOUNT 75 APPENDIX G- PROPOSED SELECTIVE LICENSING AREA 76 1 Introduction Bournemouth Borough Council wants to hear your views about the proposal to introduce Selective Licensing to an area within Boscombe East, Boscombe West and East Cliff & Springbourne wards. If you are a tenant, resident, landlord, letting agent or a business living or operating in the proposed area you could be affected by the proposals outlined in the document. If you live or operate outside of the proposed area and might be indirectly affected by the proposal, we would also like to hear your views. Consultation is open between the 9th January 2017 and the 1st May 2017. The Private Rented Sector in Bournemouth Nationally, the private rented sector has grown rapidly in the last 10 years and this reflects the position in Bournemouth. However, the town’s private rented sector has been larger than the national benchmark for many years and now accounts for 31% of all households compared to the national average of 18%1. At ward level the picture across the town varies considerably, ranging from levels of 9.9% in Kinson South to the highest levels of 62.3% in Boscombe West2. A well-managed private rented sector has an important role to play in providing choice and meeting housing need. However, the generally short term nature of private tenancies also brings with it concerns about the impact on communities when the sector gets out of balance and especially when privately rented properties are not well managed. Too often poorly managed properties result in unacceptable levels of anti-social behaviour, which can be damaging to local neighbourhoods if not dealt with. The Private Rented Sector in Boscombe East, Boscombe West and East Cliff & Springbourne Boscombe West has the highest percentage of privately rented accommodation in Bournemouth at 62%. In East Cliff & Springbourne the percentage of private rented accommodation is 47% and in Boscombe East it is 35%3. Some areas within the three wards of Boscombe East, Boscombe West and East Cliff & Springbourne have issues relating to high levels of anti-social behaviour, high levels of crime and high levels of deprivation and these issues correlate to areas where there is a significant proportion of private rented accommodation. A detailed analysis of the data appears in Appendix A. 1 Source: Office for National Statistics (ONS), Tenure 2011, KS402EW 2 Source: Office for National Statistics (ONS), Tenure 2011, KS402EW 3 Source: Office for National Statistics (ONS), Tenure 2011, KS402EW 1 2 What is Selective Licensing? There are many areas across the country that suffer from the issues that Boscombe East, Boscombe West and East Cliff & Springbourne are experiencing. In recognition of this, the Government’s Housing Act 2004 gives councils the powers to introduce Selective Licensing schemes for privately rented properties in selected areas for a period of up to five years. A Selective Licensing designation can only be made if the designated area is experiencing one or more of the following criteria: Low housing demand (or is likely to become such an area) A significant and persistent problem caused by anti-social behaviour High levels of crime Poor property conditions High levels of migration High levels of deprivation The full criteria that must be met in order to designate a Selective Licensing area is covered fully in section 2 and our reasons and evidence for the proposed area are summarised in sections 3-5 and evidenced fully in Appendix A. The Housing Act 2004 gives Councils the power to introduce Selective Licensing schemes for privately rented properties in selected areas for a period of up to five years. The Council can designate the whole or any part or parts of its area as subject to Selective Licensing. The purpose of such a scheme is to improve standards of property management in the private rented sector. If a landlord rents out property in a Selective Licensing area they will need to obtain a licence from the Council, subject to certain exemptions. The licence will require landlords to manage their properties in accordance with conditions that the Council specifies; failure to do so could lead to enforcement action. Bournemouth Borough Council proposes to introduce a Selective Licensing scheme in areas of the Boscombe East, Boscombe West and East Cliff & Springbourne wards of the town. A Selective Licence will not be required for the following properties: Houses of Multiple Occupation (HMOs) which are required to be licensed under Part 2 of the Housing Act 2004; properties subject to a “temporary exemption notice”; properties subject to a Management Order; 2 properties which are occupied under a tenancy or licence which has been granted by a non-profit registered provider of social housing; properties which are occupied under a tenancy or licence which has been granted by a profit-making registered provider of social housing in respect of social housing (within the meaning of Part 2 of the Housing and Regeneration Act 2008); properties which are occupied under a tenancy or licence which have been granted by a body which is registered as a social landlord under Part 1 of The Housing Act 1996; properties let under tenancies or licences described as ‘exempt’ from the requirement to be licensed by the Selective Licensing of Houses (Specified Exemptions) (England) Order 2006/370. At the end of the five years, the scheme must be reviewed. The Licensing Process A landlord will have to complete an application and submit certain required documents and a fee to cover the cost of licensing. The Council will assess the landlord’s application in relation to; the management competence; the suitability of their management structures; the adequacy of the funding arrangements; whether the proposed licence holder is a ‘fit and proper person’ The ‘fit and proper person’ test will consider any relevant offending history of the applicant, specifically in relation to offences involving fraud or other dishonesty, violence or drugs, or any offence listed in Schedule 3 to the Sexual Offences Act 2003 (c. 42) (offences attracting notification requirements). We will also consider evidence that the applicant practised unlawful discrimination on grounds of sex, colour, race, ethnic or national origins or disability in, or in connection with, the carrying on of any business, contravened any provision of the law relating to housing or of landlord and tenant law; or acted otherwise than in accordance with any applicable code of practice. Having sought representations from interested parties, the Council will then either approve or refuse a licence for a period of up to the length of the scheme (maximum five years) with conditions on the licence holder. In assessing if a person is a ‘fit and proper person’, the Council will not automatically require a ‘Disclosure and Barring Service’ check. It will require the landlord to declare any relevant offences and will check records within the Council or partner 3 organisations or any other register, as to landlords’ suitability. The Council will share information within the Council and partner organisations. A licence may not be transferred to another person. If the licence holder dies, the licence is terminated on her/his death. However, the property is treated as if a temporary exemption notice has been served for a period of three months after her/his death and a further three months at the request of the representatives of the licence holder.