Ex-Landlord Challenges Selective Licensing Scheme in County Durham

A former landlord from Seaham, County Durham, is embroiled in a protracted dispute with his local council over the legitimacy of its selective licensing scheme. Brian Fish, who has exited the rental market, asserts that Durham County Council has improperly included areas that do not satisfy the legal requirements for such a scheme under the Housing Act. He claims that the council's actions are not only financially burdensome for landlords but also detrimental to vulnerable tenants.

The Legal Framework for Selective Licensing

Selective licensing is designed to regulate private rental properties in areas experiencing high levels of deprivation, anti-social behaviour, or low housing demand. According to Fish, the Housing Act stipulates that a minimum of 19% of properties in a designated area must be privately rented for the licensing scheme to be applicable. He argues that many areas in Durham do not meet this benchmark, suggesting that the council’s approach has turned the licensing scheme into a revenue-generating mechanism rather than a tool for improving housing standards.

Fish's concerns are bolstered by correspondence from the Ministry of Housing, Communities and Local Government, which clarifies that the criteria for selective licensing must align with high levels of deprivation, crime, and housing demand. He claims that the council's scheme, which charges landlords £500 per property, has amassed about £12.5 million in revenue, raising questions about its true intent and effectiveness.

Response from Durham County Council

In response, Ted Murphy, the council's building safety and housing standards manager, defended the scheme's implementation, stating that it was based on extensive research into the private rented sector in County Durham. He noted that the council faced challenges due to outdated tenure data, as the last census occurred in 2011. Murphy maintained that the council has adhered to all legislative guidance and that a review of the scheme is scheduled for 2026.

The ongoing licensing scheme, which began in April 2022, continues until 2027, during which time Murphy indicated that the council has seen an increase in license applications from landlords. He reassured that any areas not meeting the necessary conditions for licensing would be excluded in future reviews.

Impact on Landlords and Tenants

As the dispute unfolds, the implications for landlords in the region are significant. Fish argues that the current licensing practices may inadvertently drive landlords out of the market, exacerbating shortages in housing availability and increasing rents for tenants who rely on affordable housing options. The concern is that as more landlords withdraw from the private rented sector, the consequences will be felt most acutely by vulnerable tenants who may struggle to find suitable accommodation.

This case not only raises questions about the efficacy of selective licensing schemes but also highlights the broader tensions between local authorities and landlords across the UK. As councils increasingly turn to licensing as a regulatory tool, landlords are left to navigate the complexities and potential pitfalls of compliance, often feeling that their voices are unheard in the process.

The Future of Selective Licensing in County Durham

The outcome of Fish's challenge could set a precedent for how selective licensing schemes are structured and implemented across England. Should Fish succeed, it may prompt other landlords to scrutinize their local councils' licensing decisions, possibly leading to broader reforms in how these schemes are assessed and enforced.

As the review of the scheme approaches in 2026, landlords across County Durham and beyond will be watching closely to see if the council will make adjustments based on the feedback from stakeholders like Fish. The resolution of this dispute may not only impact Durham but could also influence similar discussions in other regions grappling with the challenges of managing the private rented sector effectively.