prosperity lesley williams to approve the …€¦ · decision item (amber) cabinet date 20 july...

open decision amber 1

Agenda Item: 5D Wolverhampton City Council OPEN EXECUTIVE

DECISION ITEM (AMBER) CABINET Date 20 JULY 2011 Portfolio(s) COUNCILLOR P. BILSON/ECONOMIC REGENERATION AND

PROSPERITY Originating Service Group(s) EDUCATION AND ENTERPRISE Contact Officer(s)/ LESLEY WILLIAMS

Telephone Number(s) 0553 Title TO APPROVE THE DESIGNATION OF THE “TRADITIONAL” ALL

SAINTS AREA AS A SELECTIVE LICENSING AREA UNDER THE HOUSING ACT 2004

KEY DECISION: NO IN FORWARD PLAN: NO RECOMMENDATION It is recommended that: 1. The designation of the “traditional” All Saints area, as identified in Appendix 1, as a

Selective Licensing area under the Housing Act 2004 for a five year period from 4 January 2012 be approved.

2. The Licence Fee structure outlined in the report in section 5.3 be approved. 3. Annual reports on the impact of the scheme are submitted to Cabinet (Resources) Panel

for information as part of the Council’s wider private sector housing and selective licensing proposals.


1. PURPOSE 1.1 The purpose of this report is to seek authorisation from Cabinet to designate the

“traditional” area of All Saints, as identified in Appendix 1, as a Selective Licensing area under the Housing Act 2004, for a period of five years commencing on 4 January 2012.

1.2 Cabinet is also requested to agree the proposed fee structure as outlined in 5.3 below,

which has been developed taking account of a number of existing schemes elsewhere in the country.

2. BACKGROUND 2.1 A significant amount of investment has gone into the All Saints area over a number of

years, however, it has been well documented that the “traditional” core area of All Saints remains predominantly pre-1919 terraced property that is over reliant on private renting. Of the 524 residential properties in the proposed area (outlined as Appendix 1), in excess of 194 properties are currently privately rented and this number is increasing as a result of the fragile housing market and low property values. This equates to approximately 37% of the stock, with the City and national average of private renting around 12%. In a bid to support the housing markets and the surrounding developments, the introduction of a Selective Licensing Scheme requiring all privately rented properties in the designated area to have a licence to operate should bring about significant improvements in both housing management and stock condition.

2.2 The Council has tried a number of intervention initiatives over the past few years to

encourage improvements in stock and housing management practices, such as introducing a local accreditation scheme. However, as this was a voluntary measure, the success was limited and very little improvement has been noted. There is still a lack of formal regulation in the private rented sector. As such, landlords and managing/letting agents do not have to demonstrate that they are competent or able to manage tenants, tenancies or properties well. In parts of All Saints, this is very much in evidence as property conditions are poor and anti-social behaviour goes unchecked.

2.3 Consequently consideration was given to the establishment of the “traditional” All Saints

area as a Selective Licensing Area. Selective licensing schemes are highly targeted measures to tackle the most severe problems in the private rented sector. Selective Licensing is intended to address the impact of poor quality private landlords and anti-social tenants and focuses on improving the management of privately rented properties.

2.4 In November 2009 the ABCD Revenue Sub Board approved grant funding for a Selective

Licensing Project Officer to prepare information and carry out a feasibility study and local consultation with regards to designating parts of All Saints (locally referred to as “traditional” All Saints), as a Selective Licensing Scheme area.

3 SELECTIVE LICENSING SCHEMES 3.1 The Housing Act 2004 provides Councils with the power to introduce licensing of

privately owned rented properties in selected areas with the aim of improving conditions for local tenants and the surrounding community.

3.2 Selective Licensing requires all private rented properties within a designated area to be licensed. Certain standards and conditions are required to be met in order for a licence to be granted. Failure to meet such conditions and standards may result in prosecution


and /or the making of a management order which will transfer responsibility for managing the property to the Council. Selective Licensing gives Councils the power to make Landlords accountable for the management of their property and tenants. It should encourage absentee or unprofessional landlords to use the services of an agent or other appropriate person to manage their property effectively.

3.3 It is a criminal offence to let a property in a Selecting Licensing area without having a licence. On conviction this may result in a fine up to £20,000. For any period where an unlicensed property is being privately rented, an application can be made to the Residential Property Tribunal for a Rent Repayment Order for up to 12 months’ rent to be repaid including housing benefit payments.

3.4 In order to progress the determination of an area as a Selective Licensing Area the

Council has to follow a due legal process. The Local Authority must conduct a consultation of no less than 10 weeks, and must ensure that they fully consider all of the evidence before making a decision to designate; to ensure that they are not subject to judicial review following the making of the decision to designate. The Council can be confident that all due processes have been followed leading up to this report. The guidance document “Approval steps for additional and selective licensing designations in England” has been followed, consultation has successfully been carried out over the correct timeframes and all the necessary supporting evidence is contained within the Designation Report Appendix 2.

3.5 The Designation Report has evidenced that persistent and significant problems

experienced in parts of All Saints are as a direct consequence of poor property management and conditions, and anti-social behaviour attributed to private rented property; despite sustained interventions by ABCD and the Council. This report to designate “traditional” All Saints is therefore a last resort measure.

4 PROPOSALS 4.1 The proposals are in summary:

• To designate the “traditional” area of All Saints as a Selective Licensing Scheme from 4 January 2012 for a five year period, subject to annual reviews

• To agree the fee structure as set out in 5.3 of this report • To agree the mechanisms for compliance and enforcement as detailed in the

Designation Report on page 19 (14.1-14.3)

5 FINANCIAL IMPLICATIONS 5.1 The implementation of a Selective Licensing Scheme is proposed to be a stand-alone

project based in the Housing Market Interventions team, capable of recovering the majority of its costs. ABCD funded a Project Officer post to carry out the feasibility study at Scale 6/SO1 with support and guidance from the Principal Housing Assistance Officer. This post has been temporarily extended pending the decision to proceed with the designation of “traditional” All Saints as a Selective Licensing area, and further supervisory and administrative support can be met from within existing resources.

5.2 There is no current provision in the budgets for the scheme and Selective Licensing

Project Officer post; however, the proposal is that the post is established within the Housing Market Interventions Team, on the current grade, and the income generated will


be sufficient to fund the annual cost of £31,900; certainly for the first two years of the scheme. It is therefore proposed that this post is established as a two year fixed period, pending current restructuring of the private sector housing service area (currently being considered).

5.3 Based on calculations and best practice from other schemes implemented nationally, a

licence fee per property is proposed of £525.00 for a five year licence. This will generate fees in excess of £112,700, with an estimated 50% of this income collected in 2011/12 and the remainder collected in 20012/12, based on current predictions and levels of renting in the area. This compares to the cost of £438.00 for mandatory licenses for Wolverhampton’s Houses in Multiple Occupation (which will be reviewed and is likely to increase next year in order to ensure full cost recovery).

Fee Structure £ Initial application fee for a licence 525.00 Fee Structure – Penalties (increased costs) £ In the event of property being found by officers surveying for licensable properties, a finders fee will be added unless the landlord is able to demonstrate that they became the owner of the property within the previous 12 weeks

100.00

Additional charge to be added following second and each subsequent letter sent chasing licence application (this may be in addition to fees above)

35.00

Additional charge to be applied in the event of a re inspection being required during the licence period as a result of poor management and complaints

135.00

Additional charge for missing an appointment during inspection process

50.00

Fee Structure – Discounts (discounted from fee payable) £ 2nd and subsequent properties in area 125.00 Membership of MLAS (Midland Landlord Accreditation Scheme) or other recognised Accreditation Scheme

75.00

Membership of a Professional Letting Agents body with recognised code of conduct (not in conjunction with MLAS discount)

75.00

5.4 The Council can only charge landlords for what is reasonable, and Members are asked

to approve the fee structure above. Best practice and experience of other licensing authorities indicate a licence will take on average 22 hours to process; discounts can be passed on to landlords who come forward early and provide information as required, and have membership of recognised professional bodies. This equates to approximately £2.00 per week per property over the lifetime of the scheme. As it is the owner’s responsibility to apply for each licence, the costs and penalties increase where they do not come forward and attempt to avoid licensing. The aim of the proposed fee structure therefore, is to weight the financial burden on those landlords who fail to comply with the scheme.

[AK/06072011/I]


6. LEGAL IMPLICATIONS 6.1 Section 80 of the Housing Act 2004, and the Housing Act 2004: Licensing of Houses in

Multiple Occupation and Selective Licensing of Other Residential Accommodation (England) General Approval 2010 provides the local authority with the power to designate a selective licensing scheme.

6.2 A designation of an area as subject to Selective Licensing cannot come into force any

earlier than three months after the date on which the designation is confirmed. It is therefore proposed that, subject to Member approval in July 2011, the Wolverhampton All Saints scheme is designated to commence from 4 January 2012 for a maximum period of 5 years.

[SH/06072011/X.]

7. EQUAL OPPORTUNITIES IMPLICATIONS 7.1 This report has equal opportunities implications in that it seeks to address issues relating

to substandard private sector accommodation, and as such seeks to target resources towards financially disadvantaged or vulnerable households living in non-decent homes.

7.2 Equality issues have been considered throughout the consultation period following

government guidelines. A full Equality Impact Assessment of this policy will be undertaken as part of the scheme implementation and impact monitoring.

8. ENVIRONMENTAL IMPLICATIONS 8.1 This report has environmental implications in that substandard housing conditions can

have a substantial detrimental impact on neighbourhoods. The purpose of a Selective Licensing Scheme is to improve the physical conditions of privately rented property. Other Local Authorities that have adopted these measures have reported significant positive environmental improvements across designated areas.

9. SCHEDULE OF BACKGROUND PAPERS

All Saints proposed designation area map attached for information as Appendix 1 All Saints Designation Report (draft) attached for information as Appendix 2 ABCD Succession Strategy All Saints Renewal and Investment Strategy ABCD Delivery Plan 2009/10

Warehouse

Station

103

226

35

236

BOWDLER ROAD

121

BM 154.76m

156.1m

109

132

127

63

220

48

214

153.0m

and Community CentreAll Saints Church

151.2m

BM 151.90m

6

PARKYN STREET

1

LEVER STREET

93

159.1m

68a

73

70

BM 159.98m

7983

68b

80

El

HOWARD STREET

Bradburn and Wedge Building

Sub Sta

123

RA

BY S

TRE

ET

160.0m

133

113

103

96

141

31

6454

46

48

52

4955

DARTMOUTH STREET

48

GRANVILLE STREET157.3m

59LB

PH

28

53

4547

3650

158.2m

1

11

56

42El Sub Sta

43

214

GR

AN

VILLE

CLO

SE

75

2

94

12

84

13

77104

8767

4957

44

23

114

55

1

22

74

29

5743

39

33

32 42

34

56

71

27

60

20

74

61

GRANVILLE STREET

241

75 80

El Sub Sta151.5m

40

GOWER STREET

29

28

HousingOffice

25 24

42

1319

34

Playground

27

ADELAIDE WALK Playground

7 1 GO

WE

R S

TRE

ET

150.9m

Games Courts

Depot

Works

Warehouse

70

PH

CR

Boro Const Bdy CRBoro Const Bdy

Def

Ward Bdy

Boro Const B

dy

Ward Bdy

Boro Const B

dy

Def

Def

Boro

Con

st B

dy

Ward Bdy

1 to 26

St Mary's H

all

161.2m

161.2m

POWLETT STREET 157.6m

Works

5357

Vicarage

YardBuilder's

158.5m

to63

Playground

VIC

AR

AG

E R

OA

DBM

156

.71m

156.1m

2

3

157.0m

144

2a

13

TCB

Cleveland House

Posts Shelter

BILSTON ROAD

NAVIGATION STREET

Shelter

Posts

The RoyalPosts

35

151.7m

STEELH

OU

SE LA

NE

Car Park

152.1mBM

152.76m

JENNER STREET

30

Works

Midland Metro

70a706529 6024

GORDON STREET

MAXWELL ROAD

DepotWarehouse

DARTMOUTH STREET

GRANVILLE STREET

ALL SAINTS' ROAD

SUTHERLAND PLACE

Works

RA

BY

STR

EET

Warehouse

SUTHERLAND PLACE

Warehouse

Works

GORDON STREET

81

to 107

143145

147

Garage

TCB

48

4950

Police

Garage

20

Garage

All SaintsLearning Centre

The Workspaceand

160.0m

GROVE STREET

160.3m

32

Garage

Works

PH

294

BIRM

ING

HA

M R

OA

D

297

279

289

ALL SAINTS ROAD

285

274

261

95

159.7m

251

66

126

160.6m

6

269

71

268

1

VICA

RA

GE R

OA

D

256

97

76

Surg

ery

241

7

86

JEFFS AVENU

E

9281

12

246

101

236a

239

94

232

47

115

34

All rights reserved Wolverhampton City Council OS Licence Number 100019537. Copyright 2011

Appendix 1All Saints Selective Licensing

For extra copies of this plan, or for more information regarding Copyright issues, contact the Council's "Asset Management Group" on 01902 555634. Quote map reference "Appendix 1 All Saints Selective Licensing A2.mxd" This plan was produced on 13/12/10

1:1,250

KeySelective Licensing

Development SitesVicarage Road/Raby StreetDevelopment Site

Gordon StreetDevelopment Site

All Saints

June 2011 Final Designation Report 1

Appendix 2

Contents

All Saints


1. Introduction 3

2. Background to Selective Licensing 3 3. The All Saints Selective Licensing Area 4 4. Housing Tenure Analysis 5 5. Empty Property Analysis 6 6. Development Sites 8 7. Energy Efficiency 8 8. Crime 9 9. Housing Market Analysis 12 10. Consultation 13 11. Proposed Approach to Selective Licensing in All Saints 15 12. Financial Considerations 16 13. License Details 18 14. Sanctions 19 15. Selective Licensing Successes 19 16. Conclusions 20 17. Recommendations 20

All Saints


1. INTRODUCTION 1.1 The Local Authority (LA) recognises the importance of the private rented sector (PRS) within

local housing markets and, with its partners, has supported the PRS over a number of years through various initiatives. We have provided financial assistance to improve the physical condition of properties through grant funded group repair schemes, developed a landlord accreditation scheme, implemented an Empty Property Strategy and introduced a Private Sector Leasing Scheme.

1.2 The PRS in Wolverhampton is recognised as an essential element of the housing offer that is

available to current and prospective residents of the City. Wolverhampton has concentrations of private rented accommodation offered at affordable prices; however, traditionally these properties are located in areas of deprivation where the PRS is generally below standard in both management and physical terms. These properties are statistically more likely to be the hardest to heat, concentrated in neighbourhoods that suffer the effects of crime and anti‐social behaviour, and house families on low incomes.

1.3 Some landlords in Wolverhampton have already engaged with the LA and become

accredited; undertaking to improve property conditions and management standards through a voluntary approach. However, as far as we are aware, there is only one accredited landlord operating in the proposed Selective Licensing area of All Saints.

1.4 Selective Licensing is seen as a key initiative in order to deal with in neighbourhoods where

problems have persisted despite other partnership and statutory interventions. The introduction of a Selective Licensing Scheme in All Saints will not only support the ongoing area based regeneration initiatives that have been undertaken over the past ten years, but will make an invaluable and significant contribution towards the long term sustainability of the area.

2. BACKGROUND TO SELECTIVE LICENSING 2.1 Selective Licensing schemes are highly targeted measures used to tackle the most severe

problems in the PRS and contribute towards the regeneration of an area when used as a tool to support other initiatives. However, it is also nationally recognised that a Selective Licensing Scheme should not be seen as a panacea or operate in isolation. Strategic relevance to the LA’s long term aims, objectives and policies is essential. Areas with poor management and property standards can contribute to housing market failure, however, a Selective Licensing scheme can provide the opportunity for an area to be improved specifically in relation to environment housing conditions and property management.

2.2 Prior to designating an area for Selective Licensing, the LA must consider whether there are

other courses of action available to them that might provide an effective means of dealing with the issues which the scheme is intended to address, and consider whether the scheme will significantly impact on those issues successfully.

2.3 Implementation of the scheme must be consistent with the LA’s overall Housing Strategy and be co‐ordinated with its approach to dealing with homelessness, empty properties and anti‐social behaviour.

All Saints


2.4 Selective Licensing will enable measures to be introduced which compel landlords to manage their property adequately and deal properly with all aspects of property management, from referencing perspective tenants through to tackling anti‐social behaviour caused by tenants residing in their property.

2.5 The LA has a duty to consult on the proposal to Selectively License an area with all those persons likely to be affected by it; including landlords, tenants, social housing providers, local businesses, the PCT and any party with a vested interest in the proposed area.

2.6 The Government have removed the requirement on LA’s authorities to seek Secretary of State approval prior to the implementation of a Selective Licensing scheme in their area; in line with the localism agenda.

2.7 The feasibility and development of this proposal has been funded by the ABCD New Deal for Communities Initiative.

3 THE ALL SAINTS SELECTIVE LICENSING AREA 3.1 All Saints is a small residential area in the northern part of the Ettingshall Ward of

Wolverhampton, located to the South East of the City centre; with good transport links including the Midland Metro.

3.2 The area is ethnically diverse, with a large Sikh Punjabi speaking community; with many

householders utilising the retail and faith buildings locally.

3.3 All Saints is a priority regeneration area for the LA that has received formal recognition within a number of the Council’s strategic documents including:

• All Saints Renewal & Investment Strategy 2007 • ABCD Delivery plan 2009‐11 • Wolverhampton Futures Housing Plan 2008‐2026 • Wolverhampton Community Sustainable Strategies 2008‐2026 • ABCD Succession Strategy 2009

3.4 The housing stock, which was predominately privately owned, has experienced substantial

growth within the private sector market during the last twenty years; the PRS is now the largest tenure in the area. This, in some instances, has contributed to poor property management, resulting in the area having some of the poorest quality private sector stock as identified in the City’s Private Stock Condition Survey (2006). In addition to poor quality housing, historically the area has experienced problems with crime, Anti Social Behaviour, prostitution, fly‐tipping and other issues symptomatic of an area suffering multiple deprivation.

3.5 Under the Selective Licensing proposals, the owners of all private rented properties in the All

Saints area will require a licence to operate within the designated area, unless the tenure changes to owner occupation or Private Sector Leasing. Accreditation of landlords in the area, in a bid to drive up standards, has been unsuccessful.

3.6 Based on a number of supporting factors, as contained within this report, it is proposed that

all of the private rented properties in the following streets will be subject to the scheme:

• Adelaide Walk

All Saints


• All Saints Road • Dartmouth Street • Gordon street • Gower Street • Granville Close • Granville Street • Maxwell Road • Raby Street • Vicarage Road

A map of the proposed designation area and adjacent development proposals in All Saints is attached as Appendix 1.

4. HOUSING TENURE ANALYSIS – Proposed All Saints Selective Licensing Area

4.1 Property Type and Tenure Profile ‐ The majority of the pre‐1919, 2 storey terraced housing in All Saints are privately owned or rented. Some properties have small defensible gardens to the front and court yard rear gardens, with shared gated alleyways, whilst others have frontages directly onto the footpath. Properties are often difficult to heat owing to their solid brick construction.

4.2 The area identified for the Selective Licensing proposal contains 524 properties. The tenures

have been identified using an analysis of Council Tax records and other data gathered from social housing providers. The tenure mix is shown in the chart below:‐

4.3 Commercial – There are 13 commercial properties in the proposed Selective Licensing area (excluding properties in the development area shown in Appendix 1).

• Four are being converted for Social Housing by Wolverhampton Homes

• One is being converted into a Wolverhampton Homes Office

All Saints


• Two are vacant and on the market for sale

• Four are trading as intended

• Two are voluntary sector projects

4.4 Owner Occupied ‐ There are 130 properties identified as owner occupied properties in the proposed Selective Licensing area. Should the Selective Licensing proposals be progressed, owner occupiers will not be required to be licensed. However, should tenure change to privately rented during the programme a licence will be required.

4.5 Private Rented ‐ There are 194 privately rented properties (at the time of this report) within the proposed Selective Licensing area. There are 28 properties managed by “portfolio landlords” (2 or more properties), and 166 of the landlords have just one property in the area.

4.6 Social Housing ‐ Midland Heart and Wolverhampton Homes both have large portfolios in the proposed Selective Licensing area:

• Midland Heart has 106 properties in the proposed Selective Licensing area • Wolverhampton Homes has 56 properties in the proposed Selective Licensing area

4.7 Development – There are 23 commercial and residential properties in the Vicarage Road/

Raby Street development area shown at Appendix 1. 4.8 Private Sector Leasing – Two properties are being managed by the Councils appointed

managing agents (1 by Wolverhampton Homes and 1 by bchs). 5 EMPTY PROPERTY ANALYSIS – All Saints Selective Licensing Area

5.1 Empty properties are having a major detrimental impact in the area identified and solutions for these properties will need to be found if confidence in the housing market is to be improved. In addition to the detrimental impact on the street scene, which makes properties difficult to sell or rent, these properties are often a magnet for anti‐social behaviour such as arson, theft of metals, fly tipping and vandalism.

5.2 There are 55 empty properties in the area; double the average number for the City of Wolverhampton in percentage terms according to Council Tax data. Long term empty property is defined as empty over a six month period.

Council Tax and Physical Inspection Data – September 2010

All Saints


* Excludes empty properties within the development sites.

5.3 Physical Inspection ‐ The Council’s adopted Empty Property Strategy categorises empty properties for action using the following methodology: –

• Red – properties that are detrimental to the area

• Amber – properties that are in decline

• Green – properties that are not problematic

A physical inspection of the empty properties within the proposed Selective Licensing area was carried out on 4th October 2010, and the empty properties were analysed using the above criteria.

5.4 Tenure Analysis of Detrimental Properties ‐ The detrimental affect of empty properties occurs irrespective of tenure so a co‐ordinated approach to dealing with long term empty property is required to achieve sustainable change in the area.

All Saints


5.5 Detrimental Properties Wolverhampton City Council ‐ There have been a number of public sector interventions to assemble sites for development. The majority of properties have either been demolished or are awaiting demolition (refer to Appendix 1). A further 6 properties (plus 2 which are not currently considered detrimental) have been purchased by the LA when proposals for a wider programme of demolition was planned. As these plans have now been scaled back, these properties will be offered to Preferred Housing Association Partners in December 2010 as either “Home buy” or Social Housing refurbishment opportunities. Should a preferred Housing Association partner not be found to bring these properties back into use, further project proposals could be considered as an alternative to these properties being offered for disposal to the private sector, due to the already high number of existing PRS stock.

5.6 Detrimental Properties Midland Heart ‐ Midland Heart had 3 detrimental properties in the Selective Licensing area at the time of survey. These properties were being made ready for letting and can be considered a result of tenancy turnover in a low demand area for the Association.

5.7 Detrimental Properties Private Owners/Landlords ‐ There are 11 detrimental properties in the area that are privately owned. The Councils Empty Property Officers are taking action in line with the LA Empty Property Strategy in a number of cases. Two properties are currently the subject of a Compulsory Purchase Order, one is in the process of being sold following a bankruptcy order, and negotiations are underway with a number of other owners to broker a voluntary solution.

5.8 Recent Empty Property Success ‐ Wolverhampton Homes has secured two successful bids with ABCD to refurbish 13 two and three bed roomed family homes, classed as long term voids; some having been empty for a number of years located within the Selective Licensing area. This investment has been supported by Decent Homes funding to ensure that the properties are brought back into use, thus complementing other planned regeneration work in the neighbourhood. By investing in these properties, Wolverhampton Homes has shown a further commitment to improving the area.

All Saints


6 DEVELOPMENT SITES – Proposed Selective Licensing Area 6.1 The Council has requested development proposals for the sites edged in blue and identified

as Phase 1 and 2 in Appendix 1. Developers have made proposals and the Council will be working with the selected developer to bring forward development of these sites. Phase 1 does not require any further site assembly. There are still a number of properties to be acquired in Phase 2.

6.2 Proposals for the development of The Royal Hospital site are currently out to public consultation; a planning application is expected to be registered with the LA by April 2011.

7 ENERGY EFFICIENCY – in All Saints 7.1 Affordable Warmth – The LA set up an Affordable Warmth scheme in 2001 which co‐

ordinates funding and delivers insulation to properties across the City. This scheme has to date received in excess of 2,500 referrals. The poor thermal efficiency of the All Saints properties, due to their solid brick construction, has been recognised; however energy efficiency and heating measures have only been successfully completed in the following streets:

Street Total no.

Gordon Street 1

Gower Street 2

Granville Street 2

Maxwell Road 5

Raby Street 4

Vicarage Road 8

The reasons for the low take‐up of free and discounted insulation measures are un‐quantified, but the high levels of privately rented properties may be a contributing factor.

7.2 Wolverhampton Homes ‐ An initiative to refurbish 13 long term voids in the area includes

piloting the use of renewable and low carbon technologies. This will dramatically reduce the carbon production, energy demand and the possibility of fuel poverty for the incoming families. Over a period of time the utility bills will be monitored and evaluated to measure the energy saving costs, energy and CO2 emissions, in order to quantify the benefits and plan future investment in Council owned and private housing stock.

All Saints


8 CRIME – Including Anti‐Social Behaviour and Environmental Crime

8.1 Overall recorded crime levels for the All Saints area have fallen over the past three years. However, the Ettingshall Neighbourhood Tasking Group, which is a stakeholder multi agency forum, believe that this decrease is due to the under reporting of incidences rather than an actual improvement in instances of crime in the All Saints area. The Tasking Group comprises members of:

• Anti Social Behaviour Unit • Social Services • Police • Wolverhampton Homes • Neighbourhood wardens • West Midlands Fire Service • Neighbourhood Manager • Youth Service • Selective Licensing Project Officer

8.2 Reported crime in the All Saints Area 2006/7 – 2008/9:

All Saints City Crime Category

2006/7

(No. of recorded

crimes)

2007/8

(No. of recorded

crimes)

2008/9

(No. of recorded

crimes)

Change between 2006/7 and 2008/9

Rate per 1,000 population 2008/9

Change between 2006/7 and 2008/9

Rate per 1,000 population 2008/9

Total Crime 752 560 545 -27% 135.4 -13% 121.9

Domestic Burglary

35 32 38 +6% 24.2* -3% 15.5*

Burglary Other 54 45 35 -35% 8.7 -16% 8.3

Theft of Vehicle 29 20 19 -34% 4.7 -19% 3.7

Theft from vehicle

88 67 37 -58% 9.2 -23% 7.5

Robbery 35 25 41 +17% 10.2 +2% 4.1

Violent crime 117 94 97 -17% 24.1 -17% 18.1

Criminal Damage

117 96 96 -18% 23.8 -14% 17.0

Theft from Person

7 2 6 -14% 1.5 -13% 0.9

Source: West Midlands Police (* = rate per 1,000 households)

[All Saints: Population – 4,024 Households ‐ 1,573]

All Saints


Notes:

• Although over the three year period overall recorded crime fell by a greater amount than the city average, the rates in All Saints remained well above the city average

• Rates for all individual crime categories are greater in All Saints than the city average • Recorded domestic burglary figures in All Saints rose whilst the city average fell • Robbery figures increased at a greater rate in All Saints compared to the city average

increase • The key crime and disorder issue over recent years in the All Saints area has been the vice

trade and associated issues such as illegal drugs. There is no specific data available which can quantify this e.g. drug crime data is often more reflective of police activity than actual levels of crime.

8.3 Anti‐ Social Behaviour and Environmental Crime ‐ ASB and environmental crime is below the City average in the All Saints Selective Licensing proposal area. However, this may again be due to under reporting as contended by the Ettingshall Tasking Group. Incidents reported to the Public Protection division for the year 2009/10 in the proposal area is as follows:‐

8.4 Housing Standards Complaints ‐ The Local Authority’s Regulatory Services and Private Sector Housing Standards teams deal with housing complaints across the City, which includes issues of property disrepair and, public health issues such as fly tipping. The number of Housing Standards complaints, in relation to poor property conditions, is almost 3 times the City average in the proposal area. Complaints received relating to housing standards in 2009/10 for privately rented property can be evidenced as:‐

All Saints


8.5 Four Improvement Notices were served on private sector landlords where enforcement was necessary to remove the hazards in the properties concerned.

9 HOUSING MARKET ANALYSIS

9.1 Property Sales ‐ In line with the economic downturn, the number of property transactions has fallen dramatically in the proposal area:‐

9.2 Property Values ‐ Properties in the proposal area have consistently had lower sales values than Wolverhampton in general:‐

All Saints


This tells us that properties in the proposal area sell for £39,109 less than the average property in Wolverhampton (Land Registry Data). A physical survey undertaken of the area on 12/10/10 identified one three bedroom property for sale in the area with an asking price of £69,950.

9.3 Private Sector Property Rental Values ‐ Information on rental yields is difficult to analyse at a local level as no historic information is collated. The Local Housing Allowance (LHA) which is now used to set levels of housing benefit is based on an average of the broad rental market area for Wolverhampton. There have been no significant changes other than a fall of £11 PCM for 2 bedroom properties since the start of the year.

The physical survey of the proposal area on 12/10/10 also identified 8 residential properties for let. When compared to the Local Housing Allowance rates these properties were being marketed for rent as follows and in all but one case were below the LHA rate–

All Saints


Street Property Type Local Housing Allowance Rate (pcm)

Variance

Vicarage Road 1 bed £393.90 ‐£43 Vicarage Road 3 bed £548.51 ‐£73 Gordon Street 2 bed £473.72 £34 Gordon Street 3 bed £548.51 ‐£98 Adelaide Walk 2 bed £473.72 ‐£48 All Saints Road 3 bed £548.51 ‐£98 All Saints Road 3 bed £548.51 ‐£148

10 CONSULTATION

10.1 The Housing Act 2004 previously required LAs to apply for Secretary of State for Communities and Local Government (CLG) for approval to designate areas for discretionary licensing. Section 80 of the Housing Act: Licensing of Houses in Multiple Occupation and Selective Licensing of Other Residential Accommodation (England) General Approval 2010 provides LAs with the power to designate a Selective Licensing scheme in line with “the Future is Local” agenda.

10.2 The general approval states that the LA must conduct a consultation of not less than 10

weeks. The LA must ensure that they fully consider all the evidence before making a decision to ensure that they are not subject to judicial review following the making of the designation.

10.3 There is a risk of judicial review where the correct processes leading to the declaration of a

Selective Licensing scheme have not been properly followed. The Council can be confident that all due processes have been followed in the preparation of this Designation Report. The CLG guidance document “Approval steps for additional and selective licensing designations in England” has been followed and guidance sought from CLG where appropriate. Consultation has successfully been carried out within the designated timescales and the evidence is summarised in the following paragraphs.

10.4 There are 524 properties in the Proposed Selective Licensing Area and the percentage

consultation response rate when compared to other LA’s currently delivering a Selective Licensing scheme is: Local Authority Resident

Response Rate Landlord Response Rate

Stakeholder Response Rate

Manchester 4 % 2 % u/k Newcastle 6 % 13.7 % 10 % Oldham 2 % 15 % 0 % Wolverhampton 8.1 % 12 % 0 %

10.5 Approach to Consultation ‐ The approach to initial consultation with residents, landlords and other stakeholders followed best practice and guidance. Consultation concluded with residents on 27th September 2010 and with landlords and other stakeholders concluded on 4th October 2010.

All Saints


10.6 Of the 524 properties in the proposed Selective Licensing area identified, every household, business and stakeholder was invited to comment on the proposal by means of a questionnaire, through face to face meetings, by visits to their homes, locally held surgeries, focus groups, fun days and through direct mailing of literature.

10.7 Preliminary Consultation – This took the form of a “meet and greet” with stakeholders and partners, in order to seek views about the introduction of a Selective Licensing scheme in the area and to obtain a broad overview of their remit. At the same time the aim was to promote the Selective Licensing scheme proposal and provide a general awareness. This initial consultation took place with:

• All Saints Action Network (ASAN) • All Saints Children Centre • Clarkes Stores • Anti Social Behaviour Unit • Ettingshall LNP • Empty Property Team • Regeneration Team • Tenancy Deposit Scheme • Tenancy Sustainment Team • Dartmouth Arms Public House • All Saints Pharmacy

10.8 Resident Consultation ‐ 8.1% (44 out of 524) of residents in the proposal area returned

the questionnaire and responded as follows:‐ • 16% (7) knew of households where tenants had been evicted and

subsequently re‐housed close by • 37% (16) had experienced problems with privately rented property in the

area • 77% (33) thought the council should do more to control and regulate private

landlords • 88% (38) thought landlords should make sure tenants know anti‐social

behaviour is unacceptable • 77% (33) thought landlords should demand references from tenants • 96% (41) thought landlords should take action against tenants who cause

anti‐social behaviour • 93% (40) thought landlords should ensure properties are in good condition • 49% (21) thought not many landlords acted responsibly, 21% (9) thought

most landlords acted responsibly and 14% (6) thought landlords never acted responsibly

• 70% (30) thought privately rented properties should be licensed • 56% (24) thought licensing would improve the area • 39% (17) felt completely safe in their home • 30% (13) would be willing to become part of a Selective Licensing focus group

Resident Quotes ... “the anti‐social behaviour, drugs and bad tenants have made it difficult” ....

...”landlords to maintain properties, make tenants responsible for upkeep/front of property”.. .

All Saints


A full analysis of resident survey responses is shown as Appendix 2.

10.9 Landlord Consultation ‐ 12% (22 out of 170) of private sector landlords in the proposal area returned their questionnaire and responded as follows –

• 91% (20) agreed that the council should intervene in areas suffering from low demand and anti social behaviour

• 50% (11) agreed that Selective Licensing could have a positive impact in the area • 95% (21) agreed that poorly maintained and managed properties contributed to area

decline • 77% (17) agreed that landlords have a responsibility to manage their property

satisfactorily and obtain references • 50% (11) agreed that Selective Licensing will ensure good management and

maintenance • 50% (11) agreed that selective licensing would reduce anti social behaviour • 55% (12) had problems getting honest and accurate references for tenants • 41% (9) of landlords agreed they should take action against anti social tenants in

their property • 36% (8) agreed that Selective Licensing would increase rental values and property

prices, 46% (10) didn’t know • 46% (10) agreed that the council should designate areas for Selective Licensing • 55% (12) agreed with the Selective Licensing proposals and 29% didn’t know • 41% (9) would give time to a Selective Licensing focus group

Landlords Quotes ...” there should be positive, active and quick action against anti‐social behaviour. Landlords/agents should have support and guidance”…

....”I have only been in the area a short while and first impressions of the area are not good.....If I had done my research I would not have bought in the area”. .. A full analysis of landlord survey responses is shown as Appendix 3.

10.10 Agent Consultation – Local letting agents were also surveyed. Only one letting agent

responded to the questionnaire, stating that they did not operate in the All Saints area due to the quality of property and the type of tenants generally attracted to such property.

11. PROPOSED APPROACH TO SELECTIVE LICENSING IN ALL SAINTS 11.1 As identified in the preceding sections, it is clear that many of the issues affecting the

proposed scheme area result in a detrimental quality of life for local residents, and many of these issues cannot be specifically attributed to any single housing tenure.

11.2 From a Private Sector Landlord perspective, rental yields and additional costs associated with tenancy turnover make the area a difficult market to operate in. Anecdotal evidence that landlords are relinquishing their interest in favour of more stable housing market areas or keeping their property empty ‐ in the hope that the general housing market will improve ‐ are supported by the evidence gathered for this report.

11.3 The LA has two Neighbourhood Sustainment Officers that are dedicated to bringing long term empty properties back into use, through a range of measures from advice and guidance to enforcement. One of these officers has been tasked with looking at tackling problematic

All Saints


long term empties as a priority in order to support the aims of this scheme. Their focus will specifically be on:‐ • Bringing problematic empty properties back into use • Encouraging take up of the Private Sector Leasing scheme • Encouraging landlords to become members of an accredited or professional body

11.4 It is important that the focus of any work around the private sector in All Saints concentrates on restoring confidence and facilitating local improvements the area; visible measures for the residents. However, in order to support the Selective Licensing proposal and to bring forward a cross tenure approach, the relevant officer resources need to be identified if sustained improvements are to be achieved.

11.5 Following best practice across the country, it is suggested that the Selective Licensing Officer would broadly be responsible for the implementation of the scheme; including the issuing of licenses, spot checks on property conditions, promoting the scheme, monitoring the impact and signposting landlords to relevant support services (such as ASB Unit, Housing Benefits etc). The Officer would also be responsible for maintaining community engagement and ongoing consultation.

12 FINANCIAL CONSIDERATIONS

12.1 As part of the selective licensing proposal for All Saints a transparent fee structure needs to

be in place. A number of calculations by other LA’s have been considered where fees for both HMO and Selective Licensing schemes have been implemented. However, since implementation, many LA’s report that they have understated the actual costs of licensing.

12.2 There are a number of variables which can make a major difference to how the cost of implementing a scheme. For example –

• The number of years the scheme runs for • How many licence fees are collected • How much enforcement work is carried out • The salary scales of officers allocated the tasks

12.3 When looking at the examples from other LA’s, it is clear that all the fees relate directly to the cost of generating a licence. There appears to be no time allocated to work with landlords or to assist landlords with problems which subsequently arise. Selective Licensing differs from HMO licensing as it is not mandatory. On this basis, landlords may question what they are getting for their fee. Without the support element, the scheme could be seen as a self financing administrative function with little benefit to landlords, tenants or the area in general.

12.4 Based on the information from other LA’s, the Oldham fee schedule (as developed specifically) for Selective Licensing is the easiest to understand and is comparable in terms of estimated costs and hours to Wolverhampton HMO Licensing. The most recent scheme to be adopted estimates each licence takes around 22 hours to produce at a cost of £525 per property. Wolverhampton’s own calculations concur with this estimate.

12.5 Another issue to consider is that the majority of administrative work is required in the first year of licensing. The majority of licence fees are also likely to be generated in the first year. This calls into question if staffing levels need to be sustained after the first year if there is no landlord support function.

12.6

All Saints


Fee Structure £

Initial application fee for a licence 525.00

Fee Structure – Penalties (increased costs) £

In the event of property being found by officers surveying for licensable properties, a finders fee will be added unless the landlord is able to demonstrate that they became the owner of the property within the previous 12 weeks

100.00

Additional charge to be added following second and each subsequent letter sent chasing licence application (this may be in addition to fees above)

35.00

Additional charge to be applied in the event of a re inspection being required during the licence period as a result of poor management and complaints

135.00

Additional charge for missing an appointment during inspection process

50.00

Fee Structure – Discounts (discounted from fee payable) £

2nd and subsequent properties in area 125.00

Membership of MLAS or other recognised Accreditation Scheme 75.00

Membership of a Professional Letting Agents body with recognised code of conduct (not in conjunction with MLAS discount)

75.00

Issues raised are –

• Only costs arising directly from the licence can be charged (time spent promoting good management practice can’t be charged for)

• The full licence fee must be charged upfront and not annually

This may work for HMO Licensing but may be ineffectual on an area basis.

12.7 As with the HMO licensing regime, landlords must pay a charge for a licence issued under a Selective Licensing scheme. LA’s can set the level of the fee; the intention is that the rate should be ‘transparent’ and should cover the actual cost of the scheme’s administration.

12.8 Dependant on the success of the proposal and other external market forces, private sector landlords should see an increase in potential rental yields and the value of their property/ portfolio.

12.9 The proposed support for tenancy management and area improvement should reduce costs

arising from void periods and tenancy turnover.

12.10 Bringing empty properties back into use will restore confidence in the area in addition to generating income for the individual owners.

All Saints


13 LICENSE DETAILS

13.1 Licenses will be required for all private sector properties where the occupier(s) of the property is not the registered owner and if the landlord is paying the council tax as the property is in multiple occupation.

13.2 Two types of licenses are proposed:‐ • Full Licenses – Where the application form, fee and all supporting information has

been provided. • Interim Licenses – Where the application form and fee has been provided but some

information is missing (e.g. Gas Certificate/ Energy Performance Certificate/ Tenancy Agreement/ Agreement with agent etc).

Two types of Notices are also proposed where licenses are not yet in operation/required:‐

• License Liability Notice – Where the property is empty or no application has been made.

• TEN (Temporary Exclusion Notice)

13.3 Properties with Interim Licenses will be targeted for inspection before properties that have applied for and obtained a Full Licence.

13.4 Properties with Full Licenses will be inspected if housing standards or anti‐social behaviour complaints are received.

13.5 Full or Interim Licenses may be suspended if it is necessary to issue formal Housing Act improvement notices or if unprofessional management of the property is proven.

13.6 Landlords who rent properties with a without a license will be liable to a fine/ prosecution. 14 SANCTIONS

14.1 If a LA believes that a landlord has breached licence conditions, they can issue a fine of up to

£5,000 for each offence/breach. Operating a property without a licence in a designated area can attract a fine of up to £20,000. For its part, the LA is obliged to take reasonable steps to ensure that applications are made for all licensable properties.

14.2 Part 4 of the 2004 Act contains additional provisions for enforcement action in respect of

properties that are licensable under Parts 2 and 3 of the Act – including those licensable under selective schemes. The mechanisms that LA’s have at their disposal include Interim Management Orders and Final Management Orders. Interim Management Orders allow the transfer of the management (not ownership) of a property to the LA for a period of up to twelve months. Final Management Orders are in place where Interim arrangements need to be extended, and can be in place for up to five years.

14.3 The Council can make an application to the Residential Property Tribunal (RPT) for a rent repayment order if a property is rented without a licence. If approved, the landlord of the unlicensed property can be required to repay up to 12 months of Housing Benefits payments. Tenants who are not on housing benefits can also make such an application to the RPT.

All Saints


15 SELECTIVE LICENSING SUCCESSES 15.1 Selective Licensing has been successfully implemented in a number of areas across the

country. There are, to date, 18 designations in 12 LA areas prior to the introduction of general consent in April 2010.

15.2 Middlesbrough – Selective Licensing in Middlesbrough as introduced in June 2007, and

phased in on a street by street basis in areas experiencing high levels of crime and anti‐social behaviour. The strategy was to challenge the private tenants and families causing anti‐social behaviour, encourage them to engage with support agencies, assist tenants to modify their behaviour and help them sustain their tenancy. Support for families and/or individuals is an essential component of their intervention strategy. Their evaluation of the scheme (published in May 2010) indicates that there has been a considerable increase in the uptake of services provided to landlords; in particular the tenancy referencing service, where the requests for references are now at around 150 each month. Implementation of the Selective Licensing scheme has led to increased engagement with landlords in the area.

15.3 Salford – There is evidence that the property prices within the designated area have risen

and property turn over has decreased. Void rates have also shown a clear downward trend. The reporting of anti‐social behaviour increased at the start of the project, which was considered to be as a consequence of the scheme setting up and giving residents the confidence to report problems (as well as providing additional resources to tackle the issues raised). This has subsequently fallen as a result of the scheme’s interventions.

15.4 Gateshead – There has been a dramatic increase in the membership of the Landlords

Association. Almost half of the new members joining since July 2007 have properties in the licensing area, which is when the scheme became operational. There has been a substantial increase in the number of accredited, resulting in more decent homes in the private rented sector. Of those properties where works have been carried out to bring up to the accreditable standard, landlords have on average spent over £2,000 per property on improvements. Letting Agents and landlords have generally shown more commitment to the area, becoming proactive with difficult tenants and participating in training events in order to further improve management skills. Where deficiencies in the management of tenants and properties occur, these have been highlighted in the application process and are part of on‐going actions being carried out to safeguard tenants and improve property conditions. Feedback from residents has been positive and the scheme has complemented other regeneration works in the area; particularly block improvement schemes. Landlords have been much quicker to respond to issues relating to anti‐social behaviour arising from their tenant’s behaviour, understanding that this may affect their status as a licence holder.

15.5 Wolverhampton City Council has developed positive relationships with a number or LAs that

have been through the Selective Licensing process and have shared best practice. 16 CONCLUSIONS

16.1 Based on the evidence gathered and the results of initial consultation with residents and

other stakeholders; there is a strong case to support the introduction of a Selective Licensing scheme in the proposal area of All Saints, Wolverhampton.

16.2 Understandably, many of the landlords who responded to the initial consultation did not know if Selective Licensing would be effective or beneficial to them as this will depend on the cost and how successfully the proposals operate.

All Saints


16.3 This determination report sets out some further detail of how the Selective Licensing

proposal could operate and can be used as the basis of further consultation with stakeholders through the landlord and resident forums established.

16.4 Landlord Accreditation Scheme ‐The LA recognises landlords play an essential role in the provision of accommodation for many households, especially as the demand for Social Housing outstrips supply and availability. The LA supports a Landlord Accreditation scheme, (MLAS); encouraging landlords to voluntarily comply with a set of minimum standards regarding the management and physical condition of privately rented properties. However to date, there is little evidence to suggest that many accredited landlords are operating in the All Saints area of the City. All landlords contacted during the consultation process were formally asked to confirm membership of an accreditation body and provide a valid registration number; only one landlord went on to fulfil this criteria.

17 RECOMMENDATIONS 17.1 Seek Member approval (July 2011 Cabinet) for the designation of a Selective Licensing

Scheme for the area described as All Saints, Wolverhampton; including all the streets listed on p.4‐5 of this document (and the map as Appendix 1).

17.2 Approve the monitoring of the scheme and improvements in the neighbourhood in line

with best practice guidance produced by Communities and Local Government Department (CLG).

17.3 Approve the licence fee structure as detailed in p.17 of this document.

prosperity lesley williams to approve the …€¦ · decision item (amber) cabinet date 20 july...

Documents