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Landlord licensing fees defended by council as critics warn of shrinking rental supply

North Devon Council is considering introducing a selective licensing scheme for landlords, proposing fees of £750 to £900 for a five-year permit. The council’s aim is to better regulate rental properties and address anti-social behaviour, yet critics argue the new fees may discourage landlords from staying in the sector.

Licensing scheme could improve tenant welfare, council argues
North Devon, where approximately 20% of households are in private rental according to the 2021 census, hopes the proposed licensing fees could encourage safer, more regulated rental conditions. Liberal Democrat councillor Graham Bell, the council’s lead on housing, sees the scheme as a potential benefit for tenants. “We’re trying to improve people’s lives, and it does seem to work,” Bell commented, noting that similar schemes in other councils have shown positive results, bringing “rogue landlords to justice” and reducing anti-social behaviour in local areas.

Bell claims there is no clear evidence that licensing fees alone have pushed landlords out of the market elsewhere. “The rent increases have been minimal,” he says, pointing to other councils where rental prices have stayed relatively stable even after licensing costs were introduced.

Concerns over unintended consequences
Not everyone shares the council’s optimism. Conservative councillor Pru Maskell worries the scheme may lead to unintended consequences. Maskell argues that increased financial pressure on landlords could push some to withdraw from the rental market altogether, potentially converting properties to holiday lets instead. “It’s becoming less and less desirable to be in the marketplace,” she noted, adding that this trend could reduce the already limited number of rental properties available for local families.

The debate reflects broader concerns across the country, where rising compliance costs, coupled with the looming expense of upgrades to meet C-level EPC requirements, have already prompted some landlords to sell their properties.

Council to conduct feasibility study and open public consultation
To address these contrasting viewpoints, council officers are planning a feasibility study, followed by a public consultation, to gather input from landlords, tenants, and local residents. Through this process, the council aims to weigh both the benefits for tenant welfare and the potential drawbacks for housing availability.

North Devon’s approach is part of a wider movement among councils seeking to balance tenant protections with a sustainable rental supply. As the feasibility study unfolds, other regions may closely watch North Devon’s outcome as they consider similar regulatory moves. Will licensing fees help safeguard renters’ rights or push more properties out of reach? The council’s final decision could set an influential precedent.

 

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