Property licence scheme could raise rents says landlord

Selective Licensing is a power that some councils use to improve the condition of rented properties. The powers can only be used in specific circumstances and after extensive consultation with residents and landlords. The current scheme in Rotherham – that has been in place since 2020 – will be in place until April 2025.

Rotherham Council is now considering the future of Selective Licensing in the town and is asking for anyone impacted in Brinsworth, Dinnington, Rotherham town centre and Eastwood, Masbrough, Parkgate or Thurcroft to feedback via a public consultation.

Adam Kingham and his wife Lindsay have a portfolio of properties in the Rotherham area.

He says he has serious concerns around the consultation process which will inform the next five years of the scheme: “We want to see the Council overhaul this consultation process as it is neither fair, nor transparent.

"Having looked in more depth at the map of the areas concerned, we discovered that Clifton Avenue, Gladys Street and Badsley Street where some of our properties are located, are included as part of Eastwood.

"This could very easily have been missed as the heading makes no reference to Clifton. These streets have always been classed as Clifton, and a property search for anything in these streets – either to rent or buy, would never name them as Eastwood, or town centre.

"I suspect that many people will not know that this proposal applies to them, and will therefore not take part in or engage in the meetings or online consultation when they should be made aware. We feel that Rotherham Council should be duty bound to make the consultation process clear and made easily and readily available to everyone concerned. This is evidently unclear.”

While the scheme is designed to root out rogue landlords, Adam explained the unintended consequences are raised rents from the £995 fee per house the landlord has to pay for a licence and falling property prices from homes being in a perceived ‘problem area’.

He said: "Added costs of unnecessary licencing are hard hitting on landlords who are already been squeezed by changes to legislation and taxation. Ultimately, the likely result will mean landlords being forced to impose unnecessary increases on rents.

"The amount being charged for a licence seems arbitrary too. The discount being offered for multiple properties is insulting.

"Like us, there will be other landlords with a number of properties, for who this huge financial outlay will be too much to pay out as due to various squeezes in the sector, it pinches even harder and there is no profit margin left in the buy to let market, even less when Landlord licensed and this will cause homelessness.

“Will this really appeal to tenants? Paying more rent to live in a licenced area, with the stigma and negative connotation that comes with.

"Worst case, this could and will lead to landlords selling, having to unnecessarily evict good tenants and in many cases making them homeless unnecessarily. This is wrong.

"Furthermore, the council cannot house people as it is, and landlords in the private rental sector fill that gap and provide good housing for tenants. The council will have even more problems on their hands with an influx of homeless tenants which they will be forced to house. How shortsighted.”

Adam (38) who grew up in Ferham, says it is a misconception that all landlords are wealthy and should just take the hit.

"We have several properties and we keep the rents low because we have good tenants who have lived in them for many years and are happy,” he said.

"There is a perception that people make loads of money from being a landlord but that isn’t the case. This is something we have worked hard for and we look at it as our pension.

"It is in our interests to maintain the properties and ensure they meet every legal criteria because we want happy tenants who are able to meet the rent.”

A Rotherham Council spokesperson said: “We appreciate all feedback on the proposed selective licensing scheme in Rotherham. That’s why we’re undertaking a comprehensive consultation process to ensure that those who are impacted are fully informed and have an opportunity to provide their views.

“Our consultation has, so far, included a survey, leaflet drops to all properties within the proposed scheme areas, the distribution of posters across proposed designation areas and close discussions with the Landlords Association.

“We’re also hosting a series of engagement sessions where landlords, tenants and the wider community can express their views, ask questions, and contribute to the discussion.

“Selective licensing has the potential to bring significant benefits to Rotherham, including improved property standards, enhanced tenant safety and better management practices. It’s an important tool in tackling issues like poor housing conditions and anti-social behaviour, helping to create safer communities. The current scheme – which ends in April – has been a success over the last five years, with our teams inspecting over 2,100 properties, removing over 7,800 hazards.

“We’re keen to hear from anyone who may be impacted. Your feedback is vital in helping us make informed decisions that will have a lasting, positive impact on the borough. Visit our website to get involved.”

To have your say visit rotherham.gov.uk/consultation-feedback/selective-licencing-consultation-2025-2030