Council rental licensing schemes Central Housing Group

Rental sector licensing bags £5m in council tax

Since one London local authority introduced private rental sector licensing in 2013 an extra £5,002,203 in council tax has been collected from landlords renting out HMOs.

Newham’s private rental sector licensing originally began five years ago but was forced, by government, to re-launch from scratch in March this year; since its restart it has processed and issued over 30,000 new licences.

In the same period the team council has taken action against landlords in 120 cases where serious and dangerous disrepair was discovered or landlords were breaking the law.

However, a statement from the council suggests it is most proud of having recovered over £5m in ‘lost’ council tax.

“This five million pounds, which would have been lost to the council, and therefore the tax payer, has been recouped by the private rented sector team, and will help us fund the crucial services that our residents rely on, from elderly care, to supporting our young people” says a council spokesman.

“I would urge any landlords to engage with our team especially if they are unclear about the new regulations. We genuinely want to work with landlords to create a fair rental market for them, and for all our residents. Together we can work to drive the rogues out of the market and improve the lives of tenants” he continues.

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