Landlord scheme ‘will cost nothing’ (From The Oxford Times)

Landlord scheme ‘will cost nothing’

12:00pm Saturday 31st July 2010 in

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A COMPULSORY licensing scheme for landlords across Oxford will not hit the taxpayer, city council leaders have pledged.

They made the guarantee as John Denham, Shadow Secretary of State for Communities and Local Government, visited the city to find out precisely how the new scheme would work.

Last week the council agreed to adopt new powers to create the scheme, which will apply across the city to all houses of multiple occupation (HMOs), apart from certain self-contained flats.

Oxford has one of the highest numbers of HMOs in the country – more than 5,000. For years, families – particularly those in East Oxford – have complained about the conversion of houses into student digs.

Joe McManners, the council’s executive member for housing, said council officers would ensure the scheme, which could cost £591,931 a year to run, would be self-financing.

He said: “We have built in a 20 per cent margin in case there is a drop-off, and I think it is still feasible.

“I’m confident this scheme will still go ahead. Making sure the licensing scheme works well is a top priority for the city council.”

A report to the council’s executive board on July 22 warned council leaders one of the main risks of the scheme was insufficient income due to an over-estimation of the number of HMOs in the city.

Another problem, it said, was the reluctance of landlords to licence their properties.

Mr Denham and Oxford East MP Andrew Smith joined Mr McManners on Thursday near Oxford Brookes University in Headington, to discuss how students in particular might benefit from the changes.

Mr Denham said: “My son Ed, who is 20, has just moved into student accommodation in Nottingham, and no parent wants to think of their children living in unsafe student digs.

“The council should be congratulated for getting a comprehensive licensing scheme up and running.”

The scheme comes into force on October 25 if funding is approved.

Since 2006, the council has licensed large three-storey HMOs containing five or more tenants, and more than 600 licences have been issued. But from October all HMOs will need licences, including properties where three or more unrelated people share facilties.

Mr Smith said: “We are keeping up the pressure on the Government to allow councils to require planning permission for all conversions of family houses to multiple occupation.”

The initial fee for a three-storey HMO, and two-storey HMOs with five occupants, is £470 plus £20 for each extra room. After that an annual fee is £172.