Using licensing schemes to improve housing standards

We are working to remove unnecessary barriers to the use of licensing schemes to improve housing standards.

• Licensing provides a means for local authorities to inspect privately rented housing using enforceable conditions - and to identify and resolve problems - without the need for tenants to have complained.
• Licensing schemes pay for themselves through the fees that are charged. They thereby provide a sustainable and predictable source of income that enables local authorities to maintain staffing levels and support the training of new officers.
• Licensing schemes enable local authorities to target regulation on where it is most needed, i.e. on tackling the worst landlords and supporting the most vulnerable tenants.

What are we doing?

Two CIEH amendments on licensing were tabled and spoken on by Liberal Democrat peer Lord Shipley at the report stage of the Bill in the House of Lords and previously at the committee stage. Lord Shipley is a Vice President of the Local Government Association and a former Leader of Newcastle City Council. His speeches can be viewed in this video from the Lords report stage and this video from the Lords committee stage.

The first amendment would have enabled local authorities operating selective licensing schemes to use licence conditions to improve housing conditions. It would have removed a “peculiar disconnect” in current legislation whereby local authorities can introduce selective licensing schemes in order to address poor housing but cannot include in the licences themselves conditions requiring the physical state of the licensed properties to be improved.

The second amendment would have increased the maximum duration of additional HMO licensing schemes and selective licensing schemes from five to ten years. Local authorities would then be able to implement longer schemes without repeating the time consuming and expensive designation process. This would allow them to advertise longer term posts and to include training of new staff in these schemes.

The discussion of these amendments in the Lords came after Green MP Carla Denyer tabled and spoke on them at the report stage of the Bill in the House of Commons. She also tabled and spoke on an amendment covering the same issues during the Commons committee stage. Her speech at report stage can be viewed in this video from the Commons report stage and her speech at committee stage can be heard in this recording from the Commons committee stage.

The amendments were backed by the Renters’ Reform Coalition, which comprises 19 organisations and includes major housing and homelessness charities as well as CIEH.

In December 2024 we hailed a major victory on removal of the requirement for councils to seek approval from the Secretary of State for larger selective licensing schemes. A new general approval for selective licensing enables local housing authorities to introduce schemes of any size without seeking such approval. We had repeatedly called for this specific change, which will make a significant difference to the ability of local authorities to tackle poor housing conditions, and are delighted that the Government has now addressed this important issue.

What are we calling for

We are calling for the Government to make it easier for local authorities to use licensing schemes to improve housing standards by

• enabling local authorities operating selective licensing schemes to use licence conditions to improve housing conditions
• increasing the maximum duration of discretionary licensing schemes from five to ten years
• removing the requirement for local authorities establishing selective licensing schemes to ensure that the private rented sector forms a high proportion of properties in the area

Further information

Find out more about what the Housing Advisory Panel is working on.