The total costs involved…

Taking into consideration the upfront & associated costs, an illustration for a Landlord due to Selective Licensing is below.

Application cost: £780 (or £460 with accreditation)
Associated costs: £500 – £600
Home Improvements: up to £1000

£2000+ per house.

For a landlord with for example 50 houses, this could approximately cost them a whopping £100,000 up front. Is this fair? Here is the Council’s view on it:

“The Council believes that the fee should not lead to landlords increasing rent and that the vast majority of landlords will absorb the licence fee and the cost of any necessary improvements to properties as part of the day-to-day costs of running of their business. Income from the licence fees goes towards the cost of setting up, operating and delivering the schemes. The Council is not permitted to make a profit from the scheme.” – Source: Nottingham City Council

Unsurprisingly, landlords disagree with this view. A landlord with a small number of properties may well absorb the cost, however those with large bills will be looking to recoup as much as possible, as any company or organisation would (e.g. Nottingham City Transport increasing ticket prices when service costs increased). A typical landlord may seek to increase your rent in order to recoup some of the costs, whilst still accepting a small loss.

We continue analyse the facts and implications of the scheme below…


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