Decision details

The Deputy Leader and Cabinet Member for Highways, Housing and Enforcement presented a report, which sought the approval of Cabinet for (1) the revised Private Sector Housing Enforcement Policy (attached at Appendix G to this report), which had been updated to reflect the changes introduced by the Act; (2) an updated fee scale to reflect those changes; (3) the designation of a borough-wide Additional Licensing Scheme of all small HMOs comprising 3-4 occupants (which were not currently covered by the existing mandatory licensing regime) under the Housing Act 2004, and which included those buildings which fell within the definition of s.257 of the Housing Act 2004; and (4) the fees set out in Appendix F associated with the proposed scheme as well as updated fees in respect of the mandatory licensing regime. </AI6>

Councillor Overton said that over recent years, the better homes for all programme had taken a clear and determined approach to improving housing standards across Telford and Wrekin since 2018 from building a strong track record tackling rogue landlords, to carrying out inspections and improving the quality of private rented homes for the borough’s residents.

The Council had also to recognise that the borough had changed, was growing and with its population having increased significantly in recent years, demand for housing continued to rise.  As a result, more people were turning to the private rented sector and with that, the borough was seeing a rapid increase in houses of multiple occupation (HMO).  Historically, a higher concentration of HMOs had been seen in areas such as Sutton Hill, Brookside, Woodside, Hollinswood and Randlay, however, what was different now and what the report clearly highlighted was that this growth was no longer confined to those areas.

HMOs were expanding to parts of the north of the borough, including areas such as Wellington and Hadley, and an increase in mixed communities and emerging in neighbourhoods that would not previously have experienced this type of housing at scale.

This mattered since while HMOs were a vital part of the borough’s housing solution, when these were unlicensed, unmanaged or poorly run, the consequences of this could be clearly seen.  These consequences were being felt by tenants who lived in poor or unsafe conditions and by residents who experienced the impact on their communities. The evidence in the report showed clear links between HMOs and higher levels of antisocial behaviour and crime near those properties.

Through consultation engagement, residents had raised concerns about increasing antisocial behaviour, noise issues, litter, waste and untidiness, and the wider impact on the feel and cohesion of their communities. In some areas, particularly where HMOs had grown rapidly, there was also a perception and a stigma that neighbourhoods were changing ways that were not always positive.  At the same time, the Council knew that many tenants living in these properties were among the most vulnerable in its borough and often felt unable to raise concerns directly, because they feared the consequences of speaking up.

Therefore, what was in place was a system that, in part, was reactive rather than proactive, reliant on complaints that may never come and unable to fully address the scale of change now being seen.  This was why the Council was bringing forward these proposals today.  It was about the next step since the Council could not manage today's housing challenges with yesterday's tools.

A borough wide licencing scheme meant the Council would know where every HMO was.  The Council would inspect every property before a licence was issued and it could ensure that standards were applied consistently, not just to the largest properties, but to all HMOs.  Critically, this was why the scheme needed to be borough wide.  If the Council we focused on certain areas, it ran the risk of pushing problems elsewhere, create inconsistency and fail to protect residents equally across Telford and Wrekin.

The reality was clear.  HMOs existed across the borough, and the Council’s response needed to match that reality.  This was not about being anti-landlord or stopping HMOs but was about raising standards, supporting good management and protecting communities.

Most landlords wanted to do the right thing, and the Council recognised the valuable role they played in providing housing, which was why this approach was balanced.  Alongside licencing, the Council offered dedicated support for landlords.  Advice and guidance on new regulations helped to manage tenancy issues early and practical tools to support compliance because the Council knew that good, well supported landlords, created better outcomes for everyone.

This was about helping landlords manage shared living property, to ensure tenants had safe, decent homes, and restore confidence in neighbourhoods.

In terms of fees, there was a cost to the HMO landlords to have this additional licence, which cost approximately 75 pence per day.  This licence would show landlords were good, honest and had the standards their tenants deserved.  It was also about tackling some of the misunderstandings and stigmas that could grow around HMOs.

Well-managed HMOs should be clean, safe, and a positive part of the borough’s community.  Poorly managed ones should not define the whole sector, and this was exactly what licencing would help the Council to address.  Ultimately, this came back to the Council’s values.  It was on the side of its residents and was committed to protecting people, caring for its communities and investing in the future of this borough.  The proposal did exactly that. It protected tenants, supported landlords and improved the places the Council’s residents lived in.  It ensured that the borough continued to grow, that the Council took people with it, and that it protected its neighbourhoods whilst maintaining the standards that people rightly expected by creating better homes, better standards for all and a better borough for everyone.

In supporting the recommendations, Cabinet Members said the report:

• showed the Council was committed to every resident having a safe and affordable home.

• sent a message to those landlords who were taking advantage of the fact the Council did not have the powers to enforce.

• set out the Council’s proactive, resident-focused approach to raising housing quality, tackling inequalities and ensuring everybody had access to a safe, secure and decent place to live, which reflected the Council’s values of fairness, opportunity and protecting the most vulnerable.

The Leader of the Liberal Democrat Group said that, for landlords, naturally any increase in administrative costs was always an additional burden and which inevitably they would probably pass on to the tenants, but overall the Council had to think of protection of the majority of people out there, particularly those vulnerable tenants and was pleased the Council was strengthening that protection.

The Leader of the Conservative Group said that everyone present wanted to see rogue landlords removed and the conditions that they brought to some of their properties and the way that they treated their tenants who should have security of a good home. However, he feared that the Renters Rights Act would reduce or have the effect of reducing rented housing supply and could push up rents and make some landlords more selective of tenants which would not help.

RESOLVED that:

1.            The updated Private Sector Housing Enforcement Policy, which incorporated new provisions under the Renters Rights’ Act 2025 (attached at Appendix G), be approved.

2.            The designation of a borough-wide Additional Licensing Scheme for Houses in Multiple Occupation (“HMOs”), as set out in this report, for a period of five years, with effect from 20 August 2026, be approved.

3.            An enhanced support package for landlords to assist compliance with the new requirements under the Additional Licensing Scheme and The Renters’ Rights Act 2025, be approved.

4.            The revised HMO licensing fees (attached at Appendix F to this report), be approved.

5.            A 10% discount for all full and valid additional licence applications received within the three-month period immediately prior to the commencement date of the additional licensing scheme; namely from 20 May 2026 to 19 August 2026, be approved.

6.            The Director of Housing, Commercial and Customer Services, in consultation with the Cabinet Member for Highways, Housing and Enforcement, be authorised to take such steps as are necessary to finalise and implement the Additional Licensing designation.