Selective Licensing Scheme Evaluation, re-designated Area Central Bensham

Clearance and new housing development

Prior to Selective Licensing the area had also benefitted from Housing Market Renewal (HMR) Pathfinder funding to assist with problems of low demand, to bring about the sustainable renewal of areas with weak housing markets and to transform neighbourhoods into thriving, cohesive communities, where people will choose to live and stay. 

Furthermore, areas within the scheme and neighbouring streets have been subject to property acquisition, demolition and ongoing property redevelopment. Old and often poorly maintained terraced Tyneside flats, houses and commercial properties are being replaced by new, high-quality housing to provide the mix and balance of housing that is required.

Financial assistance for property improvements

Using the HMR funding properties in Central Bensham benefitted from Area Renewal Assistance via The Block Improvement Scheme (BIS) Programme. The aim of the BIS programme was to improve housing market confidence through improvements to the visual appearance of terraces. In total £10.85 million of funding was used across thirteen phases and the remedial works included:

• new boundary walls with railings
• front step replacement to remedy cracking and uneven paths
• new handrails to steps to match curtilage railings
• garden treatments, introduction of increased greenery
• neutral painting of front elevation stonework
• renewal of front doors, replacement of windows and rainwater pipes

435 properties within the central licensing area participated in the programme, with 259 of these being privately rented. Participants were required to make a 20% contribution to the works and costs and participating landlords were requested to ensure their properties reached and maintained the Gateshead Private Landlord Association Accreditation Standard. Landlords were also provided with financial help towards the cost of meeting this Accreditation Standard; up to 50% of eligible works up to a maximum of £500 within the HMR area.

The private rented property accreditation scheme

The Accreditation Scheme encouraged private landlords to improve properties up to the minimum legal housing standard and above. The Council promotes a number of incentives to encourage landlords to accredit their property, these include:

• a discount from the SLL fee in designated areas
• the provision of a detailed schedule of works to help landlords understand what works were required to bring their property up to the accreditation standard 

There were proposed discounts from the licensing fee of 18% for all properties opting for property accreditation on the Re-designation of Central Bensham.

Landlord engagement 

To aid compliance with the licence conditions within those proposed areas there have been regular training sessions available to landlords and Licence Holders to ensure practical support is provided. At every opportunity landlords are encouraged to utilise the services of a local or nationally recognised landlords' association to facilitate effective tenancy and property management.

Additional members of the wider Safer Gateshead Partnership include a range of public, private, voluntary and community sector organisations. By working together, the partners in Safer Gateshead can have a greater impact on reducing crime, disorder, drug abuse, alcohol-related problems and ASB across the Borough of Gateshead.

Aim of the evaluation

The aim of the report is to present the findings of the selective licensing (SL) scheme within the Re-designation of Central Bensham. The main aim of the scheme was to reduce low housing demand by raising standards within the private rented sector leading to improvements in the overall social and economic conditions in the area to create a strong, healthy and vibrant neighbourhood. It is also considered that the redesignation of selective licensing will assist in the reduction of ASB in the area.

In order to achieve these aims, a number of key outcomes over the period of designation have been identified to:

• reduce the turnover of occupants to create stable communities
• reduce the number of empty properties and the length of time they remain unoccupied
•  reduce levels of ASB linked to tenants in the private rented sector 
• improve private rented property conditions and the number of accredited homes
• improve the management of properties in the area
• increase the number of tenants who manage their tenancy well
• stabilise/increase rental values of private rented properties
• stabilise/increase the value of residential premises
• support the private rented sector in its provision of well managed properties and tenancies and assist those seeking to live and currently living in private rented accommodation. 

It was also considered that the re-designation of Central Bensham (phase 2) would have an overall positive impact on an area that required further intervention. The designation of a smaller redefined area was identified because without continued close working with landlords, residents and tenants, there was the potential for standards to return to pre-licensing practices.

Licence conditions

The mandatory licence conditions are prescribed by schedule 4 of the The Housing Act 2004 (opens new window). The Council has discretion to add additional licence conditions, and these have been categorised to ensure effective management of ASB, property and tenancy management, and managing waste and refuse. The licence conditions were monitored throughout the five years of the designation to ensure compliance. 

Landlord profile

There were 104 Licence Holders within the scheme, and they held 289 licences. The largest portfolio holder held 19 licences in total within the scheme. In contrast, there were 72 Licence Holders that only held a single licence for one property.

The selective licensing scheme commenced in April 2018, and licence holders were encouraged to apply early to benefit from generous early application discounts. There were other discounts available including property accreditation and landlord accreditation. 

Property accreditation

Those landlords who applied for property accreditation were eligible for a discount of £100 from their application fee. There were 90 Licence Holders that applied for property accreditation at the time of application. However, only 56 of those properties met the standard following the subsequent inspection. 

Landlord accreditation

The team worked in partnership with the National Residential Landlords Association (opens new window)  (NRLA - previously the RLA and NLA) to deliver a one-day bespoke accreditation/foundation training course to licence holders. Attendees who then passed the course assessment were expected to remain accredited members with one of the associations for the duration of the licence. All landlords that participated and remained accredited for the duration of the scheme benefitted from a discount of £165 per licence fee.

There were 22 Landlords who applied for landlord accreditation at the time of applying for a licence application. There were 19 accredited licence holders that maintained their competency for the five-year duration of the licensing scheme. 

Tenant meetings

The team carried out 358 tenant meetings throughout the five years of the licensing scheme. Officers worked alongside the tenants to ensure tenancies were set up correctly, bonds were in deposit schemes, the tenants were aware of how to report repairs and anti-social behaviour. Tenants were also given advice on good waste management practices and how to be a good tenant.

Additionally, officers worked with tenants to address concerns where appropriate and refer or signpost tenants to the relevant services. The tenant meetings were carried out at the time of the initial property inspection and any concerns raised by the tenant or identified by the officer were addressed. This included making referrals to the appropriate support agency or service to ensure that all tenants received the correct support or advice.

Furthermore, the team endeavoured to carry out a tenant meeting when the property changed tenancies throughout the length of the scheme so that all tenants received a tenant meeting and were able to receive the relevant support if necessary.