£15m council windfall - funded by landlords and tenants

The compulsory landlord licensing scheme now being introduced across all of Liverpool could get around £15m for the local council - and all paid by landlords or possibly tenants who may pick up the bill in enhanced rents.

The scheme, the largest of its kind in Britain, requires all landlords in the city to have a five year licence for each of their rented properties.

The BBC estimates there are 50,000 rented properties in the city; some will have £200 licences, others £350 and others again will pay £400. One estimate puts the council's total income from this single initiative at £15m.

Members of an accredited scheme approved by the council will pay £200 per property to recognise that they are already a good landlord. Payments will be staggered with landlords paying £100 per property in April, with the rest payable by the end of this year.

Licences will be awarded to landlords who pass fit and proper person' checks. This process includes investigation into conviction history regarding dishonesty, violence or drugs, or contraventions of housing law.

A council statement says: The fees will only be used for legitimate costs incurred by the council such as compliance checks to make sure landlords are meeting the conditions of the licence.

Gavin Dick, local authority policy officer at the National Landlords Association, says the application of the scheme across the entire city means costs and red tape will be shouldered by reputable landlords who will feel compelled to comply with this heavy-handed regulation.

The NLA claims that landlords who let out sub-standard properties are not going to apply for licenses and without funding for enforcement it will leave criminals to continue to flourish away from the eyes of the law.

If the council is serious about addressing anti-social behaviour in the area it should take note of its neighbouring councils, such as Wirral, which only implement licensing in specific problem areas and have allocated funding for targeted enforcement. This approach gains the council the support of the responsible landlord community, rather than completely alienating them says Dick.

He believes Liverpool council risks stifling investment in the city at a time when more homes are badly needed. Developers considering making much-needed investment may decide to think again, and opt for opportunities in other areas, further limiting the options of those already being driven towards overcrowded and unsuitable property he insists.

Those without a licence and discovered by the council could be fined up to £5,000 and see their properties taken over by the council until an alternative licensed landlord is found.