Summary: One year after its introduction, the selective licensing scheme in Stockton has faced significant criticism from landlords who argue it has increased rents, led to more evictions, and worsened housing pressures. Despite these concerns, the council maintains that the scheme is achieving its goals of improving housing conditions and management in the private rented sector.

Background to Stockton’s Selective Licensing Scheme

Selective licensing schemes are designed to improve standards in the private rented sector by requiring landlords to obtain a licence for their properties in designated areas. Stockton-on-Tees Council introduced a five-year selective licensing scheme covering central Stockton, north Thornaby, and Newtown. Since its launch, over 1,400 licences have been issued. The scheme aims to tackle issues such as poor property conditions, antisocial behaviour, and low housing demand.

However, the scheme was met with considerable opposition from landlords even before its rollout. During the council’s 2024 consultation, only 3% of landlords expressed support for the plans. This low level of backing highlights the concerns landlords had regarding the potential impact on their businesses and tenants.

Landlord Concerns and Criticism

Many landlords have voiced strong opposition to the scheme, suggesting it misunderstands the realities of managing rental properties. One landlord emphasised that landlords are not responsible for tenants’ personal behaviour, stating, “we are not babysitters and cannot control how tenants conduct their lives.” This reflects a common frustration among landlords who feel the scheme places undue responsibility on them for tenant conduct beyond their control.

Some landlords have indicated they may respond by selling their properties rather than continuing under the licensing requirements. This reaction could have significant implications for the local rental market, potentially reducing the availability of private rented accommodation and increasing pressure on housing supply.

Several landlords described the scheme as an “own goal” and an “exercise in futility,” suggesting it has not delivered the intended benefits. One landlord was particularly blunt, describing selective licensing as “just a cash cow for the council,” highlighting concerns that the scheme primarily serves as a revenue source rather than a genuine improvement tool.

Impact on Tenants and the Local Community

Landlords have also raised concerns about the wider impact on tenants and the community. Some report that the scheme has led to increased evictions, which they argue causes “real and lasting harm to the community.” This is a critical point for landlords to consider, as evictions can disrupt tenants’ lives and contribute to local housing instability.

There is also evidence that landlords are passing on the cost of licence fees to tenants through higher rents. This is a common consequence of regulatory schemes that impose additional costs on landlords, which can affect affordability for tenants.

Tenant feedback has been mixed, with some expressing frustration at the increased presence of council officers conducting inspections. One tenant reportedly said they were “fed up of getting knocks at the door” and criticised the approach taken by officials, calling for “greater respect” during inspections. This highlights the delicate balance landlords and councils must maintain between enforcement and tenant relations.

Council’s Position on the Scheme

Despite the criticism, Stockton Council maintains that the selective licensing scheme is delivering positive outcomes. Councillor Richard Eglington, cabinet member for regeneration and housing, stated that the council undertook extensive consultation with landlords, managing agents, and residents before implementing the scheme. He emphasised that all feedback was considered and that the scheme is improving the condition and management of private sector housing.

According to the council, the scheme has led to better housing standards and management practices, benefiting both landlords and tenants. This perspective suggests that, while there are challenges, the council believes the scheme is a necessary tool to address longstanding issues in the local private rented sector.

Implications for Landlords and Agents

For landlords and agents operating in areas with selective licensing schemes, it is important to understand both the regulatory requirements and the potential impacts on business operations. Licensing schemes often involve additional administrative responsibilities, compliance costs, and increased scrutiny of property management practices.

Landlords should carefully assess how such schemes affect their rental yields, tenant relations, and long-term investment strategies. Engaging proactively with councils and staying informed about licensing conditions can help landlords navigate these challenges more effectively.

Moreover, the concerns raised by landlords in Stockton serve as a reminder of the importance of balancing regulatory aims with practical realities. While improving housing standards is a legitimate goal, schemes must also consider the economic viability for landlords and the welfare of tenants to ensure sustainable outcomes.