Selective Licensing Fees in Blackpool and Their Financial Impact

Landlords in Blackpool are encountering significant financial challenges due to the council’s selective licensing scheme, which requires a fee of £772 for a five-year licence. Despite the licence covering a five-year period, landlords must pay the full fee within the first 12 months, a condition that has caused concern among property owners.

Reform councillor Emma Ellison highlighted that many landlords are struggling to manage these costs, especially as additional charges of £95 per unit apply for those with multiple flats. The upfront payment requirement is creating cash flow difficulties, with some landlords considering selling their properties as a result.

Concerns Raised by Councillor Emma Ellison

At a recent council meeting, Cllr Ellison emphasised that landlords are often unfairly stereotyped as wealthy and neglectful, but many are committed to maintaining their properties and supporting tenants. She explained:

“I know a lot of landlords are often viewed as having plenty of money and being terrible landlords, but that’s not the case. Many landlords are doing a really good job and genuinely looking after their tenants.”

She further noted that the payment structure is problematic, stating:

“Landlords need to set up a payment plan over the first 12 months, even though the licence lasts for five years. It’s causing landlords a lot of problems. Many are reporting that they might have to sell their properties because they can’t pay these massive fees, which are often being passed directly onto tenants through higher rents.”

Cllr Ellison called for the council to consider extending payment plans beyond the current 12-month period to alleviate financial stress.

Council’s Position on Discounts and Payment Plans

In response, Cllr Paula Burdess, cabinet member for community safety, street scene and neighbourhoods, acknowledged that discounts are available and encouraged landlords to contact the council for assistance. She explained that the fee is charged per property and paid in two instalments, with the first being larger and the second less than half that amount. Late applications, however, do not qualify for discounts.

Cllr Burdess emphasised the council’s willingness to work with landlords facing genuine hardship to arrange suitable payment plans, stating:

“We are not going to see our landlords go to the wall at all. We are more than happy to work with them and work out terms.”

She also advised that landlords should avoid passing these costs onto tenants, noting:

“When you break it down, the cost per month for each property is very small, which doesn’t need to be passed on to the renter.”

Financial Strain on Landlords with Multiple Properties

Cllr Ellison countered that the fees represent a substantial burden, particularly for landlords with multiple units. She pointed out that the cumulative costs can be significant, saying:

“Finding £772 in a short space of time is quite difficult. If a landlord has a number of flats, it’s not just the £772, there’s also £95 per unit, so the costs really add up.”

She stressed that many landlords are not wealthy and face ongoing financial pressures such as mortgages and restrictions on tax relief under Section 24 legislation. Many landlords are reportedly breaking even or incurring losses, making the licensing fees an additional strain.

What This Means for UK Landlords

For landlords in Blackpool and potentially elsewhere in the UK, the upfront cost of selective licensing fees can pose a significant financial challenge, especially when required to be paid within a year despite covering a five-year period. Those managing multiple properties face even greater costs, which may affect their ability to maintain their portfolios.

Landlords should engage with their local councils to explore available discounts and payment options, while also considering the potential impact on rental pricing and tenant relations. The debate highlights the need for local authorities to balance regulatory objectives with the financial realities faced by landlords.

Suggested internal link anchors

• selective licensing fees
• Blackpool landlords
• payment plans for landlords
• Section 24 legislation
• landlord financial challenges
• rental property management
• tenant rent increases
• local authority licensing schemes
• landlord mortgage pressures
• housing licence fees

TLA update

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