Nottingham City Council has published its first evaluation of the social impact generated by its landlord licensing schemes, revealing a reported £114.9 million in social value created over five years. The independent study assessed the effects of a £24.9 million investment between 2020 and 2024 on renters, landlords, neighbourhoods, and public services.

Social Return on Investment and Key Findings

The evaluation found that for every £1 invested in the licensing schemes, £4.62 of social value was returned to the city. A significant portion of this value—£91 million—was attributed to improvements in renters’ health, safety, and wellbeing. The report also highlighted reductions in anti-social behaviour by 48% and waste complaints by 45% in licensed areas, alongside benefits such as avoided fires, NHS savings, and carbon reduction from property improvements and enforcement activities.

More than 14,500 renters were reported to have directly benefited from home improvements, while over 7,400 previously unlicensed landlords were brought into compliance. Additionally, 36% of landlords indicated an improved understanding of their responsibilities under the licensing schemes.

Voices from the Landlord Community

Despite these positive figures, some landlords have expressed scepticism about the reported benefits. Nottingham landlord Mick Roberts, who has provided homes for homeless tenants over nearly three decades, challenged the council’s portrayal of the schemes. He pointed out that the £24.9 million described as an “investment” was actually funded by landlords through licence fees, which inevitably impact the funds available for property maintenance and improvements.

Mr Roberts stated, “This report bears little resemblance to my experience of licensing in Nottingham.” He noted that neither he nor his tenants had been consulted about the value delivered by licensing. He also questioned the claim that 14,500 tenants had benefited, emphasising that some tenants had experienced delays in planned home improvements because money was diverted to cover licensing costs.

He urged the council to clarify who was consulted during the evaluation and how the claimed benefits were measured before celebrating the findings.

Council Response and Wider Implications

Councillor Jay Hayes, Nottingham City Council’s executive member for housing and planning, described the evaluation as a pioneering use of Social Return on Investment methodology to measure the impact of private rented housing licensing. He said, “It moves the debate beyond whether licensing works, to what difference it truly makes.”

Councillor Hayes highlighted that the schemes have delivered warmer homes, safer buildings, fewer hazards, and greater peace of mind for thousands of residents. He added that the report demonstrates support for responsible landlords, better protection for renters, and stronger, safer neighbourhoods.

The council sees the licensing schemes not merely as regulatory tools but as long-term investments in people, communities, and the city’s future. Nottingham’s approach is already informing national discussions on housing licensing.

What this means for landlords

The findings suggest that landlord licensing can contribute to improved property standards and community wellbeing, but also raise important considerations for landlords regarding the costs involved. Licence fees, while funding enforcement and compliance activities, may reduce the capital available for property upgrades, potentially affecting tenants’ living conditions in the short term.

Landlords should be aware of the balance between regulatory compliance and investment in property improvements, and engage with local authorities to ensure their views and experiences are considered in future evaluations.

Source: Based on reporting from Property118

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TLA update

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