Agenda item

Purpose

To present the proposals for Private Sector Housing (PSH) fee adjustments for chargeable services to ensure fees achieve full cost recovery.

RECOMMENDED that the Cabinet Member

1.    Approves the proposals for Private Sector Housing (PSH) fee increases for the city council's Home Improvement Agency Service as outlined in Appendix 1, to commence from 01 April 2022.

2.    Approves the proposals for PSH fee adjustments for the city council's Mandatory HMO licensing fees as outlined in Appendix 2, to commence from 01 April 2022.

3.    Approves the proposals for PSH fee adjustments for the city council's Private Sector Housing Enforcement fees in Appendix 3, to commence from 01 April 2022.

4.    Approves the proposal process to vary fees at the start of each new financial year for PSH Home Improvement Agency Service Fees, Houses in Multiple Occupation (HMO) licensing fees, and Private Sector Housing Enforcement fees to achieve full cost recovery, as outlined within this report.

5.    Agrees that if fees need to be adjusted to continue to achieve full cost recovery, an annual report will be brought to the Cabinet Member for Housing and PreventingHomelessness for decision.

1.    Approved the proposals for Private Sector Housing (PSH) fee increases for the city council's Home Improvement Agency Service as outlined in Appendix 1, to commence from 01 April 2022.

2.    Approved the proposals for PSH fee adjustments for the city council's Mandatory HMO licensing fees as outlined in Appendix 2, to commence from 01 April 2022.

3.    Approved the proposals for PSH fee adjustments for the city council's Private Sector Housing Enforcement fees in Appendix 3, to commence from 01 April 2022.

4.    Approved the proposal process to vary fees at the start of each new financial year for PSH Home Improvement Agency Service Fees, Houses in Multiple Occupation (HMO) licensing fees, and Private Sector Housing Enforcement fees to achieve full cost recovery, as outlined within this report.

5.    Approved that if fees need to be adjusted to continue to achieve full cost recovery, an annual report will be brought to the Cabinet Member for Housing and PreventingHomelessness for decision.

6.       Approved that officers explore alternative models for HMO licensing fees with relevant stakeholders, with a report outlining the outcome coming back to a decision meeting at the earliest opportunity during the next financial year.

Paul Fielding, Assistant Director (Housing), introduced the report.

Martin Silman, Chairman of Portsmouth & District Private Landlords' Association (PDPLA), made a deputation. Deputations are not minuted but can be viewed on the council's website at

Agenda for Cabinet Member for Housing and Preventing Homelessness on Tuesday, 22nd March, 2022, 5.00 pm Portsmouth City Council

In response to questions from Maria Cole, officers said there are about 6,000 houses of multiple occupation (HMO) in Portsmouth, of which around 4,800 are unlicensed. Prospective tenants can check if an HMO is licensed on the council's website. The licensing fee is paid once for the five-year period.

In response to questions from Councillor Payter-Harris, officers said Housing and Planning operate under different legislation but they work closely together. Councillor Payter-Harris agreed with Mr Silman's suggestions for higher fees for late applications to help with enforcement, and landlords using their own surveyors because as well as being cheaper for landlords it releases the council's surveyors for other work. He thought the proposed fees should be reviewed.

Officers explained that a commitment was made at Full Council to change fees so that they recover full costs. If they do not change Housing will carry a deficit into the next financial year, creating uncertainty. The fees could be agreed then reviewed annually. The model can be adapted or alternative ones explored during the financial year. Officers could work with the PDPLA as Mr Silman's proposal is worth following up though not all its members may agree. Although other local authorities' fees may be lower officers would have to compare "like for like" and see if the services offered are the same. They may have more tenancies or issue more licences but have a smaller cost basis. It may not be known when their fees were set (they may not have been reviewed for several years) or if they will change after 1 April 2022. The council is not making a profit on the fees and they are reviewed annually. Officers have already contacted Southampton about their model. If landlords used their own surveyors it would make forecasting very challenging as the take-up could vary greatly each year. Bristol has similar fees to Portsmouth.

Officers can examine different models and talk to relevant parties but it would be difficult to commit to bringing a report to the first meeting of the new municipal year as Housing will be working on the consultation on additional licensing of HMOs (requested by the Cabinet that day) and homes for Ukrainians; September or October would be better. Councillor Sanders approved the report as it stands but added a recommendation requesting officers to explore alternative models.

DECISIONS

1.    Approved the proposals for Private Sector Housing (PSH) fee increases for the city council's Home Improvement Agency Service as outlined in Appendix 1, to commence from 01 April 2022.

2.    Approved the proposals for PSH fee adjustments for the city council's Mandatory HMO licensing fees as outlined in Appendix 2, to commence from 01 April 2022.

3.    Approved the proposals for PSH fee adjustments for the city council's Private Sector Housing Enforcement fees in Appendix 3, to commence from 01 April 2022.

4.    Approved the proposal process to vary fees at the start of each new financial year for PSH Home Improvement Agency Service Fees, Houses in Multiple Occupation (HMO) licensing fees, and Private Sector Housing Enforcement fees to achieve full cost recovery, as outlined within this report.

5.    Approved that if fees need to be adjusted to continue to achieve full cost recovery, an annual report will be brought to the Cabinet Member for Housing and PreventingHomelessness for decision.

6.       Approved that officers explore alternative models for HMO licensing fees with relevant stakeholders, with a report outlining the outcome coming back to a decision meeting at the earliest opportunity during the next financial year.