- Council fines landlord over £43,000
- Controversy over licensing fees
- Landlords express concerns
A council that imposed an annual fee of over £800 on landlords has defended its decision to levy an approximate £43,000 fine on a Middlesbrough property owner.
Gareth Stobart, a charge per unit was levied by Middlesbrough Council for the 52 apartments located in the student accommodation Linthorpe Hall 248.
He accused the council of imposing “blanket” requirements without exempting university-owned dormitories.
The council designated each of the apartments as “licensable dwellings.”
Due to its “privately owned and operated.” status, the facility charged fees like hundreds of other privately rented properties.
A per-home or property charge is imposed in specific areas of Middlesbrough as part of a five-year initiative to “improve” the quality of private rentals.
Mr. Stobart, group property manager at Linthorpe Property Management, and other owners felt unfairly targeted when charged per flat.
He told the Local Democracy Reporting Service, “It is completely insane.”
According to its website, his company charges up to £100 per week for an en suite room and access to shared facilities such as kitchens.
Inconsistencies in Licensing
The company, according to Mr. Stobart, was still coping with the effects of Covid and the resulting decline in student migration to the town.
Meanwhile, he explained that although the structure had been designated as purpose-built student housing, he had been informed that it would be categorized as houses of multiple occupation (HMO) for fee purposes.
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He questioned why no other student properties of similar size are required to pay a license fee. The council certifies that they are managed by an educational organization and, therefore, do not need one.
Concerns Among Landlords
The university-operated buildings are not classified as HMOs for what reason?
The license applies to the Newport region of the city, intended to provide proprietors with assistance and guidance. It was established in 2019 but will be reviewed in a few months.
Several landlords have expressed skepticism regarding the scheme’s effectiveness. They claim they continue to be charged the full rate even though it may be discontinued next year.
Additionally, they implied that the expense was being transferred to their lessees.
According to a council spokesperson, Linthorpe Hall 248 does not qualify for exemption because it is not under the jurisdiction of an “educational establishment.”
They stated that after a three-month consultation, the “selective licensing” program, implemented to improve housing conditions, was approved.
They continued, “The revenue generated by the license fee is used exclusively to pay the staff who implement the program. The council does not make a profit.”
