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Category: government and politics
As part of Labour’s overall goal of achieving devolution across many sectors, local councils may gain additional authority to enact large licencing schemes in the Private Rented Sector (PRS), possibly without needing to seek government approval.
Councils across the UK may be given power to introduce large licencing schemes in the PRS, based on statements from new Labour housing minister Matthew Pennycook and Deputy Prime Minister Angela Rayner.
Big government, small government
The Labour Party has historically advocated for local authorities to play a stronger role in self-governance. In recent years, this approach has been generally de-emphasised as the party has shifted its focus towards nationalising infrastructure and providing more social safety nets for the disadvantaged.
Supporting local councils is well and truly back on the Labour agenda based on recent statements and activities. Sir Keir Starmer has promised regular meetings with England’s mayors to discuss his overarching goals of growing the UK economy.
Regarding the devolution strategy, Angela Rayner said:
For too long, Westminster government has tightly gripped control and held back opportunities and potential for towns, cities, and villages across the country … I want to work with more places to help them use these enhanced powers and roles.
In response to a parliamentary question, Matthew Pennycook has reiterated this sentiment in regards to improving standards in the PRS:
Local housing authorities can introduce selective licensing of landlords in targeted areas to tackle specific problems … in light of our proposals for devolution and supporting improving rented sector standards.
Much of this speculation about Labour’s plans for local governments can only be inferred from these statements, which indicate plans to give councillors more of a say over what happens in their areas, including housing regulations.
Effects of Labour’s devolution policies
At this time, it’s difficult to say exactly how these infant-stage plans would affect landlords and entrepreneurs looking to dive into the PRS. Giving more power to local councils may seem like a positive step as it implies less obstructive ‘big government’ bureaucracy standing in the way of PRS investment.
Currently, councils need approval from the British government to enact schemes, though many have been given the okay to proceed with schemes that cover more than 20% of PRS stock.
Previous governments have enacted devolution policies to varying degrees of success, and a common issue is that local councils are given power ‘in-name-only’ but actually remain unable to enact large-scale changes without approval from higher places.
Time will tell if Labour’s devolution agenda will be more thorough in giving powers to councils, and whether the changes they decide to implement in their areas will be beneficial to local landlords.
