Landlord licensing offers huge ‘social benefits’ claims Labour council 

A Labour council has published what it claims to be the first ever Social Impact and Social Return on Investment report into private landlord licensing. 

The study assesses the impact of Nottingham council’s private rented housing licensing schemes over five years to 2024.

This apparently shows that an investment of £24.9 million generated £114.9 million in social value – equivalent to £4.62 returned for every £1 invested.

A statement from the council says: “The report demonstrates how licensing is delivering safer, warmer homes for renters, raising standards among landlords, improving neighbourhoods, and reducing pressure on public services including the NHS, police, and fire services.”

Key findings include:

• £91 million of social value created through improving renters’ health, safety, and wellbeing
• More than 14,500 renters benefiting directly from improvements to their homes
• Over 7,400 unlicensed landlords brought into compliance, creating a level playing field
• 36% of landlords reporting improved knowledge of their responsibilities
• Major reductions in anti-social behaviour (48%) and waste complaints (45%) in licensed areas
• Reduced pressure on public services, including avoided fires, NHS savings, and carbon reduction benefits

Councillor Jay Hayes, in charge of housing for the council, says: “[This] is the first time in England that the social impact of private rented housing licensing has been measured using a Social Return on Investment approach. In doing so, it moves the debate beyond whether licensing works, to what difference it truly makes. 

“The findings are striking. 

“Over five years, housing licensing in Nottingham generated nearly £115 million in social value, improving lives, strengthening neighbourhoods, and reducing pressure on vital public services. Every £1 invested delivered £4.62 in value back to the city. 

“These figures represent warmer homes, safer buildings, fewer hazards, and greater peace of mind for thousands of residents.”

He goes on to claim the report also provides important insight for landlords. 

“Many already strive to do the right thing, and the evidence shows that licensing supports these efforts through clearer standards, better guidance, access to training and accreditation, and greater confidence that poor practice is identified and addressed.

“Licensing in Nottingham combines enforcement with engagement and works best in partnership with landlords, renters, emergency services, universities, and community organisations. 

“Inspections and intelligence allow risks to be identified early, safeguarding concerns to be addressed, and problems to be resolved before they escalate.

“Nottingham is proud to be leading the way with a report that is already informing national discussions.”

This article is taken from Landlord Today