A contentious council asserts that HMRC is collaborating with its enforcement team, believing that landlords who avoid licensing schemes are also likely involved in other criminal activities. The council is determined to tackle these issues head-on, aiming to improve the quality of housing in the city.
Louise Harford, Liverpool Labour council’s interim director of housing, wrote in a blog: “We run a selective licensing scheme for private rented properties in certain areas of the city to address poor property conditions and raise standards. This scheme is crucial for ensuring that tenants live in safe and well-maintained homes. Landlords without a licence are deemed non-compliant, and not having a licence is a criminal offence. By working closely with HMRC, we aim to identify and take action against those who flout the rules, as they often engage in other illegal activities as well. Our goal is to create a fair and transparent rental market for all.”
“Experience and intelligence tell us that non-compliance in one area often indicates issues in others, such as trading standards, tax, or other evasive behaviour, which are frequently linked to private rented properties. This pattern of behaviour suggests that landlords who avoid licensing schemes may also be involved in other illegal activities, making it essential to address these issues comprehensively.
To address this, our team has established strong partnerships with several key agencies. We work closely with Merseyside Police to ensure law enforcement support, Merseyside Fire and Rescue Service to maintain safety standards, HM Revenue and Customs to tackle tax evasion, and the Home Office to address broader compliance issues. These collaborations are crucial in identifying and prosecuting landlords who violate multiple regulations, ensuring a safer and fairer rental market for tenants.
She adds: “It’s not just unlicensed landlords breaking the law; many licensed properties are also being used for criminal activities like drugs, brothels, and people trafficking. These illegal uses of rental properties highlight the need for vigilant enforcement and collaboration with our partner agencies. By working together, we can more effectively identify and shut down these criminal operations, protecting both tenants and the community.”
“Recently, our collaboration with Merseyside Police resulted in a successful operation where we exchanged intelligence to address the issue of private housing being used to cultivate cannabis under the guise of legitimate rental properties. This effort led to the removal of criminals who were misusing the property. By pooling resources and sharing vital information, we were able to tackle this criminal activity more effectively and ensure that such properties are returned to lawful use.
Our enforcement team targets not only landlords without licences but also those with licences who fail to meet their conditions. This includes ensuring landlords conduct regular checks on their properties to maintain compliance. By focusing on both unlicensed and non-compliant licensed landlords, we aim to improve standards and safety in the private rental sector. Landlords who neglect their responsibilities contribute to unsafe and substandard living conditions, which we are determined to eradicate.
We have established strong working relationships with key partner agencies such as Merseyside Fire and Rescue Service, HM Revenue and Customs, and the Home Office. These partnerships are crucial in our fight against criminal activities associated with private rented properties. Our combined efforts enable us to address a broader range of issues, from tax evasion to serious criminal enterprises like drug trafficking and human exploitation.
It’s not just unlicensed landlords who are falling foul of the law here. Many licensed properties are being used for criminal gains such as drug production, brothels, and people trafficking. Our ongoing mission is to identify and tackle these abuses, ensuring that all private rental properties in Liverpool meet the legal standards and provide safe, habitable environments for tenants. By taking a proactive approach, we strive to protect the community and uphold the integrity of the private rental market.”
Harford states, “Six months in, our team is now regularly contributing to intelligence sharing and witnessing the positive impact of joint operations. Our task is to continue expanding our network, refining our processes, and enhancing our enforcement scope to disrupt rogue and criminal landlords. This will improve life for residents and address the critical issues that make them feel unsafe in their neighborhoods. The collaborative approach with Merseyside Police, HMRC, and other agencies is proving essential in tackling the various forms of non-compliance and criminal activities associated with private rented properties.”
Despite this proactive stance, some might find it ironic that Liverpool council is taking such a hard line, considering its own recent controversies. The council has been under intense scrutiny since the government intervened in its operations. This intervention followed a December 2020 inspection, prompted by the arrests of several individuals connected to the council. The inspection revealed significant governance failures and led to the appointment of commissioners to oversee the council’s activities.
The commissioners who helped manage the council’s affairs handed back control of services just last month, three and a half years after the initial inspection. However, a ‘statutory improvement board’ remains in place to provide oversight, advice, and challenge until March 2025. This board aims to ensure the council continues on a path of improvement and accountability. The council’s efforts to clamp down on rogue landlords are part of a broader initiative to restore public trust and demonstrate a commitment to high standards and ethical governance.
Liverpool council’s renewed focus on private rented properties is seen as a critical step in addressing the housing issues that have plagued the city. By targeting both unlicensed landlords and those who fail to comply with licensing conditions, the council aims to improve the overall quality of rental housing. Harford’s comments reflect a determination to build on the progress made so far and to ensure that the city’s most vulnerable residents are protected from unscrupulous landlords. The council’s approach highlights the importance of collaboration and sustained effort in tackling complex housing issues.
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