Nottingham City Council has published a Social Return on Investment study claiming its landlord licensing schemes generated £114.9 million in social value from a £24.9 million investment between 2020 and 2024.
The independent study examined the city’s selective, additional and mandatory licensing schemes, which collectively cover approximately 79% of Nottingham’s private rented homes. According to the report, this represents a return of £4.62 for every £1 spent.
Scope of operations
During the five-year period, the council issued more than 33,000 licences and conducted over 30,000 inspections and investigations. The study identified more than 7,400 unlicensed landlords and properties requiring licences.
The licensing department employs around 100 staff and operates on a self-funding model through licence fees. The schemes cover properties ranging from single-household rentals to houses in multiple occupation (HMOs) occupied by students and multiple tenants.
Councillor Jay Hayes, Executive Member for Housing and Planning, stated the findings move the debate “beyond whether licensing works, to what difference it truly makes”.
Data sharing approach
The report highlights data sharing between licensing officers, police, universities, safeguarding bodies and other local agencies as a key mechanism for addressing housing standards, crime, anti-social behaviour and public health concerns.
The findings come as landlords tighten tenant selection following new legislation, with the private rented sector facing increased regulatory scrutiny. The sector has also seen rental income rise 23% whilst arrears affect 850,000 households.
Nottingham Council describes the study as the first of its kind in Britain, examining one of the largest licensing operations outside London. The report concludes that future focus should be on optimising the reach and effectiveness of licensing schemes through expanded data-led targeting and more targeted interventions.
The full report is available on the Nottingham City Council website.
