Nottingham renters linked to £115m housing value

Nottingham’s private rented housing licensing schemes returned an estimated £4.62 in social value for every £1 invested, according to a UK-first report published by Nottingham City Council.

The independent Social Impact and Social Return on Investment report examined five years of licensing activity from 2020 to 2024. It found that £24.9 million of investment was associated with £114.9 million in social value, including improvements to renters’ health, safer homes, stronger landlord compliance and reduced demand on public services.

The figures do not prove that every neighbourhood change was caused by licensing alone. They do, however, set out how the council and its evaluators have valued the impact of inspections, enforcement, landlord engagement and housing improvements across Nottingham’s private rented sector.

£4.62 returned for every £1 invested

The report is being described by the council as the first in England to measure private rented housing licensing through a Social Return on Investment approach.

The largest share of the reported value, £91 million, was linked to renters’ health, safety and wellbeing. That includes the practical effects of homes becoming safer, warmer or better managed after licensing checks and follow-up action.

Licensing schemes generally require landlords in covered areas to meet set standards and, where needed, allow councils to inspect properties, identify hazards and require improvements. For tenants, that can mean action on issues that might otherwise remain unresolved, from unsafe conditions to poor management.

More than 14,500 renters linked to home improvements

The report says more than 14,500 renters directly benefited from improvements to their homes during the five-year period.

For Nottingham, the private rented sector is not a fringe part of the housing market. Councillor Jay Hayes, Executive Member for Housing and Planning, said almost a third of the city’s residents live in privately rented homes.

He said a safe, secure and affordable home underpins health, education, employment and community life. The council’s case is that licensing should be judged not only by enforcement numbers, but by the effect on people living in rented properties.

The report also points to landlord behaviour. It says more than 7,400 unlicensed landlords were brought into compliance, while 36% of landlords reported improved knowledge of their responsibilities. That matters because licensing systems are intended to support responsible landlords while making it harder for poor practice to go unchecked.

Lower complaints in licensed areas

Nottingham City Council says the study found major reductions in anti-social behaviour and waste complaints in licensed areas, with anti-social behaviour down 48% and waste complaints down 45%.

Those figures should be read carefully. Complaint trends can be influenced by wider policing, reporting habits, population movement, council services and local conditions. The report’s value is in connecting housing regulation to a wider set of neighbourhood outcomes, rather than treating property standards as a separate issue.

The public-service element is also central to the findings. The council says licensing helped reduce pressure on the NHS, police and fire services, including through avoided fires, health savings and carbon reduction benefits.

Warmer and safer homes can reduce risks that later fall on public agencies. Poor housing conditions are often linked to respiratory illness, accidents, fire hazards and mental stress, while badly managed properties can generate repeated calls to enforcement and emergency services.

National interest in Nottingham’s housing model

Councillor Hayes said the report moves the debate “beyond whether licensing works, to what difference it truly makes.” He said the five-year findings represented warmer homes, safer buildings, fewer hazards and greater peace of mind for thousands of residents.

The council says the report has already attracted national-level interest and could inform how housing regulation is evaluated across England.

That wider relevance is clear. Councils across the country face pressure over private rented housing standards, but they also have to justify the cost and scope of licensing schemes. Nottingham’s report gives one model for measuring the benefits in financial and social terms.

The next test is how the findings are used: whether they shape future licensing decisions in Nottingham, influence landlord engagement, or give other councils a template for assessing the value of private rented housing regulation.

Councillor Hayes said the report shows “good landlords are supported, renters are better protected, and neighbourhoods are stronger and safer as a result.”

Source: Nottingham City Council