Nottingham renters gain from £115m housing value report

By demoduck.co.uk editorial team

Nottingham’s private rented housing licensing schemes generated £114.9 million in social value from £24.9 million of investment over five years, according to a UK-first report published by Nottingham City Council.

The independent Social Impact and Social Return on Investment report covers the period from 2020 to 2024. It calculates that every £1 invested in licensing returned £4.62 in social value through safer homes, improved renter wellbeing, landlord compliance, neighbourhood improvements and reduced pressure on public services.

The figures do not mean the council received £114.9 million in cash. Social value reporting assigns financial estimates to wider benefits, such as avoided harm, better health outcomes, fewer complaints and reduced demand on services including the NHS, police and fire services.

£4.62 returned for every £1 invested

The report puts Nottingham at the centre of a wider housing policy debate because it is described as the first time in England that private rented housing licensing has been measured using a Social Return on Investment approach.

For a city where almost a third of residents live in the private rented sector, the findings give a clearer picture of what licensing is intended to do beyond issuing paperwork. The schemes are designed to identify poor conditions, bring unlicensed landlords into compliance and set clearer standards for rental properties.

The largest figure in the report is £91 million of social value linked to improving renters’ health, safety and wellbeing. That includes the effect of warmer homes, safer buildings, fewer hazards and better peace of mind for tenants.

More than 14,500 renters linked to home improvements

The report says more than 14,500 renters benefited directly from improvements to their homes during the five-year period. In practical terms, that can cover action on property hazards, insulation, heating, safety checks or other conditions that affect daily life.

Housing licensing matters most when poor conditions are otherwise hidden. Inspections and intelligence-led enforcement can identify problems before they become emergency issues, while clearer standards give renters and landlords a common benchmark.

Councillor Jay Hayes, Nottingham City Council’s Executive Member for Housing and Planning, said a safe, secure and affordable home underpins health, wellbeing, education, employment and community life. He said the report moves the debate beyond whether licensing works and towards the difference it makes.

The council also argues that licensing supports responsible landlords, rather than only penalising bad practice. The report says 36% of landlords reported improved knowledge of their responsibilities, with licensing linked to clearer guidance, training, accreditation and more confidence that poor practice is being challenged.

Neighbourhood complaints fell in licensed areas

The neighbourhood figures are among the most visible findings for residents outside the rented properties themselves. Nottingham City Council reports a 48% reduction in anti-social behaviour and a 45% reduction in waste complaints in licensed areas.

Those figures should be read with care. The source summary does not prove that licensing alone caused every reduction, and local complaint levels can be affected by wider policing, reporting behaviour, population movement and council services. What the report does show is that licensed areas saw measurable changes alongside the housing schemes.

The study also links licensing to reduced pressure on public services, including avoided fires, NHS savings and carbon reduction benefits. Those categories help explain why housing conditions are being assessed as a wider public-service issue, not only a private contract between tenant and landlord.

Poor housing can increase health risks, fire risks and calls for enforcement. If hazards are dealt with earlier, the benefit may show up outside the housing department, including in fewer emergency responses and lower demand for health services.

Findings may shape housing licensing elsewhere in England

The report has already attracted national interest, according to Nottingham City Council, because it offers a model for evaluating housing regulation in financial and social terms.

For councils considering similar schemes, the Nottingham findings provide a case study in how licensing can be measured against renter wellbeing, landlord compliance, neighbourhood complaints and service demand. For landlords, the figures also frame licensing as a system that can reward compliance by bringing unlicensed operators into the same regulatory space.

Councillor Hayes said the report shows good landlords are supported, renters are better protected, and neighbourhoods are stronger and safer as a result. He added that its value lies in moving the conversation beyond cost and towards value for residents, responsible landlords, partners and the city as a whole.

Source: Nottingham City Council