Evaluation of the Scarborough South Selective Licensing scheme for Private Rented Properties
Data Analysis
April/May 2026
1. INTRODUCTION
Scarborough South is one of two Selective Licensing designations currently in operation in Scarborough, set to remain in place until 30 April 2027. The other is Scarborough Town (Scheme 4) introduced in June 2024 and in place until May 2029. This is an amalgamation of the previous Schemes 1 and 2 – Scarborough North and Scarborough Central. These are the only Selective Licensing schemes in operation throughout North Yorkshire.
Under the terms of the Housing Act 2004, each scheme runs for five consecutive years, with an evaluation required before the end of that period to assess the scheme’s impact and inform whether renewal of the scheme would be beneficial. Authorities can allow designation to end, with landlords no longer needed to license private properties within the area, or they can consider renewing the designation (with or without amendments). As a result, an intensive desk top analysis of the Scarborough South (SL3) scheme has been completed.
The evaluation that follows includes detailed analysis of licences issued, inspections and identified hazards, enforcement action taken, plus additional analysis of the housing market and impact on anti-social behaviour – one of the criteria upon which designation is based.
One caveat to this report is that original designation was approved by Scarborough Borough Council, whereas renewal is taking place following Local Government Reorganisation and the creation of the unitary North Yorkshire Council. This has made certain aspects of data comparison more challenging. It should also be noted that changes within both the local and national housing market are also influenced by multiple external factors, and the impact of Selective Licensing should not be considered in isolation.
2. BACKGROUND AND OVERVIEW OF DESIGNATION
2.1 What is Selective Licensing
Selective Licensing is a discretionary scheme which provides a regulatory framework through which Local Authorities can set minimum standards for property condition and tenancy management. Licence conditions typically include a range of requirements aimed at ensuring that properties are safe and are managed in a satisfactory way. Under the Housing Act 2004 Part 3, authorities may designate whole districts or neighbourhoods within an area for Selective Licensing if they can demonstrate that one or more statutory criteria are met:
· Persistent anti‑social behaviour
· Poor housing conditions
· High crime levels
· High deprivation
· Low housing demand
· High migration or population turnover.
Previously, there was a need for Secretary of State approval where a scheme covered more than 20% of an authority’s geographical area, or more than 20% of their total private rented housing stock. In the past, Scarborough Borough Council had needed to acquire this approval. However, this requirement is no longer in use, following amendments to the procedural document ‘Selective Licensing in the Private Rented Sector: A guide for Local Authorities’ which was updated by MHCLG in December 2024.
2.2 Scarborough South topography
The Scarborough South area is located immediately to the south of Scarborough town centre and overlooks the South Bay and South Cliff area of Scarborough. The area is known as ‘Ramshill’ and it forms an important gateway into the town. It is a mixed residential and tourist area, with several medium and large hotels on the South Cliff. Housing in the area mainly consists of flats, and at the time of designation, almost 60% of households within the proposed designation area were privately rented.
Whilst having its own distinct character, the area forms part of the inner urban area of Scarborough, which suffers from a range of socio-economic problems, including high levels of deprivation, poor property conditions and high levels of crime and ASB. Previously, the area had a considerable number of properties occupied by students at the local Hull University campus. However, the withdrawal of the campus back in 2015 has led to multiple units of former student accommodation returning to the wider private rented market.

Census data (2021) records a total of 1722 households living in the area, of which almost 60% are privately renting their homes. These households represent a population of 2,899 which equates to approximately 1.7 persons per household. The designated area had the following stock profile:
|
|
% Private rented stock |
% Owner occupied |
% Flats |
% No central heating |
|
Scarborough South Area |
59.5 |
36.1 |
86.6 |
5.3 |
|
Scarborough |
22.3 |
63.5 |
22.9 |
1.8 |
|
North Yorkshire |
18.7 |
69.4 |
12.7 |
1.3 |
|
Yorkshire and Humber |
19.6 |
63.1 |
14.4 |
1.5 |
|
England |
20.6 |
62.3 |
22.2 |
1.5 |
2.3 Initial case for designation
The rationale for the scheme was initially established in 2015 by Scarborough Borough Council, following a borough-wide assessment of all locations experiencing high levels of private rented stock. An area-based approach was then adopted using Lower Layer Super Output Areas (LSOAs), used by Government to rank different localities by key indicators - such as levels of deprivation and crime etc. The assessment was based on the criteria outlined in the Government guidance for designating an area for Selective Licensing. A smaller number of LSOAs within the inner area of Scarborough were identified as meeting these criteria, including the two LSOAs which form the SL3 scheme. It was consequently decided that Selective Licensing would be introduced as the Scarborough South scheme, based on poor housing conditions and high levels of deprivation.
The business case for designation looked at various evidence sources. Designation was approved based on data collated in 2019, which included the following:
· 58% of households were privately rented, compared to 19.5% in Scarborough. Ramshill ward had the highest proportion of private rented homes across all wards.
· Almost 90% of private rented accommodation was flats, representing the biggest concentration within Scarborough.
· Almost 12% of households had no central heating, compared with 4.5% in Scarborough.
· The whole of the designation area was within the most deprived 20% nationally as per the Index of Multiple Deprivation (IMD) 2019.
· 17.9% of residents aged 16-64 were receiving ‘out of work benefits,’ compared to 10.8% in Scarborough.
· The area had higher crime and ASB rates than both the borough and national averages.
· 66 separate housing related complaints were received in the 2 years prior to designation (1 in 3 had Category 1 hazards, compared with 1 in 6 throughout the whole of Scarborough).
A detailed business case was subsequently developed for the SL3 scheme. Following approval from the Secretary of State and a lengthy public consultation, and subject then to a Public Notice period, the designation commenced on 1 May 2022.
2.4 Aims and objectives of designation
The main aim of Scarborough South Selective Licensing scheme was linked to Scarborough Borough Council’s Housing Strategy 2017-2021 and its key objective of ‘improving the quality of private sector housing and supporting Neighbourhood Renewal.’ The introduction of Selective Licensing for privately rented properties in parts of Scarborough was identified as a key action to support this wider objective.
For most schemes, the primary intention of utilising Selective Licensing is to:
· Improve housing conditions - to ensure homes meet minimum standards for safety, repair, and management (reducing poor or dangerous housing conditions).
· Reduce Anti-Social Behaviour - conditions can require landlords to take reasonable steps to manage and prevent this from occurring.
· Tackle low housing demand - selective licensing can be used to stabilise and improve the local housing market.
· Drive out rogue landlords - identify and challenging landlords who consistently provide unsafe or poorly managed accommodation.
· Increase professional standards in the sector – encouraging better management practices, clearer accountability, and more consistent engagement between parties.
· Enhance community wellbeing - improve the overall quality of life in areas.
2.5 Licensing Conditions
Selective licensing schemes must include a core set of mandatory licence conditions, as set out in the Housing Act 2004. Councils may add discretionary conditions where they are necessary and proportionate to address specific problems in the designated area. Mandatory conditions therefore apply everywhere, whilst discretionary conditions can vary by Local Authority and scheme. Below is a summary of both for SL3:
|
What the Law Requires |
|
|
Gas Safety |
Valid annual Gas Safety record must be provided to the Council every year, or on demand. |
|
Electrical Safety |
Appliances and installations must be kept safe, and records may be required on demand. |
|
Furniture Safety |
All supplied furniture must comply with fire safety regulations on application, and on demand. |
|
Smoke Alarms |
Must be installed and kept in proper working order. |
|
Carbon Monoxide Alarms |
Must be installed in any living accommodation rooms that contains a fixed combustion appliance (excluding gas cookers). |
|
Tenant references |
Landlords must demand references from prospective tenants. |
|
Terms of Occupation |
Landlords must supply a written statement of the terms on which they occupy the property. |
|
Discretionary Condition |
Requirements of SL3 |
|
Energy performance |
EPC must be provided prior to the commencement of tenancy, and to the Council upon request. |
|
Property management |
A copy of the licence and conditions to be provided to all tenants and provided with details of the licence holder/ the managing agent. Occupants must receive written confirmation of repair issue and emergency plans, and the council provided with up-to-date contact details so that problems can be addressed quickly. HMOs - communal areas inspected at least monthly. For single occupied properties with no common parts - inspections of the property on a quarterly basis. |
|
Security |
Security provisions for access to the dwelling must always be in good working order (keys for window locks and access for any alley gates). Where a burglar alarm, licence holder to inform occupant in writing the code for the alarm and how it can be changed. Where previous occupants have not surrendered keys, a lock change arranged prior to new occupants moving in. All ground floor and basement windows will have suitable window locks or made fully secure to prevent access from outside. |
|
External areas, refuse and waste |
The exterior of the property is maintained in a reasonable decorative order and state of repair and all external areas kept clean and tidy. Suitable and adequate provision for storage of refuse generated and access must always be available to the external refuse storage. |
|
Training |
The licence holder and/or manager shall undertake property management training courses where required to do so by the council. |
|
Anti-social behaviour |
The licence holder must take reasonable and practical steps to reduce and prevent ASB by persons occupying or visiting the house and the use of premises for illegal purposes (and provide a copy of their ASB policy outlining procedures on request - reviewed annually). Cooperate with the Council, Police and other agencies in resolving complaints of ASB and investigate any complaints regarding their tenants. Ensure occupants are aware of assistance available to deal with ASB and how they can report such to the authorities. |
|
Tenancy deposits |
New tenancy deposit must be protected in a government-authorised scheme within 30 days of receiving it and the licence holder must provide prescribed information to the tenant. |
|
Changes of circumstances |
Any changes in the circumstances affecting the licensed property should be reported to the council within 5 days, e.g. · Change of licence holder or their suitability to continue as a licence holder. · Change of managing agent or property owner. · If the property becomes empty. · Change of address of the licence holder. |
|
Safeguarding |
The licence holder must inform the Council immediately if they consider a vulnerable adult is at risk of abuse or neglect. They must ensure they and all relevant staff members associated with managing the property undertake training, as required, regarding safeguarding adults. |
|
Compliance Inspections |
The licence holder must allow the Council to undertake compliance checks (with a minimum of 24 hours' notice). Authorised officers may inspect without such notice where reason to believe serious breaches of licence conditions, in the event of an emergency, or where the property is the subject of an enforcement notice under Part 1 of the Housing Act 2004. |
2.6 Licensing Fees
Fees cover the whole of the Selective Licencing designation period (until 30 April 2027) and are charged based on the running costs and management of the overall scheme. The licence fee is split into two payments - the first is a fixed rate of £180 and paid on application submission, whilst the second is payable on successful application and based on the type of property to be licensed. There are three types of fees (inclusive of first payment) depending on the type of building and ownership:
· Single unit properties - standard fee of £550 applies and requires only one licence.
· Multiple unit properties where the landlord controls the freehold - standard fee of £550 for the first flats plus £100 for each extra flat within the same building (requiring only one licence).
· Multiple unit properties where the landlord does not control the freehold - fee for the first flat will be £550, and the licence fee for any extra flats in the block will be £100 for each extra flat (requiring separate licences).
Discounts of £50 were also available if landlords were members of a recognised listed associations or applying for multiple licences. A £50 ‘early bird’ discount was also available for applications submitted and fully completed within the first 3 months of designation.
3. DATA ANALYSIS
3.1 Licences and Licence-holders
At the time of preparing the business case for the SL3 scheme in 2019, it was estimated that there 550 licenses would likely be issued within the proposed area of designation. Within this figure, an estimate was made of the number of properties being blocks of self-contained flats owned by a single landlord, which would be granted a single licence (one property can contain a single license or multiple licenses depending on ownership of individual units within the building). Current data shows that 528 licenses have been issued, which marks a small 5.1% shortfall on the number initially estimated. There have also been 77 licences issued which were subsequently revoked, returned, refused or withdrawn (most because properties were sold, with the new owner having to apply for a new license).
219 of the 528 licences (41%) were applied for within the first 3 months of designation and therefore eligible for the ‘early bird’ discount. Following this, officers undertook a rigorous campaign of identifying and contacting landlords by various means who had failed to apply for a license. The rate at which licenses were granted is below:
|
Period |
Number of applications |
|
May 2022 – July 2022 |
219 |
|
August 2022 – October 2022 |
131 |
|
November 2022 – January 2023 |
58 |
|
February 2023 – April 2023 |
10 |
|
May 2023 – April 2024 |
35 |
|
May 2024 – April 2025 |
31 |
|
May 2025 – April 2026 |
34 |
|
May 2026 onwards |
10 |
Number of individual properties:
Of the 528 licences granted, they cover a total of 1073 individual addresses, or households. Including licensed HMO households in the designated area, this amounts to an overall total of 1297 households in the SL3 area privately renting and under some form of licensing.
Distribution of licensed properties:
The streets below are listed as having 10 or more licensed addresses (47 streets included in the scheme in total):
|
Number of active licenses |
Total PRS HH incl. licensed HMO’s |
|
|
Westbourne Grove |
52 |
110 |
|
Prince Of Wales Terrace |
40 |
72 |
|
Ramshill Road |
31 |
85 |
|
Royal Avenue |
31 |
64 |
|
Grosvenor Crescent |
29 |
83 |
|
Albion Road |
25 |
66 |
|
Trinity Road |
25 |
78 |
|
Esplanade |
21 |
25 |
|
Grosvenor Road |
21 |
93 |
|
Back Trinity Road |
17 |
17 |
|
Greenfield Road |
16 |
27 |
|
Princess Royal Terrace |
15 |
27 |
|
South Street |
15 |
37 |
|
Westbourne Road |
15 |
21 |
|
Cromwell Terrace |
14 |
38 |
|
Crown Terrace |
14 |
57 |
|
Carlton Terrace |
13 |
13 |
|
St Martins Square |
12 |
39 |
|
Crown Crescent |
11 |
40 |
|
Oriel Crescent |
11 |
27 |
|
Alga Terrace |
10 |
20 |
|
Cromwell Parade |
10 |
36 |
|
Royal Crescent Lane |
10 |
20 |
Licenses per property type:
The table below shows the proportion of licences issued by property type:
|
No. of licences Issued to Properties |
Proportion of licences issued |
|
|
Flat/Maisonette |
425 |
80.49% |
|
House |
103 |
19.51% |
Properties per Licence:
There are 1073 individual addresses (flats and houses) sitting across the 528 licenses granted, which equates to an average of 2 properties per licence:
|
No. of Licences |
No. of License holders |
No. of flats/houses |
|
1 |
395 |
762 |
|
2 |
32 |
146 |
|
3 |
9 |
61 |
|
4 |
6 |
75 |
|
5 |
1 |
7 |
|
6 |
1 |
8 |
|
7 |
1 |
14 |
|
Totals |
445 |
1073 |
Licence holders:
The table below shows the number of individual licence-holders and the number of licences they have within the licensing area:
|
Number of licences held by individual licence holders |
||
|
Number of licence holders |
Number of licences |
|
|
1 |
395 |
395 |
|
2 |
32 |
64 |
|
3 |
9 |
27 |
|
4 |
6 |
24 |
|
5 |
1 |
5 |
|
6 |
1 |
6 |
|
7 |
1 |
7 |
|
Totals |
445 |
528 |
Within the designation area, over 89% of licence holders only hold 1 licence, and only 4% hold 3 or more. However, of those license holders who do have 3 or more licences, they hold over 13% of all licensed properties within the designated area. It is also be noted that a proportion of licence holders with only 1 or 2 licensed properties will also be landlords of other private rented properties in the Scarborough area.
The number of licenses held by licence holders based on their registered address is outlined below:
|
|
No of licenses held by individuals |
|
|||||||
|
Area |
7 |
6 |
5 |
4 |
3 |
2 |
1 |
Total applicants |
Total applications |
|
Scarborough |
1 |
1 |
1 |
4 |
4 |
15 |
193 |
219 |
269 |
|
North Yorks |
0 |
0 |
0 |
0 |
5 |
5 |
73 |
83 |
98 |
|
West Yorks |
0 |
0 |
0 |
0 |
0 |
2 |
19 |
21 |
23 |
|
East Yorks |
0 |
0 |
0 |
0 |
0 |
3 |
11 |
14 |
17 |
|
South Yorks |
0 |
0 |
0 |
0 |
0 |
0 |
12 |
12 |
12 |
|
Wider UK |
0 |
0 |
0 |
2 |
0 |
7 |
82 |
91 |
104 |
|
Remote |
0 |
0 |
0 |
0 |
0 |
0 |
5 |
5 |
5 |
|
Total |
1 |
1 |
1 |
6 |
9 |
32 |
395 |
445 |
528 |
|
|
|
|
|
|
|
|
|
|
|
|
Scarborough |
1 |
1 |
1 |
4 |
4 |
15 |
193 |
219 |
269 |
|
Yorkshire |
0 |
0 |
0 |
0 |
5 |
10 |
115 |
130 |
150 |
|
Wider UK |
0 |
0 |
0 |
2 |
0 |
7 |
82 |
91 |
104 |
|
Remote |
0 |
0 |
0 |
0 |
0 |
0 |
5 |
5 |
5 |
|
Total |
1 |
1 |
1 |
6 |
9 |
32 |
395 |
445 |
528 |
This shows that 49% of licence holders are based in Scarborough, holding 51% of all licences. 29% of licence holders are from outside the wider Yorkshire region and hold 28% of all licences.
3.2 Inspections and Hazards
Number of Inspections undertaken:
One of the main aims within the Selective Licensing scheme is to ensure that 100% of all licensed properties are inspected at least once. At the end of April 2026, only 7 inspections remain outstanding of the total 528 licenses/1073 addresses. However, these are mainly confined to properties which have only recently been issued with a licence.
Issues identified from inspections:
Inspections of properties ensure compliance against licensing conditions and can help to identify any issues with the property which require resolving, such as Category 1 hazards and other disrepair issues.
As of October 2025, 660 Category 1 hazards had been recorded for properties undergoing inspections as part of the SL3 scheme. On average, this equates to 1.3 Category 1 hazards per licence being identified. This is of course subject to some variation per individual property, with many properties being free of all hazards, and some having multiple.
As well as Category 1 hazards, licensing inspections also record any non-compliance against licensing conditions and Category 2 hazards, such as general disrepair issues. 1,697 Category 2 hazards and 1,343 issues with licensing conditions were identified.
Including Category 1 hazards, a total of 3,700 issues were recorded through completing the inspections - an average of 3.4 issues per licensed property:
|
|
Number identified |
Average per licence |
Average per property |
Number resolved |
% resolved |
|
Cat 1 Hazards |
660 |
1.3 |
1.1 |
364 |
55.2 |
|
Cat 2 Hazards |
1,697 |
3.3 |
2.8 |
1,028 |
60.6 |
|
Licensing conditions |
1,343 |
2.6 |
2.2 |
733 |
54.6 |
|
Totals |
3,700 |
7.1 |
6.1 |
2,125 |
57.4 |
3.3 Enforcement and Prosecutions
Failure to apply for a licence:
An enforcement process was developed by Scarborough Borough Council specifically to deal with landlords who failed to apply for a licence. This has since transferred to North Yorkshire Council and is as follows:
· Stage 1: Notice of Requirement Letter (NOR) to apply for a Selective Licence
· Stage 2: First Interview Under Caution (IUC) Letter
· Stage 3: Second IUC Letter
· Stage 4: Notice of Intention (NOI) to Prosecute.
The following table shows the number of times action was taken by Scarborough Borough Council in respect of each stage:
|
Pre-warning letter (2 months before commencement of SL3 |
998 |
|
726 |
|
|
Stage 2: First IUC Letter (August 2022) |
180 |
|
Stage 3: Second IUC Letter (late 2022/early 2023) |
26 |
|
Stage 4: NOI to prosecute |
3 |
|
Successful prosecutions for failing to apply for a licence |
0 |
As shown, all landlords who received a warning letter or invite to interview took the necessary steps to cease escalation (either applying for a license or contacting to confirm property exemption).
3.4 Anti-Social Behaviour
Addressing the problems caused by ASB within residential properties was another of the main aims of the designation. To do this, SBC made the management of Anti-Social Behaviour a discretionary licensing conditions as part of the SL3 scheme, as follows:
The licence holder must take reasonable and practical steps to reduce or prevent anti-social behaviour by persons occupying or visiting the house and the use of premises for illegal purposes.
The licence holder must:
1. Provide a copy of their ASB policy to the council outlining procedures on request - this must be reviewed annually.
2. Cooperate with the council, North Yorkshire Police and other agencies in resolving complaints of anti-social behaviour. The Licence Holder and/or their nominated managing agent are required to undertake an investigation of any complaints regarding their tenants. Written records of these investigations should be made and retained.
3. Ensure that the occupants of the house are aware of the assistance available to them to deal with antisocial behaviour and how they can report nuisance and anti-social behaviour to the authorities.
One of the key difficulties with assessing the impact of designation on Anti-Social Behaviour is the typography of the scheme - it is not a wholly residential area, with a mix of some commercial and leisure activity, and also forms part of the main tourist area of the town, with comparatively higher levels of visitor numbers. As a result, ASB within the area can stem from several sources, and it can be difficult to distinguish between residential-based ASB and that deriving from non-residential sources.
The data shows that in 2019, incidents of ASB in the designated area accounted for 4.94% of all ASB recorded in Scarborough. In 2025, this increased to 5.92%. The number of ASB incidents reduced Borough-wide between 2019 and 2025 by 23.86%. There was also a reduction in the designated area, but smaller at only 8.75%. So, whilst the total number of ASB incidents reduced in the designated areas, this represented a higher proportion of all total crimes reported in the area.
This illustrates the difficulties in interpreting variations in ASB incidents and to what extent Selective Licensing has impacted on ASB in the area. Whilst there will be numerous reasons for variations, it does highlight that ASB continues to be a problem in the area, remaining much higher than the regional and national average.
3.5 Property Trends
Property values:
Property sale values within the SL3 area are significantly lower than those for Scarborough and North Yorkshire. The table below shows that the average property price in the SL3 area is almost 50% that of the average for North Yorkshire, and just short of 66% of the average for the wider Scarborough area. These figures are however likely influenced in some degree by the higher proportion of flats sold in the area, compared to both Scarborough and North Yorkshire, as flat values tend to be lower than house values:
|
Average Sale Price |
December 2025 |
|
SL3 area |
£138,480 |
|
Scarborough |
£210,549 |
|
North Yorkshire |
£272,000 |
However, comparatively between 2019 and 2025, property prices rose in the SL3 scheme area by 19%. Data for Middle-Layer Super Output Areas (MSOA) shows a very similar increase of 20% (caveat that data only runs to 2024 opposed to 2025) for the local area around and including the SL3 scheme. Whilst the ward and general neighbourhood is struggling to reach the same levels of increase seen borough-wide, this indicates issues may be broader than simply the Selective Licensing designation.
Sales volumes:
Over the course of designation, sale volumes have varied (shown below). They were at their highest in 2021/22 and have reduced as a proportion of total Scarborough sales since this time; however, it is difficult to link this reduction specifically to designation:
|
|
2019/20 |
2020/21 |
2021/22 |
2022/23 |
2023/24 |
2024/25 |
|
Selective Licensing Area |
199 |
151 |
238 |
217 |
169 |
163 |
|
Scarborough town |
1578 |
1544 |
1774 |
1688 |
1453 |
1642 |
|
% of total sales |
12.6 |
9.8 |
13.4 |
12.9 |
11.6 |
9.9 |
Property types sold:
The split between the number of houses versus flats sold within the licensing area appears to have been steady for some years now – averaging 1 house sold for every 3 flats or maisonettes. Designation does not appear to have an impact in this respect:
|
|
2019/20 |
2020/21 |
2021/22 |
2022/23 |
2023/24 |
2024/25 |
Totals |
|
Flats and maisonettes |
159 |
107 |
182 |
164 |
125 |
123 |
860 |
|
Houses |
40 |
44 |
56 |
53 |
44 |
40 |
277 |
|
Split (approx.) |
80/20 |
70/30 |
75/25 |
75/25 |
75/25 |
75/25 |
75/25 |
Rental Values:
The below table provides a snapshot of rental values before designation in the SL3 area, during its early stages, and finally towards the end of the 5-year designation period. There is a distinct difference between rental values in the SL3 area and those within North Yorkshire, but that is not surprising given the larger and more affluent markets included within the wider county. However, this variation in price does not appear to have been impacted by designation, values remaining very similar throughout the snapshots provided.
The table does however illustrate that the cost of renting in the private market in SL3 has only undergone a 13.2% increase between 2020 and 2026, compared with a 22% increase in North Yorkshire:
|
|
Before |
Early SL3 |
End SL3 |
Increase |
|
|
Oct-20 |
Mar-21 |
Nov-22 |
May-26 |
||
|
SL3 |
£552 |
£524 |
£542 |
£630 |
13.20% |
|
NY |
£666 |
£674 |
£715 |
£832 |
22% |
|
% diff |
18.70% |
25% |
27.50% |
27.60% |
|
Again, this may be due to larger market forces - rental values in more deprived areas can rise more slowly due to the underlying forces that push rents up, that being demand, incomes, investment, and amenities, being weaker in these areas.
Properties to rent:
Using the same snapshot, there appears to have been an increase in the number of properties available to privately rent over the designation period. Of course, in 2020 and 2021, the pandemic would still have been an influential factor, with households being unable to move for long periods of time due to restrictions. There was also a shift in the wider rental market, with properties moving from private rental homes to holiday lets, again a result of the pandemic and more people choosing to holiday in the UK. However, more current data shows that the private rental market in the designation has increased in volume, and does not appear to have suffered from a withdrawal of property due to the licensing requirements:
|
|
Before |
Early SL3 |
End SL3 |
|
|
Oct-20 |
Mar-21 |
Nov-22 |
May-26 |
|
|
Total |
5 |
8 |
16 |
24 |
|
HMO |
|
1 |
|
|
|
Room |
|
|
3 |
2 |
|
Studio |
|
|
|
4 |
|
1BF |
2 |
3 |
8 |
10 |
|
2BF |
1 |
2 |
5 |
5 |
|
3BF |
1 |
|
|
|
|
4BF |
|
|
|
1 |
|
2BM |
|
2 |
|
1 |
|
2BH |
|
|
|
1 |
|
4BH |
1 |
|
|
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3.6 Empty Homes
Previous consultations have repeatedly seen landlords raise the concern that Selective Licensing would result in landlords selling their properties and more homes becoming empty. At the beginning of the designation, there were 60 Long-Term Empty Homes in the designation area, which represented 3.4% of total stock. Of these, 17 had been empty for 2 years or longer (of which 9 were within one block). As of April 2026, there are 79 Long-Term Empty Homes, representing 4.2% of that same total stock, and an increase of 19 empty homes. 42% have been empty 1-2 years, 38% empty between 2-5 years, and the remaining 20% empty more than 5 years. The largest block contained 8 empty units and 4 blocks containing 5 empty units.
However, the number of Long-Term Empty Homes identified via Council Tax records has been increasing steadily year-on-year since 2020 throughout England - North Yorkshire being no exception, rising 24% between 2024-2025; making an increase representative of the housing market more generally and not unique to the designation area.
4. CONCLUSIONS
Overall, this evaluation indicates that the SL3 scheme has been successful at strengthening regulatory oversight of the private rented sector as well as improving property conditions and management standards across the designated area. The scheme has achieved a high level of coverage, with 528 licences issued, containing over 1000 households.
Through the scheme’s inspection programme - 3,700 issues have been identified, including 660 Category 1 hazards. The scale of issues identified confirms that the original case for designation (particularly poor property conditions) was well-founded. Without licensing, it is highly likely that many of these issues would not have been identified or addressed, placing the health and safety of tenants at continued risk. Importantly, over half of these issues have been resolved (57.4%), demonstrating clear progress in improving housing conditions. A number of hazards do however remain outstanding, highlighting the need for continued intervention to sustain improvements.
In addition, the scheme has enabled the Council to undertake enforcement action against landlords who have failed to apply for a licence. This has proven effective, with large numbers of landlords responding to early warning letters and no cases progressing to prosecution. This demonstrates that the scheme has been effective in driving compliance and improving engagement with landlords, without the need for extensive legal action.
While the impact of selective licensing on Anti-Social Behaviour appears more limited, with ASB remaining a significant issue in the designated area, it is difficult to ascertain the extent to which this is residential, and the extent to which it is aggravated by factors beyond the scope of Selective Licensing.
Finally, there is no evidence to suggest that selective licensing has had a negative impact on the local housing market, which was a concern prior to designation. Property prices in the area have increased by around 19% since 2019, broadly in line with wider trends. While rental values have risen more slowly than across North Yorkshire, the supply of rental properties has also increased over the past five years, indicating that licensing has not resulted in a withdrawal of private sector landlords from the area.
Ultimately, the SL3 scheme has been successful in achieving its core objectives: improving property conditions, increasing landlord compliance, and strengthening management standards. While its impact on wider outcomes, particularly levels of Anti-Social Behaviour, appears to have been more limited, this is in part reflective of the influence of broader social and environmental factors beyond the scope of the scheme. Overall, the evidence suggests that the SL3 scheme has delivered a clear net positive for the Scarborough South area, and its continuation is important for maintaining and building on these improvements.