Nottingham City Council has undertaken the first known UK Social Return on Investment (SROI) evaluation of private rented sector licensing.
Introduction
Nottingham City Council has undertaken the first known UK Social Return on Investment (SROI) evaluation of private rented sector licensing. Covering a five-year period 2020–2024, the study demonstrates how a large-scale licensing scheme improves housing conditions, landlord standards, and neighbourhood outcomes. The evaluation found that £24.9 million of investment from licence fees generated £114.9 million in social value, equivalent to £4.62 for every £1 spent. Licensing has improved safety, reduced health risks, empowered renters and strengthened partnership working across the city.
The challenge
The private rented sector (PRS) in Nottingham has expanded significantly, with almost a third of residents now living in privately rented accommodation (Nottingham City Council, 2026, p.2).
This growth has been accompanied by persistent quality issues. Evidence shows that a large proportion of PRS homes are non-decent and contain Category 1 hazards, higher than other tenures.
These conditions contribute to poor health outcomes, fuel poverty risks, overcrowding, and increased demand on public services.
In addition, inconsistent landlord standards, anti-social behaviour and environmental issues such as waste and property condition have negatively affected neighbourhoods.
This combination of sector growth and poor outcomes created a clear need for a coordinated regulatory approach to raise standards and protect renters.
The solution
Nottingham combined one of England’s largest housing licensing schemes—covering Mandatory, Additional and Selective Licensing—with an innovative Social Return on Investment (SROI) evaluation.
Working with an independent accredited social value practitioner, the council assessed the impact of licensing between January 2020 and December 2024. Rather than focusing solely on compliance, the evaluation examined outcomes for renters, landlords, neighbourhoods, and public sector partners.
Operational data, stakeholder engagement, national evidence and recognised social value methodologies were brought together to demonstrate how licensing functions as a preventative public service intervention.
What was achieved
Key outcomes
- 35,000 licensed homes and approximately 89,000 renters covered
- 30,600 inspections delivered
- 14,536 renters living in improved properties as a result of inspection
- 19,000 investigations into unlicensed properties
- 7,443 properties identified as rented without a licence
- 11,000 issues identified at the point of inspection
- 780 significant health hazards, 396 excess cold risks and 158 security hazards removed
- 48 per cent reduction in anti-social behaviour complaints
- 45 per cent reduction in waste complaints
- total social value of £114.9 million generated which equates to £4.62 of value for every £1 invested from licence fees.
Impact
Licensing has delivered safer, warmer, and healthier homes by reducing hazards such as excess cold, fire risk, and damp.
It has improved landlord compliance and professionalism, while targeting non-compliant landlords. Neighbourhood conditions have improved through reductions in waste, noise, and anti-social behaviour. The scheme has also reduced pressure on public services including the NHS, police, and fire service, while contributing to wider environmental outcomes such as carbon reduction. Crucially, the findings reposition housing licensing as a preventative intervention that delivers upstream benefits and reduces downstream demand on public services.
How the new approach is being sustained
Lessons learned from the project around how regulatory activity is measured and reported are being used to reshape the performance framework, moving away from activities and towards people, homes, and tangible long-term impact.
Digitisation, better more uniform reporting, and a severity rating approach beyond HHSRS are also being developed.
A whole of licensing reporting approach (selective, HMO and Additional) is being implemented to define annual outcomes across PRS regulation for Nottingham.
Key learning
- property inspections are the most effective driver of improvement
- focussing on People and Homes delivers clearer reporting and outcome definition
- scale and coverage are critical to achieving impact
- partnership working enhances effectiveness
- combining enforcement with support improves compliance
- SROI is a powerful tool to demonstrate wider value beyond regulation and provides a credible and transferable framework for evidencing value for money.
Contact
Sophia Beswick, Project Manager Housing Licensing, Nottingham City Council.
Email: [email protected]