A national register of all landlords has been proposed by the Government and seems likely to be implemented as a matter of urgency. The registration could provoke widespread anger from small-scale landlords, who will resent the additional administrative obligation.
Online checks
In future, if the measures are adopted, all landlords will need to register through an online system. This will assist a new national regulator to ensure that all lettings are covered by tenancy agreements, landlords comply with health and safety legislation, deposits are fully protected and tax officials are notified of rental income.
Landlords will be subject to what the Government refers to as 'light touch regulation', with, it promises, a minimum burden of bureaucracy and intervention. But lettings agencies will be overseen by 'full regulation', going much further than plans recently announced by the Association of Residential Lettings Agents (ARLA) for a regulatory system that would cover ARLA members.
Better for tenants
The move has been claimed as a major advance for tenants' rights, giving them much greater protection from rogue landlords. Tenants would also be protected from short-notice evictions. Where landlords' properties are repossessed by lenders for non-payment of mortgages, tenants would, under the proposals, have a two month grace to find new accommodation.
There would be a new system for redress for tenants, to investigate claims against landlords and agents. Complaints that are upheld could lead to landlords being removed from the register and banned from making lettings.
Councils to become agents
As well as the stick of a potential ban, the proposals also contain a 'carrot' in the form of support from local authorities for good landlords. This could involve councils themselves forming lettings agencies in competition with estate agencies and putting people seeking homes in contact with approved landlords.
Housing minister Margaret Beckett says: "With almost three million private tenants in the country, the private rented sector plays a vital role in providing choice and flexibility in the housing market. That's why we need to ensure tenants have the protection they deserve, the many decent landlords receive the support they need, and those landlords whose performance is inadequate either improve or leave the sector."
Driving out bad landlords
Leslie Morphy, chief executive of the Crisis housing charity, supports the proposals. "A strong and healthy private rented sector has a vital role to play in meeting our housing needs, particularly for those who do not qualify for social housing, but we have long argued that we need to raise standards across the sector," he says.
The Government's proposals will protect vulnerable tenants and drive out band landlords, says Morphy.
Measures to protect tenants where landlords' properties are repossessed were welcomed by the Council of Mortgage Lenders, which accepts the need to help tenants in these circumstances. The CML says it will work with government to ensure legislation is workable.
'Flawed'M
But the National Landlords' Association argues the proposals are well-meaning, but flawed. Its chairman David Salusbury says: "It is possible to see some benefit to a 'no hurdle', low-cost, easy-to-use register for landlords as part of a concerted drive to root out rogue operators. However, the NLA would be opposed to the collection of rental property addresses. We consider this to be overly intrusive and of no direct benefit to tenants or landlords.
"The private-rented sector is already heavily regulated and many recent changes have yet to settle down. Any further regulation, therefore, has to be very carefully considered. In the current economic climate, the last thing good landlords need is to feel penalised. If a register is introduced it needs to focus totally on pushing up standards and rooting out rogue landlords. We will be looking for assurances that a register would be properly resourced and be of direct and immediate benefit to landlords and tenants.
"Any changes must not be seen as the 'thin end of the edge' in terms of further, burdensome regulation. Reform must be workable for landlords and not damage the private-rented sector. The challenge now for Government should be to focus on incentives and encouragement."
Despite the reservations of the NLA, it looks very probable that the proposals will become law, providing legislative time is made available before next year's General Election. Consultation on the proposals runs only until July and ministers appear to be keen to implement the new controls quickly.
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Landlords will be subject to what the Government refers to as 'light touch regulation', with, it promises, a minimum burden of bureaucracy and intervention. But lettings agencies will be overseen by 'full regulation'
