As the third and final part in its series on housing law reform, the Law Commission has announced its proposals for better regulation of the private rented sector.
The report, Housing: Encouraging Responsible Letting, follows consultation with both landlords and tenants. It focuses on improving the overall coherence and stability of the current private rental framework in a cost-effective way.
Based on the principles of smart regulation, the Commission recommends a programme of staged reforms designed to promote self-regulation and enhance voluntary initiatives already in place in England and Wales.
The proposals include:
• Creating a housing standards monitor (for each of England and Wales) for the private rented sector
• Establishing an associated stakeholder board to which representatives of all sides of the private residential rented property sector are appointed
• Developing a single code of housing management practice for landlords
• Making landlord accreditation schemes available in every local authority area
• Launching a pilot programme for home condition certificates
The Commission proposes that independent evaluation and development of appropriate incentives to make the programme attractive to landlords should supplement these initiatives.
Professor Martin Partington, who was the Commission’s Special Consultant on
Housing Law in charge of the project, said: “Too much privately rented property is in a poor condition and poorly managed. The law does not operate as Parliament intended.
An increasing number of people are deciding to rent in the current economic climate making it more important than ever that the private rented sector takes its place effectively in the housing market.
The recommendations in our report are aimed at benefiting both landlords and tenants by enabling them to use existing legal processes more productively thereby more fully realising the intended impact of housing legislation. Implementation of these reforms would not only improve rental conditions for tenants, but also help to build the reputation and professionalism of landlords. More broadly, it would encourage institutional investment in the provision of rental accommodation, enhancing the important role of this sector in the wider economy.”
However, the British Property Federation (BPF) believes that there is no shortage of regulation already in the private rented sector. And that what this sector needs is investment not more under-resourced regulation.
Ian Fletcher, residential director, said: “The British Property Federation broadly welcomes the Law Commission’s report because we want a better standard of rental housing for people that would encourage greater investment and spur on more build to let development.
“The main problem with improving standards is a shortage of funding for enforcement. Local councils just do not have sufficient staffing or money, something which simply shifting the function to other bodies will not resolve. We oppose enforced self-regulation, because it will only ever make ‘good’ landlords better and ‘bad’ landlords worse.
“The good – who are traceable - will generally always comply, while the bad ones will always stay off the radar.
“We support voluntary accreditation, backed up by tax incentives, to rapidly increase its use and we advocate having a trade body led accreditation schemes and therefore maintain brand confidence. We are equally supportive of the suggested MOT for rental accommodation, providing it simplifies landlords’ existing commitments and therefore the suggested pilot is a good way forward.
“The rental market has the potential to provide truly affordable, long term accommodation for millions. The BPF wants to see tenants treated as customers and with the right balance of legislation, investment and political will, this should be a possibility.”
