The National Landlords Association (NLA) has welcomed news that a register of landlords proposed by the former Labour government is to be ditched.
But the Citizens Advice Bureau (CAB) believes private tenants and property investors will continue to suffer as it says the current system allows rogue letting agents to operate completely unchecked.
Housing Minister Grant Shapps described the Landlord Register as ‘well-meaning but flawed’ when he announced it would be scrapped in the House of Commons recently.
Earlier the Minister had suggested a national register could well be ‘another HIPs’ and would not encourage further investment in the private-rented sector.
David Salusbury, the NLA’s Chairman, is delighted with the decision. He said: “We wholeheartedly welcome the reminder from Government that the vast majority of tenants are happy with the service they receive from landlords.
“Of course, from the outset, the NLA believed that a national register of landlords, although well-meaning, was flawed.
“It was the wrong way to go about raising standards in the private-rented sector and would not have rooted out rogue landlords.
“In fact, we believe the likely consequence could have been to penalise the law-abiding, while at the same time driving the worst landlords under the radar.”
As part of the announcement, the Government confirmed it would not be bringing forward any of the planned programme of changes proposed by the previous Government.
In addition to the register, these included a new housing hotline offering free help and advice for private tenants; a ‘trip adviser’ style word-of-mouth website comparing landlords; requirements for written tenancy agreements in all tenancies and full regulation of letting and managing agents.
Shapps has intimated local authorities should use the powers they already possess to control landlords and the lettings industry.
Councillor Paul Bettison, Chairman of LACORS, the LGA body responsible for overseeing regulatory services, said: “We are pleased ministers have recognised the important role played by local authorities in driving up professionalism among landlords and ensuring private tenants have access to safe, warm and decent accommodation.”
However the Citizens Advice Bureau’s head of Welfare Policy, Lizzie Iron, says Shapps announcement is “disappointing news”.
She explained: “Private tenants and landlords are being badly let down by a system that allows rogue letting agents to operate completely unchecked, imposing unjustified and excessive charges, providing a poor or non-existent service, and sometimes disappearing with both tenants' and landlords' money.
“Letting agencies are big business. But with no controls over how they operate, anyone can set up as an agent without any qualifications or experience of letting and managing properties, or any rules to safeguard clients’ money or provide redress if things go wrong.
“At a time when more and more people looking for somewhere to live are turning to the private rented sector because of difficulties affording home ownership and cuts in social house building programmes, it’s essential that letting agents are effectively regulated to protect both tenants and landlords from abuse.
“We urgently need to see controls over the fees that letting agents can charge prospective tenants, and measures to ensure client money held by letting agents is properly protected.
“We also need measures to ensure properties are of a safe and decent standard before they are let, and formal complaints and redress procedures which tenants can use if things go wrong.
“Allowing rogue letting agents to go on operating completely unchecked doesn’t just hurt tenants, it gives private renting a bad name and undermines those decent landlords and agents who seek to play by the rules.”
