Member Article

Calling all North East landlords

YOUR CHANCE TO INFLUENCE THE PRIVATE RENTED SECTOR

A cross party group of MPs is set to conduct a wide-ranging inquiry into the private rented sector and they will consider a number of potential regulations within the lettings industry.

As a North East lettings agent and a landlord myself, I am keen to ensure that our region has a voice in the inquiry. I will be submitting my own views in writing and I’m happy to include points raised by tenants, landlords and anyone else who might be affected by the results of the inquiry and feels they want to have their say.

The Communities and Local Government Committee has set out the regulatory points it will consider and I have listed the pros and cons to each one.

Quality of rented housing and what steps can be taken to ensure all housing is of an acceptable standard.

Pro:Good quality housing will attract more tenants to the market and make renting a more desirable housing option there is already legislation that if used, should be impacting on poor housing.

Con:There is already a Decent Homes Standard but last year 37 percent of homes in the private rented sector failed to meet this. Enforcing and governing a standard could be costly.

Levels of rent including the possibility of rent control.

Pro:Rent control would ensure rents remain stable for tenants and would make it more affordable to rent possibly promoting longer tenancies

Con:Placing a cap on the rent a landlord can charge will limit investment in lower rent areas and will stifle growth

Regulating to weed out rogue landlords.

Pro:A landlord register would be the simplest way to do this.

Con:But we already have selective licensing in certain areas, including Hendon, Sunderland, so should this not just be extended? That’s what Newham Council has done.

Regulation of letting agents and their fees and charges.

Pro:Regulating in terms of a register will help to weed out rogue letting agents and capping fees will ensure tenants and landlords cannot be charged extortionately high fees

Con:Completely governing the fees and charges or cutting them may cause many letting agents to close. This will remove competition and reduce the choice of agents for landlords.

Multiple occupancy (HMO) regulation and discretionary licensing by local authorities.

Pro:Landlords already need a mandatory license to let a property of three floors or more to five unrelated tenants. Further licensing may help to further weed out rogue landlords

Con:If HMO licenses become more difficult to obtain private landlords will not be interested in investing in properties that are in traditional HMO areas. Likewise, these properties are unlikely to be purchased by homeowners as neighboring properties will continue to be HMO’s.

Tenancy agreements and length and security of tenure.

Pro:More security for both landlord and tenant may entice large institutions to invest

Con:Discussions have mentioned five year tenancies. But what if the tenant loses their job and claims universal credit which may not cover the rent. Under existing laws the eviction would be very difficult. Further strain could be placed on social housing if tenants are evicted for non-payment.

How local authorities are discharging their homelessness duty by being able to place homeless households in private sector housing.

Pro:An investigation into this matter will clamp down on the current situation where families are being placed in emergency B&B accommodation for longer than the legal six weeks

Con:Local authorities will need to find funding for alternative accommodation and the private rented sector will be more expensive. A report by the National Audit Office has already warned that half of English local authorities will have twice as many housing benefit claimants than properties in their area that are affordable on benefits by 2017.

The housing situation in the North East is very different to London and some southern counties so it’s important that the select committee has contributions with thoughts and opinions from our region.

If you want to have your say and possibly contribute to shaping the future of the private rented sector in the North East submit your views to me at views@kis.co.uk, call into one of our offices or tweet me by January 5, 2013. I will be publishing my submission in a future newsletter.

Ajay Jagota

Managing Director, KIS Lettings

This was posted in Bdaily's Members' News section by Ajay Jagota .