A damning new report about the private rented sector, out today, slams successive governments for their lack of understanding about the market.
It also slates letting agents, saying that some may be as “amateur” as the landlords they sell their services to.
The report, by Dr Julie Rugg and David Rhodes at the University of York, alleges that “problems with letting agents have increased impetus to regulate the sector”.
The document says that despite their pivotal role in the market, very little research has been undertaken on letting agents as an industry group.
It estimates that 38% of tenancies have some letting agent involvement, but concludes: “It is not necessarily the case that increasing the proportion of lettings via lettings agents would automatically improve the level of professionalism in the sector.”
It goes on: “Indeed, survey data indicate higher levels of dissatisfaction with letting agents: tenants asked about repairs and maintenance were almost twice as likely to be dissatisfied if their tenancy involved a letting or managing agent rather than a landlord more directly.”
Today’s report attacks regulation of the sector as being “confused and contradictory” and “failing at multiple levels”.
It calls for:
- The introduction of a register of both letting agents and landlords;
- A new ‘property MOT’ which would be conducted annually as they are on cars, and which would include an assessment of the property and check the status of documents such as EPCs and gas safety certificates. The annual MOT would be conducted by independent inspectors and be a tax-deductible business cost for landlords.
The paper says both tenants and landlords are currently unsure of their rights and responsibilities, and that changes to welfare reform have created a “slum tenure” at the bottom end of the market.
Policy interventions, such as Build to Rent, are focused on wealthier tenants priced out of home ownership, but offer no help to those on low incomes.
The Evolving Private Rented Sector: Its Contribution and Potential report concludes that no government has understood the function of renting within the housing market.
As a result, says the review, interventions have been piecemeal and poorly targeted.
Rugg – whose seminal report a decade ago proposed light-touch regulation of the sector – said: “Since our first review was published, declining home ownership and a shortage of social rented homes have led to a surge in the number of people privately renting –particularly families with young children.
“Unfortunately, in its current form the private rental market isn’t providing a suitable alternative, and in the absence of an overarching vision from any government we’ve seen reams of policies and regulations which are not joined up or thought through.
“We need to see a fundamental rethink of the role that private renting plays in our housing market and a comprehensive strategy to ensure it meets the needs of every renter.”
Leigh Pearce, chief executive of the Nationwide Foundation, the charity that funded the review, said: “For years politicians have ignored the needs of private renters, resulting in a market that all too often fails to provide decent, secure and affordable homes – particularly for those on low incomes.
“It’s time the Government started to take this problem seriously.
“Instead of more tinkering round the edges, we need fundamental reform and a clear strategy to fix renting. We hope this review will be the start of a cross-party conversation to make that happen.”
The hard-hitting report runs to 208 pages.
Two preamble pages before the body of the report lists acronyms such as NALS, although ARLA is not included.
The Residential Landlords Association – whose initials are included in the acronyms – called for a root and branch review of all regulations affecting the sector.
Policy director David Smith said: “There is no point passing new laws and regulations if the existing ones are not being enforced properly.”
I wonder if private landlords would be willing to pay an agent for an annual MOT style check to make sure they are all compliant? I wonder if it’s a good idea to take on that liability and I wonder how many landlords would later switch to full management with their MOT agent?
Any thoughts?
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I don’t see how and letting agent can fulfil this role, wouldn’t a chartered building surveyor be more suited and someone independent to the letting of the property.
Take a look at StarScore Rental Property Rating
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“The annual MOT would be conducted by independent inspectors and be a tax-deductible business cost for landlords.”
So more expense for landlords – paying the agent to do a job and then an inspector to check that the job is being done correctly?
Who do they think is going to sell this to the landlords – I don’t think I’d have the nerve, unless the fee gets refunded if the property passes its MOT.
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IMHO, such ‘papers’ should not be endowed with the weight/gravitas of being referred as ”reports”…
Such ‘papers’ can only be described as opinion pieces, often poorly researched (if at all), bias and weighted in favour of a particular agenda.
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Unlike a car where you have the choice to no longer run it and take it off the road should it fail the MOT, properties would still require (council) tax paying on them and, if tenanted, no option to leave any required works until you perhaps can afford to have them completed.
I’d be all for this if BTL PRS LLs could inspect RSL properties in reciprocation.
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This has been a long time coming, If a methodology is agreed and adopted the cost could be minimal but the impact great. it would act as a reward for those properties that are at a really good standard.
something like a StarScore Rental Property Rating report would tick the box
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I quite like the idea of a MOT, removes some of the liability of the landlord/agent, if an independent person is saying it is “fit” for occupation at the commencement of the tenancy.
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I was just thinking that, and it would also help with those Landlords who won’t give the ok for work to be done as they don’t believe the Agent or the Agent’s contractor. Having someone ‘independent’ tell them might convince some to do it. Or it might convince them to just drop off the radar and rent it privately with no need for pesky checks and Tenants who have no come-back!
The register for LL and Agents has possibilities, but both of these will only work if it applies to Social and Private rental sectors.
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Anyone heard of an outfit called starscore I’ve been trying to get all my houses assessed but no reply ;/
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MOT’s are just another biased cost against the majority of Complaint Landlords, just because L.A’s aren’t doing their job of enforcing against only those who require it. !
Shame – who’s gonna hold L.A’s to account, – ? Not central Government, as L.A’s are their local representatives – Corruption at state level.
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