New regulation of the private rental sector

The Department of Communities and Local Government recently announced proposals to create new regulations for the private rented sector.

The plans, which will have an impact on landlords, letting agents, tenants and the broader housing market, include:

• A compulsory redress scheme for lettings and property management agents to ensure independent investigation of alleged poor service and increasing the likelihood of compensation for badly treated residents.
• A new code of practice setting standards for the management of property in the private rented sector, including new rules about a landlord’s responsibility to maintain the property to an acceptable standard, and rules ensuring tenants do not have to pay for repairs out of their own pockets.
• The code of practice will also consider requiring landlords to repay rent where a property is found to have serious hazards, as well as reviewing how councils can inspect properties and what action they could take against landlords who continue to rent out dangerous and dirty properties.

The plans were announced following a DCLG Select Committee report into the private rented sector but fall short of plans proposed by Labour which would see all private sector landlords listed on a register.

Landlords are already bound by regulations related to tenancy deposit protection and Houses in Multiple Occupation rules.

Stephen Ludlow, Chairman of ludlowthompson, comments: “It’s right that tenants are protected from sharp practices by the tiny minority of landlords with dangerously poor standards, but it’s important that the buy to let sector isn’t weighed down by excessive red tape.

“We don’t want a situation where the majority of landlords that do offer high quality housing to tenants are put off from investing in buy-to-let in the future.”

“The private rented sector is already well regulated and we recommend that tenants only deal with letting agents that are members of a professional body like the Association of Residential Letting Agents and the Property Ombudsman – such as ludlowthompson.”