South East London Housing Partnership

30 November 2007

Regulation of the private rented sector

• • • • Is there a better overall approach to regulating the private rented sector?

Law Commission project on regulation: encouraging responsible letting.

Consultation paper published July 2007; consultation period until 12 October.

Finalising conclusions: published probably in February 2008.

Improving regulation: the options

• • • • • • We proposed three options, plus one Option one: enhanced voluntary self regulation.

Option two: enforced self-regulation.

Option three: universal licensing.

Plus one: property certification (a housing MOT).

Options regulate

landlords

, certification regulates

property.

Enforced self-regulation

• • • • Central regulator.

Approves self-regulatory organisations: – National landlords associations – – National agents associations local accreditation schemes SROs enforce standards from single regulatory code (plus, if they want to).

Criminal offence to be a landlord unless a member of an SRO (or property managed by agent in SRO).

How it might work

• • • Central regulator: independent body which would – set standards: the regulatory code (absorbs TDS, licensing etc); – monitor practice.

SROs – – – police membership; provide added value where market allows; appeals to (say) RPTS.

Underlying legal obligations – Would they wither away?

Role of local authorities

• • • Yes, it

does

mean less of a role … but Running local accreditation schemes.

Targeted enforcement in collaboration with SROs? – SRO reports members for eg HHSRS assessment or enforcement action; – Where SRO expels, local authority role in relation to property.

Home condition certification

• • • • Periodic certification of

property

(HHSRS, CORGI, electrical installation, section 11).

Original proposal was as alternative - would need certificate to let property.

Consultation - practical issues, but some positive response.

Either as a voluntary add-on by SROs; or as a selective weapon for central regulator?

The Future

• • • • Publication in March 2008.

Development of government thinking about PRS.

Will want time before reviewing TDS and licensing.

Prospect of real change after next election?

Contact details

Richard Percival Team Manager, Public Law Team Law Commission Conquest House 37-38 John Street Theobalds Road London 020 7453 1236 [email protected]

http://www.lawcom.gov.uk