Transcript Modernising Regulatory Services – Today Tomorrow and in

Regulation of the private rented sector
– the challenges ahead
SELHP Landlord Day
7 May 2008
Richard Tacagni
Head of Function (Housing)
[email protected]
Aim of presentation
• Explore the condition and energy efficiency of properties in the private
rented sector (PRS)
• Understand the role of councils in regulating and driving up standards
in the PRS
• Looking to the future – what might come from the range of PRS reviews
currently underway
• Allow time for questions
English House Condition Survey 2006
• Half of all properties in the PRS do not meet the decent homes
standard
• A quarter (24%) of homes in the PRS have category 1 hazards under
the housing health and safety rating system
• But…… most landlords (78%) rated their properties as in good or
excellent condition
• Most private landlords have limited experience/qualifications, are not
members of professional trade or landlord associations, have less than
ten properties and see their portfolio as an investment
Energy efficiency of the housing stock
• Tackling climate change: 27% of CO2 emissions come from housing
• Average SAP rating for private sector housing is 47, compared to 57 in
the social housing sector; 1 in 10 homes in the PRS falls into the least
energy efficient ‘band G’
• Landlords should grant consent for tenants to have free energy saving
measures installed under the Warm Front scheme; invest in simple
energy saving measures now; incorporate more substantial work within
major property renovations
• EPCs required from Oct 08; give yourself a marketing advantage by
making your properties more energy efficient
Role of councils in regulating the PRS
Councils need to create a balanced approach to regulation of the PRS:
• Advice, support and encouragement for professional and competent
landlords who are trying to do the right thing
• Working in partnership with private landlords to create a balanced
housing market and help meet local housing need
• Tough enforcement action targeted at the minority of rogue landlords
who operate poorly managed and unsafe accommodation – and who
damage the reputation of the PRS
Working with Stakeholders
• At a national level, LACORS has established a private sector housing
stakeholder group with representatives from the main landlord,
letting/managing agent and tenant representative groups
• Meets four times a year and minutes publicly available
• Useful forum to discuss issues of national significance; to share
information and to facilitate closer partnership working between local
councils and other stakeholders
What councils can do to help landlords
Councils can provide advice and support to landlords and
letting/managing agents through:
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Council website
Forums
Newsletters
Accreditation schemes (London Landlord Accreditation Scheme
and the National Approved Letting Scheme)
– Training events
– Conferences/seminars
Partnership working – meeting housing need
Councils can work with private landlords to meet local housing need by:
– Signposting residents in housing need to accredited landlords and
NALS approved letting/managing agents
– Private sector leasing schemes
– Offering grant/loan assistance in return for council gaining
nomination rights for people on the councils housing register
– Offering deposit bond/guarantee schemes
– Working closely with landlords to tackle serious problems of antisocial behaviour
Strong regulatory powers available
• Addressing the health impact of poor housing through the housing
health and safety rating system. Involves risk assessment; no longer a
prescriptive approach
• Mandatory licensing of certain larger houses in multiple occupation
• Opportunity to introduce additional HMO licensing and/or selective
licensing to address areas of low demand and serious anti-social
behaviour
• Management orders – ability to take over the management of
problematic properties in the PRS
• The tenancy deposit protection scheme
Looking to the future…
• July 2007: Law Commission consultations on ‘Encouraging
Responsible Letting’ and ‘The Role of Tribunals’
• Jan 2008: Government announced an Independent Review of the PRS,
led by Julie Rugg & David Rhodes from York University
– David Rhodes has been collating all available data on the PRS
– Julia Rugg has been holding a series of roundtable stakeholder meetings
to discuss different themes including regulation, accreditation, student
accommodation, homelessness, etc
– Final report will be presented to Government in October 2008
Looking to the future…
• April 2008: Government announced research (by ECOTEC) into the
impact of high concentrations of HMOs on community wellbeing:
‘studentification’ and migrant workers
• Changes to the HMO definition in the Planning Use Classes Order are
being considered; but need to avoid unintended consequences. A
public consultation on this topic is expected to be carried out
• 2008/09: Government have commissioned the BRE to review the
implementation and effectiveness of mandatory HMO and selective
licensing
Fire Safety Enforcement
• May 2007 – published a national protocol on joint working between
local housing authorities and fire and rescue authorities
• But…. the protocol only clarified who would do the inspection, not what
the fire safety provisions should be
• So, phase 2: the development of national guidance on fire safety in
residential accommodation. Draft guidance put out for 6 week public
consultation in Jan 08. Guidance currently being finalised and should
be published soon
Conclusion
• The PRS is in considerable worse condition and less energy efficient
than the owner occupied or social housing stock
• Some landlords simply see the PRS as an investment opportunity and
do not fully understand the responsibilities they are taking on; this is
usually when problems occur
• Councils need to support and encourage landlords to improve their
property management skills and/or encourage use of NALS approved
letting/managing agents
• Tough enforcement action needed against the minority of rogue
landlords who fail to manage their properties and place tenants health,
safety and welfare at risk
• So what does the future hold? Perhaps not substantially more
regulation, but better regulation
Thank you for listening
Any Questions?