Regulation of Letting Agents not going ahead!

The Housing Minister Grant Shapps has just announced that the Government will not be proceeding with a Landlords Register or the regulation of Letting and Management agents. Members will recall that following the Rugg review the decision had been made to proceed with both of these policies and we were involved with Government in looking as to how this might be implemented.

Peter Bolton King of ARLA spoke with the Minister at some length last night on the implications of any decision such as this and the ongoing consumer detriment being caused by some unregulated lettings agents. He has agreed to continue discussing this. He remains very supportive of our internal licensing schemes and feels that ARLA are leading the way on this.

ARLA has issued a press release expressing considerable disappointment and the release from the Minister’s Department can be read below.

PRESS RELEASE FROM DCLG

SHAPPS PROMISE TO LANDLORDS: NO MORE RED TAPE
Housing Minister Grant Shapps has today announced that he will be scrapping plans to introduce new regulations on private landlords.
There are one million landlords in England – nearly three quarters of which are individuals who may be renting a single room out.
Of the three million private tenants in this country, the vast majority report they are satisfied with the service they receive from their landlords.
Speaking in Parliament, Mr Shapps confirmed that with the private rented sector already governed by a well established legal framework, the Government has no plans to introduce any further regulations.
Instead, he urged councils to use the wide range of powers they already have at their disposal to tackle the minority of rogue landlords that blight some communities, provide a poor service to tenants and damage the reputation of the private rented sector.
Council powers include:
• Powers to require landlords to take action to rectify hazards in their property;
• Where landlords resist, the ability to make and charge for improvements and to prohibit use of the affected parts of the property; and
• Discretionary licensing powers to tackle areas blighted by poorly managed privately rented stock.

New regulations were proposed by the previous administration in response to the Rugg Review of the Private Rented Sector, but have been judged by the new coalition to introduce too much additional red tape. These included a National Register of Landlords, regulation of letting and managing agents, and compulsory written tenancy agreements.
Grant Shapps said:
“With the vast majority of England’s three million private tenants happy with the service they receive, I am satisfied that the current system strikes the right balance between the rights and responsibilities of tenants and landlords.
“So today I make a promise to good landlords across the country: the Government has no plans to create any burdensome red tape and bureaucracy, so you are able to continue providing a service to your tenants.
“But for the bad landlords, I am putting councils on alert to use the range of powers already at their disposal to make sure tenants are properly protected.”