Programme for Simplification of Housing Law Welcomed by Residential Landlords Association
The Residential Landlords Association (RLA) is giving a guarded welcome to a new "housing law" programme which is the latest stage of a Law Commission programme to simplify and reform housing laws.
The RLA will be developing a raft of new proposals: 'Encouraging Responsible Letting' - this could include a self-regulation system overseen by a central body who would be given enforcing powers.
One of the directors of the RLA, Chris Town, said on the matter:
“The tone of the paper is right in line with our own belief in raising professional standards. However, we have to consider the detail and there needs to be real incentives to encourage landlords to join in any new scheme - such as capital gains tax roll over relief where properties are sold and the proceeds reinvested.”
The RLA will argue in favour of self regulation for landlords running a property management business - this will distinguish them from people simply investing in property. Instead of licensing properties, the RLA would operate self-regulation for those landlords who register - this would enable them to use the Section 21 procedure to gain repossession under a shorthold tenancy.
Mr Town commented,
“Our commitment to voluntary landlord accreditation schemes, goes back to when the RLA became the first professional association to work with local authorities for the benefit of landlords - members and non-members alike – and tenants."
The paper from the new Law Commission believe that 'the private rented sector plays an important role in many local housing markets' but that it 'suffers from “a poor reputation which, arguably, prevents it playing as full a part as it should'. It is also argued that not only should the private sector be encouraged to expand but that its current legislation can be made to work more effectively.
The Residential Landlords Association will respond on Law Commission proposals for a system of enforced self-regulation of landlords who would be expected to join a professional association or local authority landlord accreditation scheme - or rent their premises through a letting agent who is already a member.
A central regulator would ensure that the system works effectively, oversee professional bodies and have powers to take action against them or against landlords who do not join.
“This is very similar to what the RLA urged the House of Commons Select Committee to adopt during the consultation period for the latest Housing Act before it became law,” said Mr Town. “For one thing, it would have helped stop some of the onerous legislation that’s been coming our way recently – which attempts to regulate landlords who don’t need it while missing those who do.
“The present system is simply not working and 75% of landlords seem to be ignoring it anyway. We agree with the Law Commission that the regulation of landlords and letting agents could be the key to a much more workable, practical and successful system so long as this is properly implemented with the right ‘carrots’ for landlords.”
The RLA campaigns over many issues - raising professional standards is among several others - they include lobbying for a common sense approach to HMO (House of Multiple Occupation) management, a rethink on fire regulations and also the recently launched Tenant Deposit Scheme.
