COMMUNITIES AND LOCAL
GOVERNMENT News Release (115) issued by COI News Distribution
Service on 13 May 2009
A major new
package of measures to strengthen consumer protections for tenants
living in private rented accommodation is being announced today by
Housing Minister Margaret Beckett.
The Government wants to improve the quality of the private rented
sector, by increasing professionalism, driving out bad landlords,
and strengthening protections for tenants affected by repossessions.
New proposals to be taken forward for consultation, as
recommended in Julie Rugg's independent review of the private
rented sector, include:
* Introducing a light-touch national register of every private
landlord in England to increase protection for both vulnerable
tenants and good landlords. Landlords will need to include their
registration number on all tenancy agreements and could be removed
from the register for persistent poor performance like failing to
carry out essential repairs, or not protecting tenants' deposits.
* Full regulation for private sector letting agents. Letting and
managing agents do not currently need to have professional
credentials. This means that both tenants and landlords have no
realistic redress when things go wrong. To tackle these problems,
the government proposes creating an independent regulator for all
letting and managing agents.
* An improved complaints and
redress procedure for tenants. For the first time, the Government
will look to set up a mechanism whereby tenants are able to
register official complaints about sub-standard landlords, and if
these complaints are substantial and proven then landlords may be
removed from the national register.
* Greater local authority
support for good landlords. Local authorities will be encouraged
to create 'local lettings agencies' to better facilitate
tenancies in the private rented sector for those in housing need,
including Housing Benefit recipients.
The Government is today also announcing its intention to change
the law to ensure that tenants have a minimum two months'
notice if they have to leave their home because their landlord has
been repossessed.
At present, a gap in legal protections means that some tenants
could be evicted at short notice if their landlord is repossessed
- sometimes with less than two weeks to move their belongings and
find somewhere new to live. These changes are part of a wider
package of support the Government has put in place to support
households at risk of repossession in the current economic climate.
Margaret Beckett said:
"With almost three million private tenants in the country,
the private rented sector plays a vital role in providing choice
and flexibility in the housing market. That's why we need to
ensure tenants have the protection they deserve, the many decent
landlords receive the support they need, and those landlords whose
performance is inadequate either improve or leave the sector.
"The proposals we've announced today will create a
system that retains its attractiveness for those who choose not to
buy, but also embraces greater professionalism without creating
unnecessary burdens on landlords."
Mrs Beckett added:
"It is not right that tenants through no fault of their own
can be forced to leave their home at a moment's notice if
their landlord is repossessed, which is why we are intending to
change the law. In the meantime, I hope that lenders will move as
quickly as possible to safeguard tenants in their homes."
Leslie Morphy Chief Executive of Crisis said:
"A strong and healthy private rented sector has a vital role
to play in meeting our housing needs, particularly for those who
do not qualify for social housing, but we have long argued that we
need to raise standards across the sector. The measures announced
today of a new national register of every landlord and full
regulation for private letting agents will provide important new
tools in increasing protection for vulnerable tenants and driving
out bad landlords from the sector. We warmly welcome them and urge
that they be implemented as quickly as possible."
For tenants in danger of possible eviction due to their landlords
facing repossession, the Council of Mortgage Lenders have agreed
to work with their members to alleviate where possible any
pressure on the tenant. They will continue to work with government
to promote and share best practice between their members, ensuring
tenants get the support they need at this time.
Changes to the rules for informing tenants if their landlord is
due to attend a court repossession hearing have already come into
effect. Since April, tenants will now get up to seven weeks notice
of a hearing, up from the previous two week period.
Notes to editors
1. A full copy of the Government's
response to the Rugg Review is available at http://www.communities.gov.uk/publications/housing/responseruggreview.
This package of proposals represents a long-term strategy for the
private rented sector, and many of the proposals will require
primary legislation to be implemented. However, much can be
started now including creating a more professional sector through
more training and better accreditation. The Government is now
consulting on these proposals and the consultation will close on
31 July 2009.
2. Julie Rugg and David Rhodes from the Centre of Housing Policy
at the University of York were commissioned by the Government to
examine the problems tenants and landlords face in the Private
Rented Sector. Their findings were published in October 2008 and
can be viewed at http://www.york.ac.uk/inst/chp/Projects/PRSreview.htm
(external link).
3. The national register of landlords will be run by an
independent organisation and landlords will be required to
register annually for a nominal fee to cover the administration
costs. To ensure this does not become an unnecessary burden on the
market the register will be web-based and will require minimal
information such as the name of landlord, their address and
address of the property being let.
4. The Homes and Communities Agency (HCA) has said it is
investigating how institutional investors could fund new homes
specifically for private rental, and today the Government has
announced that the HCA is also establishing an advisory board
comprising leading industry bodies, construction firms and banks
to help assess further potential investment opportunities during
these difficult economic times, as part of the response to the
Rugg Review.
5. The Government will be issuing a full consultation in the
Summer on how best to change the law to improve protections for
tenants whose landlords are repossessed.
6. The Government will also be consulting on Houses of Multiple
Occupation, which can be found at: http://www.communities.gov.uk/publications/planningandbuilding/housesmultipleconsultation
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