County support for private rented sector steps

A county based residential letting agent has welcomed Government moves to towards the regulation of agents in response to the statement from the Department of Communities and Local Government (DCLG) on next steps for the private rented sector.

“This is a long overdue response. 14% of the population now live in private rented accommodation, and the sector looks set to grow significantly as it becomes more difficult to get a foot on the housing ladder. There is even greater need for a register of landlords, full regulation of agents, and changes to the Assured Shorthold Tenancy (AST) agreements,” said said Jill Elkington, Midlands spokesperson for The Association of Residential Lettings Agents (ARLA) and residential letting manager for Hodgson Elkington, chartered surveyors, Lincoln.

“Therefore we support the Government in its move towards full regulation of agents, and anticipate working with the Minister and his team on how this will be put into practice. There is concern that CLG is still undecided as to who is going enforce this regulation – a detail that will not be overlooked by the industry. Will it consist of independent regulation by industry boards? We are still waiting to learn more.

“The Government must now work to convincing the consumer that the Private Rented Sector is a viable housing choice and one in which they can have confidence. The increase in ASTs is a good step to take but we need further details from the treasury consultation on investment in the Private Rented Sector and how it can grow to accommodate demand.

“The positive reaction of the public to ARLA’s licensing scheme for letting agents has proven the model for self-regulation in the industry. We hope that the Government chooses to use this model in its own scheme for the regulation of letting agents and landlords.

“I can say with confidence that those living in rented accommodation are more concerned about the roof over their heads then political posturing, and it is of paramount importance that these measures are not lost in or around the election,” said Jill Elkington.

One of the rules at present is that in order for a tenancy to be an Assured Shorthold Tenancy (AST), the rent must be under £25k per annum. “Whilst this does not affect many tenancies in our area, there are some. The new regulation is set to increase the level to £100k pa which is unlikely to affect this area which is good news for tenants as they can be assured that their deposit will have to be protected under the current tenant deposit legislation,” said Jill Elkington.