One sure way to kill the private rented sector is to bring in landlord licensing, I believe.
Those wanting landlords to take their money out of the private rented sector and go and invest elsewhere, should be calling ever louder for landlord licensing. This would satisfy all those with endless regulation in their hearts and in their pockets and put the sector back to its pre-1988 days for ever.
And with no private rented sector to make up for the chronic shortfall in housing – due to the total indifference to where people might live that has been demonstrated by successive governments – temporary camps could be set up in royal and municipal parks throughout the land to house the new homeless.
This scenario is not so fanciful. The idea of licensing and regulating letting agents, and now landlords, has become flavour of the month for every vote-catcher from the right wing of the Tory party through to the left wing of the Labour party – and probably beyond. With all eyes on the 2015 election, knee-jerk legislation could pour out, taking its toll in unintended consequences, just as it always does.
For a quarter of a century and more, ARLA has begged governments for a licensing system for letting agents. Simplicity being the key: client money and deposit protection; transparency over fees and charges; redress; and a basic knowledge of letting.
And agents, being the third parties responsible for other people’s money, their property and their living conditions, should have this simple licence.
Meanwhile, local authorities have been demanding licensing of all landlords. This interference in private contracts between landlords and tenants is thought by many to assist in the creation of jobs in town halls.
Imagine the number of jobs that could be created on a national scale, and start wondering from where the impetus for landlord licensing might come.
It will not only be from there, of course. There are plenty of other organisations who see profit and power in the introduction of mandatory licensing for landlords – from running courses, awarding diplomas, pushing “career development” and all the rest.
However, it is not as these organisations, public or private, would have it. Letting is not that difficult and the vast majority of landlords are not evil, nor are they stupid. They understand that the best way to protect a capital asset, protect their income stream and have a reasonably hassle-free life is to meet the reasonable expectations of their tenants.
This is the essence of all letting, whether by agent or landlord. It is the provision of safe, habitable housing, the protection of other people’s money and transparency in all dealings. Rocket scientists in any guise are not a necessary adjunct to this.
Obviously there are scum landlords; but more regulation and new profit centres for the career development of landlords will not, of themselves, find nor stop them. But scum inevitably floats to the top and there is already a sufficient body of law to use to wipe it away.
A landlord with only half a brain understands this. It can be argued that the detail needed to achieve it can and should be promulgated more widely, both by the professional bodies and by government. And the consumer bodies could help in all this, rather than hinder with cheap publicity shots against landlords.
An education campaign would be far cheaper than taking on more town hall staff. But, of course, government doesn’t like spending money this way – witness the total lack of support when tenancy deposit protection became mandatory.
Never mind. Reversing the gains made in the private rented sector over several decades will be easy. Just compulsorily license all landlords. Then bring in the politicians and the extra town hall staff and the career development programmes and sit back and watch landlords get fed up, sell up and invest elsewhere.
Between now and 2015, as Help to Buy drives prices ever upwards in a bid for votes, there will be many tempting moments on the back of this new housing bubble for landlords to go for alternative investment opportunities with greater returns; and certainly no hassle.
Watch as private investment flees the sector, ghettoes of sub-standard housing fill up and the need for tented camps in parks becomes a real consideration. And remember too, if that happens, it will leave no room left for a Rolling Stones concert in Hyde Park. Yet another unintended consequence?
Malcolm Harrison has been heavily involved in media relations for the private rented sector since the 1980s. He was media advisor and spokesman for ARLA and the ARLA Buy to Let panel of Mortgage Lenders. He helped devise and launch the Tenancy Deposit Scheme for Regulated Agents and was media spokesman for its successor organisation, The Tenancy Deposit Scheme. He launched the original client money protection scheme for letting agents and has also acted for general insurers to the sector
Comments
Malcolm Harrison is a breath of fresh air and common sense. Can't Mark Prisk hire him as a consultant?