There not-for-profit accreditation service safeagent has voiced concern at local authorities’ capacity to enforce the growing raft of laws and regulations surrounding the private rental sector.
Just this week the government announced that, from Monday December 23, it would be easier for councils to launch licensing regimes for private landlords, with central government consent no longer being required.
Now Isobel Thomson, chief executive of safeagent, says: “When combined with the budgetary pressure on local government and the significant income-raising potential, we could see a raft of new schemes being implemented over the next few years.
“While fee income must be invested back into scheme delivery, the ability to fund staffing costs and overheads from a new scheme will help reduce cost pressure on the general fund. Local decision-making on the implementation of schemes would be seen as a positive but must not be regarded as a green light for blanket licensing.
“safeagent is concerned about the lack of effective enforcement and how local government will have capacity to resource further regulatory burdens when many councils are already experiencing a lack of expertise and staff shortages.
“In addition, there is a concern as to how to limit the upward trajectory in selective licensing fees which ultimately drives up the cost of private renting.
“It is also important that full recognition is given to the important role of landlords in meeting housing need and how this new, further expansion of selective licensing, coupled with the implementation of measures in the Renters’ Rights Bill, could add further to the current sense of uncertainty among some landlords.”
Agents have led criticism against the extended use of landlord licensing, especially as the much-vaunted landlord database being introduced as part of the Renters Rights Bill is described as fulfilling much the same role.
Timothy Douglas, Head of Policy and Campaigns at Propertymark, says: “The private rented sector needs less selective licensing not more with the additional costs and duplication of rules that it brings.
“To this end, there are enough laws covering high standards for rented property, but it’s the lack of capacity of local authorities to actively inspect property and enforce these rules that is the main issue. Licensing means councils spend all their time administering schemes, rather than enforcing against rogue, criminal landlords.”
And he adds: “The Renters’ Rights Bill offers an opportunity to phase out licensing schemes, provide councils with the resources they need and endorse professional letting agent and landlords alongside the introduction of the Decent Homes Standard and Private Rented Sector Database.
“However, it would seem that the UK Government is failing to recognise the benefits of doing this and not providing local authorities with the much-needed investment they need to enforce the wide range of legislation that already exists.”