More councils will open lettings agencies – and here's why

More local authorities will set up private sector letting agencies, a top buy-to-let expert has said.

Author and landlord David Lawrenson was speaking after our report about the private lettings and estate agency set up by Neath Port Talbot Council in Wales.

Lettings chain boss Dorian Gonsalves, managing director of Belvoir, said it was undercutting his own local franchisees, and he has expressed alarm that more local councils will follow suit.
Neath Port Talbot Council has openly said that the reason for launching the agency is to bring in revenue at a time of public cutbacks.

But Lawrenson said that one objective of these new letting agencies will be to attract private landlords prepared to let to people on low incomes or to benefit tenants on Local Housing Allowance (LHA).

He said: “The properties will then be advertised or made available to tenants who are in housing need and who approach the local authority for accommodation.

“By making an offer of suitable accommodation in the private rented sector, a local authority may in the future be able to say it has discharged its housing homelessness duty to a household.

“This means that in future, for most people who approach the councils for help, if they reject private rented accommodation they will not be able to remain on the social housing waiting list.

“The move follows the Rugg Review, commissioned by the previous government, which recommended that local authorities should consider setting up local letting agencies to help facilitate this, and other objectives to help them better engage with the private rented sector.

“This is obviously a big political issue and there are some who work in borough housing departments as well as some letting agents who don’t like it, for different reasons.”

You can read Lawrenson’s full blog on www.LettingFocus.com