Tenancy deposit schemes asked to set up 'slate and rate' site

The three tenancy deposit schemes are being asked to consider collectively setting up an online ‘tripadvisor’ style rating system for tenants to review landlords and agents.

However, the call for letting agents and landlords to be subject to ‘reputational regulation’ was based on the results of a tiny survey, and the idea has been turned down flat by the UK’s largest landlord group, the National Landlords Association.

David Salusbury, chairman of the NLA – which set up one of the tenancy deposit schemes, Mydeposits – said: “The National Landlords Association condemns the small minority of bad landlords who seek to exploit their tenants, but does not believe an online ratings website is an effective way of raising standards in the private rented sector. 

“In fact, the NLA believes a ratings website could drive rogue landlords under the radar whilst adding unnecessary burdens on the law-abiding majority.”

He said the Government’s own figures show that nearly 80% of tenants are happy.

The statutory watchdog Consumer Focus wants to see a consumer review site, so that tenants have some idea before they commit to a contract what the landlord will be like and what the underlying state of the property is.

But its call comes after research which appears to have involved a tiny sample.

The views of just 18 private landlords and those of fewer than 200 tenants were sought.

Of 32 tenants identified by Brent Private Tenants Rights Group, “a small number” were subsequently interviewed, says the Consumer Focus report, Opening the Door.

An online letting agent, uPad, subsequently invited prospective tenants to take part and 143 private sector tenants responded.

In addition, an unspecified number of individual letting agents, professional bodies, other stakeholders and both landlord and tenant groups were canvassed.

The report makes it clear, as LAT reported last week, that concerns are ensuring that feedback from tenants is genuine and fair, with some ‘stakeholders’ being concerned that costly legal action could be an issue in terms of costs of running such a site.

Cost does remain the central issue. LAT mistakenly reported last week that Consumer Focus itself would be running the site, as we were misled by its assertion that it was looking for ‘initial’ support to fund and monitor a feedback site. We have been asked to point out that the body is in fact simply calling on the lettings industry to run such a site and is looking for someone else to do this. We apologise for our mistake.

However, the report does highlight the possible role of the tenancy deposit schemes, saying costs could be kept down if the scheme was partnered with a tenancy deposit scheme. The report later suggests it would be “ideal” for all three of the schemes to collectively take forward the idea.

The report also makes it clear that, for success, there would have to be wide take-up. The Deposit Protection Service has offered to source landlords who would take part in any pilot scheme.

The three tenancy deposit schemes have yet to offer their views on the proposals, but Ian Potter, operations manager of ARLA, said the idea for a consumer feedback site was worth considering, but added: “However, renting a property is not as simple as buying a product; there are many factors to take into account which can influence whether or not a tenant has a positive experience, not least the fact that renting a home is a very different, emotive experience from other major financial purchases.”

He said that whilst the industry remained unregulated by the Government, there would always be rogue agents and landlords outside the scope of bodies such as ARLA.