Regulation of the private rented sector – the challenges ahead SELHP Landlord Day 7 May 2008

1. Regulation of the private rented sector – the challenges ahead SELHP Landlord Day7 May 2008 Richard Tacagni Head of Function (Housing) richard.tacagni@lacors.gov.uk

2. Aim of presentation • Explore the condition and energy efficiency of properties in the private rented sector (PRS) • Understand the role of councils in regulating and driving up standards in the PRS • Looking to the future – what might come from the range of PRS reviews currently underway • Allow time for questions

3. English House Condition Survey 2006 • Half of all properties in the PRS do not meet the decent homes standard • A quarter (24%) of homes in the PRS have category 1 hazards under the housing health and safety rating system • But…… most landlords (78%) rated their properties as in good or excellent condition • Most private landlords have limited experience/qualifications, are not members of professional trade or landlord associations, have less than ten properties and see their portfolio as an investment

4. Energy efficiency of the housing stock • Tackling climate change: 27% of CO2 emissions come from housing • Average SAP rating for private sector housing is 47, compared to 57 in the social housing sector; 1 in 10 homes in the PRS falls into the least energy efficient ‘band G’ • Landlords should grant consent for tenants to have free energy saving measures installed under the Warm Front scheme; invest in simple energy saving measures now; incorporate more substantial work within major property renovations • EPCs required from Oct 08; give yourself a marketing advantage by making your properties more energy efficient

5. Role of councils in regulating the PRS Councils need to create a balanced approach to regulation of the PRS: • Advice, support and encouragement for professional and competent landlords who are trying to do the right thing • Working in partnership with private landlords to create a balanced housing market and help meet local housing need • Tough enforcement action targeted at the minority of rogue landlords who operate poorly managed and unsafe accommodation – and who damage the reputation of the PRS

6. Working with Stakeholders • At a national level, LACORS has established a private sector housing stakeholder group with representatives from the main landlord, letting/managing agent and tenant representative groups • Meets four times a year and minutes publicly available • Useful forum to discuss issues of national significance; to share information and to facilitate closer partnership working between local councils and other stakeholders

7. What councils can do to help landlords Councils can provide advice and support to landlords and letting/managing agents through: • Council website • Forums • Newsletters • Accreditation schemes (London Landlord Accreditation Scheme and the National Approved Letting Scheme) • Training events • Conferences/seminars

8. Partnership working – meeting housing need Councils can work with private landlords to meet local housing need by: • Signposting residents in housing need to accredited landlords and NALS approved letting/managing agents • Private sector leasing schemes • Offering grant/loan assistance in return for council gaining nomination rights for people on the councils housing register • Offering deposit bond/guarantee schemes • Working closely with landlords to tackle serious problems of anti-social behaviour

9. Strong regulatory powers available • Addressing the health impact of poor housing through the housing health and safety rating system. Involves risk assessment; no longer a prescriptive approach • Mandatory licensing of certain larger houses in multiple occupation • Opportunity to introduce additional HMO licensing and/or selective licensing to address areas of low demand and serious anti-social behaviour • Management orders – ability to take over the management of problematic properties in the PRS • The tenancy deposit protection scheme

10. Looking to the future… • July 2007: Law Commission consultations on ‘Encouraging Responsible Letting’ and ‘The Role of Tribunals’ • Jan 2008: Government announced an Independent Review of the PRS, led by Julie Rugg & David Rhodes from York University • David Rhodes has been collating all available data on the PRS • Julia Rugg has been holding a series of roundtable stakeholder meetings to discuss different themes including regulation, accreditation, student accommodation, homelessness, etc • Final report will be presented to Government in October 2008

11. Looking to the future… • April 2008: Government announced research (by ECOTEC) into the impact of high concentrations of HMOs on community wellbeing: ‘studentification’ and migrant workers • Changes to the HMO definition in the Planning Use Classes Order are being considered; but need to avoid unintended consequences. A public consultation on this topic is expected to be carried out • 2008/09: Government have commissioned the BRE to review the implementation and effectiveness of mandatory HMO and selective licensing

12. Fire Safety Enforcement • May 2007 – published a national protocol on joint working between local housing authorities and fire and rescue authorities • But…. the protocol only clarified who would do the inspection, not what the fire safety provisions should be • So, phase 2: the development of national guidance on fire safety in residential accommodation. Draft guidance put out for 6 week public consultation in Jan 08. Guidance currently being finalised and should be published soon

13. Conclusion • The PRS is in considerable worse condition and less energy efficient than the owner occupied or social housing stock • Some landlords simply see the PRS as an investment opportunity and do not fully understand the responsibilities they are taking on; this is usually when problems occur • Councils need to support and encourage landlords to improve their property management skills and/or encourage use of NALS approved letting/managing agents • Tough enforcement action needed against the minority of rogue landlords who fail to manage their properties and place tenants health, safety and welfare at risk • So what does the future hold? Perhaps not substantially more regulation, but better regulation

14. Thank you for listening Any Questions?