Calls For Landlord Register Review

By:
Madalena Penny

Housing Minister, Grant Shapps may have been too hasty with his decision to eliminate Jonathan Healey’s proposal of a landlord and letting agent register, which was planned to be introduced in England this year, experts claimed last week.

Amid a trending shift for available housing in the private rented sector by the current tenant surge caused by the housing shortage and unavailable mortgages, the current spate of rogue landlords and letting agents who are capitalizing illegally on the trend are left unchecked with no reliable framework to regulate the sector.

Stephen Moss, industry spokesman at the national network ‘Legal 4 Landlords’ said:

“While we welcome a successful regulatory system, concerns that a register of this nature may prove of little use if not directed or controlled properly.  Significance must be placed on regulatory factors rather than raising revenue by adding further financial pressure on responsible landlords and letting agents.”

In Scotland, the landlord register scheme, which was introduced in January 2007, has failed to make any impact on the sector.  The scheme, which was introduced as an initiative to impede unethical and dishonest landlords has seen only 24 landlords refused registration, with a mere 3 having their registration revoked since its introduction.

Alex Johnstone, conservative housing spokesman claimed:

“Landlords have expressed the opinion that the scheme has been unsuccessful in dealing with rogue landlords, and that the scheme had amounted to little more than a tax on those property owners who are responsible landlords.  The scheme is quite clearly not working.”

Mr. Moss added:

“ An illegal trend is emerging, which has been publicised recently in the national press.  A review of regulations is needed to protect tenants, responsible landlords and letting agents with a system to deter maverick rogues operating illegally.

“The private rented sector is seeing significant expansion because of a national housing shortage resulting in tenant demand.  Regulations need to catch-up and adapt to the changes.”

Genuine concerns are rising within the private sector amid claims of bogus letting agents taking cash from prospective tenants then failing to make appointments.  Likewise, rents paid to letting agents by tenants, which are not passed onto landlords.  The calls for review would highlight and deter rogues cashing in on the housing shortage.