Law Reform from landlords
Reading the excellent Landlord & Buy to Let Magazine today, I came across an article about the Residential Landlords Association’s submission to government with their top law reforms. I thought you might be interested.
These are the proposals:
1. Self regulation
It is proposed that landlords who are members of approved regulation schemes should be able to regulate themselves rather than be subject to Local Authority control. This, it is claimed, would leave the Local Authorities free to pursue the real offenders.
Comment. Allowing Local Authorities to concentrate their resources sounds like a good idea, but I am very uneasy about self regulation for landlords.
2. Power of entry
Local authorities should let landlords know if they use their power of entry in respect of their rented properties.
3. Tenancy deposit information
The current rules require information to be provided which is already available to tenants from the schemes. It is suggested that the rules be simplified
Comment: It would also be helpful if there was a prescribed form.
4. Tenancy deposit penalty
This, it is claimed, is unfair, as there is no power to mitigate the penalty, and minor transgressions and ‘wilful flouting’ are currently treated the same.
Comment. Many Judges are uneasy about this also. We are all waiting for the Court of Appeal decision in the Tiensia case which will hopefully shed more light on how these regulations are to be dealt with in the courts.
5. Obtaining possession
It is suggested that obtaining a possession order under s21 through the courts is unnecessary, as protection can be given to tenants more simply and cheaply by requiring the use of a certificated bailiff
Comment. Call me an old fashioned solicitor, but I am seriously alarmed by this proposal. I discussed some of this issues in this post here. Evicting someone from their home is a serious matter. I think it needs a court order.
6. Obtaining possession where the landlord has a right to get the property back
The paper procedure (presumably the accelerated possession procedure) should be extended to other cases where the court has no option but to grant a possession order.
Comment. When the accelerated procedure first came in it was also available for claims for possession under ground 1 (owner occupiers). Later it was restricted to section 21 claims. Does anyone know why this was?
7. Evicting squatters
Landlords should be entitled to evict squatters without obtaining a court order, using certificated bailiffs.
Comment. I think the courts should still be involved but I think there is scope for simplifying the procedure and making it quicker. Note that anyone faced with squatters should take a look at my Evicting Squatters site.
8. Fire safety
The fire safety legislation (say the RLA) is complex and conflicting. It is suggested that this would be best dealt with under the Housing Health and Safety Rating System.
9. Administration charges:
This refers to notice under the 2002 Commonhold Leasehold Reform Act being required for charges for short residential lets, which is considered inappropriate. Particularly as tenants under shorthold tenancies are protected anyway under consumer legislation.
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Well, those are the proposals, and and those are my comments. What do you think about it? And are there any other proposals which you think should be included?
Mine would be to brush the dust off the Law Commissions Renting Homes report and bill, and consider bringing it into law.
I agree with Tessa when she expresses unease about self-regulation for landlords.
Forgive me if I am incorrect but landlords who belong to trade bodies such the NLA and the RLA are not actually regulated. By joining these organisations landlords agree to abide by a code of practice but the organisations themselves do not have any statutory powers granted to them by law.
It also seems timely to offer a reminder that the Law commission in mid-August 2008 tabled improvements to Buy To Let. Smaller landlords however were concerned at the proposals because they included them being required to join either accreditation schemes, or professional associations.
They saw this as adding administrative burdens and higher costs and said that this could possibly lead to not only existing landlords withdrawing from the market but could put off new entrants.
We are aware that landlords are resistant to licencing but this insistence on self regulation can surely not be deemed to be successful when Shelter felt it necessary to launch a campaign to remove rogue landlords from the PRS. Hardly great press for 21st century landlords!
The NLA and the RLA both set a lot of store by acccreditation. Whilst I certainly believe it has its merits, (and I did go and get some myself) whilst it remains voluntary, does the RLA have any idea as to how many years it will take for all landlords in the sector to voluntarily acquire some as this appears to be what we are waiting for?
Miss Sharon Crossland AIRPM
Leasehold Life
Thank you Sharon for your thoughtful comment. Yes the Law Commission did look at ways to make landlords more compliant with legislation and one route considered was via landlords associations.
However you are quite right, at the moment these are membership organisations and do not regulate their members. Not for example in the way that the Solicitors Regulation Authority do for Solicitors or (so I understand) ARLA do for letting agents.
I got the impression from the Law Commission reports that landlord associations were not particularly keen to take on a regulatory role.
Self regulation is a ludicrous suggestion in my book.
I have 2 additions though. Housing law is so daft and complex and I think it unreasonable to expect landlords to know all that stuff, but agents are another matter. Having mandatory qualifications for them I think is a must. I’ve said it before you wouldnt employ a solicitor with no qualifications or have your mate Dave down the pub set up your mortgage but anyone can set themsleves up as an agent and pretend to be an expert.
Secondly, just like deposit protection I think Rent protection insurance should also be mandatory. 95% of landlord harassment is driven by rent arrears. Take away the problem and I would be (happily) out of work in no time
Ben, you can’t HAVE a solicitor without qualifications, if they did not have the qualification they would not be a solicitor!
I certainly agree with you about mandatory qualifications for agents.
As regards mandatory rent protection insurance, I suspect there are some tenants that are uninsurable.
Which would mean I suppose that if the insurance was mandatory, they would not be able to get any accommodation at all because no-one would provide the insurance cover …
Take your point about the solicitor haha But I have come accross people trading on foreign lawyers qualifications that are nonsense
I know there is the problem with insurance for people with criminal convictions but there was, in the air, a government recommendation about this due to be anounced on the 24th of June I recall. Lost track of it since then. That could help
Re. the tenancy deposit penalty there IS mitigation! My landlord admitted not registering the deposit in a scheme and the judge dismissed the case saying he just forgot! (Suppose we forgot to pay our car tax or tv licence, could we similarly be excused?) Incidentally, the landlord is a local councillor!
Hmm. Maybe you should have appealed the decision.