ARLA asks government to reconsider regulation following census data

ARLA asks government to reconsider regulation following census data

15:19 PM, 12th December 2012, About 11 years ago 26

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ARLAThe surge in private rental sector (PRS) tenants reported in the latest census highlights the need for immediate government regulation, according to the Association of Residential Letting Agents (ARLA).

Alongside reports of a drop in the number of UK owner-occupiers, to 64%, the number of tenants renting privately has increased from 9% to 15%*. With the private rental sector absorbing much of the move away from home owning, standards are likely to come under increased scrutiny.

Ian Potter, Managing Director, ARLA said, “The census data confirms what our members have already told us, that would-be home owners are increasingly turning to the private rented sector after being priced out of buying their own property.

“As the PRS continues to expand, it is imperative that the government takes decisive action on regulating letting agents. This will help prevent less scrupulous landlords from taking advantage of the unprecedented level of consumer demand. Renting should be a positive experience for both tenant and landlords, and a professional agent will be able to guide them both through the process.

“In the absence of regulation, we would always advise tenants to rent their properties through an ARLA member agent. All ARLA agents must adhere to a strict code of conduct, as well as offering client money protection and redress schemes, which protect you if things go wrong.” 

Mark Alexander, landlord and founder of Property118 said: “I agree that something has to be done to professionalise the sector. A good starting point in my opinion would be to compel the major property portals to enforce full disclosure of all fees charged. I also support  of it becoming mandatory for all agents to hold Client Money Protection insurance before they are allowed to advertise property to let and to make it an offence for all forms of media to accept advertising without proof of Client Money Protection “CMP ” insurance. I firmly believe this would be the only regulation  required as the commercial nature of the insurers providing CMP would effectively regulate the market in terms of pricing for perceived claims risks. For example, an ARLA agent may well pay less than a completely unregulated agent for CMP insurance.”


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Mark Alexander - Founder of Property118

12:05 PM, 17th December 2012, About 11 years ago

Hi Mary

Those landlords DO have a choice, please see >>> http://www.property118.com/index.php/full-property-management-from-just-14-99-a-month/34413/

This business model is the future of the lettings industry in my opinion.

I have done thorough due diligence on this company as Property118 are looking to acquire a stake in their business, subject to performance, in Spring of next year.

They are already operational in the West Midlands and are prepared to compete with existing agencies.

Watch this space!

19:22 PM, 17th December 2012, About 11 years ago

Thanks for answering Mark - I was really getting worried there.

Mark Alexander - Founder of Property118

20:39 PM, 17th December 2012, About 11 years ago

Why would that worry you Michelle? If portfolio landlords could purchase CMP as an alternative to purchasing "My Deposits" insurance it could save a lot of money, time and paperwork.

23:46 PM, 17th December 2012, About 11 years ago

Clearly trashing a property should be treated as criminal. If I order a meal at a restaurant knowing I can’t pay for it, it is a crime – this is like someone renting a property when they know they can’t pay the rent.

However if someone loses their job, and has to pay rent for the next n months due to the contract, but can’t afford to do so, should that be a crime?

But maybe it should be a crime if a person does not move out when they can’t pay the rent, in the same way it is a crime if they steal food when they can’t feed their
children. Why should it be one set of rules of Tesco and a different set for landlords?

I would like to see the state taking responsibly for tracking down people that don’t pay CCJ, and it being a crime not to take all reasonable steps to pay (including giving
up smoking!) Likewise given that the location of most people is on some government database, the court system should serve papers on people when the state knows where they are but the other party does not.

The police should also be willing to investigate and charge every time someone gives a false reference or clearly deceives on a tenancy application form.

At present there is no practical way to enforce a court judgment on someone unless they are in stable employment. Therefore we are getting a large underclass that can’t rent in the private sector as landlords can’t project themselves.

9:01 AM, 19th December 2012, About 11 years ago

Yep couldn't agree more with what you state.

However you and I as realists KNOW none of your correct suggestions WILL ever come to pass.

It is just NOT in govt's interests to facilitate a LL to be able to enforce AST terms and to assist LL in recovery.

We are as LL very convenient; hidden whipping boys for govt and that will NOT change.

We therefore take the only choices left to us and withdraw from the more difficult market areas.

This then results in stupid council members like Mr Wales of Newham; wailing that they have to send their homeless up North because there is no LHA affordable rental property in Newham.

Which as we know is totally incorrect!
There are lots of LHA affordable rental properties in Newham,, it is just that the LL of those properties don't wish to let to LHA claimants, I wonder why!!!??

Antony Richards

14:19 PM, 19th December 2012, About 11 years ago

I have no problem whatsoever with the regulation of agents. As a chartered surveyor I welcome the idea that all agents should work to a better standard. It will give us all a better name and (possibly) get rid of the cowboys.
I do have a problem with some of the threads on this site in general which tend to suggest that while most agents are rogues, all landlords who do not use agents are pillars of society!!
Full in the knowledge that the PRS actually provides some of the worst landlords should it not be that any landlord not using a regulated agent has to be trained and licenced?
We could then move on to licencing tenants...................

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