Propertymark calls for MOT’s for PRS homes instead of property licencing

A radical overhaul of local property licencing schemes is necessary under the proposed Renters’ Rights Bill because they are ineffective and costly, Propertymark warns.

The organisation says it has responded to consultations on additional and selective licencing consultations from Enfield, Reading, Gateshead and Wandsworth.

It has also responded to a proposal from Lambeth to bring in Article 4 Directions for small Houses of Multiple Occupation (HMOs).

While Lambeth’s proposal aims to improve HMO property conditions, Propertymark warns that it could have a negative impact on rent levels, the supply of affordable housing and the local economy.

The trade body also expressed concerns about the impact on student accommodation and the ability of local authorities to effectively enforce standards.

It also points to the Ministry of Housing, Communities and Local Government (MHCLG) which is looking at a national digital PRS database – Propertymark says this will make property licensing redundant.

Improving standards within the PRS

Propertymark’s policy and campaigns officer, Tim Thomas, said: “Debate around the Renters’ Rights Bill should be seen as an opportunity to consider fresh ideas in improving standards within the private rented sector in England.

“It is clear that as local authorities call for the reintroduction of licencing schemes for an additional five-year period, they have been unsuccessful in their aim in improving standards.”

He adds: “The UK government’s proposed database should make local authority licencing unnecessary, and rather than reintroduce unsuccessful schemes, MHCLG should concentrate on how national licencing can accommodate the important role that letting agents play in managing properties and ensuring landlords raise standards.”

Criminal landlords operate under the radar

Propertymark argues that licencing schemes are a blunt instrument in improving standards, with many compliant letting agents and landlords paying fees while criminal landlords and agents operate under the radar.

It is also concerned over the impact on housing supply, the effectiveness of local authority enforcement and the value for money of such schemes.

Instead of licencing, Propertymark wants an annual ‘MOT’ of rental properties to replace the expensive existing discretionary schemes, improve enforcement, and provide guidance to agents and landlords on how to maintain or improve property conditions.

This would cover all areas of property condition, including energy efficiency and minimum health and safety standards.