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PRS Landlords Victory On Selective Licensing By Local Authorities

PRS Landlords Victory On Selective Licensing By Local Authorities

PRS Landlords Victory On Selective Licensing By Local Authorities

Housing Minister, Brandon Lewis

Housing Minister, Brandon Lewis

Government Housing Minister, Brandon Lewis MP (pictured right), has announced that the selective licensing of private rental sector (PRS) landlords by Local Authorities will require Government approval from 1st April 2015, if they plan to license a large geographical area within borough or city boundaries.

Local authorities have had the power to licence landlords across an entire borough since 2010, in an attempt to combat community issues, such as anti social behaviour in troublesome areas. This blanket approach has seen a sharp increase in the number of selective licensing schemes being introduced by local authorities across the UK, much to the chagrin of landlords.

The changes to local authority selective licensing powers mean that councils will now need Government approval before they are allowed to implement a selective licensing scheme that covers a large geographical area of their council borough or covers an area that contains a proportion of private rented properties, expected to be around 20% of the local private rental market.

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Compulsory Redress Schemes For Lettings And Property Managing Agents New Government Measures Intend

To Regulate Private Rented Sector

The Government has announced that there are to be new regulations introduced in 2014 to provide private rented sector landlords, tenants and leaseholders with additional protection when working with lettings agents or property managing agents.

The Department for Communities and Local Government (CLG) want the introduction of compulsory redress schemes for lettings and property managing agents will ensure that they can be fully investigated where information is not made clear on additional charges, administration fees or any other property or tenant related issue. The proposed measures are intended to provide a cheaper, easier way for landlords, tenants and leaseholders to pursue compensation from lettings and property managing agents if they have a complaint.

The conditions that have to be met by lettings and property managing agents to be a part of a redress scheme have now been published by the Government.

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More Red Tape For LandlordsRed Tape Increases For Private Sector Landlords
Despite Government Promises

Despite numerous promises to reduce the amount of red tape property professionals had to deal with, there are now even more legal requirements to let and manage rental properties.

The coalition Government started an initiative called the Red Tape Challenge, aiming to reduce the time and associated financial costs incurred by businesses and consumers in complying with unnecessary legislation.

However, recent Government announcements will increase the amount of red tape and infuriating processes that landlords and letting agents have to deal with

The Residential Landlords Association (RLA) say there are currently over 100 national regulations governing the letting of a rental property in the private rental sector.

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Government Set To Backtrack On Landlords Conducting Immigration Checks

Government Set To Backtrack On Landlords Conducting Immigration Checks

Bill forcing landlords to check Immigration status of tenants
will be watered down

As previously reported on Spotlight the Government proposals for landlords to check the immigration status of all tenants, has already caused a great deal of outrage from all sectors.

http://mypropertypowerteam.com/landlords-expected-to-do-uk-border-agencys-job-for-them/
http://mypropertypowerteam.com/even-mps-think-landlord-immigration-checks-are-unworkable/

Government ministers look likely to perform the expected U-turn and backtrack on the proposal that would require landlords to verify the immigration status of their tenants.

Prime Minister, David Cameron is reported to have been livid when he was told that the proposed new legislation would have to be watered down.

According to a report in the Daily Telegraph, the legislation that is set to become part of a the new Immigration Bill, will not be rolled out nationally, instead, only landlords in certain parts of the UK will be forced to carry out immigration checks and the newspaper named some boroughs in West London would where landlords would be at the forefront of policing the immigration requirements.

Communities and Local Government (CLG) secretary, Eric Pickles, is reported to think that a mandatory requirement for all UK landlords would involve a great deal of additional red tape, and the resulting extra costs would end up being paid for by tenants.

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Letting Agents Face More Regulation And Red Tape

Will UK Letting Agents Face Further Regulation?

Will UK Letting Agents Face Further Regulation?

Letting and property managing agents face the increasing likelihood of mandatory licensing following the Government’s cabinet reshuffle and the appointment of Mark Prisk as UK Housing minister.

The recent appointment of Mr Prisk as housing minister is hoped to mark a new beginning for the UK property market and it is hoped that he will be more receptive to the idea of mandatory licensing of the UK lettings industry as he first tried to introduce mandatory licensing for letting agents into a Bill back in 2007.

It is widely speculated that Mr Prisk’s views on the subject remain the same now and it is hoped that he will be more amenable to the mandatory licensing than former housing minister Grant Shapps was.

With the support of the new Housing minister it is thought that the licensing scheme is much closer to becoming a reality, although not a certainty, as the Government have previously stated that pursuing further regulation would be a waste of time and effort.

Mr Prisk’s support of the idea of mandatory licensing for the letting agent industry became public knowledge last week when during a House of Commons debate on housing, Labour MP Ian Mearns, speaking to shadow housing minister Jack Dromey, is reported to have said “Is my Hon. Friend aware that he has an ally in the new minister for housing on the regulation of the private sector? In 2007, he tried to introduce a clause into a Bill that would have regulated private letting agents.”

Mr Dromey replied: “It is welcome that the new minister for housing has taken that position. Perhaps he will follow that through in government.”

Award Winning Property Management Services

Award Winning Property Management Services

John Paul, Managing Director of award winning Castledene Property Management said “Good letting and property management agents should have nothing to fear, as they operate within the guidelines set by ARLA (Association of Residential Letting Agents), the Property Ombudsman and The National Association of Letting Agents (NALS). Further regulation of the lettings industry coupled with the Government’s welfare reforms could have an adverse effect on the UK Buy-To-Let market as a whole and unless landlords are using agents who are clued up on the proposed changes to housing benefit then we could see thousands of landlords going out of business before the end of 2013”.

Ian Potter, operations manager at ARLA, said: “It’s vital that consumers have full confidence in lettings agents, and the industry must respond to their concerns about bad practice. That’s why in the absence of regulation, we developed our own licensing scheme. All licensed ARLA member letting agents must be covered by a client money protection scheme and hold professional indemnity insurance – which means consumers are protected against negligence. They must follow our strict codes of conduct and have a certain level of training. Ultimately this means that, should something go wrong, there are protection mechanisms in place. We would therefore always advise that consumers use an ARLA-licensed lettings agent. This means that, should a landlord or tenant feel the fees were unclear, they can lodge a complaint with ARLA or utilise the Ombudsman Scheme membership, which all ARLA licensed agents are required to hold.”

Previously, the former Housing Minister Grant Shapps, had promised that landlords and letting agents would not be subject to greater regulation because it would introduce too much additional red tape. Speaking in parliament in September 2010, Mr Shapps rejected the regulations proposed by the Rugg Review, stating: “With the vast majority of England’s 3 million private tenants happy with the service they receive, I am satisfied that the current system strikes the right balance between the rights and responsibilities of tenants and landlords. So I make a promise to good landlords across the country: the government has no plans to create any burdensome red tape and bureaucracy, so you are able to continue providing a service to your tenants.”

However, now that Mr Shapps has been made Conservative party chairman and the subsequent appointment of Mr Prisk as UK Housing minister, further regulation of the industry has become widely feared, with some property professionals voicing concerns about the amount of red tape they would have to get through just to get a tenancy to commence.

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