Integrated Approach to working with the Private Rented Sector

1. Integrated Approach to workingwith thePrivate Rented Sector Marion Money & Gavin Dick National Landlords Association

2. Overview • Legislative Impacts on a Landlords Business • From many varied sources • Real impact on business plan for investment potential • Engaging with The Best • Standards • Enforcing Against The Rest • Regulation • Opportunities for Private Landlords • The increasing importance of the PRS • A nation of renters • Positive Investment opportunities

3. Legislative Impacts • UK Government Departments • Ministry of Justice • HM Treasury • Department for Energy and Climate Change (DECC) • Department for Work and Pensions (DWP) • Department for Communities and Local Government (DCLG) • HA 2004

4. Shelter Sensational Headlines • “Complaints about Private Landlords rocketing” • “Devastating Impact these landlords have on peoples health and well being” • Shelter Freedom of Information requests to all 326 LA’s • 2011/12 : 85,000 complaints out of c 1.25 million Landlords • But only 487 successful prosecutions • (4 in KENT , 1 in Thanet June 2011)

5. Localism Agenda • Localism agenda • Decisions should be taken at the most local level • Members Involvement • Discretionary Licensing • Formerly schemes had to be approved by CLG • Planners and Housing Conflict • Article 4 Directions/Need for Single rooms • Space/Amenity Standards • Prosecution HMO LL £1.4 Million

6. Discharge into PRS • Discharge of local authority homeless duty into private rented sector • PRS View • A positive step • PRS is not a short term stop gap • Recognition that PRS part of the Housing Solution rather than part of the problem • Concerns on disparity of criteria amongst LAs • Standards should not be greater than those imposed on RSP’s • Gatekeeping

7. Discharge into PRS • Discharge of local authority homeless duty into private rented sector • LA View • Suitability of Accommodation • Suitability of Landlord • Matching tenants with households • Open to Challenge • 12 month tenancy

8. Partnership Working • Partnership Working • Build on, not alienate, existing Relationships • Improve on ‘less established ones’ • Landlords and Local Authorities working together to sustain tenancies • Long term tenancies offer positive Return On Investment for landlords • Recognition of Impact on NHS costs and Children’s Education

9. Partnership Working • Engaging with The Best • Private Sector Leasing Schemes • Guaranteed Rent for the duration • Well managed , in-house maintenance, insurance agreed at outset • No risk, as long as contract clear at outset • Restrictive if ‘encumbered’ • Social Lettings Agency • As above but risk of voids balanced by higher rents? • Potential for Local SLAs to work together to procure adjacent properties • Consider potential to ‘share’ across LA’s properties adapted for the disabled • Open Market Lettings • Robust Support • Accreditation : Landlords and Tenants • Landlord Liaison Officers

10. Partnership Working • Enforcing Against The Worst • Rogue (Criminal) landlords • ‘Ignorant’ (Accreditation) ‘Criminal’ (Enforcement) • HHSRS Process ;HSE; Rent Repayment Orders: Proceeds of Crime, Environmental Protection Act 1990 • Discretionary Licensing • A Tax on the Good landlords • Fees are strictly for the cost in officer time + admin to administer an individual licence. • Restricts investment in areas subject to Licensing • Lenders perceive increased risk • Insurers perceive increased risk

11. Opportunities For Private Landlords • A Nation of Renters • ‘Tenure Of Choice’ • 2010/11 PRS 3.6 Million : Social 3.8 Million • the PRS in now larger and growing • Letting demand outstripped new supply for 11 successive quarters (RICS) • By 2030 Predicted 40% households will be renting • By 2016 ‘Rent Roll’ increase from £48 billion to £70 billion • 2013 Budget – Build to rent has been expanded from £200m to £1B • Generation Rent • Flexibility • Under 40’s unable to fund purchase • Pensioners ‘SKI’ club now to fund long term care and maintain life style • 50% Pensioners receive HB • English Housing Survey 2012: >>>>>

12. English Housing Survey Households Report July 2012 • Length of Tenure • < 1 year PRS 35%: Social 8.4% • 2 – 3 years PRS 13.1.% : Social 8.2% • 3 -4 years PRS 14.00% : Social 12.5% • Reasons for Moving • Family or personal reasons : 26% PRS : Social 27% • Unsuitable or Issues with their Landlord : 12% PRS : 16% Social • Job Related 15% PRS : Owner Occupiers 7% • Asked to leave by their landlord 9% of which 40% were for rent arrears • Tenants Satisfaction Index • PRS /Social 72% : LAs 66%

13. The Private Landlord has a Choice • Kent moved closer to London • Impact of London Economic pull • HS1 impact on surrounding area • Professional tenants increasing • Market Rents rising • Housing Benefit decreasing in real terms • Universal Credit Impact • Time constraints involved with LA schemes • Migration HB Tenants from London Authorities • With ‘Goodie packages’

14. Questions • National Landlords Association • 22 – 26 Albert Embankment • London • SE1 7TJ • Tel: 0207 840 8900 • Email: info@landlords.org.uk • Web: www.landlords.org.uk