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South East London Housing Partnership

South East London Housing Partnership. 30 November 2007. Regulation of the private rented sector. Is there a better overall approach to regulating the private rented sector? Law Commission project on regulation: encouraging responsible letting.

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South East London Housing Partnership

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  1. South East London Housing Partnership 30 November 2007

  2. Regulation of the private rented sector • Is there a better overall approach to regulating the private rented sector? • Law Commission project on regulation: encouraging responsible letting. • Consultation paper published July 2007; consultation period until 12 October. • Finalising conclusions: published probably in February 2008.

  3. Improving regulation: the options • We proposed three options, plus one • Option one: enhanced voluntary self-regulation. • Option two: enforced self-regulation. • Option three: universal licensing. • Plus one: property certification (a housing MOT). • Options regulate landlords, certification regulates property.

  4. Enforced self-regulation • Central regulator. • Approves self-regulatory organisations: • National landlords associations • National agents associations • local accreditation schemes • SROs enforce standards from single regulatory code (plus, if they want to). • Criminal offence to be a landlord unless a member of an SRO (or property managed by agent in SRO).

  5. How it might work • Central regulator: independent body which would • set standards: the regulatory code (absorbs TDS, licensing etc); • monitor practice. • SROs • police membership; • provide added value where market allows; • appeals to (say) RPTS. • Underlying legal obligations • Would they wither away?

  6. Role of local authorities • Yes, it does mean less of a role … but • Running local accreditation schemes. • Targeted enforcement in collaboration with SROs? • SRO reports members for eg HHSRS assessment or enforcement action; • Where SRO expels, local authority role in relation to property.

  7. Home condition certification • Periodic certification of property (HHSRS, CORGI, electrical installation, section 11). • Original proposal was as alternative - would need certificate to let property. • Consultation - practical issues, but some positive response. • Either as a voluntary add-on by SROs; or as a selective weapon for central regulator?

  8. The Future • Publication in March 2008. • Development of government thinking about PRS. • Will want time before reviewing TDS and licensing. • Prospect of real change after next election?

  9. Contact details Richard Percival Team Manager, Public Law Team Law Commission Conquest House 37-38 John Street Theobalds Road London 020 7453 1236 richard.percival@lawcommission.gsi.gov.uk http://www.lawcom.gov.uk

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