Member Article

North East agent advises government on renting reform

A leading North East letting agent is advising the government on the future of rented housing – telling them radical reform is needed to protect tenants, but not new laws.

Ajay Jagota of KIS Lettings has told a Parliamentary inquiry that as Britain has become “a nation of renters” changes are urgently needed to empower tenants and to tackle rogue landlords and agents, but argued that since over 50 laws currently managing the rental market the problem is not a lack of rules, but tenants lacking the knowledge and resources to enforce them.

Ajay urged the government to ignore calls for new laws and to instead consider mandatory private redress insurance for tenants, empowering tenants and bring rogue landlords to book without the need for new legislation.

The Communities and Local Government Select Committee is currently investigating the quality and regulation of private rented housing in the UK, and KIS, who manage almost 700 properties across the North East from branches in Sunderland, North Tyneside and South Tyneside, have submitted evidence to the enquiry on behalf of the independent local landlords who make up the majority of the market.

Ajay said: “We wanted to make sure the committee heard the voice of the independent landlords KIS represents –the 68% of landlords who own less than five properties and in particular the 23% who rent out a single property.

“It is these landlords, often accidental landlords managing personal or family assets as best they can, or prudently and modestly investing for their retirement who will be most affected by any changes.

“There’s no question – the private rented sector is undergoing a period of unprecedented change with the last census showing a jump of 2 million in private renters in England and Wales – a rise of almost 90%. Britain is now a nation of renters, meaning huge opportunities for the industry, but huge responsibilities to tackle issues like the rogue landlords and agents who bring shame on it.

“The debate seems to have become unhelpfully polarised between those campaigning for the status quo and those who believe further regulation is a silver bullet for the industry’s ills. Over 50 Act of Parliament already regulate the relationship between landlords and tenants – the real problem is tenants not knowing their rights, and not having the resources to enforce them when they do.

“The entire housing industry should instead collaborate and co-operate on radical and creative solutions. It is in our view more than achievable for such solutions to make the changes the sector needs without the need for new laws. Change is needed, but regulation is not.

“Our recommendation to the inquiry is that agents and landlords should be required by law to provide mandatory private redress insurance for tenants signing up to a new tenancy.

“This would empower tenants to quickly make repairs if landlords prove unwilling or unresponsive and to quickly and affordably secure legal advice and support in the event of disputes with agents or landlords.

“It would also make it easier for rogue landlords and agents are bought to book using existing laws, by involving the investigative and legal powers of an insurance industry with a clear interest in ensuring compliance. As premiums would inevitably rise for landlord or agents who fall short of the required standards, they too would have a significant financial interest in providing and maintaining services and facilities of a high standard.

“Whatever recommendations the enquiry makes, we would urge them to make empowering tenants the focus.

“There are problem landlords, but landlords are not the problem, and whatever solutions the committee proposes must engage, not stigmatise, the vast majority of responsible, ethical landlords, or make it harder, or even impossible, for the smaller and independent operators who make up so much of the market to compete and even to function at all.”

This was posted in Bdaily's Members' News section by Ajay Jagota .