British Property Federation reaction: The fairer private rented sector White Paper

Ian Fletcher, Director of Policy at the British Property Federation, gives his reaction to the fairer private rented sector White Paper.

Ian Fletcher said:

“Efforts to create a better and world-leading rental sector for tenants and investors is something we very much welcome.

“Good landlords know that reform can be win-win, protecting and enhancing renters’ rights but also encouraging residents to feel at home, increasing the time they stay and ultimately benefitting tenants and investors.

“There are occasions when issues arise on both sides of a tenancy, and while it is a last resort the renters’ reform will result in more disagreements between investors and tenants being seen in court.

“It is vital that the government delivers on its digitalisation of the courts’ agenda ahead of these reforms to ensure a swift resolution to these cases. Investors will feel let down if that is not the case.

“It is now important the sector works with government to ensure that the reforms deliver for renters and investors.

“That was the promise given by the Government in 2019, and we look forward to playing our part in ensuring the reforms deliver a stable home and customer excellence for renters – two of the key pillars on which the Build-to-Rent sector has been built over the last decade.”

The BPF broadly welcomes many of the principles in The Fairer Private Rented Sector White Paper, which offer the opportunity to create a better and world-leading sector for tenants and investors alike.

Build-to-Rent (BtR) – quality, well managed, purpose-built homes, owned by institutions – has often been ahead of policy, and for example the sector already provides access to redress, clarity on rents, and pet-friendly policies – all measures adopted by the White Paper.

Independent tenant ratings are also a pervasive part of the sector. We support Government in the belief that such transparency is good for suppliers and customers. The BtR sector has excellent ratings.

Decent Homes is also something the sector will fully get behind the Government on.

It is welcome that the Government has given a great deal of thought to these reforms and not rushed in but consulted extensively with all stakeholders. We think the package today is the better for that, and we look forward to continuing discussions in a constructive vein.

Inevitably, in such a sweeping set of reforms there will be issues to clarify:
  1. It is of significant concern that there is no mention of court reform in today’s announcement. That might be an oversight, as Government is working on digitalising the process. Such reform to the courts must be tested and in place, before any Fairer Private Rented Sector Act takes effect.
  2. The policy on rents was not part of discussion with Government over the past three years. A policy of market rents is make or break for investment and therefore it is good that Government is underpinning that principle. The use of other mechanisms for setting rents (CPI, RPI, fixed rates) however, should be acceptable, providing they are short-term. Most mortgages for example work on short-term fixed rates, and the Government itself uses annual CPI in the social housing market.  It appears somewhat nonsensical that Government would seek to deprive private investors of an option itself uses for similar means.
  3. The 2019 consultation paper proposed retaining fixed-term contracts and we are pleased to see that option will remain for Purpose-Built Student Accommodation.
  4. Mention of stronger powers to tackle anti-social behaviour are welcome, but the detail will need to be worked through. An anti-social tenant can cost a good landlord several other well-behaved tenants. Tools to stop that are a welcome and an essential part of reform.
  5. We will want to further explore the detail in the landlord portal. We have long supported a landlord register, but it will be a missed opportunity if Government simply conducts a “roll-up roll- up” exercise, which only captures well-behaved landlords and not those that bring the sector into disrepute.

 

Kindly shared by British Property Federation (BPF)

Main photo courtesy of Pixabay