Govt scraps plans for further regulation of private rented sector

According to Patrick Clift in the lastest edition of Estates Gazette, housing minister Grant Shapps has announced that the government is to abandon Labour’s plans for regulation of the private rented sector but keep controversial rules on multi-let homes.  

Answering questions in the House of Commons this morning, Shapps said the current regulatory framework for the PRS already struck the right balance between landlords and tenants. He said: “We have no plans to move forward with the previous government’s ideas for further regulatory measures on the subject.”

Shapps also revealed that government would look again at rules governing so-called houses in multiple occupation in “more detail”, but had no plans to overturn them. Under HMO rules, landlords that want to rent a property to three or more unrelated tenants have to apply for planning permission.

The decision to abandon regulation of the PRS, against the recommendations of the Rugg Review into standards in the sector, drew criticism from trade bodies. Ian Potter, operations manager of the Association of Residential Lettings Agents, said: “This move risks seriously hampering the improvement of standards in the private rented sector, the sector’s reputation, and the fundamental role it plays in the wider housing market as well as failing to protect the consumer who has nowhere to go when there is service failure or fraud.

“Currently, any person or organisation can become a letting agent.  Until that is changed via national regulation, unprofessional, unqualified and unethical operators will continue to exist, to the detriment and expense of consumers and the market as a whole.”

Caroline Pickering, chair of the National Approved Letting Scheme, which provides benchmarks allowing landlords and tenants to compare the service they receive from letting agents, said: “There is plenty of evidence that tenants and landlords are at risk because there is no compulsory regulation of the sector.

“It is all too easy for a rogue agent to fleece landlords and tenants of their money, to oversee the letting of properties that are in poor condition, and to damage local communities by leaving a trail of unpaid bills amongst hard working local trades people.”

Hatch Legal Newsletter

Updates provided by Hatch Legal’s June newsletter:

1. New gas safety website – Landlords’ legal obligations relating to gas safety are now set out on the Health & Safety Executive’s website. To view go to http://www.hse.gov.uk/gas/

2. Student loan interest rates increase – From September 2010, some people currently being charged 0% interest will have to pay 4.4% interest. Detailed guidance is available here http://www.moneysavingexpert.com/

3. Assured shorthold tenancy threshold raised – The Assured Tenancies Order 2010 (SI 2010/908) will increase the rent limit for assured tenancies from £25,000 to £100,000 with effect from 1st October 2010. The Order will have an element of retrospective effect. You can read more about this and any other story on this post at http://hatchlegal.co.uk/  

 

Landlords – changes to the ‘use classes order’

Landlords – If you’re a registered MSH landlord, an electronic copy of your May newsletter should reach you by post shortly.

 In addition to the information in the newsletter, we would like to alert you to the following:

 In response to consultation on possible planning responses to HMOs, the Government has decided to provide a specific definition of ‘HMO’ by amending the Use Classes Order.

In Manchester, there are high concentrations of shared housing in some areas, which some feel can have negative implications.

From 6^th April 2010, you need to obtain planning permission to change the use of a property from a ‘dwelling house’ (‘C3’ class) to a ‘HMO’ (‘C4’ class), i.e. planning permission is needed to let a property to a group of  3 or more unrelated people where it has previously been lived in by a family.

You will not need planning permission to change a house lived in by 3 or more unrelated people back to a house for a family. The change is not retrospective, i.e. if you let your property to 3 or more unrelated people at the time of the change, you will not need planning permission to continue to do so.

Manchester City Council’s interim approach (detailed policy to be prepared) is ‘The City Council will not permit conversion of a C3 dwelling house to a C4 House in Multiple Occupation where this would have a negative impact on the sustainability of neighbourhoods and residential amenity in the surrounding area’.

 This is a legislative change and you may like to approach your relevant local authority for more specific information, however Manchester Student Homes will also try to answer any queries to the best of our ability.

Student Direct Article

MSH are quoted in  this article in the current issue of Student Direct (Mancunion Edition), on the proposed changes to the ‘use classes order’, which could limit the number of student houses in Fallowfield and Withington.

Landlord Forums – Manchester and Salford

The following should be of much interest to student landlords:

Manchester Landlord Forum, Manchester Town Hall – Thursday 18th March 2010, 10am-12.30pm

On the agenda:

Planning new HMOs, Student Strategy, Accessing council homes, and Landlord Advisor and Housing Benefit expert advice sessions, 12.30-1pm. More information and booking

Salford Landlord Forum, Salford Civic Centre, Tuesday 23rd March 2010, 3-4.30pm and 6.30-8pm

On the agenda:

Managing tax affairs, Change of dwelling use planning policy for HMOs, Landlord licensing and accreditation, Advice on free loft and cavity wall insulation

More information and booking