RLA : RPI : Prescott targets 'bad landlords'

News from the Residential Property Investor, the bi-monthly magazine for RLA members

other artilces from the April / May 2000 issue

Prescott targets 'bad landlords' - April / May 2000

Local authorities could be given discretionary powers to license landlords of 'problematic types of property' and to refuse to pay housing benefit to support occupation of 'poor housing'.

These are two of the more alarming suggestions contained in the Government's recent housing green paper, Quality and choice: a decent home for all. Running to some 120 plus pages, this includes proposals on subjects ranging from ways of making house purchase easier to improving housing benefit.

Only one in ten households live in private rented housing - 'exceptionally low' by comparison with most other developed countries', admits the Government. 'We therefore want the sector to grow and prosper', says the paper.

'Landlords can be assured that we intend no change in the present structure of assured and assured shorthold tenancies, which is working well. Nor is there any question of our re-introducing rent controls in the deregulated market'.

The paper also rules out licensing the whole of the private rented sector not least because such a move would probably put so much weight on local authorities that there would be a risk of the system collapsing under its own weight. But it confirms the Government's intention to go ahead with plans for compulsory licensing of houses in multiple occupation and also raises the prospect of 'limited licensing'.

One possible way to combat 'unholy alliances' between bad landlords and bad tenants in areas of declining housing demand, 'particularly in parts of our northern cities', would be 'to give local authorities discretionary powers to impose licensing of private rented dwellings or of landlords on particularly problematic types of property'. Such powers would need to be used 'highly selectively'.

Likewise, the Government is less than enthusiastic about a general change making availability of housing benefit dependent upon the landlord providing 'decent standards'. However, its says its basic approach 'would be to restrict housing benefit payments in respect of poor housing, but only in areas where the market is over-supplied and claimants have little difficulty in finding alternative homes of a fit standard which are reasonably to their liking'.

To ensure the power was being used effectively and avoid housing benefit administration problems, 'local authorities could be given the discretion to refuse to pay housing benefit in respect of a dwelling if it has been identified as failing the standard', but only where the landlord is not part of an approved licensing or approved accreditation scheme.

The Government admits there are many good landlords who deserve support and encouragement 'to help them improve their position in the market place and to help them deal with tenants who misbehave or refuse to pay rent'. One of the problems is that many landlords operate in isolation more than half rent out seven homes or less and a quarter have only one letting.

'Both the national trade bodies and the many locally-based landlords' associations provide invaluable support and information for their members', says the green paper.

Encouragement for investment in the sector could include tax incentives and 'swift and certain' redress should tenant or landlord default. Consultation is promised on better enforcement of decisions by the civil courts, including improved sanctions for failure to comply with court orders.

other artilces from the April / May 2000 issue