News from the Residential Property Investor, the bi-monthly magazine for RLA members other artilces from the February / March 2002 issue RPI news archive

Hostility causes brain drain - February / March 2002

The major issue facing our industry is the development of skill. Good management is essential for any investment. Experience is important and is often enough to get by. Unfortunately, ours is such an intensively legislated and regulated industry that quality training is essential to deliver a reasonable standard of service and maximise returns on investment.

However, the private rented sector suffers from a serious skill drain. Many landlords have built up a sizeable portfolio of properties and employed and trained their staff to provide quality management and property maintenance and so forth.

Sooner or later they realise that the legal and regulatory environment is heavily weighed against them in realising the potential of their investment; that the taxation régime is extremely unfavourable when compared with other businesses and investments and that even the Government is likely to refer to them as criminals.

As a result they withdraw their considerable skill, trained staff and investment in housing and continue in some other business or industry, such as commercial property, where the framework of laws, regulations and taxes is more conducive to running a business. And where they are not referred to as criminals.

The Government should channel funds into our industry to encourage training. It should also ensure that the legislative processes, particularly concerning possession and housing benefit, are workable and should also examine the taxation régime and consider whether it is compatible with its stated desire to have a dynamic private rented sector.

And finally, it should stop referring to landlords in its consultation documents and press releases as 'criminal', 'rogue' or 'bad'.

Martin J Moylan
 

other artilces from the February / March 2002 issue

• Hostility causes brain drain
• Government admits weekly housing benefit changes
• Fitting way to avoid stamp duty penalty
• House prices buoyant after September setback
• In search of TV stars
• Falconer says 'strong case' for compulsory deposit scheme
• Default tenant database launched
• Do it yourself conviction
• In brief