11th November 2003

ARLA, the Association of Residential Letting Agents, has laid down a significantly updated template for the Private Rented Sector, according to the Chief Executive, Adrian Turner. He was reporting to the Association’s Annual General Meeting in London on November 11th.

He also stated that housing, and the letting industry in particular, is in danger of being turned into a political football. This will have an effect on landlords, tenants and Buy to Let investors.

ARLA initiatives include paving the way for a new deposit dispute resolution scheme following the abrupt closure earlier this year by government of the national Tenancy Deposit Scheme. Further details of this will be announced in the New Year.

In the past year, ARLA has produced a revitalised general Code of Practice in plain English for the whole lettings industry and has increased levels of cover under the Association’s Bonding Scheme of First Resort, the only one of its kind in the lettings industry.

To further strengthen safeguards for the public’s money, ARLA is also introducing revised controls, criteria and rules for members under its own internal byelaws. These will supplement existing controls over landlords’ rents and tenants’ deposits and will be well in advance of any likely future legislation.

It was reported that ARLA member letting agents now extensively use the ARLA model Shorthold Tenancy Agreement. This was produced after a lengthy consultation process with the Office of Fair Trading. This Tenancy Agreement is also proving popular with non-member firms, private landlords and solicitors.

Said Adrian Turner, “These developments demonstrate how ARLA has been implementing strategies for the lettings market and providing the template for its governance in a way that is far in advance of government thinking and will satisfy the needs of today’s consumer society.”

“Clearly, we have been working along the same lines as the Law Commission whose report, “Renting Homes”, has just been published. Consumerism has come to the whole housing market and to the lettings market in particular,” Mr Turner stated. “As the lead professional body for lettings, it is for ARLA to monitor, devise and improve the practical template for the Private Rented Sector and to communicate these developments to letting agents, landlords, tenants, investors, consumer interest groups and government.”

Mr Turner pointed out that this winter’s Housing Bill should determine the number of sharers allowed in ordinary flats and houses and provide local authorities with more powers to set up registration schemes for such properties. In addition, the Bill will provide for the selective licensing of landlords and minimum levels of health and safety in rented property.

“It is likely that legislation covering Houses in Multiple Occupation, HMOs, which includes the sharers market, will be broadly acceptable to the industry and the public. However, we have already warned that selective licensing and HMO registration schemes are likely to impact where they are not needed and due to practical problems and the lack of resources they will make no impact where they are actually necessary.”

Mr Turner explained that ARLA believes that the new regulations will encourage local authorities to set up departments that will be likely to take the soft option of using respectable landlords and regulated letting agents to meet government targets.

“They may do this rather than seek out the worst excesses in the PRS, where vulnerable people are being exploited and potentially have their lives put at risk by rogue landlords, cowboy agents and almost derelict properties,” he added.

Mr Turner said that this is an example of how housing and the letting industry is in danger of being turned into a new political football, driven by pressure groups and encouraged by bureaucracies at national, regional and local level.

“This will happen because successive governments have not been active enough in support of the professional bodies like ARLA who provide self-regulation, insist on compliance, offer training and have an in-depth knowledge of the opportunities and problems that face the Private Rented Sector,” he said. “To make up for this, ARLA will be seeking opportunities in the coming year to work together with the other professional organisations to make up for this governmental shortfall.”

Endorsing Adrian Turner’s remarks, ARLA President Robert Jordan, FRICS, said, “Some people just talk about self-regulation but ARLA has been getting on and doing it, without government subsidy, for more than twenty years. The initiatives ARLA has instigated this year, and will introduce next year, prove this point yet again, and demonstrate why our members continue to aim for the highest standards in residential lettings.”

For further details of ARLA initiatives, the Code of Practice and the Bonding Scheme visit www.arla.co.uk

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