25 July 2007

The Housing Green Paper issued yesterday shows the Government as satisfied with the direction of the Private Rented Sector, ARLA, the Association of Residential Letting Agents and lead professional body for the rental market, claimed today. Although there was almost no mention of any part of the rental market, the Association welcomed the Green Paper as evidence that housing is back at the top of the political agenda for the first time for two generations.

"While not introducing any measures to help us speed the growth of the Private Rented Sector, the Government has clearly recognised that the sector provides choice in housing and acts as a safety valve in providing housing needs that cannot be met by either owner occupation or social housing," commented Adrian Turner, Chief Executive of ARLA.

"It also shows that the refinancing of nearly a third of the rental market by Buy to Let investors has been one of the most positive benefits that housing has seen since post war reconstruction. Without Buy to Let investors rescuing the private rental market, the housing crisis would be considerably worse," Adrian Turner added.

This month also saw the publication of the Law Commission's consultation document into accreditation schemes for landlords and the self-regulation of the lettings industry.

ARLA has called for the licencing of letting agents since well before the election of the present government in 1997. However, with the spotlight thrown again on the self-regulated sector, ARLA hopes the Law Commission will be able to highlight where greater self-regulation can be usefully implemented.

However, the Association warns that the health of the Private Rented Sector is always fragile. "Any new proposals for regulation have to be shown to be justified, well thought out and, above all, practical," commented Adrian Turner. "Time and again we have seen scare stories about proposed regulation and these drive landlords out of the market. For the health of all types of housing; tenure, owner-occupied, shared-equity, socially or privately-rented housing, we must introduce change carefully and with a mind for the whole housing picture."

 

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