25 July 2006

The changing scene in the rental market has led to a sharp increase in ARLA membership. The number of lettings offices belonging to the Association of Residential Letting Agents jumped from 1715 to 1815 during the first six months of the year. This is the greatest single period of growth since the introduction of the Housing Act '88 and it is set to continue with new applications coming in at a rate of 30 a month.

Driving the new membership is the need to understand the implementation of much of the new legislation covering the private rented sector. This is exacerbated by frequently contradictory and inaccurate information from local authorities.

2006 is an unusually busy and complex year for legislation and regulation. It has already seen the Housing, Health and Safety Rating System (HHSRS), the licensing of some Houses in Multiple Occupation and Empty Dwelling Management Orders (EDMOs).

Still to come in the current round is the implementation of the Disability Discrimination Act, as it applies to rented property and the mandatory tenancy deposit schemes.

"Both landlords and tenants find there is often insufficient explanation given by the authorities to the public at large and this leaves them unsatisfied and bewildered," explained ARLA Chief Executive, Adrian Turner. "Their nearest and quickest source is the local ARLA member letting agent, who will also be bonded, insured and have qualified staff."

"The sharp rise in membership of a professional body such as ARLA emphasises how well the letting industry understands that this is the age of the consumer and that landlords, tenants and buy to let investors know that they all have rights and obligations and duties," both ethically and in law. They also understand that much of this needs to be explained to them by experts," said Adrian Turner.

"Some of the government-imposed framework is practical and based on the blueprints pioneered by ARLA and others in the industry. However, there are elements of legislation that are either impractical or left to the discretion of others, such as local authorities. It is in these areas in particular that landlords and tenants believe they are offered insufficient publicly available information and find that it is often contradictory and inaccurate," he continued.

Since July 6, Houses in Multiple Occupation that require to be licensed should have been registered with the local authority and local authorities have discretion to impose selective licensing on rental property in areas of low housing demand.

In addition, local authorities can now make Empty Dwelling Management Orders, EDMOs. The purpose of these has been misunderstood by local authorities as well as the public and the media. These orders are to bring long term empty or dilapidated properties back into use to help counter local housing shortages.

In December, the Disability Discrimination Act comes into force and there will be a code practice published in the autumn by the Disability Rights Commission. It is not expected to be onerous to landlords or their agents, despite the many rumours that have been generated. However, ARLA members are warning landlords that care must be taken to follow any guidelines.

Mandatory Tenancy Deposit Protection will follow next Spring. This legislation will require all deposits taken under Assured Shorthold Tenancies to be covered by an insurance-backed scheme or placed in a single national custodial scheme.

Details of the approved deposit protection schemes have yet to be announced. However, many ARLA members are already members of a scheme for regulated agents set up by the professional bodies more than two years ago.

Said Adrian Turner, "Given all this, it is hardly surprising that ARLA has seen the greatest single period of growth in its membership since the introduction of the Housing Act 1988. Increased membership now is a further validation of everything we have worked for over the years and it helps us to raise standards right across the lettings industry. It will also encourage more tenants to rent and more investors to buy to let."

Links

Tenancy Deposit Scheme
www.tds.gb.com

Department of Communities and Local Government
Selective Licensing
Licensing of HMOs
Empty Dwelling Management Orders
Tenancy Deposit Schemes
www.communities.gov.uk

Department for Work and Pensions
Disability Discrimination Act
www.dwp.gov.uk

 

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