Government plans to register all private landlords

Tuesday, 5 May 2009 11:03 AM

Plans to register all private landlords in a Green Paper have been exposed by the Times newspaper.

The paper has discovered there will be moves by the government over the next ten days to ensure all those who rent property privately will be forced to register to prevent the exploitation of their tenants.

The news has been uncovered on the same day as the Association of Residential Lettings Agents (ARLA) found 95 per cent of consumers already believed such a scheme was in place. Hence ARLA has today launched a licensing scheme for its members, which is supported by housing minister Iain Wright MP. ARLA's scheme will be voluntary.

The Times reported anyone letting a property would have to pay £50 to register with a national body. A similar scheme is already in place in Scotland to ensure tenants are protected.

Given the increasing number of 'unplannedlords', predominantly attributed to the falling of house prices, rising rental stock has been recorded significantly over recent months.

Ruth Lilley, head of membership and professional development of ARLA, said: "ARLA has lobbied the government for ten years to assist us in establishing higher industry standards. For too long the rental sector has been seen as the black sheep of the property market with a lack of regulation of and a requirement for redress to protect the consumer when the agent's failings are to the financial detriment of that consumer.

"The ARLA Licensing Scheme will create the gold standard for letting agents in the UK, offering consumers best practice service and advice - as well as a commitment to the protection of their money."

Sister group, the National Association of Estate Agents (NAEA) will launch a similar scheme later in the year.

Concern had been raised by a number of industry groups in recent months that tenants were not given sufficient warning if their landlord was in arrears and faced repossession. Homeless charities such as Shelter had warned this could lead to a growing number of homeless people, as tenants found themselves 'kicked out' of their home through no fault of their own.

Adam Sampson, chief executive of Shelter, said: "It is high time the government acted to introduce statutory licensing for all letting agents, something that Shelter has been campaigning about for some time. However, industry led best practice is a positive step in the right direction. We welcome ARLA's new licensing scheme and it's commitment to raising standards in the sector.

"All consumers should have the right to expect a professional letting service, and have access to redress when problems arise."

Despite concerns the government's scheme to prevent rogue landlords could put off smaller legitimate landlords, letting agents have welcomed the move.

Letting agent and ARLA president, David McMaster, said: "As an agent, this is something I have been campaigning for for years. Having a licence helps me to set my business apart from all the unscrupulous, untrained and unethical agents who I hope will one day be ousted from the market because of this scheme."

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