On Saturday, Labour party leader Ed Miliband said in a speech that the party is planning new ways to prevent rogue landlords taking advantage of tenants in the private rented sector. The plans involve calling for further regulations on landlords, including having all landlords having to take part in mandatory registration, and if one is proved rogue they shall be struck off the list and no longer allowed to rent out properties.
However, the response from private sector landlords is that this method would only further tax landlords and tenants, and would not lead to a better standard of living for people in the UK. Furthermore, Residential Landlords Association chairman Alan Ward said that the cost of introducing a registration system for landlords would cost up to three hundred million pounds – a figure estimated by the previous Labour government themselves. Mr Ward said: “Imposing such a charge on the private rented sector would amount to a further tax on landlords and tenants when we need more homes and people across the country are feeling squeezed.”
He went on to say that making landlords register will not help matters, but that focussing on education and enforcing current legislations, regulations and individual measures, as well as working with property insurance providers, will be more beneficial for all. “The problem is not a lack of powers,” said Mr Ward, “but the willingness and ability of local authorities to enforce their existing powers whilst under financial pressure.” This opinion was supported by the Buy to Let business managing director Ying Tan, who said that he understood why Ed Miliband supports landlord registration, yet that it wasn’t necessary. He said: “The want to mitigate the effect of rogue landlords but we already have quite a lot of regulation in place. It would be extra bureaucracy and red-tape.”
There have also been doubts from the deposit protection scheme provider My Deposits into how registering will provide assurances for tenants and other businesses. Chief Executive Eddie Hooker said: “Our advice to tenants is to look for landlords who are members of a professional association such as the National Landlords Association, or who sign up to landlord accreditation. This demonstrates they are aware of their responsibilities and obligations, have elected to abide by a respected industry code of practice and have a commitment to Continued Professional Development.”