NRLA chief executive gives evidence to Housing Select Committee
NRLA chief executive Ben Beadle has given evidence to the Housing, Communities and Local Government Select Committee today, addressing standards in the private rented sector (PRS).
Defending the sector over claims landlords have become ‘complacent’ when it comes to conditions in their rentals, Ben pointed to recent data proving standards are on the up, telling the committee: “80% of homes in the PRS would pass the Decent Homes Standard – that’s up from 53%”, reminding the group: “Section 21s are not the chief cause of homelessness, landlords selling is.”
Renters' Rights Act
While housing standards and conditions were top of the agenda, conversation, inevitably moved to the new Renters’ Rights Act – which will see the Decent Homes Standard extended from the social sector to include the PRS.
Discussing the new Act, which received Royal Assent last week, Ben called on the Government to set out a clear timetable for implementation as soon as possible, explaining why we are calling for a minimum six-month lead-in period.
Outlining the scale of the work up ahead, Ben told the committee that implementation will take time as: “There are 4.7 million tenancy agreements that need to be updated, there are local authorities that need to be upskilled, there are lawyers that need to know what’s going on.”
When asked whether he believes the Act will force landlords out of the sector, Ben reminded the committee that the new rules coming in are just one of a raft of changes on the horizon – naming the Government’s Making Tax Digital plans and new Minimum Energy Efficiency Standards (MEES) as other schemes set to have a major impact on the sector.
He made the point that while any one of these changes alone may not push landlords to exit the sector, the cumulative effect could lead landlords to reconsider their investments, explaining: “I would characterise regulation of the private rented sector like the game Buckaroo; you’re loading up so many things, so many things and then bang.”
He also warned the changes in legislation will alter how landlords view prospective tenancies, explaining that while, “it’s not a given that landlords will put up their rents, I do think they will be more selective when choosing their tenants.”
Costly upgrades
Ben also used the evidence session to call for greater understanding when it comes to upgrading properties to meet the Decent Homes Standard, and the new minimum energy efficiency standards when they are confirmed.
With the existing MEES plans proposing a blanket £15,000 cap on spend per property across the board, Ben explained the need for a graduated approach, explaining the total investment must reflect the value of the property undergoing the work, telling the committee: “You could be asking people to pay £15,000 for an asset value of £125,000 in Burnley, versus £1.3 million in Kensington.”
Vital role
A central theme of Ben’s evidence was the vital role the PRS plays in providing much needed homes to rent, and how important it is for the Government to retain the support of landlords as it seeks to carry out reforms to the PRS.
He also took the opportunity to comment on the issue of rent controls, stating unequivocally ‘rent controls stifle supply and affect confidence,” arguing the best way to keep rents down is to boost supply by encouraging investment.
More information
Ben was joined at the table by Dr Jennifer Harris, Head of Policy, Research and Social Impact, TDS Charitable Foundation and Timothy Douglas, Head of Policy and Campaigns, Propertymark, and you can watch the full evidence session here.
