Propertymark has called for a significant change in the approach to property licensing, following consultations over the summer by Enfield, Reading, Gateshead, and Wandsworth councils. As the Renters’ Rights Bill looms, the trade body is advocating for a shift in strategy, particularly with the upcoming creation of a digital private rented sector database.
Concerns over impact of local licensing schemes
Propertymark has raised concerns about the effectiveness of local licensing schemes, which they argue act as a “blunt instrument” in improving housing standards. These schemes, they claim, burden compliant letting agents and landlords with fees while allowing rogue operators to evade detection. Tim Thomas, Policy and Campaigns Officer at Propertymark, highlighted the issue, stating, “It is clear that as local authorities call for the reintroduction of licensing schemes for an additional five-year period, they have been unsuccessful in their aim in improving standards.”
The body also pointed out the potential negative impact on housing supply and the strain on council resources, which are often consumed by administering these schemes rather than effectively enforcing standards.
Propertymark’s stance on article 4 directions for HMOs
In response to a consultation from the London Borough of Lambeth, Propertymark has voiced opposition to the proposal to introduce Article 4 Directions for small Houses of Multiple Occupation (HMOs). This move would require landlords to seek planning permission to convert properties into small HMOs, which Propertymark argues could “have a damaging impact on rent levels, the supply of affordable housing, and will do little to improve HMO property conditions.”
They further expressed concerns about the potential reduction in student accommodation and the broader effects on the local economy, suggesting that such measures may do more harm than good.
Call for a national solution and an alternative approach
With the UK Government’s proposal for a national digital private rented sector database under consideration by the Ministry of Housing, Communities and Local Government (MHCLG), Propertymark is pushing for a nationwide approach. They argue that the proposed database would render local licensing schemes redundant, duplicating efforts and resources.
As an alternative, Propertymark advocates for an annual ‘MOT’ for rental properties, which would replace the existing discretionary licensing schemes. This MOT would cover all aspects of property condition, including energy efficiency and minimum health and safety standards, and would be more effective in ensuring that landlords maintain high standards.
Thomas emphasised the importance of this approach: “Debate around the Renters’ Rights Bill should be seen as an opportunity to consider fresh ideas in improving standards within the private rented sector in England. Rather than reintroduce unsuccessful schemes, MHCLG should concentrate on how national licensing can accommodate the important role that letting agents play in managing properties and ensuring landlords raise standards.”
As the Renters’ Rights Bill progresses, Propertymark’s calls for reform highlight the need for a more effective and streamlined approach to improving housing standards, one that balances the interests of landlords, tenants, and the broader community.
