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ARLA welcomes the Government’s “historic shift in thinking”
on the private rented sector towards improved industry standards - May 2009
________________________________ Other
ARLA Press Releases on this site ________________________________ Ian
Potter, operations manager of the Association of Residential Letting Agents (ARLA),
says the Government’s response to the Rugg Review into the private rented sector
today represents a “historic shift in thinking”.. “ARLA
welcomes a response from the Government to the Rugg Review and its commitment
to a fair deal for tenants, landlords and professional agents through licensing.
“The Government
itself recognises that the rented sector grew by 17% between 2007 and 2008 and
continues to grow, so it’s vitally important that the Government is committed
to ousting the rogue landlords and agents from the industry. “This
is something we at the Association have long been calling for – increased standards
for the consumer. In fact, ARLA launched its own Licensing scheme for letting
agents just last week, which has clearly informed the Government’s thinking as
all of the points we demanded to be required as a minimum are included in this
response. “However
ARLA believes that if consumers use a licensed agent there is no need for a landlord
to be licensed too. We feel that this would encourage greater freedom of choice
for landlords. “We
must disagree with the Government’s assertions surrounding professional qualifications
for agents. It runs contrary to the flavour of the original report to fall down
on this particular point. It is a widely held industry view that qualifications
are key to the professionalization of the sector and a necessary step in restoring
faith to the consumers.” ARLA
also notes that the paper that the Government recognises that the condition of
housing stock in the rental sector is in many cases sub-standard, particularly
when it comes to energy efficiency. Ian
Potter comments: “We recommended to the Treasury that tax incentives for landlords
be included in the Budget for exactly this reason. Our research of landlords shows
that if this kind of incentive were to be offered more than six in 10 would use
the additional money to upgrade their property portfolio. “ARLA
also called for the introduction of capital allowances for landlords improving
housing stock over a certain age as well as an increase the Landlords Energy Saving
Allowance (LESA) to include the installation of central heating systems. Yet the
opportunity was missed and it’s difficult to see where the money will now come
from. “This
document represents a historic shift in attitude towards the private rented sector
and ARLA looks forward to working closely with the Government on its proposals
to ensure increased standards of professionalism in the lettings industry.” ARLA
is the Lettings and Residential Management Division of
the Federation of Property Professionals. Source
ARLA
Proposed
database of rental properties is "well meaning but flawed" NLA comment May
2009 HERE
Demand in rental market returns for the first time since
recession began - 28 September 2009 The
residential rental market is beginning to stabilise with property oversupply decreasing
across the UK and the number of new tenancies increasing, according to the Association
of Residential Letting Agents (ARLA). Results
from the latest ARLA survey of its members show that the historical decline in
numbers of tenants, which led to a surplus of properties to rent, is coming to
an end. 83%
of ARLA members signed up 10 or more tenancies during the last quarter, compared
to 79% last quarter. Each member signed up an average of 36 new tenancies, compared
with 32.6 last quarter. Almost
a third of members (33%) surveyed felt that supply and demand of properties is
in balance; this compares with just 19% last quarter. Ian Potter, Operations Manager
of ARLA, said: "This shift in the balance of supply and demand is extremely significant
for the private rented sector. It gives further evidence to suggest that the property
market as a whole is getting back on its feet. "This
shift also indicates that confidence is rising among prospective tenants; it seems
that people who delayed setting up home 12 months ago, now feel secure enough
to proceed. Equally, those who historically have shared a rental property seem
happy to set out independently." In addition, the number of members who believe
that there are more residential properties available for rent than there are tenants
to fill them dropped significantly in the three month period, from 70% to 43%.
The number who say that there are more tenants than properties has risen from
10% to 24%. The
situation is particularly significant in the rest of the South East, where three
times as many members said that there are more tenants than properties (27% compared
with 9% last quarter). "This
recovery of sorts is still in its infancy and needs as much support as the Government
can muster. As we have stated repeatedly, a healthy private rental sector is the
only way in which the Government can hope to house future generations. Accordingly,
the Government must do all it can to nurture the recovery of the PRS including
the implementation of meaningful consumer protection measures," Mr Potter added.
Historically, tenancy rose across all regions of the UK until the recession hit,
when properties became harder to let and supply outweighed demand. This trend
was felt hardest from late 2008 and into early 2009. This
latest ARLA research also showed that the average void period of a rental home
has dropped for the first time in more than a year, indicating that properties
are being rented more quickly. In
the winter of 2008 the average length of time for a property to remain empty was
3.8 weeks across the UK, yet by May 2009 this had risen to 4.3 weeks as homes
became harder to rent. Now, the figure has dropped to an average 4 weeks (and
3.8 in the South East), giving further indication that the rental property market
is picking up. The
data from the third quarter of the ARLA Members' Survey of the Private Rented
Sector is drawn from 639 offices. The survey is supported by mortgage lenders
Mortgage Express and Paragon Mortgages. Together with the Survey of landlords,
this forms part of the quarterly ARLA Review and Index. All surveys and statistics
can be downloaded from www.arla.co.uk Source
ARLA ARLA
– Response to FSA Paper on Mortgage Lending - 20 October 2009 In
response to the FSA's paper on Mortgage Lending, Ian Potter, operations manager
of the Association of Residential Letting Agents (ARLA), comments "The
FSA appears to recognise the critical role that the buy to let market has to play
in supporting the UK's housing needs in the years to come. Lending must be made
available to landlords - of all sizes - as the private rental sector bears the
burden of an increase in demand for housing and the lack of new stock coming onto
market. "The
regulators must also remember the requirements of the end user - the tenants -
whose homes are at stake. With a rise in the number of amateur landlords and the
much discussed "reluctant landlords", the FSA has to ensure that there is enough
lending available for landlords to increase and maintain their stock, but ensure
that tenants are not ultimately paying for the mistakes of the finance supply
chain. "In
the wider sense, we remain unconvinced of the need to regulate the buy to let
sector. What does require more stringent control is risk assessment, which has
been highlighted in the report." Source
ARLA Response
to statistics from NLA on rental arrears -
20 October 2009 In
response to statistics from NLA
on rental arrears Ian Potter, operations manager of the Association of Residential
Letting Agents (ARLA), comments:
“Latest figures from the NLA highlight that nearly three quarters of landlords
have experienced rental arrears. Our research shows that 28% of landlords have
seen an increase in the number of tenants struggling to meet rental payments –
while this is down on the previous quarter (32%), it is still a worrying issue.
“Rental arrears is more common during a recession as redundancies occur and tenants’
financial stability changes. With the private rented sector continuing to grow,
it is important that those tenants struggling to meet payments are supported.
“For landlords, using an ARLA or NAEA member letting agent is one way to help
prevent payment problems, as an approved agent will find suitable tenants, carry
out credit checks and draw up the Tenancy Agreement – ultimately protecting both
the landlord and tenant. In addition rental protection insurance, of which NLA
highlights the benefits, is available through an approved agent.” Source
ARLA Back
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See also
Housing
Minister Grant Shapps promises 'no more red tape' for private landlords - June
2010 ARLA
has appointed Sue Hughes-Thomas as president - June 2010 ARLA
launches buy-to-let mortgage comparison site - March 2010
Response
to FSA Paper on Mortgage Lending - October 2009 Response
to statistics from NLA on rental arrear-October 2009 Demand
in rental market returns for the first time since recession began - 28 September
2009 Review
of ARLA Agreement Magazine on Insurance - August 2009 Property
Woman of the Year ARLA sponsors young property woman award at the NLA Property
Women Awards 2009 - May 2009 ARLA
launches new licensing scheme to protect consumer interests - Consumer interests
safeguarded by letting agent licensing - May 2009 ARLA
- Research Reveals Britain’s Reluctant Landlords - April 2009 Regulation
needed to protect business of residential letting - February 2009 ARLA
demands an end to unregulated Letting agents - January 2009 ARLA
Welcomes Rugg Review on the Private Rented Sector - 24 October 2008 Back
to Property Articles Back
to Property Information Back
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