Chaos Theory! Changes, Changes what’s next for the Property World

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My sister and her husband have just come back from a holiday
in Vietnam and they were recounting their experience of Saigon traffic which
sounded insane. Asked whether there were any rules they told me, yes – but nobody
bothers with them! Apparently however the Vietnamese authorities have recently
introduced new strict laws, employed a large number of traffic police and
enforcement officers and they even teach children traffic rules in schools.

However adults who already occupy the roads are blissfully unaware of the laws,
signage is poor and confusing and old habits die hard or in this case very
often lead to death. Saying this despite the anarchy it could be worse, as most
people act reasonably and muddle through the mayhem to emerge unscathed most of
the time.

All this got me thinking about the challenges that face the
property industry and how changing, behaviour, culture and making things safer
for consumers is both challenging and slow. Often despite the problems being
obvious, the solutions are not. Government’s principle tool for changing things
is the law and legislation and boy have they used this liberally in recent
years. Many of the laws have been badly drafted or implemented or often need
other laws to make them effective. Enforcement of the laws is piecemeal at best
and non-existent at worst and this is often down to lack of technical expertise
and resourcing.

To be honest, the industry had been long overdue for tighter
legal constraints and a major overhaul of the market is needed. The private
rented sector has grown exponentially, demand outstrips supply and the cost of
renting have spiralled. In response to this, the Government have failed to
build sufficient new homes, cut support to vulnerable tenants and then turned
on the private sector as the source of the “crisis� and are gunning for it with
a vengeance.    

There has been little understanding that the consequences of
the rapid rise in property prices, lack of mortgage credit and general
population pressures led to the expanded rented sector. This both fuelled and
was mitigated by the growth of private landlords entering the market who were
tasked with housing the army of tenants needing a roof over their heads. In
hindsight this was never a workable solution long term, but just like the
flotilla of small boats that rescued so many from the beaches of Dunkirk, it
has kind of got the country out of a bigger mess than it may have been in.

At some stage somebody had to do something, however once
this process had started more and more has been needed to be done. This has led
to situation that undoing what has occurred is no longer an option, so
Government push on.

To this end, in the last couple of months we have seen more proposals, consultations and reports that are forming the bedrock of the next tranche of the reforms the Government has promised.

The upshot of all this, is that despite all the changes the
industry has seen over the last few years we have not seen anything yet.
Everything from the regulation of property agents, registration and redress for
landlords, reform of eviction process as well as new tenancy agreements and a
re-examination of deposits is on the table.

I list the current documents at the end of this article, however we all have to
understand the bigger picture.

We cannot rely on the assertions that the standards in the industry have been
generally high, because the majority of people involved have acted decently and
professionally. It is no longer enough to declare that abuses don’t often
happen or most people wouldn’t behave that way. The very fact that the current
system allows the minority to act the way they do means that these changes are
needed.

The reality however is that process is not easy and that
often, due to poor implementation, lack of resources or from the unforeseen
consequences that have occurred, the changes have cause panic and major
disruption to the sector. However as Chaos Theory proves, the initial
pandemonium caused by small changes, diminishes as the changes progress until
order is restored. Disruption in many sectors is now seen a positive force and
whilst in an ideal world we would like to see a big bang solution to our
problems, the evolutionary approach is often the most sustainable.

Having looked at the direction of travel the sector is
going, I can mostly see it being positive, better education of professionals,
protection to consumers and the raising of standards and quality. Yes there
will be challenges, especially if the resources are not found to increase the
housing stock and to enforce the new regulation, however I urge you all to
embrace the new era, participate in the process and ensure that your skills and
experience influence and direct the changes towards becoming a better sector.

As Tolkien’s Bilbo Baggins remarked whilst stuck in the pitch black of the
Misty Mountains tunnels “Go back? No good
at all! Go sideways? Impossible! Go forward? Only thing to do! On we go!â€�  

Get involved complete the consultations and help change things for the better.

Current Consultations.

Private Rental Sector

Tenancy Deposit Reform; A call for evidence – Closing date 5^th
September

https://www.gov.uk/government/consultations/tenancy-deposit-reform-a-call-for-evidence

Rogue Data Base Reform – Closing date 12^th October

https://www.gov.uk/government/consultations/rogue-landlord-database-reform

A New Deal for renting. Resetting the balance of rights and
responsibilities.  – Closing date 12^th
October.

https://www.gov.uk/government/consultations/a-new-deal-for-renting-resetting-the-balance-of-rights-and-responsibilities-between-landlords-and-tenants

Other Property
Consultations

Redress for purchasers of new build homes and the New Homes Ombudsman –
Closing date 22^nd August

https://www.gov.uk/government/consultations/redress-for-purchasers-of-new-build-homes-and-the-new-homes-ombudsman

Homelessness Reduction Act 2017: Call for evidence – Closing date 15^th
October

https://www.gov.uk/government/consultations/homelessness-reduction-act-2017-call-for-evidence

Mobile homes: a fit and proper person test for park home sites –
Closing date 17^th September

https://www.gov.uk/government/consultations/mobile-homes-a-fit-and-proper-person-test-for-park-home-sites

Report to Government
that will be subject to consultation.

Regulation of Property Agents – Final Report

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/818244/Regulation_of_Property_Agents_final_report.pdf

Welsh Government
Consultation

Increasing Minimum Notice Period for no fault evictions. Closing date 5^th
September

https://gov.wales/increasing-minimum-notice-period-no-fault-eviction

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Chaos Theory! Changes, Changes what’s next for the Property World | LandlordZONE.

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PRA stress tests and the benefits of incorporation – With Kate Faulkner

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Further to our previous discussions around the withdrawal of interest relief, the additional 3% stamp duty and the impact of Brexit, we take a look at the effect of the Prudential Regulation Authority’s (PRA) stress tests and the benefits of incorporation.

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The NLA is looking to improve awareness and disability accessibility in the PRS

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Disability Access:

Providing accommodation that is suitable for tenants living with a disability in the Private Rented Sector could be a profitable niche market for landlords.

But landlords should be aware that the Equality Act 2010
gives all tenants or tenant applicants, those with a genuine disability, a right
to have changes made; changes to the tenancy terms or the accommodation, changes
that are termed “reasonable adjustments� in the legislation.

Landlords are not expected to make changes to the structure
or physical features of their properties, or the common parts in the case of
flats and apartments. But if the property is otherwise suitable for disabled
living, they may be required to make reasonable adjustments to policies, practices
or the terms of the agreement, as well as provide some extra equipment or
support – the law calls these auxiliary aids.

Along these lines, the National Landlords Association (NLA) has
been doing some work recently, looking into what is needed to encourage
landlords to look into this as a potential letting option, and to educate them
on their legal obligations under the Equality Act 2010.

The NLA has co-opted in some key players in the aged and
disability sectors in order to identify specific requirements and to promote
the need for accessible housing within the private rented sector (PRS).

A roundtable discussion was hosted by the NLA with attendees
to discuss the current state of landlords’ awareness of housing modification
grants, the challenges they face and potential incentives to encourage
landlords to make their properties accessible.

Participants at the meeting included representatives from
Age UK, Foundations, the Nationwide Foundation, The Centre for Aging Better and
Abode Impact (a housing modification company).

Research by Foundations shows that only seven percent of
Disabled Facilities Grants go to private tenants, while three quarters (73
percent) of older renters live with a disability or chronic illness.

Meanwhile, the English Housing Survey 2017/18 shows that a
quarter (23 percent) of private tenants live with a long-term illness or disability.

Meera Chindooroy, Policy and Public Affairs Manager at the
NLA, says:

“There is an acute shortage of accessible housing in the
PRS. But with the aging population, this is something that we need to be
thinking about and changing now so it doesn’t become an even bigger issue in
the years to come. Landlords need to be proactive in meeting this demand.

“The roundtable is just the first step; landlords and
experts need to work collaboratively to ensure those living with disability,
limited mobility and chronic illness have homes that are suitable for their
needs. We’re developing a report outlining the changes that are required
alongside guidance to support landlords to offer accessible properties to
rent.�

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – The NLA is looking to improve awareness and disability accessibility in the PRS | LandlordZONE.

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