‘Why won’t Government regulate agents like it does social housing managers?’

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Property expert Kate Faulkner (main pic) says new rules to introduce professional qualifications for social housing managers are a “slap in the face for the PRS” after years of lobbying for similar standards.

The government has announced that about 25,000 managers will now need a housing management qualification equivalent to a Level 4 or 5 Certificate or Diploma in Housing, or a foundation degree from the Chartered Institute of Housing following changes to the Social Housing (Regulation) Bill, in a bid to protect tenants and raise standards in the sector.

Faulkner, who runs Propertychecklists.co.uk, says she has been begging housing ministers to accept Regulation of Property Agents proposals for licensing and qualifications, to no avail.

“Why should a social tenant be treated differently to a private one? I’ve no idea why the government won’t listen – perhaps they worry that agents would put their fees up, but it would make a massive difference,” she tells LandlordZONE.

“The government is inadvertently supporting bad agents by not regulating, as these agents have to compete with the bad guys who undercut them.”

The government believes the move will bring social housing more closely into line with other sectors providing front line services, including social work, teaching, and health and care services.

Tough new powers

Under the rules, the regulator will also get tough new powers, allowing it to enter properties with only 48 hours’ notice and to make emergency repairs – with landlords footing the bill.

It follows Awaab’s Law, forcing social landlords to fix damp and mould within strict time limits. Any landlord who fails to meet the requirements could receive an unlimited fine.

Secretary of State for Levelling Up, Housing and Communities Michael Gove, says many social housing residents are not receiving the service or respect they deserve. He adds: “The changes we are delivering today will make sure social housing managers across the country have the right skills and experience to deliver an excellent service and drive up standards across the board.”

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Official £3 million evictions mediation service ‘offered too late’ to landlords

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A paltry nine cases were mediated in the government’s pilot Rental Mediation Service – nowhere near the 3,000 cases it expected, it has been revealed.

The Department of Levelling Up, Housing and Communities and the Minister of Justice had hoped that the pilot, which offered tenants and landlords a free ‘anti adversarial’ mediation service to prevent them going to court, would reduce the number of evictions taking place.

But the scheme, which was operated by The Society of Mediators and lasted nine months ending in October 2021, is revealed to have received very low levels of referral.

An official review of the scheme pinpoints several reasons for this low take-up, the key one being that mediation was offered too late in the evictions process, by which time landlords and tenants are often in conflict and taking entrenched positions.

Key to success

Mike Morgan (pictured), whose organisation the PRS currently operates its own tenancy mediation service in partnership with the NRLA, says offering parties help early on in the process is the key to success.

“Our service can be offered even before a landlord serves notice to a tenant,” he says.

“And we ensure that the process is quick and effective, takes place as early as possible, appears impartial to both sides and is seen to offer expert advice and support.

“Mediation is not only useful for seeking possession as an alternative to using the courts.  Early intervention can also reach an agreed rent repayment plan, avoiding future arrears, and preserving the landlord tenant-relationship.”

Disengaged

The official review makes similar points, highlighting how tenants tend to be disengaged with the process once an eviction notice has been served.

It says: “Attempts at earlier dispute resolution should seek to preserve goodwill between tenants and landlords, follow a process that is fair and balanced between the parties, and take account of the broader contextual challenges that tenants face – such as poverty, mental health, accessing benefits for example – which are better able to be resolved before a court claim is made”.

Relatively good

The report is not entirely critical, pointing out that when resolution is used appropriately, the chances of reaching an agreement were ‘relatively good’.

But overall the report said the Government’s mediation service faced significant headwinds.

Those involved in the process suggested that mediation did not always deliver an agreement that aligned with legal requirements, or that there was a lack of awareness of mediation and what it could offer, while some duty advisers were reluctant to refer clients because they were not fully aware of how the process would work. Others believed an allotted hour was not enough time to carry out mediation properly.

Mediation expert Julie Ford (pictured) tells LandlordZONE: “The key points highlighted in the pilot simply reinforce what we have always said: mediation provides positive outcomes when it is engaged in as early into a dispute as possible, ideally before notice is even served.”

She adds: “I agree that there is little or no awareness about mediation and the empowering outcomes it can achieve. Maybe a public campaign is the answer.”

Read the report in full.

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Scotland’s Cost of Living Act has led to rent rises

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Propertymark has told Scottish Parliament’s Local Government, Housing and Planning Committee that the Cost-of-Living Act 2022 has led to rent rises and landlords leaving the private rented sector (PRS).

The organisation’s head of policy and campaigns, Timothy Douglas

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Scots rent cap will shrink stock and push up rents warn letting agents

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The Cost of Living Act is prompting greater numbers of landlords to quit the sector in Scotland or increase rents between tenancies to cover future costs.

Giving evidence to the Scottish Parliament’s Local Government, Housing and Planning Committee on the temporary legislation, Propertymark explained that the majority of letting agent members continued to see landlords exit the market.

It told MSPs that when asked in November 2022, 83% said landlords would be inclined to increase rents between tenancies, because of the Act, to cover impending and rising costs; by February, this had risen to 94%. Meanwhile, 78% of agents now reported an increase in notices to sell due to the temporary measures, up from 68% last November.

Temporary pause

The Scottish government has indicated that it plans to continue both the temporary pause on the enforcement of eviction orders in certain cases and the rent cap for tenants in the PRS beyond the initial expiry date of 31st March, but recently pedaled back from a ‘freeze’.

Timothy Douglas (pictured), Propertymark’s head of policy and campaigns, says the crux of the housing problem is that demand is far outstripping supply, yet the legislation is having the opposite effect – of pushing landlords out of the sector.

“Rent increases have never been a significant factor in the private rented sector, yet this legislation and the threat of further rent controls is forcing landlords to put up rents between tenancies to cover any future cost implications,” adds Douglas.

“Costs have increased for tenants, but also for landlords. Those on variable mortgages have seen their payments increase much higher than 3%, not to mention the other costs involved in property management.”

Pic credit: Scottish Parliament/Twitter

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Ending a 12 months fixed tenancy agreement?

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Hello. I have a situation that commenced last month and I got some good pointers from here. Tenants are on a 12 month fixed contract ending in Oct 2023. However, due to domestic violence (DV), one of the parties wanted her name removed from the tenancy.

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