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Feb
25

Council unveils consultation on HMO planning rules

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Council unveils consultation on HMO planning rules

Landlords and residents are being asked to comment on proposed planning restrictions targeting shared housing in Kidderminster.

A six-week consultation has now begun with Wyre Forest District Council seeking views on introducing an Article 4 direction for HMOs there.

Anyone who lives, works or owns property locally, alongside landlords and sector groups, can submit an opinion.

The Article 4 direction will remove permitted development rights for changing family homes into small HMOs without consent.

Important opportunity

The council’s cabinet member for planning, Coun Dan Morehead, said: “We know many HMOs in Kidderminster provide good quality homes.

“But we’re also listening to residents who are concerned about the number of poorly managed properties in some areas.

“These proposals are about making sure HMOs are in the right places and meet the standards our communities deserve.”

He added: “This consultation is an important opportunity for people to tell us what they think, and we hope as many residents as possible will get involved.”

Planning permission needed

Under the change, landlords would need to apply for planning permission before switching use to properties housing up to six tenants.

The council points to a rising concentration of HMOs in some neighbourhoods.

It associates this with pressures on parking, waste services and the availability of larger homes.

If progressed, the direction would come into force in February 2027 so all new small HMOs would require formal approval.

The authority says this would enable it to manage location and consider neighbourhood impact before schemes proceed.

The exercise runs until 6 April, and there’s an online survey for people to use.

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Feb
24

Reform UK vow to scrap the Renters’ Rights Act

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Reform UK vow to scrap the Renters’ Rights Act

Reform UK will pledge to scrap the Renters’ Rights Act if it wins the next general election, with deputy leader Richard Tice arguing the law is already reducing supply and pushing up rents.

The Act secured Royal Assent in October after it was introduced by former housing secretary Angela Rayner and builds on the earlier Renters’ Reform Bill first unveiled by the Conservative government in 2019.

Labour said the legislation would ‘level the playing field and create a fairer housing market for all’.

In a speech in Birmingham, Mr Tice described the Act as ‘well intentioned’, but said it was ‘already reducing the supply of properties to rent and therefore increasing the prices’.

Too risky for landlords

He continued: “The issue is many landlords are now concluding that’s it’s too risky to be able to essentially remove an occupier/tenant if they want, for example, to sell the property, if the tenant is not paying.

“There’s a balance of risk and reward.

“Too many landlords have said enough is enough.”

Mr Tice added: “Again, it’s well intentioned in terms of the issues around the period for notice to quit, but actually it’s just gone way beyond this.”

Plans are a ‘disgrace’

The chief executive of Generation Rent, Ben Twomey, said: “Forcing people back into insecure and unsafe homes is not a promise, it’s a threat levelled at England’s 11 million private renters.

“Our homes are the foundations of our lives, so it is disgraceful to see Reform UK pledging to roll back new and essential protections that would improve the quality of our homes and help us to stay in them for longer.”

He added: “Reform UK had nothing to say at the debates about the Renters’ Rights Bill when it was passing through Parliament.

“They also haven’t spoken to renter groups like us about their plans, which would be a gift to unscrupulous landlords who are responsible for the poor conditions renters face right now.”

RRC also disagrees

On X/Twitter, the Renters’ Reform Coalition said: “Over two-thirds of the public supports the end of Section 21 evictions.

“So, why does Reform want to repeal renters’ rights?

“Scrapping the Renters’ Rights Act would just mean more homelessness and insecurity for England’s 11 million renters. Reform should think again.”

Labour’s ‘daft’ reforms

Reform says it would introduce a ‘great repeal bill’ to reverse the rental reforms and other Labour measures it describes as being ‘daft’.

The repeal would sit within a broader economic plan focused on investment and growth.

Housing policy would be absorbed into a new Great Office of State, the Department of Business, Trade and Energy.

The proposed department would take on responsibility for business regulation and energy as well as housing.

Smarter regulation planned

Mr Tice has also set out plans for ‘smarter regulation’, lower energy bills and a British sovereign wealth fund to support manufacturing.

The Local Government Pension Scheme, under the proposals, would be converted into a fund of up to £575bn to back domestic growth.

The party says it would prioritise strategic industries, including steel, oil, gas and defence.

It will also call for ‘heavy tariffs and tight quotas’ on Chinese cars, citing concerns about Britain’s automotive sector.

Watch Richard Tice announce the repeal of the Renters’ Rights Act:

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Feb
24

Landlord says council has ‘ditched’ a vulnerable tenant as clean-up bill mounts

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Landlord says council has ‘ditched’ a vulnerable tenant as clean-up bill mounts

A Nottingham landlord claims the city council has ‘washed its hands’ of a vulnerable tenant it placed in his property nearly two decades ago.

As a result, he has been left facing mounting costs, enforcement action and a potential £30,000 fine.

Mick Roberts, the largest landlord of benefit tenants in the city, says the tenant was referred to him by Nottingham City Council in 2007.

The tenant, now 70, is living with cancer, uses a wheelchair and has other health problems.

Not a social worker

Mr Roberts insists he does not blame the tenant for the condition of the house and garden, which can be seen in the video below.

Instead, he argues that the council has failed to ensure the right support was in place for the tenant.

Mr Roberts told Property118: “I’m not a social worker, not a counsellor, not a council worker.

“I housed him on the council’s say so.”

Landlord told to clear garden

The property, in Bulwell, has become heavily cluttered, with lots of garden waste and damage to boundary fencing.

Mr Roberts says he and a prospective buyer have already cleared some of the rubbish, but more work is required.

He claims that, despite the tenant’s health issues, the council has ‘absolved themselves of all responsibility’.

Mr Roberts has been left to fund the clean-up and address enforcement notices.

Needs a licence

That’s because the council’s licensing officers are also pursuing him for a property licence at a cost of £890, he says.

They are warning him that failure to comply could expose him to fines of up to £30,000 under housing enforcement powers.

At the same time, local community protection officers have issued instructions requiring the gardens to be cleared and fencing repaired by a set deadline.

The garden debris and broken fence were caused by the tenant.

Landlord will fix it

Mr Roberts said: “And yes, you’ve guessed it – it’s the landlord’s fault the house is like this.

“For a tenant the council asked me to house!”

He stresses that he does not blame the tenant, explaining: “He’s 70 and needed help. He didn’t get the correct help.

“But that’s OK, the landlord will sort it.”

Nottingham City Council has been approached for comment.

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Feb
24

Landlord says council has ‘ditched’ a vulnerable tenant as clean-up bill mounts

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Landlord says council has ‘ditched’ a vulnerable tenant as clean-up bill mounts

A Nottingham landlord claims the city council has ‘washed its hands’ of a vulnerable tenant it placed in his property nearly two decades ago.

As a result, he has been left facing mounting costs, enforcement action and a potential £30,000 fine.

Mick Roberts, the largest landlord of benefit tenants in the city, says the tenant was referred to him by Nottingham City Council in 2007.

The tenant, now 70, is living with cancer, uses a wheelchair and has other health problems.

Not a social worker

Mr Roberts insists he does not blame the tenant for the condition of the house and garden, which can be seen in the video below.

Instead, he argues that the council has failed to ensure the right support was in place for the tenant.

Mr Roberts told Property118: “I’m not a social worker, not a counsellor, not a council worker.

“I housed him on the council’s say so.”

Landlord told to clear garden

The property, in Bulwell, has become heavily cluttered, with lots of garden waste and damage to boundary fencing.

Mr Roberts says he and a prospective buyer have already cleared some of the rubbish, but more work is required.

He claims that, despite the tenant’s health issues, the council has ‘absolved themselves of all responsibility’.

Mr Roberts has been left to fund the clean-up and address enforcement notices.

Needs a licence

That’s because the council’s licensing officers are also pursuing him for a property licence at a cost of £890, he says.

They are warning him that failure to comply could expose him to fines of up to £30,000 under housing enforcement powers.

At the same time, local community protection officers have issued instructions requiring the gardens to be cleared and fencing repaired by a set deadline.

The garden debris and broken fence were caused by the tenant.

Landlord will fix it

Mr Roberts said: “And yes, you’ve guessed it – it’s the landlord’s fault the house is like this.

“For a tenant the council asked me to house!”

He stresses that he does not blame the tenant, explaining: “He’s 70 and needed help. He didn’t get the correct help.

“But that’s OK, the landlord will sort it.”

Nottingham City Council has been approached for comment.

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Feb
24

Councils struggle with damp and mould targets under Awaab’s Law

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Councils struggle with damp and mould targets under Awaab’s Law

Two councils in Suffolk that manage 700 homes have failed to meet targets for addressing damp and mould, according to a BBC report.

Under Awaab’s Law, social housing landlords must investigate any significant hazards, including damp and mould, within 10 working days of becoming aware of them.

However, Mid Suffolk District Council resolved only 63% of hazards, while Babergh District Council resolved 78%.

100% resolution rate challenging

David White, the head of housing transformation and regulation at the two councils, admitted an 100% resolution rate was challenging due to issues with contractors, but the councils have undergone changes to improve their housing stock.

Mr White told the BBC: “Over the last 18 months we have implemented over 40 new contracts with repairs, assets and asset management because we had none before, and we were doing it on a piece-by-piece basis. We had none of the performance measure in the contract.”

Mandeep Bhogil, interim director of housing at the councils, told the BBC that they are now “embedding” the new contractors and “finessing” the data they can extract from them.

Fair, proportionate and effective

The news comes as Awaab’s Law is set to be extended to the private rented sector. The government has not confirmed a date, but it is expected to come into force in 2027.

It says it understands the differences between social housing and the private rented sector and will apply the law in a way that is “fair, proportionate and effective” for both landlords and tenants.

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Feb
24

Can the Draft Commonhold and Leasehold Reform Bill deliver on its objectives?

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Can the Draft Commonhold and Leasehold Reform Bill deliver on its objectives?

We now have the Draft Commonhold and Leasehold Reform Bill. It is not yet in final form and there may be some changes following consultation until late April.

However, we now have some certainty that the government plans for commonhold to become the default tenure for new flats, to cap ground rents in older leases, to abolish forfeiture and to make it easier for existing blocks to convert. It is likely these key changes will remain in some form in the final bill.

As a member of ALEP, I welcome reform to the existing system. There are many flaws in the leasehold system and commonhold in its current form is not massively appealing.

However, I also want the government and wider audiences to understand the risks attached.

We have lived through the difficult parliamentary passage and partial implementation of the Leasehold and Freehold Reform Act (LAFRA) which was ultimately rushed.

The media coverage didn’t help, creating confusion particularly about what was in force.

Reform is necessary, but it must be workable, evidence based and meaningful consultation with the professionals who will have to run it day to day is crucial.

There are four main changes which underpin Parliament’s continued intention to address the imbalance in this feudal system and deal with the great dissatisfaction experienced by many leaseholders.

The proposed ground rent cap

The ground rent cap – £250 per year for 40 years and then a peppercorn – is designed to tackle the ground rent scandal, particularly the cases involving doubling rents, aggressive escalation clauses and situations where leaseholders were effectively trapped because their leases became unmortgageable.

From that perspective, the reform is a welcome correction and will give many leaseholders long overdue relief as well as greater confidence for lenders.

However, the cap creates a different set of issues for leaseholders who have already acquired their freehold.

Many of them paid a premium that reflected the capitalised value of the ground rent, especially where the rent exceeded £250 or was due to escalate beyond that level.

They effectively compensated the outgoing freeholder for the loss of that income stream.

If the legislation now removes or caps that income, they are left with an asset that is worth less than they paid for.

There is a further fairness concern where not all leaseholders participated in the freehold purchase.

The participating leaseholders often had to fund the non-participants’ share of the premium. Under the proposed cap, the non-participants benefit from reduced ground rent without having contributed to the original acquisition cost, while the participating leaseholders absorb the financial loss.

The value impact will vary. Where participating leaseholders have already extended their leases to 999 years at a peppercorn, the loss of ground rent income may not materially affect their own long-term position.

But for those who relied on the ground rent income to offset the enfranchisement premium – or who expected to recover that value on resale of the freehold interest – the cap will reduce the value of their asset.

Parliament did consider this impact but did not propose any sort of compensation to address this issue.

In short, the reform addresses the ground rent scandal for many leaseholders, but it does so at the expense of those who enfranchised early and paid for the very income stream the legislation now proposes to remove.

Forfeiture for long residential leases

Second, the proposal to abolish forfeiture for long residential leases is a long overdue rebalancing of rights.

Replacing forfeiture with a statutory enforcement regime that preserves effective remedies but introduces judicial oversight should finally remove the cliff edge risk that has overshadowed service charge disputes and breach allegations for decades.

The complexity of mixed use

Third, the Bill makes a serious attempt to render commonhold workable in the types of schemes we actually build.

The introduction of “sections” and separate cost heads is aimed at managing the complexity of mixed-use developments.

The concept of “permitted leases” is designed to accommodate shared ownership products and certain home finance structures.

That willingness to engage with the messy reality of modern development patterns is a welcome shift from the more idealised versions of commonhold seen in earlier legislation.

The consent threshold

Fourth, the Bill tackles conversion more directly than before.

Reducing the consent threshold from 100% to 50% is a significant change, and the draft sets out a mechanism for bringing non consenting leaseholders within a harmonised framework of rights and obligations.

If commonhold is ever to move beyond a niche tenure, conversion cannot depend on unanimity; the Bill recognises that and attempts to provide a workable pathway.

Uncertainties remain

The risks are mostly operational, and these can be summarised as three specific concerns.

The first is timing and transition.

The effective ban on new leasehold flats is tempered by consultation on exemptions and transitional arrangements.

Getting that wrong could disrupt housing delivery and lender confidence.

Developers need a tenure that is fundable, saleable and durable.

Lenders need predictable security and enforceable remedies.

Purchasers need clarity on liabilities and governance.

The second is capacity and familiarity.

Many solicitors, managing agents, valuers and lenders have never worked with commonhold.

With fewer than 20 developments registered since its introduction more than 20 years ago, there has been limited opportunity to gain practical experience.

If commonhold is to become the default, training has to be treated as infrastructure, not an optional extra.

It needs to cover structures, processes, dispute resolution and the practicalities of coordinating large groups of leaseholders through conversion.

And the third is legal challenge.

ALEP has already flagged the risk of Human Rights Act arguments around the ground rent cap and “sunset” approach.

Advisers should assume litigation risk, particularly where investment valuations and long term income streams are in play.

Conversion itself will also remain hard, even with a lower voting threshold.

Leaseholders will generally need to acquire the freehold first and then convert.

Cost, timing and complexity will still bite where there are mixed use sites, defective leases, missing landlords or fragmented interests.

This is not all negative, however.

If commonhold becomes mainstream, advising may become simpler.

Commonhold community statements should operate in a similar way to leases by setting out rights, obligations and liabilities.

As largely prescribed documents, there should be less scope for interpretation.

Many of us would accept that leases, with their legalese, are not always easy to understand.

Key considerations for landlords from a legal perspective

Over the consultation period and through pre-legislative scrutiny, I will be keeping an eye on five things on behalf of landlord clients.

  • Regulations and guidance: especially the Commonhold Community Statement, local rules and enforcement mechanics
  • Safeguards in the lease enforcement scheme: thresholds, remedies and the route to sale
  • Treatment of non-consenting leaseholders: workable decision-making with fair protections
  • The new build transition: exemptions, timing and lender and consumer response
  • Professional readiness: training, lender policy, consumer education and a forum to keep implementation grounded

The Bill is ambitious, and that is appropriate given the scale of the issue.

The risk is that rushed detail creates uncertainty and the people the reforms are meant to help carry the cost.

My hope is that government uses this draft process properly, works with practitioners and produces a final Bill that is not only principled but operable.

Shabnam Ali-Khan is a partner at Russell-Cooke and a member of ALEP (Association of Leasehold Enfranchisement Practitioners).

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Feb
23

Council launches consultation with tenants on landlord fines

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Council launches consultation with tenants on landlord fines

A council is asking renters to help decide how much it will fine landlords who breach rules under the Renters’ Rights Act.

The law introduces civil penalties of up to £7,000 for breaches and up to £40,000 for more serious offences.

It also hands councils stronger enforcement powers over the private rented sector.

Now Bristol City Council is consulting on exactly how those penalties should be set locally.

Grabbing the opportunity

The Bristol Live website reports Green councillor Barry Parsons, chair of the housing committee, saying: “This council will be grabbing the opportunities it presents with both hands … to bring the biggest benefits that we possibly can to renters.”

National statutory guidance for councils sets out the starting levels for different offence types and lists aggravating and mitigating factors they must consider.

While the council’s draft policy closely follows that guidance, it retains discretion over some starting levels for fines.

These include licence condition offences and electrical safety regulation breaches.

Civil penalty policy required

The council says that a new civil penalty policy is required to allow officers to determine the level of financial penalty for offences.

The draft sets out how discretionary factors would be interpreted and applied case by case.

Tom Gilchrist, the head of service for private housing, gave councillors on the housing policy committee an update on the act.

He said the council has not yet seen landlords exiting the market or a spike in homelessness linked to the abolition of Section 21.

However, he acknowledged that some smaller landlords with one or a handful of properties may struggle with the new compliance landscape.

The public consultation on its draft civil penalty policy runs until March 30 via the council’s website.

Licence checks and rising penalties

Meanwhile, Bristol’s private landlords are being urged to check whether their properties require a licence.

Those without the right licence can face prosecution, an unlimited fine or a Civil Penalty Notice of up to £30,000.

That sum will rise to £40,000 from 1 May following the introduction of the Renters’ Rights Act 2025.

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Feb
23

Buy to let lending growth is matching homebuyers

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Buy to let lending growth is matching homebuyers

Buy to let borrowing is rising at the same rate as loans taken out by first-time buyers and home movers as improving BTL rates are helping landlords invest, research reveals.

According to mortgage brokers Alexander Hall, the buy to let mortgage lending market expanded at an average quarterly rate of 7% over the past year.

That puts landlord activity level with both first-time buyers and those moving home – and it says the data shows landlords aren’t leaving the PRS.

In Q3 last year, the latest period available, £6.6bn was advanced to landlords and while this is still the smallest slice of overall mortgage lending at 8.2%, it is a 22% jump on the previous quarter.

It’s also 26% higher than the same period in 2024.

BTL lending is growing

The firm’s managing director, Richard Merrett, said: “While some amateur landlords may have chosen to exit the sector following a string of government regulatory changes designed to dent portfolio profitability, the idea of a widespread landlord exodus simply isn’t reflected in the lending data.

“In fact, our analysis shows that buy to let lending has been growing at the same pace as both first-time buyer and home mover activity over the last year, which underlines that investor appetites remain very much alive.”

He added: “Of course, there have been some notable improvements to the mortgage landscape which will have helped to fuel the fire, with lower rates, greater product availability, and more favourable monthly repayments all helping to support landlord margins and reinforce buy to let’s position as one of the more stable long-term investment options available.

“As confidence continues to return across the mortgage market, we expect this momentum to carry forward into 2026 as the buy to let sector continues to defy the narrative that landlords are calling time and looking to exit.”

BTL sector is growing

The brokerage examined historic figures from the Bank of England, tracking quarterly gross advances by loan purpose to gauge how each segment has performed as conditions have stabilised.

Its findings point to a big upswing.

However, while average quarterly expansion shows that BTL lending matched owner-occupier segments, only remortgaging grew faster.

The firm says that sector grew by 12% on average as households rushed to refinance amid improving mortgage deals.

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Feb
20

My PropCo OpCo strategy

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My PropCo OpCo strategy

Several Property118 readers have requested details of how I manage my properties, and now, most importantly, how I protect my properties from liabilities and potential fines of up to £40,000.

My Property Company (PropCo) owns some 70 properties, purchased over the last 30 years, the shares for which shares are all owned by family members. Apart from receiving rent once a month and a few outgoing transactions such as accountants fees and paying HMRC, this company does very little.

I also have an operations and management company (OpCo) which is entirely responsible for the business of lettings, management and maintenance. It is much more than a letting agent or a managing agent.

OpCo rents all the properties from PropCo, and many more from other owners, a total approaching 100. OpCo is the landlord, because it has a monthly rolling headlease contract with permission to sublet. PropertyCo is merely a passive property ownership company.

Contracts, deposit protection, court proceedings, maintenance, adhering to the law of the land (including the RRA), possession and most importanty any fines, court judgements and civil penalties are all the responsibility of OpCo.

OpCo does not own any property, so in the event of a large fine or court judgement against the company, the maximim level of exposure is the money in the bank account. It cannot lose the property, for it does not own property.

Corporation tax is levied on both PropCo and OpCo. This is not a way to reduce tax, it is a means of separating risk associated with the business of letting, maintenance and management, away from ownership.

EDITORS NOTE

This structure can work well where the PropCo and the OpCo are both limited companies. It does not usually work when the ownership of the property is not a corporate entity, because that is generally regarded as a tax-play under the Transfer of Income Streams legislation.

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Feb
20

Government’s Decent Homes Standard impact assessment slammed as ‘not fit for purpose’

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Government’s Decent Homes Standard impact assessment slammed as ‘not fit for purpose’

The government’s impact assessment for extending the Decent Homes Standard to private landlords has been slammed by an independent committee as ‘not fit for purpose’.

The withering condemnation of the Ministry of Housing, Communities and Local Government’s (MHCLG) proposals has been made by the Regulatory Policy Committee (RPC).

The aim is to bring private landlords under the same updated DHS rules as social housing providers by 2035.

But the committee warns that the government is avoiding discussion of viable alternatives.

Critically, the committee warns that the MHCLG hasn’t put forward a sound business case for extending the DHS to the private rented sector.

Alternatives not examined

In a series of criticisms, the RPC says the impact assessment jumps straight to a single preferred option without properly weighing alternatives.

It states: “In the absence of structured comparison, the IA (impact assessment) cannot demonstrate that the preferred option outperforms alternatives for cost-effectiveness, compliance, risks or sequencing.”

The watchdog has now ordered the department to produce a full shortlist appraisal in line with the Treasury’s Green Book rules before proceeding.

It is also critical of how benefits have been presented, pointing out that the government has not consistently applied the same ‘additionality’ logic to claimed health and wellbeing gains as it has to costs.

Landlords paying for regulations they already face

There are also major issues with the £6.5 billion price tag for implementing the DHS across both private and social housing sectors.

Crucially, 82% of the costs to private landlords are not additional because they are already being driven by pre-existing legislation such as the Homes (Fitness for Human Habitation) Act 2018.

Other laws affecting costs include the Housing Health and Safety Rating System (HHSRS), and tighter EPC standards.

The committee is sharply critical that the benefits side of the equation has not been calculated on the same basis.

It warns that many claimed tenant gains are being presented as if they are all brand new.

Uncertainty over work

For England’s 2.3 million private landlords, the report highlights continued uncertainty over exactly how much work will be required.

Around 48% of PRS homes are expected to fail the new standard, mostly due to disrepair, but also tighter rules on thermal comfort, damp and mould, and facilities.

Despite the RPC’s damning verdict, the government is still expected to push ahead using secondary legislation powers in the Renters’ Rights Act.

The impact assessment says it will draw on local authority enforcement data and wider housing quality monitoring to measure how the policy performs in practice.

But the RPC makes clear that clearer detail on metrics, accountability, timing and data flows, alongside formal evaluation questions and feedback routes for councils, would provide far stronger reassurance that the real-world impact is being properly tracked.

Disappointing news for government

Goodlord’s director of landlord experience, Emily Popple, said: “This will be disappointing news for the government at a time when it’s overseeing the most seismic set of PRS reforms in a generation.

“You’d be hard pushed to find reputable landlords and agents in the PRS who don’t support higher housing standards.

“But any new regulations must have a robust and economically sound policy base underpinning them.”

She added: “This week’s report undermines the government’s position and will make it harder to garner goodwill amongst an industry who are already grappling with a wide range of new costs and regulations.

“The government must address these concerns properly, otherwise it risks raising wider questions about regulatory oversight and cost-benefit discipline at a time when tensions in the markets are already high.”

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