Watson Esam | News | Government stops Landlord Regulatory Reform

The new coalition government has decided to scrap a Labour initiative to regulate the private letting market.

The plans, shelved by housing minister Gregg Shapps, would have lead to the introduction of compulsory tenancy agreements, a register of landlords and regulation for letting agents.  This would have ensured further protection for tenants in the private rental market since laws were introduced to safe guard deposit.  It seems that the reason for not proceeding further with the reforms was the high costs of introducing the new regulations and ultimately enforcing them.  The reforms are to be replaced by an increased use of the powers of local authorities which historically have been underused.

It is inevitable in the current economic climate that reforms of this nature will fall by the side in favour of budgetary measures needed to prop up health, education and defence policies.  The Association of Residential Lettings Agents (ARLA), who had welcomed the reforms, were disappointed with the decision and have said that ultimately quality standards within the industry will not increase without regulation.  However, whilst other private landlords will be happy that the threat of further ‘red tape’ has been removed this will be of little consolation to tenants of rogue landlords.

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