Propertymark has called on the Labour Party to provide further details regarding its recently published review of the private rented sector (PRS), which has stirred considerable debate.
The contentious review, spearheaded by the Labour Housing Group, outlines five primary goals: implementing rent controls, significantly increasing social housing, creating a compulsory National Landlords Register, abolishing Section 21 ‘no-fault’ evictions, and imposing restrictions on landlords shifting to short-term and holiday lettings.
Announced by Councillor Stephen Cowan, leader of Hammersmith and Fulham Council, in January last year, the review has been met with both praise and criticism.
Call for Reform and Professionalization
Propertymark’s head of policy and campaigns, Timothy Douglas, along with chief executive Nathan Emerson, engaged with Councillor Cowan during the review process. Mr. Douglas emphasized the necessity for reform, stating, “The review highlights critical areas in need of improvement, such as raising standards and enhancing affordability. Propertymark is pleased to see a focus on professionalizing the sector and equalizing tax treatment across both long and short-term lettings.”
However, Douglas expressed concerns over certain recommendations. “Mandatory qualifications and licensing of letting agents are crucial, not just minimum training requirements. The review also overly stresses rent control measures without fully understanding their impacts, as evidenced by the rent cap issues in Scotland,” he added.
Comprehensive Overhaul of the PRS
Aiming to comprehensively overhaul the UK’s PRS, the review incorporated insights from a diverse range of stakeholders, including academics and trade unions.
Propertymark has also urged Labour to reconsider the termination of mortgage tax relief for landlords, a decision they argue has exacerbated rent increases. “To reduce rental costs, the supply of rental homes must be expanded,” Douglas asserted.
He further pointed out gaps in the review, noting, “There is minimal emphasis on mandatory written tenancy agreements, compulsory inventory checks to prevent disputes, and investment in local authorities for inspections and enforcement. These are fundamental elements that policymakers need to address to improve standards across the sector.”
As the debate continues, Propertymark awaits more comprehensive information from Labour, hoping for a balanced approach that benefits both tenants and landlords in the evolving PRS landscape.