£60 Million Boost for Councils to Crack Down on Rogue Landlords Ahead of Renters' Rights Act

Councils are to receive £60m to crack down on “rogue landlords” and enforce new Renters’ Rights coming into effect next month. The funding will be available from 1 May.

There is sudden money in the pot to tackle housing crisis issues like the lack of affordable homes. But let’s not forget that the root causes of this influx of capital – issues of landlord abuse and inconsistent enforcement of renting regulations – are ones that the Renters’ Rights Act is trying to address. Landlords will need to be held to new, tougher rules – and councils will need funds to enforce them.

But a large pot of money doesn’t automatically guarantee speedy and consistent enforcement - it will depend on the patchy talents and resources of local councils and administrators.

Compliance isn’t just about tenants and tenants’ agents; landlords and letting agents also need to be aware of and comply with new regulations, as agencies are racing to find the tools and next generation of platforms to manage the upcoming Renters’ Rights Act.

The move by government to restrict foreign buyers of rental properties is a significant shift in policy and an important step towards a rebalancing of power in the rental market – which is where government needs to act to address the pleas of renters.

Practical Takeaways for Buyers:

1. landlords/landlords agents should ensure they are compliant with the provisions of the new Renters’ Rights Act – and utilize new tools to check compliance that are compatible with property agency business management systems including Reapit’s AgencyCloud. Also, those contemplating becoming landlords should be aware of the new requirements.
2. It pays for renters to know exactly what action their local council is taking – and when it might change – because from 1 May councils will have more power to penalise wayward landlords. Check with your council to find out what it’s currently doing to enforce new rules – and report any abuse you suspect landlords are conducting.
3. There will be some initial teething problems – where implementation is inconsistent or slow. Make a note of any correspondence or communications and store accordingly.
4. For would-be landlords, the clampdown on letting means that they may face more scrutiny and have to add the cost of improvements to the rent, or change the way they let.

The Final Takeaway:

This increase to funding is more than just a few tweaks to the rules on affordable housing; it is a test of the commitment to housing fairness and an assessment of whether Councils can successfully rise to the challenge and get people on to the ladder without fail or bureaucratic collapse.