Propertymark has “welcomed” the Government’s decision to widen the draconian new Rent Repayment Order regime, in a move that has surprised many in the property sector.
After a ‘successful’ trial involving three councils, Ministers have confirmed the Rent Repayment Order scheme will be expanded to 41 local authorities. The changes allow councils to apply for RROs themselves to recover housing support payments where benefit-claiming tenants are found to be living in unlicensed or unsafe properties, using data shared between the Department for Work and Pensions and local authorities.
Concerns
Councils will be able to reclaim up to 24 months’ rent or housing support payments, effectively doubling the previous 12-month limit. Even though the Government says the focus is on rogue landlords, there are concerns that previous RRO cases have often involved landlords unaware that a licence was required and will heap further pressure on letting agents to ensure landlords are compliant.
Responding to the news, Propertymark says: “We welcome the UK Government’s efforts to crack down on rogue landlords and improve standards in the private rented sector, particularly moves that give councils stronger enforcement tools and enable RROs to be more impactful.”
Additional enforcement powers must be backed by adequate funding.”
The organisation, though, acknowledges the difficulty of enforcing the rules without additional support. “Local authorities often lack the capacity and resources to enforce existing regulations effectively and tackle rogue landlords,” it says, adding that: “Additional enforcement powers must be backed by adequate funding and staffing to make a real difference.”
In its statement, Propertymark also calls for the reform of licensing, rather than further expansion of existing schemes. It warned that some local discretionary licensing regimes act as “blunt instruments” that “burden compliant landlords and letting agents with fees while allowing the worst actors to fly under the radar”.
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