By Steve Roulstone
Once again I find myself reading a report condemning the rental sector, this time as the background to the thrust of the actual article, which is about increasing trends in the rental sector. The reason given is financial insecurity which should come as no surprise to anybody, but the article takes the unreasonable opportunity to condemn the rental sector without providing any evidence for the statements made.
Hidden reasons.
Of course the reason why is to suggest that the Government (this is after all a left wing paper) are forcing families down a road to unsettled and poor condition housing, when in reality, and I can only comment from what I know about, the truth is nothing like the picture painted and indication given within the report.
Bad Housing, Bad Landlords and High rents.
As a professional letting Agency, we will only take on property that is to standard and when allowed upgrade property as required. I say when allowed because only this morning I have been discussing a Tenant who will not allow access to make alterations which will vastly improve a bathroom. Equally, we always and ONLY advise Landlords of the correct path and procedures surrounding the property and their Tenants. Also, rents in Staffordshire are not rising and Tenants are benefitting from the number of properties on the market by making offers.
Source of information.
Because of this and with the knowledge that not every property or Landlord is perfect and therefore accepting that problems do exist, I would suggest that like most of what facts are listed in the article, it is the London market that is the source of the information. But it would be so much better if either the article were split into two, sticking to the point made as the reason for the increase and giving the chance for the detail behind these damning statements about the rental market instead of providing no evidence what so ever!
Professionalism.
I would agree however, as I have stated on oh so many occasions before, that the intended route the previous Government was intending to take, to ensure all agents were approved, is still the best possible route for the Industry. For if this is still a major problem, and as I have sated I can only comment on my local market, then the Industry itself, having launched ‘Safe Agent’ cannot be blamed for doing nothing to improve standards. The problem still seems to be in the Self Managed Landlord or the Agent who ignores all professional bodies and here all Tenants have a clear choice! Ask which bodies the agent belongs to that will protect them!
Legislation.
One of the first issues that I cannot agree with is that of legislation, because if ever an industry has been targeted it is the rental industry, with every facet of what we do coming under the legislative microscope for the last few years. The comment about deposits for example is a ‘throw away comment’ which cannot be supported, because any Tenant who suffers at the hand of an Agent or Landlord who does not use the Deposit legislation can be heavily fined and the Tenant has a clear route to take.
Tenant problems.
Of course what this could refer to is the number of Tenants who have found themselves loosing when being processed through the Deposit legislation, because although most do win because of badly prepared defences by the Landlord or Agent, I know as a fact, that if the Tenant looses when going through arbitration, they still blame the Agent and talk about the cost as if they have been treated unfairly. This of course is not the case, but as the article gives no background to the statements made we will never know!
Figures.
But one bit of background I can supply is that the percentage of people renting privately has been increasing for years and particularly so over the last two years. I asked the Department of the Communities only last week if the overall privately rented % for 2011 was yet available and it is not, but I expect it to reach 20%, a rise of nearly 5% in the last two years. Therefore to state it may be 36% by 2025 (which let’s not forget is still over 12 years away) when twelve years ago it was at 9% would reflect a rate of increase through good AND bad times that at current trends will stand at 31% anyway!
Bad Journalism.
So I am afraid that overall I label this article as bad journalism, trying to score a political point without any confirmation of the statements made attacking an industry which is not represented and quoting figures, which, when you are aware of the background, are really not that surprising. But it does touch on one major factor. Unless the availability of mortgages for Buy to Let Landlords is improved, the supply of rented property will quite possibly dry up! But where I will concur, is that by failing to introduce Licensed Agents and Landlords, the standard of the current source of rented stock, namely properties that fail to sell could well continue to suffer. For without legislation, as we all know, when finances are strained, shortcuts are taken!
Everything should be put into place having a bad housing and a bad landlord with a high rents can be the worst that can happen to a tenant specially if you don’t came from a well known family. Hope they can find a way to make this right.