By Steve Roulstone
The new Housing Policy released earlier this week, makes specific reference to two areas that I feel are linked, in the standards being set in one and the Government requirements for the other. I am referring to Decent Home Standards and Energy Performance levels.
Walking away from business.
This week alone, as a Letting Agent, we have walked away from two properties where the standard of accommodation that the Landlord was offering, we felt, dropped below what should be offered in our market place. As I pointed out in my Blog earlier this week, self policing, because we are professional Agents. The fact that other Agents (Estate Agents) were prepared to market the properties, in one instance without basic instruction which could result in the Landlord being the result of a financial claim against him, is both alarming and a subject that I repeatedly Blog about until blue in the face, if you do not legislate for fitter and proper Agents, the market will continue to suffer from bad Management!!
Market protection.
So with the knowledge that professional Agents will advise Landlords what should be done before they will market property, let’s just confirm, we now have a situation where we are raising standards automatically – just what the Government are asking for!! But wait, what do we have here? A comment in the same release, stating that Rented properties that do NOT reach certain energy standards will, by 2016, NOT be allowed to be offered to the market!
Is it the financial link?
So why are the Government targeting the rental market and not the sales market? There appears to be reference to review Building Regulations, which ensures new properties reach these energy standards, but nothing to address property sales, so why not? To me it is purely because they can and for no other reason. I would guess that the reason given would be that if Landlords are to make profit from renting property, then the profit must be gauged against the standard of the property. A good argument and I am not saying I disagree, but if that is the case, why not apply the same regulations to Mortgage Companies who profit from providing a Mortgage to the ‘House buyer’?
Too radical?
This to me is not a level playing field and we as an industry have five years to address it. The facts are quite clear in both statements included in the Government release on the rental market, the best standards of properties can be found in the rental market and the best energy efficient housing can be found in the rental sector. And yet in this report they further target (an easy target?) our sector for improvement. My point has to be, that under a heading of a thriving market sector, rules are being introduced which will place further unbalanced costs on the Landlord, when set against any decision against selling.
Action Needed.
We have plenty of time between now and 2016 to ensure this is not the case, so I ask our Industry representatives to ensure that our market will not be given a disadvantage at such a critical time in its popularity and development. If I am right and if this is left unattended we could be left with a problem, the time to act is now!
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