This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at https://www.theguardian.com/business/2018/oct/23/the-rogue-landlords-loopholes-how-the-law-fails-renters
The article has changed 6 times. There is an RSS feed of changes available.
| Version 2 | Version 3 |
|---|---|
| The rogue landlord's loopholes: how the law fails renters | The rogue landlord's loopholes: how the law fails renters |
| (6 days later) | |
| The legislation designed to catch rogue landlords is vast and very complex. | The legislation designed to catch rogue landlords is vast and very complex. |
| Landlords can be prosecuted under various pieces of law, including the Housing Act (2004), the Protection from Eviction Act (1977), the Health and Safety at Work Act (1974) and Regulatory Reform (Fire Safety) Order (2005). | Landlords can be prosecuted under various pieces of law, including the Housing Act (2004), the Protection from Eviction Act (1977), the Health and Safety at Work Act (1974) and Regulatory Reform (Fire Safety) Order (2005). |
| All of that legislation creates a confusing landscape. It can be difficult to work out how it all fits together, and even within individual acts there are loopholes. | All of that legislation creates a confusing landscape. It can be difficult to work out how it all fits together, and even within individual acts there are loopholes. |
| For example, the licensing of landlords was introduced as part of the 2004 Housing Act, which came into force in 2006 and was billed as a method of addressing poor management of properties, antisocial behaviour and the need for fire safety. | For example, the licensing of landlords was introduced as part of the 2004 Housing Act, which came into force in 2006 and was billed as a method of addressing poor management of properties, antisocial behaviour and the need for fire safety. |
| Under that legislation landlords must be considered “fit and proper” to be issued with a licence. In order to decide whether a landlord is fit and proper, the legislation states that “the local housing authority must have regard (among other things) to … [whether the landlord has] contravened any provision of the law relating to housing or of landlord and tenant law”. | Under that legislation landlords must be considered “fit and proper” to be issued with a licence. In order to decide whether a landlord is fit and proper, the legislation states that “the local housing authority must have regard (among other things) to … [whether the landlord has] contravened any provision of the law relating to housing or of landlord and tenant law”. |
| If a landlord is found renting out a property that requires a licence without one, they can be prosecuted. Many of the successful prosecutions against landlords are for licensing offences. | If a landlord is found renting out a property that requires a licence without one, they can be prosecuted. Many of the successful prosecutions against landlords are for licensing offences. |
| Licensing is controversial among landlords, even if it seems to be a sensible way of attempting to reduce criminality in the sector. Plenty of them are in favour of the idea, but the schemes are often criticised as expensive, bureaucratic and confusing, and even supporters identify problems. | Licensing is controversial among landlords, even if it seems to be a sensible way of attempting to reduce criminality in the sector. Plenty of them are in favour of the idea, but the schemes are often criticised as expensive, bureaucratic and confusing, and even supporters identify problems. |
| Until 2013, licensing typically applied to landlords renting out houses in multiple occupation (HMO). An HMO is a property shared by at least three people who are not from a single household, but share facilities such as a toilet and kitchen. In England and Wales, a “large HMO” – with at least five people from more than one household who share facilities –must be licensed. | Until 2013, licensing typically applied to landlords renting out houses in multiple occupation (HMO). An HMO is a property shared by at least three people who are not from a single household, but share facilities such as a toilet and kitchen. In England and Wales, a “large HMO” – with at least five people from more than one household who share facilities –must be licensed. |
| Selective schemes under which local authorities can require a license for other rental properties were introduced from 2013. In 2015, the London borough of Newham introduced the first borough-wide scheme, which essentially meant that all of its private landlords needed a licence, no matter what type of property they were renting out. | Selective schemes under which local authorities can require a license for other rental properties were introduced from 2013. In 2015, the London borough of Newham introduced the first borough-wide scheme, which essentially meant that all of its private landlords needed a licence, no matter what type of property they were renting out. |
| Since 2015, a council has been required to gain central government approval in order to run a selective scheme extending across more than 20% of the borough. When others followed Newham’s lead in implementing wide-ranging selective schemes, they found it tricky to get approval. | Since 2015, a council has been required to gain central government approval in order to run a selective scheme extending across more than 20% of the borough. When others followed Newham’s lead in implementing wide-ranging selective schemes, they found it tricky to get approval. |
| There are currently 44 local authorities in England and Wales with selective licensing schemes running. Of those, just four cover the whole of the borough in which they are enacted, according to the property technology company GetRentr. | There are currently 44 local authorities in England and Wales with selective licensing schemes running. Of those, just four cover the whole of the borough in which they are enacted, according to the property technology company GetRentr. |
| Even Newham’s scheme, which the secretary of state freshly approved at the start of this year, no longer covers the whole borough. | Even Newham’s scheme, which the secretary of state freshly approved at the start of this year, no longer covers the whole borough. |
| The patchy nature of the regime also extends to the sanctions available to local authorities. | The patchy nature of the regime also extends to the sanctions available to local authorities. |
| Punishments – such as the removal of a landlord’s “fit and proper” status – only apply to the local authority area where a landlord breached the law. Other councils can take a failure into account, assuming they know about it. | Punishments – such as the removal of a landlord’s “fit and proper” status – only apply to the local authority area where a landlord breached the law. Other councils can take a failure into account, assuming they know about it. |
| So a landlord found not to be fit and proper in one borough can be deemed fit and proper a few hundred metres down the road by a neighbouring local authority. | So a landlord found not to be fit and proper in one borough can be deemed fit and proper a few hundred metres down the road by a neighbouring local authority. |
| Dr Stephen Battersby, a housing consultant who is a visiting senior fellow at the Robens Centre for Public and Environmental Health at the University of Surrey, said: “It is bizarre that someone who is not fit and proper in one borough can be deemed fit and proper in another.” | Dr Stephen Battersby, a housing consultant who is a visiting senior fellow at the Robens Centre for Public and Environmental Health at the University of Surrey, said: “It is bizarre that someone who is not fit and proper in one borough can be deemed fit and proper in another.” |
| The licensing regime, he said, also allowed someone who was ruled not fit and proper, but who owned a property, to have it managed by another person. “This is clearly a loophole that can be exploited,” he said. | The licensing regime, he said, also allowed someone who was ruled not fit and proper, but who owned a property, to have it managed by another person. “This is clearly a loophole that can be exploited,” he said. |
| Failing a fit and proper person test does not mean that all or any of the landlord’s properties are unfit. | Failing a fit and proper person test does not mean that all or any of the landlord’s properties are unfit. |
| Landlords can even find loopholes to carry on within the local authority area where they were found to be unfit. Take Newham, which says it has “banned” 28 landlords. | Landlords can even find loopholes to carry on within the local authority area where they were found to be unfit. Take Newham, which says it has “banned” 28 landlords. |
| Under the latest iteration of its selective licensing scheme, landlords do not need a licence to rent out property in the borough’s Olympic Park. So there is nothing stopping Newham’s 28 “banned” landlords from buying housing in that area and renting it out. | Under the latest iteration of its selective licensing scheme, landlords do not need a licence to rent out property in the borough’s Olympic Park. So there is nothing stopping Newham’s 28 “banned” landlords from buying housing in that area and renting it out. |
| Martin Tett, housing spokesman at the Local Government Association, said: “Legislation is not keeping pace with the ingenuity of these rogue landlords, and whilst councils are determined to do everything in their power to ensure tenants can live in secure properties, it’s essential that legislation is more cohesive, and prevents the minority of rogue landlords from taking advantage of those at the sharp end of our housing crisis. | Martin Tett, housing spokesman at the Local Government Association, said: “Legislation is not keeping pace with the ingenuity of these rogue landlords, and whilst councils are determined to do everything in their power to ensure tenants can live in secure properties, it’s essential that legislation is more cohesive, and prevents the minority of rogue landlords from taking advantage of those at the sharp end of our housing crisis. |
| “Many councils are already tackling issues in the private rental sector by bringing in landlord licensing schemes, but they are limited in how widely these can be introduced. We need to see these rules relaxed and councils given more freedom and flexibility in establishing schemes.” | “Many councils are already tackling issues in the private rental sector by bringing in landlord licensing schemes, but they are limited in how widely these can be introduced. We need to see these rules relaxed and councils given more freedom and flexibility in establishing schemes.” |
| From April this year, councils in England have also been granted additional powers to issue banning orders under the 2016 Housing and Planning Act, which supplements the 2004 legislation. | From April this year, councils in England have also been granted additional powers to issue banning orders under the 2016 Housing and Planning Act, which supplements the 2004 legislation. |
| However, not a single banning order has so far been made. The Ministry of Housing, Communities and Local Government says it is too soon for councils to have gone through the necessary processes to have made a banning order. | However, not a single banning order has so far been made. The Ministry of Housing, Communities and Local Government says it is too soon for councils to have gone through the necessary processes to have made a banning order. |
| Real estate | Real estate |
| Rogue landlords | Rogue landlords |
| Housing | Housing |
| Housing market | Housing market |
| Communities | Communities |
| Property | Property |
| Renting property | Renting property |
| London | |
| news | news |
| Share on Facebook | Share on Facebook |
| Share on Twitter | Share on Twitter |
| Share via Email | Share via Email |
| Share on LinkedIn | Share on LinkedIn |
| Share on Pinterest | Share on Pinterest |
| Share on Google+ | Share on Google+ |
| Share on WhatsApp | Share on WhatsApp |
| Share on Messenger | Share on Messenger |
| Reuse this content | Reuse this content |