New code of practice for PRS

Housing minister Brandon Lewis has launched a new code of practice for the private rented sector.

The code, unveiled at the RESI 2014 conference in Newport, is part of a package of measures being introduced to improve the PRS.

The aim of the code is to ensure: good-quality homes for rent, consistent and high standards of management, and choice for the consumer.

Lewis said: “The private rented sector plays a vital role in our housing market, providing a flexible option for millions of people across the country. The last thing we want to do is strangle it in red tape – but tenants and landlords should have confidence that they will be treated fairly.

“Today’s package of measures is designed to do just that, putting power in the hands of people to get the deal they serve, without punishing the vast majority of good landlords while still encouraging more investment in the sector.

“I would urge all landlords to take account of the new code of practice and look to offer our model tenancy agreement – while today’s Build to Rent deals demonstrate how committed we are to getting homes built specifically for this market.”

The British Property Federation (BPF) welcomed the publication of a new PRS code. The BPF was one of seventeen organisations that assisted in the creation of the code.
 
Ian Fletcher, director of policy at the BPF, said: “As the private rented sector grows, it is coming under more and more scrutiny, and it is important that good practice is constantly encouraged and promoted. The BPF therefore welcomes the publication of this industry code, as it is another useful tool to add to the arsenal of existing and new measures that want to promote good practice within the sector.
 
“The code will be particularly useful for willing but inexperienced landlords who need guidance as to how professional landlords and agents achieve high standards. We would always recommend also joining a landlord or agent professional body or association so that landlords and agents keep up-to-date with sector developments.”

ARLA managing director David Cox said: “A mandatory code of practice to improve the private rented sector is something we feel very strongly about. The new code is a step in the right direction which ARLA fully supports, and we would also like to see a fully regulated industry to help build a better, stronger private rented sector.

“Our recent research into the PRS found that over one in five prospective tenants (22%) had concerns about their landlord or letting agent before they had signed a contract, and 55% had a problem with their landlord once a tenancy was agreed. While problems can of course arise during a tenancy agreement, using an ARLA Licenced agent, who follows the new PRS code of practice gives tenants peace of mind that any issues can be dealt with in a professional and safe manner. It will only be through qualification and ongoing professional development, backed up by appropriate regulation, that we will eliminate the rogue landlords and agents who blight our industry.”