New ratings scheme for private rental properties to be launched

A new rating system of private rented properties is to be launched – and could, says the firm behind it, become a widely used form of industry self-regulation, preferred by local councils as an alternative to licensing.

The system, Rental Ratings, will work like the one to five star rating system for hotels, enabling tenants to see the better quality properties at a glance.

Each rating will last two years and be paid for by the landlord.

Inspectors will use different criteria including size, location, condition, outside space and  car parking, with a weighted average system used to calculate the score.

Kirsty McGregor, who has come up with the scheme, said: “It’s a game change. It will give agents and landlords a brand new marketing tool. Rentals will no longer be priced just on location and the number of bedrooms as at present.

“Poor quality properties will be highlighted – just as a ‘no star’ rating in the hotel industry speaks a thousand words.

“I also think it could help increase standards. In time, if the private rented sector gets behind this as a way of demonstrating quality properties, local authorities could direct their efforts and resources to those landlords who choose not to have their properties rated.”

McGregor added: “When we get traction, national property portals are willing to support the scheme by showing logos and allowing tenants to refine their search choice."

McGregor emphasised that the inspectors – mostly full-time surveyors or project managers, but including some building specialists – will not be allowed to pitch for any improvement work at properties. “The independence element is very important to us,” she said.

The full Rental Ratings site is due to go live from Monday, September 30, initially offering rental ratings at £25 each for the first 30 surveys booked.

The service itself is due to launch on November 1, with products costing £150 to £250 depending on the size and type of property.