National Landlords Association Richard Blanco NLA London Representative London Borough of Islington Private Sector Rented Housing Communities Review Committee www.landlords.org.uk
I n My Presentation… • The NLA: who we are and what we do • Changing landscape of the PRS in UK & London • NLA’s vision for the PRS in London • Current challenges facing landlords • Working with local authorities • Selective Licensing • Rent Controls www.landlords.org.uk
About The NLA • 20,000 full members • 100 local authority associate members • UK wide network of representatives, six in London • Head office in Albert Embankment • Take part in numerous national and regional government task forces - examples • London Rental Standard • Review of Tenancy Deposit Protection • Welfare Reform & Green Deal www.landlords.org.uk
NLA Aims • Comprehensive range of services • Policy, campaigning & press work • Seek fair legislative & regulatory environment • Ensure landlords are aware of rights and responsibilities www.landlords.org.uk
NLA Services • Support the whole letting cycle • Examples - Tenant referencing, Insurance, Mortgages, Inventories, Lease extension, Green Deal, Conveyancing. • Recognised Suppliers • Advice Line • Landlord Development and Accreditation • Bi-monthly UK Landlord • National network of landlord meetings www.landlords.org.uk
Changing Landscape Of PRS • Growth • Tenure of choice • Changing demographic – more families, high spec HMOs • Battle with media stereotypes • Difficulties obtaining finance • Collaboration with local authorities • Increased regulation www.landlords.org.uk
I n London... • Shortage of supply • Population increase by £1m in next 10 years • Size of PRS is 26% expected to reach 35% by 2025? • PRS used equally by all 5 income groups • Rising rents & calls for rent controls • Welfare Reform jeopardised role of PRS in benefit sector • Selective Licensing & Article 4 • London Rental Standard www.landlords.org.uk
Exploding The Myths • 69% of tenants in PRS accommodation in London are satisfied with their landlord • Average tenancy lasts 2 to 3 years • 67% of landlords had no rent rise in last 12 months • NB Lack of regulation of letting agents www.landlords.org.uk
NLA Vision For London • To support landlords to provide excellent homes for Londoners • Positive and dignified relationship with tenants • Enable landlords to maintain, improve and develop their businesses • To provide a high quality, flexible complement to social and owner occupied sectors. www.landlords.org.uk
Putting it into practice • Light touch regulation of good compliant landlords • Mutually supportive relationship with local authorities • Collaborate with staff and landlord forums • Providing advice through rep network • Schemes such as grants for empty property renewal • Accreditation • Leasing schemes • Proper enforcement of rogue & criminal sector • Opposed to Selective Licensing & Article 4 Directions www.landlords.org.uk
Challenges for Landlords • Difficulties Obtaining Finance • Rising house prices, reducing rental yields • Arrears, homelessness policy, universal credit • Empty Property Strategies • Isolation • Rogue tenants, scams and other crime • Agents and maintenance • Hostile attitudes, explaining the business to stakeholders www.landlords.org.uk
Working with Local Authorities • Crucial for creating a positive business environment • Landlord Forum • Grant & leasing schemes • Evidence based approach • Dangers of headline grabbing policy • Promoting, encouraging & modelling good practice www.landlords.org.uk
Selective Licensing • Licensing is punitive approach to regulation which alienates landlords • All borough approach in Newham • Over 40,000 PRS properties (37%), 31,000 applications so far • Estimate 5,000 units in criminal/rogue sector • Deters landlords from investing in the area • Good landlords pay for enforcement against bad landlords • Introduction of Article 4 Planning Directions • Prevents shared housing www.landlords.org.uk
Housing Profile I n I slington • 29% Owner occupied • 27% Council rented • 26% Privately rented • 15% Registered providers • 3% Other • Flexibility that PRS provides www.landlords.org.uk
Calls For Rent Controls • In 2012, rents up by 7.9%, House prices up by 6.8% • Housing shortage – need to build more social housing • Household formation outstrips demand by 3:1 • London population to rise by 1 million in next 10 years • Global nature of London’s market • We are running businesses and need to make reasonable profit • 67% of tenants had no rent rise in last 12 months www.landlords.org.uk
Effect of Rent Controls • PRS shrank to 8% in 1992 (now 18%) • Deters institutional investors • Will drive private landlords out of market • Lack of social housing means PRS is vital • Increase homelessness, temporary accommodation www.landlords.org.uk
National Landlords Association Richard Blanco NLA London Representative richard.blanco@landlords.org.uk www.landlords.org.uk
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