Acute need for rental accommodation in the region

THERE is a “dire need” for good quality rental accommodation in the region, according to property professionals in the letting industry.
“This is a very serious issue. At the end of last year we highlighted that a lack of properties will be a defining factor in the housing market in 2010 and our member agents across the country have confirmed this opinion as fact,” said Jill Elkington, Midlands spokesperson for The Association of Residential Lettings Agents (ARLA) and residential letting manager for Hodgson Elkington, chartered surveyors.

“Our region and indeed the entire UK is in dire need of good quality rental accommodation to counter the lack of broader housing supply across the country and the Private Rented Sector (PRS) needs tangible Government support to help achieve this. This should be in the shape of incentives for improvements on older properties, assistance for landlords in gaining mortgage finance, and regulation to drive unethical letting agents out of the industry.

“The year so far has already brought a number of Government proposals for the PRS but few firm decisions. Significant policy decisions will be set out in the coming months of the election and it is imperative that all the parties factor the PRS into their strategies on the national housing supply.”

“The private rented sector makes a significant contribution to both the regional and UK economy. However, little has been done to incentivise private sector landlords to improve the quality of their housing stock despite suspension of Home Information Packs (HIPs). The Government should consider other steps to relieve the burden on the residential property market,” according to Jill Elkington.

Government estimates that approximately 750,000 homes (25% of properties in this sector) are below standard. “We believe that incentives for private sector landlords to improve existing housing stock should be considered, including these packs,” said Jill Elkington.

“We would like to see the removal of VAT on the purchase of materials and labour for capital expenditure to improve older property brought into the rental market and the introduction of capital allowances for landlords improving housing stock over a certain age,” said Jill Elkington.

Other suggested incentives to an incoming government in May include increasing the landlords Energy Saving Allowance (LESA) to include the installation of central heating systems, a possible Stamp Duty ‘clawback’ to purchasers of older properties where a survey report and an Energy Performance Certificate show a property is likely to benefit from capital investment.

Estate and letting agents are currently un-regulated, meaning that anyone can set up an agency without the appropriate qualifications or industry knowledge.

“We have been calling for government regulation of the letting and sales agents for some time and sincerely hope that the next government will set in place legislation to protect the public from the cowboys,” said Jill Elkington.

Both the NAEA (National Association of Estate Agents) and ARLA believe that regulation of sales and letting agents is the quickest and most effective method to eliminate unprofessional and unqualified agents from the sales and rental market.

In the absence of a government run scheme, ARLA and NAEA are in the process of introducing licensing schemes for its members, which we believe will provide the most effective protection for consumers that is currently on offer.