A rental platform is welcoming new plans for wide-ranging
reform of the housing redress system, but warns that landlords need to be given
plenty of time to prepare.
The call by RentalStep comes after the recent announcement
by the Housing Secretary, James Brokenshire MP, which outlined various
proposals to reform
the housing redress system.
At the heart of the reform is the formation of a housing
complaints resolution service, which would create a one-stop-shop for all
complaints relating to every tenure of housing.
Furthermore, under the new rules, all private landlords
would be required to join a redress scheme, with fines of £5,000 for those that
fail to comply.
The proposed changes will be discussed, reworked and revised
later this year by a redress reform working group, which will include existing
redress schemes, as well as the Government.
Mike Georgeson, the Founder and Chief Executive of
RentalStep, insists: “While the planned
reforms are a positive move – protecting tenants and giving them a fair right
to redress – it’s also vital that landlords are given enough time to adjust to
yet more changes and new regulation.
“This is another measure
for landlords to be aware of and another cost to bear, so they need to be given
fair warning of when the reforms are coming into play and what exactly they
He adds: “Landlords will
have to pay to join a redress scheme and could also be fined in the event of non-compliance
– the prospect of these extra expenses could be a cause of concern for many.”
As the costs of letting a
property continue to rise, any way that landlords can reduce their monthly
outgoings should be fully explored, Georgeson believes.
“With the ever-growing
financial pressures on landlords, reducing costs where possible is a wise and
pragmatic move,” he explains. “Cost-cutting is an especially important
consideration at a time when Brexit uncertainty, the prospect of increased
management fees, as a result of the incoming ban on tenant fees, and other new legislation is squeezing landlords
more than ever.”
Landlords, make sure you
stay on top of all new regulations, including redress reform.