Friday, November 07, 2008
A Quick Review of the Rugg Report by David Lawrenson of Letting Focus
So much news about right now that I have decided to write an extra post to the blog!
All government sponsored reports into the private rented sector end up with landlords being made to look awful, right?
Well wrong.
For once, we at last have a report, the Rugg Report, which is sensible and which recommends only “light touch regulation” for good landlords. (The full report is called “The Private Rented Sector: its contribution and potential” and is by Julie Rugg and David Rhodes)
Sure, it suggests big changes, like mandatory licensing of all private residential landlords and managing agents but I think these proposals make sense if it means bad landlords and lousy letting agents are driven out.
The report starts off by recognising the importance and contribution of landlords in the housing market.
It proposes tax changes including an overhaul of the Stamp Duty banding system to enable landlords to buy more properties in bulk and the reform of Capital Gains Tax, so that landlords could quickly gain relief from property improvements.
NO PLACE FOR BIG LANDLORDS
It no doubt went down like a sack of spuds with the likes of the British Property Federation who had been calling (on behalf of larger, institutional landlords) for tax changes to encourage large scale” build to let” because Rugg said that smaller landlords often give their tenants better value for money than larger institutional ones and it seemed to pour cold water on claims that standards within the private rental sector could be improved by having more corporate landlords or making greater use of managing agents.
In fact it went on to say that there is some dissatisfaction with managing agents’ standards.
The report also suggests that poor tenants on housing benefit should have access to a wider range of properties and this could be done by helping tenants with rent in advance and deposits.
It rejected proposals by some housing charities that landlords cannot serve a section 21 notice if they have had a complaint about repairs.
Some social housing activists will not like this one bit, especially as the report said that retaliatory evictions (where a tenant is evicted if they complain about disrepair) are rare.
The report also rejected claims that “studentification” in university towns is a serious problem and that the problems that DO exist - e.g. noise by students - should be dealt with by existing agencies.
The proposed landlord license would cost £50 with points deducted for bad behaviour and the licence removed for serious breaches.
The money paid would fund a redress scheme – a compulsory ombudsman service to which all landlords would have to belong and to which tenants could complain.
The report’s findings are now likely to find their way into a Green Paper and pave the way for consultation and legislation.
All in all, a fine report with lots of sensible proposals.
OFFER
We have 68 copies of my book to give away for £1.50 each for promotional purposes. However, you must take ALL 68 books and arrange and pay for pick up from us in London. If you would like these books please get in touch ASAP.
ABOUT LETTINGFOCUS.COM and DAVID LAWRENSON
I’m David Lawrenson of LettingFocus.com - the landlord experts.
I’m the author of “Successful Property Letting” which for the last 3 years has been the UK’s top selling property title - Buy Successful Property Letting - How to Make Money in Buy to Let.
The new edition is fully up to date with all the recent changes to tenancy deposit schemes, HMOs, licensing, capital gains taxes and it has new sections on sale and rent back.
I’m an expert freelance property writer, property speaker and a well known buy to let blogger
I contribute to newspapers and a host of property websites, write a number of columns in the press and I provide general property investing advice for anyone looking to buy property for themselves or to let out.
In my work as a consultant I help private individuals with any aspect of buying property or buy to let. What’s unique about lettingfocus.com is that we are independent property mentors because unlike most people in the buy to let and property “advice” business we are not linked to a property company, developer, agent or bridging loan financier and do not receive commissions from any of these sources.
We simply give one to one unbiased advice and are often asked to evaluate other property investments.
In my corporate consulting role, I also advise banks, building societies, housing associations and web portals with their buy to let and property products and services.
You can read more of my blog & find details of my networking, advice and property training programme at my website.Copyright: David Lawrenson 2008. This blog is updated once a week.
WANT TO BE KEPT UPDATED WITH OUR LATEST BLOGS?
It’s easy.
Go to the bottom of this post, and click on “Link to this post”
Our home blog page should then open & you should then see my smiling face at the top. Then page all the way down and on the bottom right it will say “Site feed” - click there and away you go.
You then just copy the link that comes up into your News Reader or News Aggregator. Even a non techie like me managed to do all this.
Please note if you have a website & are thinking of reproducing material here - that’s fine but we DO require the full links shown in each blog to be included including also the links in the section “ABOUT LETTINGFOCUS.COM and DAVID LAWRENSON”
Please Contact Us button at our main site http://www.lettingfocus.com/ if you have any queries about this.
All government sponsored reports into the private rented sector end up with landlords being made to look awful, right?
Well wrong.
For once, we at last have a report, the Rugg Report, which is sensible and which recommends only “light touch regulation” for good landlords. (The full report is called “The Private Rented Sector: its contribution and potential” and is by Julie Rugg and David Rhodes)
Sure, it suggests big changes, like mandatory licensing of all private residential landlords and managing agents but I think these proposals make sense if it means bad landlords and lousy letting agents are driven out.
The report starts off by recognising the importance and contribution of landlords in the housing market.
It proposes tax changes including an overhaul of the Stamp Duty banding system to enable landlords to buy more properties in bulk and the reform of Capital Gains Tax, so that landlords could quickly gain relief from property improvements.
NO PLACE FOR BIG LANDLORDS
It no doubt went down like a sack of spuds with the likes of the British Property Federation who had been calling (on behalf of larger, institutional landlords) for tax changes to encourage large scale” build to let” because Rugg said that smaller landlords often give their tenants better value for money than larger institutional ones and it seemed to pour cold water on claims that standards within the private rental sector could be improved by having more corporate landlords or making greater use of managing agents.
In fact it went on to say that there is some dissatisfaction with managing agents’ standards.
The report also suggests that poor tenants on housing benefit should have access to a wider range of properties and this could be done by helping tenants with rent in advance and deposits.
It rejected proposals by some housing charities that landlords cannot serve a section 21 notice if they have had a complaint about repairs.
Some social housing activists will not like this one bit, especially as the report said that retaliatory evictions (where a tenant is evicted if they complain about disrepair) are rare.
The report also rejected claims that “studentification” in university towns is a serious problem and that the problems that DO exist - e.g. noise by students - should be dealt with by existing agencies.
The proposed landlord license would cost £50 with points deducted for bad behaviour and the licence removed for serious breaches.
The money paid would fund a redress scheme – a compulsory ombudsman service to which all landlords would have to belong and to which tenants could complain.
The report’s findings are now likely to find their way into a Green Paper and pave the way for consultation and legislation.
All in all, a fine report with lots of sensible proposals.
OFFER
We have 68 copies of my book to give away for £1.50 each for promotional purposes. However, you must take ALL 68 books and arrange and pay for pick up from us in London. If you would like these books please get in touch ASAP.
ABOUT LETTINGFOCUS.COM and DAVID LAWRENSON
I’m David Lawrenson of LettingFocus.com - the landlord experts.
I’m the author of “Successful Property Letting” which for the last 3 years has been the UK’s top selling property title - Buy Successful Property Letting - How to Make Money in Buy to Let.
The new edition is fully up to date with all the recent changes to tenancy deposit schemes, HMOs, licensing, capital gains taxes and it has new sections on sale and rent back.
I’m an expert freelance property writer, property speaker and a well known buy to let blogger
I contribute to newspapers and a host of property websites, write a number of columns in the press and I provide general property investing advice for anyone looking to buy property for themselves or to let out.
In my work as a consultant I help private individuals with any aspect of buying property or buy to let. What’s unique about lettingfocus.com is that we are independent property mentors because unlike most people in the buy to let and property “advice” business we are not linked to a property company, developer, agent or bridging loan financier and do not receive commissions from any of these sources.
We simply give one to one unbiased advice and are often asked to evaluate other property investments.
In my corporate consulting role, I also advise banks, building societies, housing associations and web portals with their buy to let and property products and services.
You can read more of my blog & find details of my networking, advice and property training programme at my website.Copyright: David Lawrenson 2008. This blog is updated once a week.
WANT TO BE KEPT UPDATED WITH OUR LATEST BLOGS?
It’s easy.
Go to the bottom of this post, and click on “Link to this post”
Our home blog page should then open & you should then see my smiling face at the top. Then page all the way down and on the bottom right it will say “Site feed” - click there and away you go.
You then just copy the link that comes up into your News Reader or News Aggregator. Even a non techie like me managed to do all this.
Please note if you have a website & are thinking of reproducing material here - that’s fine but we DO require the full links shown in each blog to be included including also the links in the section “ABOUT LETTINGFOCUS.COM and DAVID LAWRENSON”
Please Contact Us button at our main site http://www.lettingfocus.com/ if you have any queries about this.
Labels: British Property Federation, Julie Rugg, landlord license, landlord licensing, Rugg Report
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