Experts call for private rented sector regulation

Private tenants’ groups descended on City Hall in London yesterday calling for tougher measures to ensure better conditions in the private rented sector. The protestors sang Christmas carols and brandished banners calling for action to help private tenants.

They called for measures to improve conditions, reduce rents and prevent tenants from being charged high, unexpected fees by lettings agents.

The protest took place ahead of a meeting of the London Assembly’s housing and regeneration committee as part of its investigation into the private rented sector.

The committee discussed the possibility of regulating lettings agents to more easily control the fees they can charge and ensure greater transparency.

Committee members and invited experts largely agreed on the need for regulation of lettings agents. Ben Reeve-Lewis, a tenancy relations officer at Lewisham Council, said: ‘Letting agents are not being held to account for their actions, it beggars belief.’

Heather Kennedy, organiser at Digs, a new group of private tenants in Hackney, said: ‘Letting agents’ hidden fees are technically illegal.’

Several experts said tenants often do not know their rights, or lack the confidence to ask letting agents what their fees are. David Lawrenson, of consultancy Letting Focus, said: ‘The level of knowledge among tenants need to be improved…tenants are being charged up to £300 in some cases for referencing.’

Mr Reeve-Lewis called for councils to step in and provide social lettings agencies. He said: ‘Councils have services that no letting agent in the country has, we have got hotlines to housing benefit, surveyors, mediation, legal experts.’

The committee also discussed a return to some form of rent control, a measure opposed by Conservative mayor of London Boris Johnson.

Ms Kennedy said she would favour a model in which private landlords offer longer tenancies, of between three and five years, and can only increase rents in line with inflation. She said: ‘Young people especially are spending more and more of their income on rent.’

However, Steve O’ Connell, Conservative assembly member, warned the move could affect supply of new housing by reducing investment in the PRS. He said: ‘Anything that discourages or reduces the private rented market is a challenge.’

The session was the third part of the assembly’s investigation, which is examining ways of improving the PRS.

The mayor of London last week set out plans for self-regulation of private landlords through a voluntary rental standard. Campaigners at the protest told Inside Housing this is unlikely to be effective as landlords offering a poor service will choose not to sign up.