UKALA Responds to Labour’s Private Renting Reforms
UKALA RESPONDS TO LABOUR’S PRIVATE RENTING REFORMS
Commenting on Ed Milliband’s announcement of proposals to reform private renting at the launch of Labour’s European and local election campaign, UKALA Executive Director, Richard Price said:
“Letting agents provide a valuable service to both landlords and tenants, but it is a commercial service which incurs costs and will only remain viable if there is a reasonable prospect of profit.
UKALA RESPONDS TO LABOUR’S PRIVATE RENTING REFORMS
Commenting on Ed Milliband’s announcement of proposals to reform private renting at the launch of Labour’s European and local election campaign, UKALA Executive Director, Richard Price said:
“Letting agents provide a valuable service to both landlords and tenants, but it is a commercial service which incurs costs and will only remain viable if there is a reasonable prospect of profit.
“It is undeniable that tenants and landlords want clarity and there is a real need for greater transparency about charges, who is responsible and for what they are paying. However, a blanket ban will not achieve this. Rather, it will make it less clear by forcing agents and landlords to incorporate their numerous costs into rental demands. Far from reducing the ultimate cost to tenants, the likely outcome will be a long-term levy on the cost of rented housing.
“Although there are many disadvantages within these proposals, introducing an annual indexation of rents during longer tenancies will make agents’ lives easier and potentially more profitable. This near guarantee of rent increases and security of income is welcome news for UKALA members, as currently the majority of rent rises are only levied between tenancies – on new agreements*.
“UKALA hopes that, should this become policy, it will provide bona fide agents with a legitimate rent escalator and supply of longer sustainable clients.”
– ENDS –
*UKALA Research Panel – Q4 2013.
Of those landlords who had increased rent in the last 12 months:
- 59% did so when letting to new tenants
- Only 29% stated it was a scheduled annual increase.
(Which of the following reasons best describes why you have raised rental charges in the last 12 months?)
For further information, please contact:
Sam Haidar
Senior Press Officer, UKALA
0207 840 8925
press@ukala.org.uk
NOTES TO EDITORS:
About UKALA:
The UK Association of Letting Agents (UKALA) is a trade association representing businesses which facilitate the rental of private residential property in England, Wales, Scotland and Northern Ireland. All revenues generated are used by the association to support and benefit its members.
UKALA exists to support letting agents who are committed to improving conditions in the private rented sector. UKALA membership requires all applicants to be vetted against UKALA safeguards, and only if the following four requirements are met can lettings agencies become members and be covered by UKALA’s CMP insurance.
- Written confirmation from their bank that they have a clearly segregated client money account.
- Written confirmation from their accountant(s) that their business finances are in order.
- Proof of a minimum level of Professional Indemnity Insurance, to be confirmed by Hamilton Fraser Insurance (HFIS) at the time of application.
Once accepted agent members are required to abide by the UKALA Scheme Rules and Code of Practice; to ensure the highest standards of professionalism and an assurance of quality in residential lettings for both landlords and tenants.
UKALA is dedicated to continuously improving conditions in the private rented sector, by ensuring that landlords and tenants are treated fairly and that best practice is understood and adhered to in residential lettings. www.ukala.org.uk