Regular readers of this column will be aware that one of the things I am really keen to tackle is the problem of rogue landlords in Hartlepool. They cause absolute misery for many people, mostly in the centre of town, through thoughtless letting of their properties to unsuitable tenants who cause anti-social behaviour and misery to the rest of the area. I have heard of cases of landlords making unreasonable charges, such as administrative costs running into hundreds of pounds, when I suspect it might have cost merely a few quid.
I have spoken in Parliament about the issue of private sector landlords. I think it is an important issue in Hartlepool, and was pleased to get responsibility for the private rented sector as part of my Ministerial duties. We in the Department for Communities and Local Government commissioned an independent review of the private rented sector from Julie Rugg and David Rhodes at the Centre of Housing Policy at York University. Julie and David have just published the report, and I was able to travel to York University to accept the report.
I was to stress that I think the private rented sector is a good thing, and vital for housing in our town. I actually want to see the private rented sector grow, so that it can help with addressing some of the housing shortages, not only in Hartlepool but across the country. I want to encourage good landlords, whilst driving out bad, unprofessional and uncaring landlords.
The report from Julie and David provides a good strong base to help us achieve that. Its major recommendation, one that I will be looking at closely, is the licensing system for landlords and the mandatory regulation for letting agencies. This would be designed to increase protection for both vulnerable tenants and good landlords.
At the launch of the report last week, Julie said that she saw this system as working very similar to a driving license. So, in the same way that you require a driving license in order to drive, and you incur points when you do something wrong, landlords would require a license in order to rent out their properties and be eligible for tax breaks. If they were seen to breach set conditions, such as causing anti-social behaviour, they would be penalised through a points system which might ultimately debar them from being a landlord.
I would be interested to hear what people think about this idea. I think it is easily understood and has a certain amount of merit. I will have to work through possible consequences and to see whether or not it is workable, and I am interested in your input.
Other recommendations from the report include tax changes to encourage good landlords to grow their businesses, including changes to stamp duty to encourage them to buy more properties. The report also looks at way for the private rented sector to be more helpful towards households on lower incomes, including providing more support for landlords who are prepared to house more vulnerable people.
It is an important and thoughtful report that pushes the debate along. I am keen to see good landlords prosper in Hartlepool. I also want to see the end of unprofessional landlords. I’ll be reflecting the contents of the report over the next few weeks to see how best this can be achieved. I’d certainly be interested in your views.