Propertymark is eagerly seeking elucidation from the Labour Party on the strategies they plan to employ to meet the goals delineated in their recent review of the private rented sector.

Unveiled on May 15th at the Local Government Association in London, the Labour Housing Group’s Independent Review of the Private Sector highlights five pivotal aims.

Among these ambitions are boosting the supply of social housing via a ‘holistic approach’ and instituting a National Landlords Register.

The other commitments include abolishing no-fault evictions, introducing a rent ‘stabilisation’ system with annual rent hikes, and curbing landlords' shifts towards short-term and holiday lets.

Though Propertymark endorses initiatives such as increasing social housing, it demands more specificity on Labour's methods to accomplish their objectives, particularly the termination of no-fault evictions, rent stabilisation, and restricting landlords' transition to other sectors. Notably absent is any mention of ensuring property agents are adequately qualified and regulated.

In January 2023, Councillor Stephen Cowan from the London Borough of Hammersmith & Fulham announced he would scrutinize the private rented sector for Labour in light of a potential general election triumph. The review aspires to ‘transform’ the UK’s private rented sector with insights from various stakeholders, including academics and trade unions.

Labour has signaled that it would expand Awaab’s Law, which deals with issues like mold exposure that tragically led to the death of a two-year-old in a social flat, to the private rented sector if they assume power. Ahead of the review's release, Propertymark urged Labour to reverse former Chancellor George Osborne’s decision to abolish mortgage tax relief for landlords. This policy shift has driven rents up, as landlords can no longer offset financial costs against tax obligations.

Timothy Douglas, head of policy and campaigns at Propertymark, and Nathan Emerson, CEO at Propertymark, engaged with Councillor Cowan, providing input for the review on behalf of Propertymark members. Propertymark’s 2019 report on private rented sector costs revealed that 68% of agents reported incurring expenses for costly repairs beyond regular maintenance. Additionally, a 2022 Propertymark report highlighted a notable decline in available rental properties, which has led to higher rents due to increased demand.

Douglas remarked, “The Private Rented Sector Commission’s Independent Review into the Private Rented Sector in England illuminates much-needed reform areas, including raising standards and enhancing affordability. Propertymark is gratified to see a focus on professionalising the sector and equalising tax between long and short-term letting.

“However, mandatory qualifications and licensing of letting agents are essential rather than minimal training requirements. The Review overemphasizes rent control measures without fully grasping the impact of rent cap measures observed in Scotland. The solution to lowering rental costs lies in increasing the supply of homes available for rent.

“There is also scant reference to requiring a written tenancy agreement, mandatory inventory checks to avert disputes, and investment in local authorities to carry out inspections and enforcement. These are critical elements that policymakers should concentrate on to elevate standards across the sector.”