London Mayor Boris Johnson has launched the next stage of the London Rental Standard scheme, under which landlords and agents can become accredited.
In December 2012, Mr Johnson set out key proposals “to promote high standards and empower consumers”.
The London Rental Standard (LRS) comprises 12 core commitments, including:
• minimum expectations around protection of deposits
• provision of landlord contact details for tenants
• emergency and urgent repairs response times
• property conditions
• complaints handling
• fee transparency
• landlord and letting agent training development through professional training courses.
Accreditation for landlords is intended to reassure tenants that they will receive a level of service that will include efficient responses to maintenance issues in rental properties. The Mayor has drawn up 15 “best practice” rules for landlords before they are awarded a “Boris badge” and become an accredited landlord.
Under the rules, landlords will have to give tenants written information about how their deposit is protected.
Accredited landlords will also have to address emergency repair issues on the day they are reported.
Landlords awarded a Boris badge will also have to be contactable by telephone or email at all times.
Landlord’s inspections of a property will be subject to at least 24 hours’ notice under the rules.
There are now around two million rented homes in London – and buy-to-let investors and overseas investment has helped push up rents. The population of London has also grown as a result of migrants coming to the UK to work and the increasing student population, meaning more competition for affordable and well-maintained rental properties.
Some critics of the LRS say that it could lead to a two-tier system of rental properties in London, with those who can afford to pay for accredited properties under the LRS receiving a better standard of service than renters who have to accept the first property they can afford, regardless of its condition or whether the landlord is accredited.
It is also possible that rents could also be pushed up further by landlord accreditation.
Lettings and managing agents will also have to follow nine specific rules to become accredited – some letting agents charge high fees for finding properties for rental tenants, who may have to pay up to £1,000 to a letting agent before they have even put down a deposit or paid a month’s rent in advance.
The Deputy Mayor for Housing, Richard Blakeway said the LRS was intended to improve the image of the private rental sector in London – which he said was sometimes portrayed “as a Rachmanite sector”.
The London Mayor’s final proposals for the LRS were published in July 2013, following a consultation. The Mayor hopes that the private rental sector will have 100,000 accredited landlords and lettings agents operating by 2016.
Last year Mr Johnson said:
“While most landlords provide a highly professional service, this more coordinated and transparent approach will create a more competitive market, empowering tenants and incentivising landlords to expect and provide a consistent high quality service.”
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