Uncategorized

RLA Chairman reflects on responses to latest report

RLA
Written by RLA

The RLA is pleased that our report has prompted discussion around regulation in the private rented sector, however we would like to see Generation Rent provide some evidence to back up their claims that “private renting is one of the most profitable businesses that you can run and the regulatory ‘burden’ is illusory.” The argument that landlords are out to make huge profits on the back of their tenants is nothing new, however this does not stand up to scrutiny. The most recent data on the profile of landlords in England, contained within DCLG’s ‘Private Landlords Survey 2010’, notes that…

A report arguing that regulation of the private rented sector is letting tenants down has caused lively debate in the housing sector across the internet. While emotions and opinions run high, the RLA want to take a moment to explain thinking and basis of the arguments put forward.

“The RLA is pleased that the latest report from Professor Ball has prompted discussion around regulation in the private rented sector. However we feel that on behalf of our members we must respond to claims on the back of this report that “private renting is one of the most profitable businesses that you can run and the regulatory ‘burden’ is illusory.”  The argument that landlords are out to make huge profits on the back of their tenants is nothing new, however this does not stand up to scrutiny.

The most recent data on the profile of landlords in England, contained within DCLG’s ‘Private Landlords Survey 2010’, notes that:

  • 89 per cent of landlords are private individuals, likely only to be renting one or two properties out rather than hoarding multiple properties in the pursuit of profits at any cost.
  • 79 per cent of all landlords earned less than a quarter of their income from letting properties.
  • 21 per cent earned no income at all from their rental property.

National Landlord Registers, are suggesting target compliant landlords that are already known.  Increasing costs to be able to provide rental accommodation will only be passed on to tenants in the long term.  As these landlords increasingly feel the burden of licensing and registration schemes so does the risk that good landlords will exit the market.

The RLA is working hard with Central Government on a ‘How to rent’ package that will hopefully educate tenants and landlords and start to drive poor landlords out of the market.  We are also putting together proposals for a workable long term tenancy agreement that maintains the balance of the huge demand for short term rentals with the increasing demand for longer term security for older renters and families and protects both landlords and tenant.

We are committed to working towards creating a private rented sector that provides flexibility when required and security when needed but above all a sector that promotes high standards so that the PRS is a first choice and not seen as second best.

You can read professor Ball’s report here

Further Information

About the author

RLA

RLA

The Residential Landlords Association (RLA) represents the interests of landlords in the private rented sector (PRS) across England and Wales. With over 23,000 subscribing members, and an additional 16,000 registered guests who engage regularly with the association, we are the leading voice of private landlords. Combined, they manage almost half a million properties.

3 Comments

  • Thank you RLA for putting people right, we only wish we were making the huge profits everyone thinks we make. If you are a “good” landlord you cannot make huge amounts. Last year we broke even, we had estimated to make a loss, as we did a load of renavations to our exsiting properties and brought two more, as we did not think our properties were up to our standard and we have a waiting list of protensial tenants.
    As we see it it is only agents who make money off the back of small landlords and tenants.

  • Your information makes me think of quitting the rental sector. I was recently divorced and cannot get any work so I used my divorce settlement to purchase a house with a small mortgage. I completely redecorated the house and installed various items required by law. As I had been on benefits, I foolishly allowed my heart to rule my head and allowed another separated mother with three children in on a reduced rent only to find that the council will pay all her rent and she gets over £30K in various benefits. I receive only £426 each month. Less than I received on ESA and Housing Benefit so, where is my huge profit?

    • Nicola, are you a member of the RLA or any other landlord body?

      There are no guarantees, and a membership fee may be unattractive, but we do everything we can to give landlords the tools and knowledge to make the most of their investments.

      Unfortunately, historical preconceptions and contemporary criminal landlords make it difficult for the professional and compliant landlords.

      The RLA will continue to lobby and campaign for fairer conditions for the good and appropriate sanctions for the criminal landlords.

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.