The Welsh Government’s new housing White Paper includes plans to introduce a mandatory registration and accreditation scheme for private landlords, letting agents and management agents. The scheme aims to improve the quality and management of privately-rented homes, which will benefit those who rent from private landlords, including some of our most vulnerable people.
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The White Paper ‘Homes for Wales: A White Paper for Better Lives and Communities‘ sets out Welsh Government’s programme of action for the remainder of this term.
It describes their proposals for new legislation and other, non-legislative, action. In summary, they will:
- Increase the supply of new homes:
- by 7,500 new affordable homes, of which 500 will be co-operative homes and 500 will be built on surplus public sector sites, and
- by bringing 5,000 empty properties back into use.
- Improve the quality of existing homes, including their energy efficiency, through the Welsh Housing Quality Standard and other mechanisms.
- Do more to prevent homelessness, and improve housing services to help people, particularly those who are vulnerable, to lead healthy, independent, lives.
- Make a significant contribution towards our long-term vision by ending family homelessness by 2019.
The White Paper outlines the registration and accreditation scheme as follows:
When the scheme is introduced, an initial application, which will involve a “fit and proper person” test, will result in provisional registration status. A unique registration number will be issued, which allows a landlord or agent to operate in the private rented
sector in Wales. Within two years of registration, all registrants will be expected to have become accredited. The criteria will reflect the different roles of landlords and agents. All landlords with properties in Wales, wherever they are based, will be expected to register. However, they may choose not to undertake accreditation opting instead to nominate an accredited agent, manager, or other responsible person to manage the property on their behalf.The legislation will apply to all landlords and agents irrespective of the number of properties owned or managed. It will also apply to all landlords irrespective of the nature of the letting, whether it is for a relative or not.
Accreditation will secure full registration status, which is effectively a licence to operate as a private landlord in Wales. When accredited, landlords and agents will be expected to operate to a Code of Practice. Failure to do so could result in penalties or
other sanctions, proportionate to the failings in compliance. Codes of Practice will be developed for landlords and agents. The Code for landlords will be based on that which exists for the current Landlord Accreditation Wales. The Code for agents will be based on that being developed by the Property Ombudsman.Both Codes of Practice will be developed with stakeholders, including private landlords, agents, and their representatives. They will be reviewed regularly to ensure they remain relevant and up-to-date, and to reflect the learning and improvement opportunities that will come with experience of implementing the new legislation.
Tenants and prospective tenants will be encouraged to ask to see the landlord’s or agent’s registration card before entering a tenancy agreement. Prospective tenants will be encouraged to report to the appropriate enforcement authority any landlord who
fails to produce evidence of registration. Any landlord/agent found to be operating outside the scheme will be encouraged to register/gain accreditation but, ultimately, failure to comply will result in a penalty.Tenants will also have a part to play in the scheme by meeting the obligations that fall upon them. Information will be provided on their responsibilities to look after the property.
It is envisaged that the scheme will be self-financing, with a modest fee for registration and, in time, for re-accreditation. Three years has been suggested as a reasonable period before a new accreditation needs to be sought. The scheme and the information and learning required for accreditation will be delivered by a number of suppliers. Some organisations have already expressed interest in managing the scheme.
The new legislation will be developed over the coming months with the involvement of stakeholders.
The White Paper ‘Homes for Wales: A White Paper for Better Lives and Communities’ pdf is available here.
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