Working smarter, not harder is the motto of many businesses, especially when you consider how technology is positively impacting everything from in-house systems through to remote workforces. When looking at the current buy-to-let sector a comment from David Smith, policy director for the Residential Landlords Association (RLA) of – “It is time for smarter enforcement, not more regulation” – proved to be an interesting twist on this business mantra.
Regulation of the BTL marketplace has proved to be a rollercoaster for all firms operating in and around the sector. In times gone by, the consensus was that landlords were severely under-regulated. There was certainly some weight behind that argument, and this is still the case according to some industry commentators. However, there are also many people arguing that the sector has come full circle and, if anything, is over-regulated.
So, let’s take a brief look at the role regulation is playing.
The number of laws creating an obligation on private landlords is reported to have increased by 32 per cent since 2010. According to new analysis by the RLA, the total number of regulations affecting landlords has increased to 156, up from 118 when the Conservative-led coalition government came to power.
The RLA has warned that the increase in legislation has not led to an improvement in enforcement action against criminal landlords and that many local councils are failing to properly utilise the powers they already have. Previous research by the RLA found that in 2017/18, two thirds of councils had not commenced any prosecutions against private landlords. In the same year, 89 per cent of councils told the RLA they had not used new powers to issue Civil Penalties of up to £30,000 against private landlords for a range of offences. Over half, 53 per cent, did not have a policy in place to properly use the power.
Is there too much regulation?
First and foremost, it’s great that tenants are now receiving an extra layer of protection and that landlord standards are constantly being pushed to improve. The RLA argues that improving enforcement powers rather than introducing further regulation is the way to go and it’s difficult to disagree with this direction when you consider the data in question.
Regulation and enforcement will always be a tough balancing act to get right but whichever party succeeds in the upcoming election, let’s hope that they can achieve a sensible equilibrium which bodes well for the long-term future of landlords, tenants and the BTL sector.
