The calls come after the recent announcement by Housing Secretary James Brokenshire, which outlined various proposals to transform property redress. At the heart of the reforms is the formation of the Housing Complaints Resolution Service, which would create a one-stop-shop for every complaint about all tenures of housing.
What’s more, under the new rules, all private landlords will have to join a redress scheme, with those failing to comply facing the prospect of a £5,000 fine.
The proposed changes will be discussed, reworked and revised later this year by a Redress Reform Working Group, which will include existing redress schemes as well as the government.
Mike Georgeson, RentalStep’s founder and chief executive, had this to say: “While the planned reforms are a positive move – protecting tenants and giving them a fair right to redress – it’s also vital that landlords are given enough time to adjust to yet more changes and new regulation.
This is another measure for landlords to be aware of and another cost to bear, so they need to be given fair warning of when the reforms are coming into play and what exactly they will involve.”
Landlords will have to pay to join a redress scheme and could also be fined in the event of non-compliance – the prospect of these extra expenses could be a cause of concern for many.”
As the costs of letting a property continue to rise, any way that landlords can reduce their monthly outgoings should be fully explored.
Georgeson adds: “With the ever-growing financial pressures on landlords, reducing costs where possible is a wise and pragmatic move.
Cost-cutting is an especially important consideration at a time when Brexit uncertainty, the prospect of increased management fees as a result of the incoming ban on tenant fees and other new legislation is squeezing landlords more than ever.”
He says there are a number of ways in which landlords can reduce their costs. This includes moving away from traditional agencies, embracing new and innovative tech platforms, shopping around to find the best deals and products on the market, and comparing services to ensure the most reliable, productive and cost-efficient provider is chosen.
The desired cost-cutting could also be achieved in terms of reducing the financial outlay involved with property management, tenant referencing and advertising.
Georgeson concludes: “We know how important advertising on the major portals is – with most tenants starting their property search on these platforms – so if this can be done at a low cost it enables landlords to make considerable savings."
