Communities and Local Government CommitteeWritten evidence submitted by Sir Henry Elwes KCVO, Colesbourne Estate
Sir Henry Elwes KCVO has managed the Colesbourne Estate since 1957 after training in Rural Estate Management at the Royal Agricultural College, Cirencester. He has served on the Gloucestershire Committee of the Country Land & Business Association (CLA) for around 50 years and is currently County President. He is also a member of the National Landlords Association.
The Colesbourne Estate comprises a mixture of 28 two, three and four-bed houses let on Assured Shorthold Tenancies plus a number let on Service Occupation Agreements. There are also 12 commercial properties, three farms, and 900 acres of commercial forestry.
Sir Henry Elwes would be willing to give oral evidence if requested.
The evidence given below is NOT CONFIDENTIAL.
1.Landlord Registration. As good landlords with many of our properties assessed by our District Council as “Fit to Rent” we believe that there are sufficient powers already available to deal with bad landlords. We strongly oppose any proposals for registration of all landlords, when only a handful are “rogues” as described by Shelter who seek this legislation based on rather inflammatory perceptions. Housing Authorities should first assist bad landlords to improve and then use other powers if this fails. It would be helpful if Local Authorities could also help good landlords to deal with bad tenants.
Licensing will lead to higher costs and therefore higher rents and probably the withdrawal of houses from the letting market also.
Recommendation: Review the effectiveness of policies for eradicating or punishing bad landlords and encourage Housing Authorities to assist Private Landlords in dealing with bad tenants.
2.Rent Control. Having suffered a period of rent control in the 1950s and 1960s we became acutely aware that rental was not generating sufficient income to keep properties in good condition and there was deterioration just at a time when both landlords and tenants were seeking better accommodation. In addition there was widespread selling of Estate houses thus reducing the pool of houses available for renting. Market forces apply satisfactory self regulation in the control of rents. Personal housing benefit already helps those tenants unable to pay a market rent.
Recommendation: Do not apply a rent control policy.
3.EPCs. Mandatory minimum levels of EPCs will be impossible to fulfil in many old stone detached cottages and in listed properties where strict rules apply against double glazing, etc. Few tenants ever consider the efficiency performance of a property and while it is in the national interest to reduce energy consumption there is a danger that some properties may never qualify for a high standard and could be demolished or taken off the rental market. EPCs are a recent additional burden on landlords and cost around £100–£150 each which has to be recovered in higher rentals.
Recommendation: Reconsider proposals to set mandatory levels of EPCs and do not apply to properties more than 50 years old.
4.Fair Rent. The perpetuation of the “Fair Rent” rules many years after the need for such support cannot be justified. We have properties subject to a 30% rebate on market rent more than 25 years after the need for such support and where the tenants are now very well off. Artificially depressed rentals leads to insufficient funds for good quality maintenance of property and discouragement for landlords keen to help young tenants into homes.
Recommendation: Extinguish all “Fair Rent” classifications and encourage tenants to apply for rent support in the normal way. It is not a landlord’s job to subsidise social cases.
5.Void Rates. The termination of a Void Rates period is unfair on landlords where they use the opportunity to upgrade property when a tenant leaves. Even the six month void period is very tight if several trades, such as plumbers, electricians and plasterers are required to do work in succession. It is already hard to get speedy work from architects, quantity surveyors and builders to complete works and the charge for rates/council tax is wholly inequitable when no services are being used. In addition Planning Consent takes around four months if more extensive work is required, and it sometimes takes the same time to find a tenant for an empty property. Charging Council Tax where a landlord is genuinely trying to up grade property so that it is “fit to rent” is totally unfair.
Recommendation: Re-establish Void Rates allowance for six months and further where major refurbishment or reconstruction is necessary.
6.Tenancy Deposit Scheme. The 14 day period for resolution of dilapidation matters is too short. It is currently very difficult to get immediate attention from house cleaners, builders and other trades to provide estimates for repair, redecoration or replacement of fabric and fittings damaged by tenants. Furthermore it takes no account of absence due to holidays (often for 14 days) for such trades people or for landlords themselves and it is all too easy to go beyond the14 day period for perfectly good reasons.
Recommendation: Extend Tenancy Deposit Scheme to 30 days for resolution of dilapidation issues.
Over the years landlords providing a rented property service to those unable to buy a home have been subject to a continual stream of burdensome regulation such as 3, 4, 5 and 6 above plus electricity/gas certificates, schedules of condition/inventory requirements, the threat of liability for tenants who fail to pay for water or abuse housing benefit schemes, and Building Regulation requirements are constantly upgraded and more expensive.
If a good pool of rental property at reasonable rents is to be maintained the Private Rented Sector Review should be used as an opportunity to reduce regulation upon private landlords and make existing regulations more landlord friendly.
We hope that the Government will take due notice of the above which are based on many years of practical experience of the rented sector.
Recommendations
1. Recommendation: Review the effectiveness of policies for eradicating or punishing bad landlords and encourage Housing Authorities to assist Private Landlords in dealing with bad tenants.
2. Recommendation: Do not apply a rent control policy.
3. Recommendation: Reconsider proposals to set mandatory levels of EPCs and do not apply to properties more than 50 years old.
4. Recommendation: Extinguish all “Fair Rent” classifications and encourage tenants to apply for rent support in the normal way. It is not a landlord’s job to subsidise social cases.
5. Recommendation: Re-establish Void Rates allowance for six months and further where major refurbishment or reconstruction is necessary.
6. Recommendation: Extend Tenancy Deposit Scheme to 30 days for resolution of dilapidation issues.
January 2013
