Housing White Paper a 'confused approach' to private rental sector, says CA

The Conveyancing Association (CA) has attacked 'a confused approach' to the private rental sector (PRS) in last week's Housing White Paper from the Government.

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The Conveyancing Association (CA) has attacked ‘a confused approach’ to the private rental sector (PRS) in last week’s Housing White Paper from the Government.

Lloyd Davies, Operations Director at the Conveyancing Association, said that the paper was ‘on the one hand supporting new-build for rental purposes, but then penalising private landlords with the additional stamp duty charge, plus looking at extending HMO licensing requirements and bringing in electrical safety certificates’.

He added: ‘Not forgetting the ban on letting agent fees, the costs of which will be put on the landlord who will most likely pass them on to the tenant.’

U-turn sought

The CA has long advocated a u-turn on the additional stamp duty charge for landlords because it feels it negatively impacts on the UK housing market and overall transaction numbers.

‘It appears at present that the Government only wants institutional investment in the PRS and is actively looking to discourage individual landlords – the lifeblood of the sector – from adding to portfolios, or even continuing in this sector,’ added  Mr Davies.

‘When the need for rental property supply is great indeed, and the Government acknowledges its importance, it seems utterly self-defeating to do this.’

Land registration moves weclomed

However, that issue aside the CA was supportive of measures to improve land registration and to promote fairness and transparency within the leasehold process.

The Housing White Paper says it is ‘committed to becoming the world’s leading land registry for speed, simplicity, and an open approach to data and will aim to achieve comprehensive land registration by 2030’.

The CA has backed this move as it believes it will create a clear line of sight of ownership and beneficial interests generally.

The CA has also welcomed the focus on leasehold in the Housing White Paper. It refers to developing greater fairness and transparency in leasehold generally and tackling buyer’s lack of awareness of associated costs. It also refers to its plans to tackle all unfair and unreasonable abuses of leasehold.

Further reforms on the way

The Government plans to consider further reforms to improve consumer choice and fairness in leasehold, including working ‘with the Law Commission to identify opportunities to incorporate additional leasehold reforms as part of their 13th Programme of Law Reform, and will take account of the work of the All-Party Parliamentary Group on Leasehold and Commonhold’.

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