Mayor of London, Boris Johnson, has published the final version of his London Rental Standard, which provides a benchmark by which tenants and landlords can assess the level of service received within the private rental market.
Landlords and letting agents are now being strongly encouraged to sign up to the voluntary accreditation, as tenants are urged only to choose those who have opted to abide by the London Rental Standard. Under the terms of the Standard, letting agents who sign up will be required to hold Client Money Protection Insurance and to be transparent about their fees and charges from the outset. Johnson has decided not to ban letting agency fees or introduce rent control, despite considerable pressure on both issues.
Landlords and letting agents who are already accredited to the various schemes which are operated in the different London boroughs will be passported across to the new London Rental Standard by the end of 2013. Boris also hopes to have 100,000 accredited landlords and agents by 2016. With over one quarter of Londoners now living in private rented accommodation, and this number increasing constantly, it is more important than ever for landlords and letting agents to be regulated in some way. The Mayor is investing around £100,000 in the improvement of the website, systems and products used by the London Landlord Accreditation Scheme.
Speaking about the introduction of the London Rental Standard, Boris Johnson said “With more and more of this city’s workforce living in rented accommodation, London’s growing private rented sector is essential to London’s economy. “While most landlords provide a highly professional service, this more co-ordinated and transparent approach will create a more competitive market, empowering tenants and incentivising landlords to expect and provide a consistent high-quality service. “Better standards and boosting supply is the key to taking the pressure off London’s rental market, not burdensome rent controls which deter investment and remove the incentive for good service.”
The move has been welcomed by housing charity Shelter, whose Chief Executive, Campbell Robb, said “Rogue landlords, sky-high lettings fees and poor conditions can make finding a home in the capital’s overheated rental market an expensive gamble, so it is welcome news that the Mayor has listened to the thousands of Londoners who joined Shelter’s campaign to tell him that renting in the capital just wasn’t good enough. “With private renting now the only option for many Londoners, this is a step towards ensuring that landlords and letting agents all offer a fair, professional service to the capital’s growing population of renters.”
Both the Ombudsman Services and The Property Ombudsman Scheme have also spoken in support of the scheme.
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