Plans for a non-profit Letting Agency...

tbs624

"Inside Housing" carries the following report today:

"Labour candidate for London mayor Ken Livingstone will announce plans for a non-profit lettings agency and a London living rent as part of his campaign today.


Speaking later this morning, Mr Livingstone will say action is needed on London’s private rented sector to improve conditions and affordability.


The average rent in London is now £1,000 per month.
In London, 40.8 per cent of private rented dwellings do not meet the decent homes standard, compared to 29 per cent of owner occupier, 20 per cent of housing association and 27 per cent of council houses.

He will propose establishing a London-wide non-profit lettings agency to put good tenants in touch with good landlords and to tackle accreditation, inspection and enforcement, licensing and energy efficiency, as well as tenants’ deposits protection.

(my bolding)


Source


Such a move would obviously make a lot of London LAs very unhappy. Not seen anything yet on how it would be funded though - if from accreditation fees etc then those costs will still get passed to Ts but included in the rent figure.

jjlandlord

And how would such a non-profit lettings agency improve conditions and affordability?

At the end of the day, the situation in London is the way it is because demand far outstrips supply.

sooz

"The spokesperson added that the mayor did not have statutory powers or government funding to establish a lettings agency."

http://www.bbc.co.uk/news/uk-england-london-16157313

ooh look, a flying [STRIKE]pig[/STRIKE] newt

tbs624

That spokesperson is of course chatting on behalf of good old Boris, so will do his best to loudly emphasise a negative spin on anyone else's proposals.

tbs624

jjlandlord wrote: »

And would such a non-profit lettings agency improve conditions and affordability?

I think that he is proposing that those two targets would be addressed by regulation and "rent control" : the non-profit LA part surely seeks to address the complaints around Ts being slapped for the spurious fees currently charged to Ts (and the client LLs) and often hidden away in the small print?

Perhaps those who are able to vote for the mayor can tease more information out about the intended funding method and full proposed remit of such an agency?

Not sure that rent control is the answer to the problems of rented home affordability in London but it's good to see PRS issues being highlighted.

Mallotum_X

Non profits still needs to cover staff costs, the usual wheeze is well paid chief execs. Profit is often still there but just hidden.

Sounds like hot air and political posturing.

tbs624

Mallotum_X wrote: »

Non profits still needs to cover staff costs, the usual wheeze is well paid chief execs. Profit is often still there but just hidden.

You're perhaps confusing the term "non profit" with "no-profit"..........non profit does not mean that no profit is made but that the profits are ploughed back into to cover operating expenditure etc rather than lining the pockets of shareholders & so on.

Mallotum_X wrote: »

Sounds like hot air and political posturing.

That's what we get from all politicians isn't it? Boris and the Lib Dem chappie have also been making their own utterances but whether any of those would come to fruition is equally open to debate

G_M

Sounds like two separate aims
1) London Living Rent
2) Non profit agency

I have no idea how 1) above will be achieved, but anything to control and regulate letting agencies must be a good thing. Even if tenants still have to pay a fee to be vetted and provide funds for the agency costs (which they already do, though with profit on top too), that is a small price to pay to know your deposit WILL be registered, your repair complaints WILL be addressed, your inventory checks WILL be fair etc etc.

OK - there's minimal detail, but the intention is plauditable.

theartfullodger

Smart move, IMHO, by Red Ken:

Agents are (?? wonder why??) not popular with many Londoners (both Tenants and Landlords as well as others) and some decent, honest, competition would be seen as a good move by many.. (I know, I know, some will say it won't be decent or honest [not hard to be more decent & honest than some Agents....].. ). It's a propaganda battle, Ken V Boris... and this should I expect garner Ken a few more votes..

I well remember (I was there...) Ken speaking outside the old GLC building both when Thatcher abolished the GLC [radical London authorities have been unpopular with central government since Roman times..], and also when he got back into power as Mayor of London May 2004 ..he started with "... as I was saying before I was so rudely interrupted.... ".

Remember, Dave canceled Labour's planned regulation of Letting agents: This is an own-goal by the Tories... into a wide-open goal at that...

Cheers!!

Artful

cotleigh

If Ken gets in, he may well be able to set up his own letting agency, but I very much doubt he has the power to force anyone to actually use it.

Any more than he could set up a non-profit state-run supermarket chain, and order everyone to shop there, or to close down all rival shops.

Out,_Vile_Jelly

There are obviously logistical holes in the idea that need to be addressed, but it's the first I've heard of any politician acknowledging the issues facing those who rent and making any kind of pro-active suggestions. Mostly politicians mutter vaguely about "more affordable housing", which in London means more blocks of tiny flats in "up and coming areas" which get bought up by BTL profiteers anyway.

People with lower rents have more money in their pockets to spend elsewhere in the economy.