A home for rent: policy roundtable discussion about the state of private renting in Scotland Glasgow – The Lighthouse Wednesday 10 February 2016 11 Mitchell Ln, Glasgow G1 3NU

Introduction Neil Guy - Housing Practice Manager, Crisis

11.00 Registration 11.15 Introduction - Overview of legislative change in Scotland Enforcement of registration and licensing Background on affordability issues within the private rented sector Impacts of longer term tenancies   Neil Guy, Housing Practice Manager, Crisis 11.40 Session 1 – Lessons learned from Wales on landlord registration and licensing Bethan Jones, Operational Manager, Rent Smart Wales   12:20 Discussion & feedback - How do we improve registration and licensing 1:00 Lunch 1:45 Session 2 - The challenges that remain & lessons to be taken away Is the PRS now a suitable option for everyone? How can we improve professional standards across the sector Is there a need for further regulation of rents in the PRS 2.45 Close Summary of the day How to contribute to other events in this series 3:00 Finish

Lessons learned from Wales on landlord registration and licensing Bethan Jones, Operational Manager Rent Smart Wales Followed by a discussion around how to improve registration and licensing in Scotland Hannah – Senior Policy Officer at Crisis, the national charity for single homeless people. Today I’m going to talk about some of the difficulties that homeless people face regarding access to and affordability in the PRS, in terms of what we are seeing at Crisis. and I’m sure that all of you will be very aware of in your face accessing and sustaining tenancies in the private rented sector. I’m then going to hand over to Tom to talk a bit more specifically about Crisis’ campaigns work and what we are going to be doing to tackle these issues. .

Title Part 1 Housing (Wales) Act 2014 and Rent Smart Wales Name/Date Bethan Jones Operational Manager Rent Smart Wales Title Name/Date

Legislative Background in Wales From 2011 Census approx. 14% (185,000) properties in PRS No one knows true number of landlords; believe majority one property Important Housing Option Poorest standards of management and conditions; often due to lack of understanding National Accreditation Scheme, run from Cardiff Council since 2008; trained around 5,000 landlords. Model proved to be working well. In 2011 National Assembly for Wales granted ability to make new primary Housing legislation Housing White Paper for Better Lives and Communities, May 2012 120 accredited landlords in Denbighshire. Could be around 4,000 landlords in this area.

Introduction of Legislation Given Royal Assent in September 2014 Majority of Part 1 came into force 23rd Nov 2015 Enforcement to commence from 23rd Nov 2016

Housing (Wales) Act Part 1 Act introduced a legal requirement for all landlords to register themselves and their rental addresses Landlords and agents who act on their behalf who let and/or manage rental properties must become licensed Licensing based on training (no property inspection) Applicable to Assured, Assured Shorthold and Regulated tenancies within Wales Exempts Residential Social Landlords from registration; however if RSL does letting and management work on behalf of a PRS landlord they must be licensed Most other exemptions come about from the fact that certain people cannot grant ASTs (e.g. university owned accommodation, owner occupiers with lodgers, etc.)

How is this administered? The Welsh Ministers have designated a Licensing Authority to administer the system Cardiff Council have the designation Cardiff will maintain the register and administer and grant registrations and licences Landlords and agents have one application to cover them for whole country. New service created within Cardiff Council; run under the brand name Rent Smart Wales

From launch until 4th February: What has Rent Smart Wales achieved? From launch until 4th February: Users Accounts: 7029 Landlords registered: 4474 Paid course bookings: 1039 120 accredited landlords in Denbighshire. Could be around 4,000 landlords in this area.

Total number of enquires: 3015 What has Rent Smart Wales achieved? Other Key Statistics Cases dealt with by the service from 23rd November 2015 to 31st January 2016. Total number of enquires: 3015 120 accredited landlords in Denbighshire. Could be around 4,000 landlords in this area.

What has Rent Smart Wales achieved? 120 accredited landlords in Denbighshire. Could be around 4,000 landlords in this area.

Overview of Requirements Registration: On-line process (including fee payment) Landlord Must: Provide correspondence info Give address of all rental property Pay a fee Identify who does letting and management at each property Simple, quick and automated Register is not public; but tenants can verify landlords Once registered: Obligation to keep information on register up to date Every 5 years a fee for continued registration

Who as a landlord registers? The following type of landlord must register separately and include the address(es) of the rental property they are the landlord for in Wales: individual landlord; joint landlord (lead landlord registers), company landlord trust

Why registration? Identifies rented properties Produces statistics to inform policy Why registration? Collects contact details (including e-mails and phone numbers) Assists LAs with information dissemination

‘Letting’ and ‘managing’ defined in the Act Licensing ‘Letting’ and ‘managing’ defined in the Act Persons who ‘let’ or ‘manage’ rental property must apply for a licence. Applicant must : Be fit and proper Undertake approved training Pay a fee Applicant could be landlord, commercial letting & management agent, family member Either applicant or all staff of applicant doing letting and management work to be trained Once licenced: Lasts 5 years. Licensee must comply with licensing authority imposed conditions (including adhering to WG Code of Practice) and continue to be fit & proper; otherwise licence can be revoked. Renewal process, including additional fee

Training People who need to be trained on behalf of an applicant are termed in the law ‘connected persons’ Section 2 of the Regulation of Private Rented Housing (Training Requirements)(Wales) Regulations 2015 define ‘connected persons’. ‘doing things under a contract of service or apprenticeship with an applicant for a licence [if they do any letting or management work/activities*]’ This means all staff who meet the criteria need to be trained *letting or management work/activities is defined in the Regs/Act. This is simply an abbreviation of the law and is not the correct legal definition

Training Landlord and Agent training offered by Rent Smart Wales – advertised on our website; new dates all the time/or once interest shown in an area. Or approved training can be undertaken from authorised provider. Currently in the process of approving external courses. 11 applications received – 5 approved: https://www.rentsmart.gov.wales/en/training/approved-external-providers/ RSW will be offering on-line training - currently being developed will be available in coming months.

Made on 3rd November. Written by Welsh Government with input from tenant, landlord and agent groups and consulted on Residential Landlord Association (RLA) National Landlord Association (NLA) Association of Residential Lettings Agents (ARLA) Shelter Cymru Citizens Advice Contains legal requirements (must comply with) and best practice (should comply with).

Licence Conditions for Agents Standard condition to adhere to the Code of Practice. Client money protection; professional indemnity insurance, membership of redress scheme (timed condition of licence) Train staff (newly employed), within 3 months of starting Also general conditions re: notifying client landlords about registration; providing info on client landlords to RSW, etc

Why licensing? Gives knowledge to those persons who need it People dealing day to day with all rentals are fit & proper Why licensing? Unsuitable persons will not be able to manage homes Makes people letting & managing accountable; including agents

Fees: Landlord Registration - On Line Landlord Registration - Paper Application Type New application Renewal Period Landlord Registration - On Line £33.50 5 years Landlord Registration - Paper £80.50 Landlord Licensing- On Line * £144.00 Landlord Licensing- Paper * £186.00 Agent licensing- On Line £3,728.00 Agent licensing- Paper £4,368.00

Fees Fees set by Cardiff Council – robust financial modelling completed prior to setting fees Fees setting just as for HMO licence e.g. can cover administration, on-going compliance and enforcement work. But not for profit. Currently assessing payment options for agent fee Also completing a full review of the agent fee and feedback will be provided soon

What about LAW (Landlord Accreditation Wales) People already part of LAW will have their username, personal record and training record moved into the RSW system. They can then complete any registration/licence applications they need to on-line All training under LAW already done by a landlord (or agent) will be recognised under RSW although small (on-line) top up will be required (which is free) One top up course for a landlord; two for someone who is/ works for an agent Process should be available in next month Course on 3/9 fully booked

Marketing WG leading communications work and rebranding Launched by the Minister, Lesley Griffiths AM and now a national campaign is in place Communications strategy includes paid for avenues in order to reach a wide audience (mostly from new year on) e.g. on-line. We need to rely on ‘earned and owned’ so including landlords, agents, membership bodies, etc. disseminating information

How will the system be enforced? Marketing of requirements should encourage most people to comply without intervention (whole sector buy-in) Lead in time before enforcement can occur; powers will be enacted 23rd Nov 2016 Enforcement by local authority (or licensing authority) Suite of enforcement tools for ‘rogues’: Prosecutions Fixed Penalty Notices Rent Stopping Orders Rent Repayment Orders Restriction on terminating tenancies (no s.21)

Recap: Not all landlords must have a licence; if agent does all letting and property management work then only agent needs to be licensed. BUT some properties will have a licensed landlord and agent (split of roles, e.g. let only agent then landlord does management) AND all landlords will still have to register (can be ‘lead’ landlord) One licence covers the agent/landlord for any property in Wales; it is the landlord that registers each individual address and states the licensee(s) No Scots Disclosure/DBS check requirement with licence application If property has an HMO licence, landlord still needs to register and have a licensed person in place to let and manage it under new Act

In summary: Housing (Wales) Act 2014 Part 1 provisions now mostly in place. All landlords have to register All letting and managing landlords and agents have to licence Licensing based on suitability and training The legislation should result in: Improved management standards in the private rented sector More useful strategic information for LAs on landlords and agents and the location of private rentals; and easier means to connect with sector Raised awareness by landlords, agents and tenants of their respective rights and responsibilities. There is a Welsh Government produced Tenant Guide and also a checklist coming soon too.

Where can I find more info? Visit www.rentsmart.gov.wales. Comprehensive FAQ section. Follow twitter: @rentsmartwales Contact us through our on-line form or phone 03000 133344

Any questions?

Lunch! We will reconvene at 13:45

Group Discussion - The challenges that remain & lessons to be taken away: Is the PRS now a suitable option for everyone? How can we improve professional standards across the sector Is there a need for further regulation of rents in the PRS Chair: Neil Guy, Housing Practice Manager, Crisis

Closing Statements

A Home for Rent Forum Continue the discussions in today’s event with the online forum which will feature: A space to request advice or start conversations PRS resources from Crisis and other organisation A calendar with upcoming PRS related events

Finish