1. 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

2. Introduction
Neil Guy - Housing Practice Manager, Crisis

3. 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

4. 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. .

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

6. 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.

7. 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

8. 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.)

9. 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

10. 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.

11. 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.

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

13. 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

14. 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

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

16. ‘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

17. 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

18. 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:
RSW will be offering on-line training - currently being developed will be available in coming months.

20. 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).

21. 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

22. 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

23. 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

24. 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

25. 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

26. 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

27. 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)

28. 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

29. 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.

30. Where can I find more info?
Visit Comprehensive FAQ section.
Follow
Contact us through our on-line form or phone

31. Any questions?

32. Lunch!
We will reconvene at 13:45

33. 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

34. Closing Statements

35. 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

36. Finish