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National Landlords' Association

Date of speech	29 November 2008
Location	Jury's Inn, Birmingham
Event summary	National Landlords' Association

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Draft text of the speech - may differ from the delivered version.

I want to start by thanking the National Landlords' Association for giving me the opportunity to address your conference today. 

I know that many of you will have contributed to the recent Rugg Review into the private rented sector, and I am grateful for your involvement.  

This morning, I want to reflect on the progress that the sector has made over recent years, the challenges that remain, and consider the implications of Julie's review for the future direction - particularly in these more turbulent times. 

Though of course, the full implications are yet to unfold, it's likely that demand for private rentals will only increase over the coming months. 

Many people who would have expected to own their own home find they can no longer afford it, and so will be looking elsewhere - often to the private rented sector.   

At the same time, traditional demand will continue - from students, from career changers and commuters, from young professionals just starting out in independent; adult living. 

Each of them, whatever their particular circumstances, expects and deserves a decent place to live. 

And while the public debate unfortunately tends to concentrate on the stereotypes; taking horror stories as gospel and interpreting the worst practice as standard practice; the evidence shows that actually, the sector is both good and improving. 

In recent years, a new breed of smaller landlords have entered the market; taking pride in their property and in building good relationships with their tenants.  This is laying the foundations for a more professional sector and is very encouraging to see.

As a result, more than three quarters of renters are satisfied - and levels of dissatisfaction are lower than in social housing.  Contrary to popular myths of rogue landlords, levels of so-called retaliatory eviction are extremely low, and only around one in twenty tenancies are terminated early. 

The deposit safeguard schemes we introduced last year are also proving to be a great success; giving both tenant and landlords peace of mind.  The NLA has played a big role in getting this off the ground, and I'm very grateful for your contribution. 

However, we know that there is more that could be done; helping ensure that even more people have a good experience of renting. 

I know that this is a concern that you share - that you are concerned about those few landlords who give the rest a bad name.   

And I know too, that you want to make sure that action to tackle these worst landlords doesn't involve using legislation which is like a sledgehammer to crack a nut. 

I absolutely agree - there is no sense in overloading good landlords with burdensome regulation, when we just need to target a few rather than the many. 

But we have to be honest enough to acknowledge the challenges. The worst housing is still found in the private rented sector.
And this has a disproportionate effect on low income families and vulnerable households.  Local authorities have extensive powers to tackle these problems; but they often fail to use or target these powers effectively. 

But of course, even where problems do arise, this is largely not because landlords are going out of their way to be wilfully negligent. 

More often than not, landlords simply aren't aware of the relevant legislation, or their own obligations.  Many don't know about the sensible precautions they might take at the beginning of tenancies which could help problems developing later.  Others see this as an opportunity to make a bit of money on the side, and haven't, perhaps, appreciated that letting needs such a business-like approach. 

So when I talk about the improvements that are needed to the sector, I don't want you to think that I'm only concerned about helping tenants.  It's just as important to make sure that good landlords have the support and encouragement they need to stay in the sector. 

The support that the NLA offers members is extremely welcome in that respect.  You have a clear commitment to making sure that landlords can get the advice and support they need.  It's good news for both landlords and tenants. 

I've also been encouraged to see the positive relationships that the NLA is developing with local authorities.  It's essential that authorities and landlords are working constructively together, and you are helping to make that happen. 

Julie Rugg mentioned in her review that it's critical that local authorities, and registered social landlords too, are helping to support the growth of the sector. 

In particular, I know that anti-social behaviour among a minority of tenants remains a concern.  I know too, that many of you are frustrated by unnecessary delays in the judicial system.  We need to continue to work with you, alongside the police, to address these concerns. 

Julie also mentioned the thorny issue of licensing.  I know that some people are concerned about additional burdens from this area.  What she is actually suggesting is simple registration, with no additional hurdles - a very light touch approach. 

I would also stress that none of the recommendations Julie made have now been set in stone. 

Quite the contrary: we are currently considering all the suggestions she made and hope that you will continue to work with us to shape a stronger sector. 

And I'm very clear that any changes must retain the great strengths within the sector - the flexibility, the diversity and the choice. 

I know too, that times are tough for landlords as well as tenants.  Many of you will also be feeling the pinch; and it's essential that we work together to help you get through these difficult times.

I hope that I have reassured you that I am absolutely committed to working with you; to help the private rented sector not just survive, but thrive over the coming months and years.

Thank you very much.