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MAIDSTONE BOROUGH COUNCIL

 

CABINET MEMBER FOR REGENERATION

 

Report of the Assistant Director of Development & Community Strategy  

 

Report prepared by Stuart White 

Date Issued: 4 June 2009

 

1.           KENT LANDLORD ACCREDITATION SCHEME  (KLAS)

 

1.1        Issue for Decision

 

1.1.1   To consider the setting up of a Landlord Accreditation scheme for private landlords, in partnership with other Kent authorities, to form the KLAS.  The scheme will be modelled on and managed by the existing London Landlord Accreditation Scheme (LLAS).  Membership of the proposed KLAS will be £2500pa per local authority for an initial period of 2 years. Funding at Maidstone will come from within existing budgets.

 

1.2        Recommendation of Assistant Director of Development & Community Strategy 

 

1.2.1   That Cabinet Member agrees that Maidstone Borough Council set up a Landlord accreditation scheme, based on the existing London Landlord Accreditation Scheme.

 

1.2.2   That Cabinet Member agrees that we work in partnership with other Kent Authorities to form the Kent Landlord Accreditation Scheme (KLAS) Consortium.

 

1.2.3   That the operation of the scheme is reviewed and a report is given to the Cabinet Member at the end of the first year of the scheme.

 

1.3        Reasons for Recommendation

 

1.3.1   Background and Introduction

 

Accreditation is a set of standards (or code of conduct) relating to the management and/or physical condition of private sector rented accommodation. Landlords who join a scheme and abide by the standards are 'accredited'.  Most schemes are run by local authorities and contain the following:

     i.        Accreditation schemes may be either property based or landlord based;

    ii.        Property based schemes involve the inspection of every property to be accredited and are thus staff resource intensive;

   iii.        Landlord based schemes are based on landlords reaching/complying with certain standards of conduct.  Inspection of their property does not form part of the accreditation process.  This is seen to be less of a demand on local authority staff resource and is largely an administrative procedure. 

a.    Accreditation schemes are voluntary, and although there is no compulsion for landlords to join, there are many advantages including:

  iv.        The status of being publicly identified as a good landlord;

    v.        Distancing themselves from incompetent or unscrupulous landlords;

  vi.        The business advantage of advertising their accredited status to tenants who place emphasis on good quality and well managed accommodation;

 vii.        Involvement in consultation on proposals that may affect landlords, such as changes to legislation or local housing strategies;

viii.        Where funding is available, possible preferred access to grants and loans or at an enhanced level to renovate properties to relevant standards set by the scheme.

  ix.        Discounts and group purchase on goods and services such as property insurance;

    x.        The overall aim of the accreditation scheme is to improve the condition and operation of the rented market and reduce the need for intervention for partner councils.  It will also enable tenants to recognise private landlords and agents who are committed to providing good quality accommodation.

1.3.2  The objectives of an accreditation scheme are to:

a)   Promote good practice and improve standards of management in the private rented sector;

b)   Provide advice and support to landlords and agents on providing good quality, well-managed accommodation;

c)   Provide a channel for consultation between local authorities and the private rented sector on strategic issues, such as through questionnaires, forums and newsletters;

d)   Provide opportunities to inform landlords and agents about legislative proposals, policy or administrative changes, and other matters that might affect them;

e)   Enable landlords and agents to obtain better access to information from local authority staff and other sources;

f)    Reduce the number of landlord/tenant disputes needing intervention by local authority officers both in relation to property condition and tenancy issues;

g)   Improve relations between the private rented sector and local authorities;

h)   Encourage and assist landlords and agents to provide accommodation to the vulnerable and those seeking social housing;

i)     Improve the quality of accommodation available in the private rented sector;

j)    To be the model for regional accreditation;

k)   Assist in the prevention of Homelessness, by the provision of good quality private rented sector accommodation.  ;

l)     Accreditation provides an additional tool to improve housing conditions in the private rented sector and can form part of the “carrot” to complement the “stick” of enforcement;

1.3.2   The London Landlord Accreditation Scheme

 

1.3.3  The London Landlord Accreditation Scheme (LLAS), which has been operating successfully since 2004, is a landlord base scheme.  It is administered by the London Borough of Camden and has 3,200 members.  A steering group has been established to develop and provide strategic direction to the scheme, made up of representatives from all the partner organisations.

1.3.4 The scheme gives accreditation to landlords and agents who meet the requirements of the scheme including being “a fit and proper person”, agreeing to follow the code of conduct and satisfactorily completing the development course run by the LLAS.  After initial accreditation, requirements for ongoing training (CPD) apply.  The London Landlord Accreditation Scheme Guidance Notes are attached at Appendix A.

 

1.3.5   Kent Landlord Accreditation Scheme

 

1.3.6  The Kent Group currently comprises the following local housing authorities, Gravesham, Dover, Maidstone, Medway, Shepway, Swale and Thanet with interest expressed from Ashford, Sevenoaks & Tonbridge & Malling.  Two authorities – Tunbridge Wells and Canterbury City Council – operate their own schemes – see page 8.

1.3.7  There are great advantages of developing a common and consistent scheme in Kent.  Such consistency will be advantageous for those landlords who operate across more than one authority area. Also a Kent wide scheme provides economies of scale.

1.3.8  However it is important to note that whilst officers are very positive, all these potential partners have yet to receive the necessary Management Team/Member approvals.  So there is some degree of risk that not all will actually join the proposed partnership scheme.

It is proposed that the KLAS will be based on the existing LLAS scheme.

 

1.3.9   Summary of the proposed Kent Landlord Accreditation Scheme

 

1.3.10         The proposed Kent Landlord Accreditation Scheme (KLAS) will be modelled on the London Landlord Accreditation Scheme described in 1.3.2 The intention is for it to be managed by the London Borough of Camden, which administers the London Landlord Accreditation Scheme, using LLAS’s existing database and procedures.

1.3.11         The proposed KLAS will have its own web page on the LLAS website with links to each of the partner authorities’ own websites. The KLAS will have full access to the LLAS Events and Prosecution database and individual member authorities may attend, participate and vote at the LLAS regular consultative committees (steering group) and will have the same rights and responsibilities as existing members of LLAS.

1.3.12         A draft Service Level Agreement with the London Borough of Camden has been prepared. (See Appendix B to this report). If the scheme is adopted, it will then be incorporated into the next Housing Strategy.

 

1.3.13 Summary of service to be provided by London Landlord Accreditation       Scheme

 

·         The LLAS will provide a telephone service providing details of the scheme and answering queries and will also deal with written and online queries.  Applications to join the scheme or enrol on development courses will be made online, although LLAS will send out application forms to applicants not wishing to use the internet and will request applications for renewal of accreditation.

·         LLAS will forward agreed standardised letters and documentation to applicants of KLAS; customised documentation for KLAS applications and correspondence may be agreed.

·         LLAS will arrange, book and settle invoices for venues and trainers and process all relevant landlord development courses and LLAS will liaise with KLAS as necessary.  Trainers are provided by the National Landlords Association.  Landlords/agents attending development events are required to complete a test paper the end of the course.

·         LLAS will issue, process and store all paperwork relating to the scheme and will collate and maintain appropriate and agreed statistics and data.  Any formal investigative action taken either by LLAS or KLAS in respect of any landlords or agents involved in the scheme will be documented; any outcomes will be recorded in the LLAS Events and Prosecution database.

·         Any issues not relating to the administration of the scheme, such as technical queries or issues specific to the proposed KLAS or to a particular authority will be forwarded to the appropriate authority. 

 

1.3.14 Requirements placed on Maidstone Borough Council

·         Each participating authority will nominate one representative to be a member of the consultative committee which will provide the strategic and management direction for the scheme.

·         As part of the service level agreement with LLAS, Maidstone  Borough Council will agree to :

·         Publicise the accreditation scheme to tenants, landlord and agents and encourage them to participate as well as within the authority and partner organizations.

·         Publicise development courses operated by the scheme.

·         Liaise with LLAS to decide where and when development courses are to be run for KLAS.

·         Identify suitable venues for development courses and provide details to LLAS who will then book and pay for the venue, trainers and catering on behalf of KLAS.

·         Provide contact details of a Lead Officer and deputy for KLAS.

·         Comply with the terms of the LLAS Events and Prosecution Database data sharing protocol.

·         The service level agreement will be reviewed annually between all parties involved.  If either party wishes to end the agreement, they are required to give 12 months’ notice; no party may withdraw from the agreement within 12 months of the commencement of the KLAS.

 

1.3.15             Advantages for Maidstone Borough Council

 

·         The main advantages for Maidstone BC of joining the proposed scheme would be financial and in terms of the minimal staff input which would be required.

·         The proposed scheme should have the effect of informing landlords and improving practice and housing standards in the private rented sector as described in the objectives listed in paragraph 1.3 above.

·         The proposed scheme compliments our enforcement strategy in providing a strategic route for the improvement of housing conditions for vulnerable persons.

·         There are potential economies of scale including the ability to run the necessary training sessions at a sufficient frequency to be attractive to landlords; a lone authority may not be able to run courses frequently due to the smaller number of eligible landlords.

·         The proposed KLAS is consistent with the Rugg report to improve the private rented sector with education and training of landlords

·         The proposed KLAS is consistent with the Department for Business, Enterprise and Regulatory Reform/Local Better Regulation Office principles of Regulatory Reform in providing support and encouragement to a trade sector in order to work towards compliance and to make best use of limited resource in delivering an appropriate ‘enforcement mix’.

·         The proposed KLAS should contribute towards the aim of making Maidstone the place of choice in which to live.

·         The Audit Commission specifically refers to a landlord accreditation scheme as being an example of an activity undertaken by a local authority exercising its strategic housing role and delivering an excellent service (Housing Inspectorate Key Lines of Enquiry).

·         It demonstrates partnership working with other local authorities, landlord associations, etc.

1.3.16             What Landlords have to do to become accredited:

 

·         Satisfactory attendance at a one day development course, currently costing just under £80.00;

·         Be a fit and proper person; and

·         Agree to comply with a code of conduct.

1.3.17     Advantages for Landlords:

·         The scheme would be free for landlords to join (apart from the cost of training courses), it would be simple to administer with the facility to apply for accreditation, to enrol for development events and to enter and amend landlord and property details on-line.

·         Landlords will be accredited for a period of five years; they will be required to gain points through continuing professional development (CPD) including attendance at development events run by LLAS; landlords must gain at least 60 points over the five years of their accreditation with a minimum of 10 points in any one year.   CPD Points will be awarded by attending our regular Landlords Forums and recognised Landlord Association events.

·         KLAS accredited Landlords can apply to be placed on accredited list of other scheme (such as LLAS).

·         Kent landlords would be eligible to attend the London training sessions (currently held at a frequency of 4 per week) as well as those organised by the Kent partners.

·         Through the development courses run by KLAS, landlords and letting agents will be better informed about good practice, legal requirements and developments affecting the private rented housing sector.

·         Landlords can advertise that they are accredited.

·         The Scheme is supported by the Landlords Associations who encourage their members to join.

·         Reduced need for intervention by local authorities.

·         Access to local authority grants and loans where funds permit. At the present time we can offer all landlords some financial assistance, we are considering whether it is possible to only allow accredited landlords access to assistance or whether they should be able to access a higher level of assistance.

1.3.18                   Advantages for Tenants:

·         The main benefit for tenants will be in the raising of standards in the private rented sector which should result from the accreditation scheme.

·         Prospective tenants can check if the landlord of a property they are interested in renting is accredited.

1.4         Alternative courses of action and why not recommended

 

1.4.1   The Borough Council could opt to join the Tunbridge Wells scheme but as this is very labour intensive additional resources would be required within the Housing Service for its administration. In the current climate of financial restraint this is not possible. It is generally thought that the Tunbridge Wells scheme is an ideal and one or two of the London Authorities are introducing a property based accreditation scheme to complement the existing landlord accreditation scheme. This is something that the Borough Council along with its Kent partners could consider in the future.

1.4.2   The Borough Council could opt to do nothing. In this scenario the Council could be the only one in Kent that did not have a scheme. With many landlords owning properties across Council boundaries this leads to confusion and possible differing standards between Boroughs. By taking the opportunity to join in with a Kent wide scheme it allows a consistent approach to be taken.

1.4.3   Canterbury City Council has set up and manages an accreditation scheme for landlords of student housing.  This scheme is sector-specific and is not suitable for Maidstone Borough Council’s needs.

1.5        Impact on Corporate Objectives

 

1.5.1   Decent housing is a key theme of the Sustainable Community Strategy and of our Housing Strategy and is a corporate objective. By accrediting landlords and informing them of standards required and through better practices, standards in the private rented sector will be improved.  

 

1.6        Risk Management

 

1.6.1 The proposed landlord accreditation scheme/KLAS is a low cost, low staff resource initiative which has the potential to reward and encourage good landlords within the borough, and within partner authorities in Kent. By building on an already successful scheme (i.e. LLAS) there is a greater chance of success without having to ‘reinvent the wheel’.

1.6.2 The ability to remove ‘poor’ landlords from the proposed KLAS register strengthens the protection to tenants and the credibility of the scheme. Other accreditation schemes (for example a property based scheme) could be accommodated under the KLAS scheme at a later stage.

 

1.7        Other Implications [Insert an ‘X’ in the boxes below to indicate if the recommendations will have any implications in the specified area]

 

1.7.1    

1.      Financial	x
2.           Staffing
3.           Legal
4.           Equality Impact Needs Assessment
5.           Environmental/Sustainable Development
6.           Community Safety
7.           Human Rights Act
8.           Procurement
9.           Asset Management

 

1.7.2   There is a financial implication for the Council of £2500 per annum during the pilot period of two years, which can be funded from the additional grant awarded for the same period by the Regional Housing Board to promote housing standards in the private sector.

 

1.8        Conclusions

 

1.9        This is a good opportunity for Maidstone Borough Council along with other Kent councils to introduce a scheme that has been tested in London and through training of Landlords will result in improving standards in the private rented sector.

 

1.10    Background Documents

 

         None

 

NO REPORT WILL BE ACCEPTED WITHOUT THIS BOX BEING COMPLETED   X       Is this a Key Decision?        Yes                        No        If yes, when did it appear in the Forward Plan? May 2009     X   Is this an Urgent Key Decision?     Yes                  No   Reason for Urgency   [State why the decision is urgent and cannot wait until the next issue of the forward plan.]

How to Comment   Should you have any comments on the issue that is being considered please contact either the relevant Officer or the Member of the Executive who will be taking the decision.   [Malcolm Greer]                                               [Cabinet Member for Regeneration]                                                                                  Telephone: [01634 862876]                                                          E-mail:  [malcolmgreeer@maidstone.gov.uk]   [Stuart White]                                                   [Private Sector Housing Manager]                                                                                  Telephone: [01622 602103]                                                               E-mail:  [stuartwhite@maidstone.gov.uk]