Sean Hooker: The heat is on for lettings legislation and governance

This month, we experienced some of the hottest weather in living memory and have sweated and sweltered through it with our usual British stoicism - namely hyping up the panic levels and then getting on with it as if it is an everyday event. This is exactly what's happening in the political world, and what I'm sensing is going on in Westminster around the private rental sector.

The build up to Boris Johnson's resignation

In my last blog, I recounted my initial views on the "A Fairer Private Rented Sector" white paper that landed on our laps as we wended into summer - little knowing that, like the weather, the political thermometer was going to go off the scale.

As if the fates had conspired, the very day we had organised a follow-up webinar on the Renters' Reform Bill, the Prime Minister resigned.

The days before were surreal, as minister after minister in the government resigned, including two junior housing ministers and then, the big one. The Secretary of State, Michael Gove, architect of Levelling Up and tasked with delivering the “Fairer Private Rented Sector” agenda, was sacked and sent to the back benches.

A government in turmoil and a white paper in tatters - or was it? The minister directly working on the Renters’ Reform Bill did not bite the bullet. Eddie Hughes remains in place and, as I subsequently found out, is determined to see the changes through.

So there we were, on the morning of the webinar, with an announcement due from the PM, thinking "how can we reassure our audience that chaos does not rule?". Well, I am not sure how we did but you can decide yourself by listening to the podcast of the session yourselves.

A promise that the Renters' Reform Bill is still on

What is a comfort, however, is that I was invited to a virtual round table with Minister Hughes which, to my surprise, wasn't cancelled in the wake of events. I attended along with a host of stakeholders across the sector.

The minister assured everyone that he and his department were committed to deliver the reforms, and he had personally spoken to all the prospective candidates who had put their names forward to be the next Prime Minister. They had assured him that they were committed as well.

Whether Eddie himself survives to steer the bill into the legislative process or not will remain to be seen. However, in the hiatus between now and the new PM, work and engagement with the sector continues. Watch this space.

In the meantime, you may be interested in this Hamilton Fraser webinar, in which four experts from our group share their thoughts on the reforms.

New material information guidance

Of course, there was more to come. This month, there have been two other developments that I want to relay to everyone. The first is another chapter in the saga on the material information that property agents need to disclose on property portals as a matter of course.

The information that agents need to supply to customers to be compliant with consumer protection regulation was being ramped up, and the first phase of what will eventually become mandatory information can now easily be put on the major property portals.

I did a podcast and blog at the time, as I was on the working group along with National Trading Standards (NTSELAT), the portals and industry representative. 

This month, the first set of guidance has been published by NTSELAT, and this will be followed by an awareness campaign. The new guidance hopefully will make things a lot clearer and help agents to prepare for the next phases of the project, which I will help everyone try and make sense of when it happens. 

Revitalising the Advisory Council

Now onto my last revelation of this eventful month. Before everything so spectacularly erupted, I'd arranged a meeting and lunch at the House of Lords with Lord Monroe Palmer, the Chairman of my Advisory Council, to discuss its next steps.

For a while, we'd been looking to refresh and revitalise the way we interact with the sector, and the challenges of the pandemic severely tested the effectiveness of this council. Great though virtual mediums are, they are not the same as being there in person when it comes to this type of role.

We've therefore revamped the council to reflect not just the widened scope of the redress scheme we set up but to be more representative, diverse, and engaging in what is a dynamic and ever-changing sector - through the newly-created Advisory Panel.

Maintaining consistency in governance

Since 2014 when the Property Redress Scheme was created, Lord Palmer had presided over this scrutiny body that oversaw the scheme and held me to account. The council was made up of a number of people from across the sector and formed an integral part of governance, transparency, and accountability of what we were doing.

Lord Palmer had been instrumental in getting mandatory client money protection for all letting agents onto the statute books, a major achievement that might never have happened without his involvement with the council.

Whilst change is good and refreshing to anybody essential, so is continuity and consistency. To this effect, Lord Palmer agreed to accept the Chair of the new panel.

Filling the new Advisory Panel

We've now started the process of selecting the members of the panel. It will be 15 people strong, with each representing and specialising in a particular element of our complex industry. We're therefore welcoming applications from anyone who feels that they can contribute to help our scheme evolve and be part of the changing landscape of the property market.

Later in the year we'll be launching a second panel, to help the scheme deliver our statutory obligations in the best way. Both our panels will work closely together to achieve this aim.

So, a lot packed into a month. Maybe I can look forward to a quiet break as everyone heads off on their summer holidays. However, I have an inkling that something unsuspected will occur and the Newsagent team will be on my case for comment and analysis to help understand what it means on the ground...

I'll therefore stay vigilant as contrary to the musings of TS Elliot, it is August not April that is the cruellest month!

Learn more about the Advisory Council and how to apply for the new Advisory Panel.