The new registration service has the potential to bring much-needed transparency to the private rented sector.
It should help tenants make better-informed decisions, enable responsible landlords to demonstrate compliance and make it harder for rogue operators to hide.
Yesterday’s announcement provides welcome clarity on the cost and timetable, but agents should not underestimate the operational impact.
The phased rollout is sensible, although it could create confusion for landlords with properties across several regions, as deadlines are determined by the location of each property rather than where the landlord lives.
ADMINISTRATIVE BURDEN
Many landlords will inevitably ask their agent to help. While landlords must start and complete the registration process themselves, agents and property managers will be able to provide certain information on their behalf.
Before agreeing to do so, agents should check that their contracts allow for it, clearly define what support they will provide and reiterate that the landlord remains legally responsible for ensuring the information is complete and accurate.
What may be a relatively straightforward process for one property could quickly become a significant administrative exercise across hundreds of clients. Agents must consider whether they have the necessary resources, systems and checking procedures, as well as what they will charge for the additional work.
Accuracy will also be critical. Where an agent or property manager is named on the register, their contact details must be correct and kept up to date so important communications do not fall through the gaps. Agents should ensure that information provided for the register is consistent with their redress membership and other compliance records.
ONGOING COMPLIANCE
This will not be a one-off exercise. Registration will cost £65 per property and must be renewed annually. In future, unoccupied properties will need to be registered before marketing, and agents and landlords will have to include the unique landlord and property identifiers in advertisements.
Registration checks will therefore need to become part of agents’ ongoing onboarding, marketing and management processes.
The move to make HMRC’s Valuation Office responsible for initial decisions on challenged rent increases is also significant.
Agents should ensure proposed increases are supported by credible market evidence, helping to resolve disputes earlier and avoid unnecessary tribunal cases.
Further guidance is promised, but agents should start preparing now by reviewing their contracts, deciding what support they will offer and ensuring their teams have the capacity to deliver it.
