Landlord Charters: What They Are And The Proposed Greater Manchester Good Landlord Charter

Landlord charters are not entirely new and have been around in some areas for several years. In this post we will look more closely at landlord charters, at what is being described as a ground-breaking scheme in Greater Manchester, and at what landlords and agents need to know.

What are landlord charters exactly?

A number of local authorities have published landlord charters. Sometimes they are known as tenant charters, rental standards or perhaps landlord accreditation schemes. These schemes vary from place to place. But generally they set out standards that the particular local authority expects landlords to adhere to, or that a tenant can expect, or both.

The DLUHC’s English Private Landlord Survey 2021 says that almost 8% of PRS landlords are covered by such schemes. Locations that have them include Hammersmith & Fulham, Tower Hamlets, Leeds, the city of Manchester and Newcastle upon Tyne to mention just a few. It is always worth checking if a charter exists in your area and, if so, what it covers.

Landlord charters are intended to be voluntary. They do not impose any higher standards nor give local authorities any greater powers than already exist under housing laws. Landlords who join them may be placed on a preferred landlords’ list, and may get a discount on local licensing fees.

There is not much evidence to suggest these schemes make any difference to housing standards. Sceptics might suggest they are something of a publicity exercise, designed to give the impression that local authorities are doing something about housing conditions.

The proposed Greater Manchester Good Landlord Charter

Introduction

Recently a new landlord charter scheme has been proposed which has been described as a ‘first’ and which could establish new standards for landlord charters.

In early January Andy Burnham, Mayor of Greater Manchester, announced a consultation on introducing a so-called good landlord charter across the whole of the Greater Manchester Combined Authority (GMCA) area. Some of the press have reported this as being a finalised policy but it is actually just a consultation on a proposal.

The proposed charter, if adopted, will impose new standards and obligations on landlords across the GMCA area. It will be applicable to both social housing and the PRS – certainly something of a first. It is proposed that membership will be voluntary and landlords could be either full members who abide by the charter’s standards or supporters who are working towards them. Letting and managing agents could be involved as so-called ‘charter champions’ promoting it to their clients and helping them to meet their commitments.

Aims behind the charter

The preamble to the GMCA consultation states: ‘The Good Landlord Charter is intended to be the first of its kind: an ambitious new voluntary standard for landlord excellence, no matter what kind of housing they let. It would support landlords to improve practice regardless of whether they are in the private or social rented sector, mainstream or specialist housing.

‘The Good Landlord Charter is a proposal for a new scheme to make renting in our city region better.’

The GMCA say that the consultation is designed to ‘understand how a Good Landlord Charter could help to do this.’

How the proposals have been formulated

The proposals were developed during 2023 by what are called a ‘coordinating group of stakeholders and industry experts who provided feedback and advice’. These include: The Bond Board, The British Property Federation, Bury Council, DASH, Fair Housing Futures, Generation Rent, Grainger PLC, Greater Manchester Fire and Rescue Service, Greater Manchester Good Employment Charter implementation unit, Greater Manchester Housing Providers, Greater Manchester Student Assembly, Greater Manchester Tenants’ Union, Manchester City Council, Manchester Student Homes, National Residential Landlords Association, Safeagents, Shelter, University of Manchester and Wigan Council.

Input also came from a GMCA tenant survey which received 1,200 responses and from analysis of GM Housing Providers Tenant Satisfaction Measures. No PRS landlords appear to have been involved in this process.

The consultation says that ‘some big landlords’ have already committed to their involvement.

The member criteria

The consultation’s proposals suggest that landlord members will have to meet 20 criteria, organised into seven main sections, which are designed to ‘deliver on the key characteristics of good renting’. It says these have been designed to ‘strike the balance between ambitious standards for tenants and acceptability to those landlords who want to do the right thing.’

1. Affordable
Landlords should have clear and fair rent setting and rent review processes.

Landlords should allow a fair amount of time to tenants who struggle to pay their rent. Social landlords should not use the mandatory rent arrears ground.

Properties should meet EPC C as a minimum.

2. Inclusive

Landlords should make reasonable adaptations to properties where needed, eg. for disabled tenants.

Landlords should make a demonstrable commitment to accepting tenants from any background.

3. Private and secure

Tenants should be able to make reasonable changes to their home.

Landlords should only access the property by agreement, except in emergency.

4. Responsive

Landlords should have timely, published service standards and a clear complaints policy with an independent element. (This appears to be mainly oriented towards social landlords.)

5. Safe and decent

Landlords should be able to pass a fit and proper person check – this could also be extended to companies.

Landlords should have standards on what should happen at the start of a tenancy.

All work/repairs should be undertaken by a qualified or competent tradesperson.

Minimum space and amenity standards could apply. Standards could be higher than the Decent Homes Standard.

6. Supportive

Landlords should have a commitment to refer those at risk of homelessness to their local authority. They should signpost all tenants to useful information about renting.

Landlords should have transparent, easy to understand contracts.

Landlords should adopt good standards when advertising properties and conducting viewings. Advertising should be truthful and they should not be discriminatory.

7. Well managed

It is suggested that landlords should be able to demonstrate accreditation or training, or use an accredited managing agent.

Landlords should have a clear start and end of tenancy process.

Key issues to consider

Firstly of all, it is important to note that these proposals cover not just one but 10 different local authorities – Bolton, Bury, Oldham, Rochdale, Salford, Stockport, Tameside, Trafford and Wigan as well as the city of Manchester itself. This is a large area with 2.8m residents.

Very significantly, unlike all other charters which generally only cover the PRS, the GMCA charter is proposing  to cover all housing types – PRS, social and what are called specialist sectors such as PBSA, temporary and emergency housing. However, it suggests there will be provision to vary the rules for different sectors.

The consultation does not refer much to the Renters (Reform) Bill. It does point out that this Bill is proposing to change the law on rent rises. It also suggests that the charter could help to settle landlord-tenant disputes, while acknowledging that an ombudsman/redress scheme is part of the Bill. Many might ask why this charter is needed if landlord-tenant law is to be overhauled anyway.

A particularly interesting proposal is that the proposed charter standards will be higher than current minimum legal standards. For example, a minimum EPC C rating and standards that are higher than the Decent Homes Standard. Also very notable is a proposal that if the charter leads to an improvement in rented housing standards then the standards required by the charter could rise further.

The GMCA is also seeking opinions on who should operate the charter and how its future development should be overseen. It suggests this could be done by what is called an ‘independent implementation unit’. (Greater Manchester’s existing Good Employment Charter is operated by such a unit, hosted by the Growth Company.) Many will wonder what this new unit will be like and who will be on its board.

Some might also ask how this organisation will be able to apply and monitor standards that are above national legal standards. The consultation document does not really address this. If local authorities have a role here will they be monitoring and enforcing in their own housing stock?

The consultation seeks views about how a membership fee would affect landlord and agent participation. It does not actually say that a fee would be charged nor what it might be however.

Some final thoughts

Anyone reading the consultation document will see that the charter is all about landlords’ responsibilities and not tenants’ responsibilities. It says little about what benefits landlords might derive from it, other than it might ‘provide a valuable resource for renters to identify a new landlord’.

It is also important to remember that much is yet to be decided on the details of the Greater Manchester Good Landlord Charter, or even if it will proceed at all. GMCA says ‘a final design will emerge in 2024’.

It is perhaps worth pointing out that Andy Burnham is up for re-election as GMCA Mayor this May. Burnham often seems to take a hard line with landlords but enjoys popular support across the region.

Lastly, although this proposal only relates to Greater Manchester all landlords and agents would be well advised to keep tabs on what happens here. Should the consultation and any subsequent charter be deemed to be a success it is not unlikely that other local authorities might consider similar schemes.

The full GMCA consultation document and details of how to participate (closing date 26 February) can be found here.