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Labour candidate proposes rent controls and HMO restrictions in Greater Manchester

Labour candidate proposes rent controls and HMO restrictions in Greater Manchester

Bev Craig, Labour’s mayoral candidate for Greater Manchester, has pledged to introduce rent controls, clamp down on HMOs, and strengthen tenant protections if elected. The proposals include expanding Article 4 Directions and creating a Renters Rights Unit.

Labour’s candidate for the upcoming Greater Manchester mayoral election, Bev Craig, has unveiled a manifesto promising significant regulatory changes affecting private landlords and letting agents across the region. The proposals aim to address concerns about housing standards, affordability, and tenant rights, with a focus on Houses in Multiple Occupation (HMOs) and rental price controls.

Craig’s manifesto includes plans to limit HMOs in areas deemed to have an excessive concentration, through the expanded use of Article 4 Directions. These directions require landlords and investors to obtain planning permission before converting properties into HMOs, effectively giving local authorities greater control over the type and density of rental properties in their areas.

Details of the proposed HMO and rent control measures

Alongside the HMO clampdown, Craig intends to establish a Greater Manchester-wide Renters Rights Unit. This body would support tenants, enforce the Renters Rights Act, and take action against landlords who fail to meet their legal obligations. The creation of such a unit signals a more proactive approach to tenant protection and regulatory enforcement in the region.

Craig also plans to strengthen the existing Good Landlord Charter, which has been in place in Greater Manchester for around three years. She proposes making it compulsory for landlords seeking local government funding for initiatives like property retrofitting to sign up to the charter, thereby promoting higher standards and accountability.

While acknowledging that the mayoral office currently lacks the power to impose private rent controls, Craig commits to campaigning for the devolution of such powers to Greater Manchester. In the meantime, she will establish a Commission on Rents to explore how rent limits, caps, or controls could be implemented locally.

Context and implications for landlords and letting agents

The proposals come amid ongoing debates about the balance between protecting tenants and supporting landlords in the private rented sector. Greater Manchester has been a focal point for housing policy innovation, with the Good Landlord Charter representing an early attempt to encourage responsible landlord behaviour voluntarily.

Expanding Article 4 Directions to restrict HMOs could significantly impact landlords who specialise in multi-occupancy properties, potentially reducing the supply of such accommodation or increasing compliance costs. Planning consent requirements add an additional layer of regulation that may deter some investors or require adjustments to business models.

The proposed Renters Rights Unit would increase enforcement activity in the region, making compliance with the Renters Rights Act and other housing regulations more critical for landlords and letting agents. This could lead to more frequent inspections, investigations, and penalties for non-compliance.

Practical considerations for landlords and agents in Greater Manchester

Landlords should review their portfolios to identify properties that might be affected by new Article 4 Directions or other local planning changes. Engaging with local authorities and monitoring consultation processes will be important to anticipate and respond to regulatory shifts.

Participation in the Good Landlord Charter may become a prerequisite for accessing local funding and support, so landlords should familiarise themselves with its requirements and benefits. Signing up could also demonstrate a commitment to quality and tenant welfare, which may be advantageous in a more regulated environment.

Letting agents should prepare for increased scrutiny and enforcement by ensuring that tenancy agreements, safety certifications, and property standards comply fully with current legislation. Training staff on the implications of the Renters Rights Act and local policies will be essential to maintain service standards and avoid penalties.

Uncertainties and what to watch for next

The proposals are part of a political manifesto ahead of a by-election, so their implementation depends on the election outcome and subsequent policy decisions. The extent to which rent controls might be devolved to Greater Manchester remains uncertain, as does the precise scope and powers of the proposed Renters Rights Unit.

Landlords and agents should monitor developments closely, including any formal consultations or legislative changes following the election. The government’s stance on devolving rent control powers and the response of local authorities will shape the regulatory environment significantly.

What landlords should consider now

  • Assess the potential impact of expanded Article 4 Directions on HMO properties and plan accordingly.
  • Review compliance with the Renters Rights Act and prepare for possible increased enforcement activity.
  • Consider joining or aligning with the Good Landlord Charter to access local funding and demonstrate compliance.
  • Stay informed about the Greater Manchester mayoral election results and subsequent housing policy announcements.
  • Engage with local authorities and industry bodies to contribute to consultations and understand emerging regulations.

Supporting landlords through regulatory changes

The Landlord Association (TLA) offers members practical compliance resources and guidance tailored to evolving regulations such as those proposed in Greater Manchester. Through TLA membership, landlords and letting agents can access up-to-date information on tenancy law, property standards, and enforcement trends.

TLA’s new property management and compliance platform, ORBIT, is currently available in BETA testing. It is designed to help landlords organise their portfolios, manage tenancy documents, and keep records of inspections and communications. ORBIT’s tools can assist in preparing for new obligations like those related to the Renters Rights Act and local licensing schemes.

Exploring TLA membership and ORBIT BETA access can support landlords and agents in maintaining compliance and adapting to regulatory developments efficiently.

The election outcome and the responses of local and national government will determine the future regulatory landscape in Greater Manchester. Landlords and agents should remain vigilant and proactive in managing their responsibilities amid potential changes.

Sources: Letting Agent Today

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