South East: RICS urges Government to develop database of renters

The newly-published RICS Rented Sector Policy Paper has called on the Government to develop a detailed database of renters as part of its Housing White Paper due to be published next year.

The central database of householders in rented properties would be an alternative to the current system of tenant-funded credit and reference checks. It would benefit tenants with poor credit ratings by giving landlords additional information such as previous rent-payment history.

The proposed database would hold landlord references and past-rental payment histories for up to 10 million householders currently living in private and social rented properties across England. Details would only be accessed with the tenant’s permission.   

Jeremy Blackburn, RICS head of policy, said: “An ever-increasing proportion of the population is looking to rent. By 2025, we know that there will be a 1.8 million shortfall in rental properties and that could mean a rise in homelessness. It will be hard enough for those young professionals who cannot afford to buy to find a rental home, but for those on the breadline who cannot provide the usual spread of credit references, it could prove impossible.

Pilots schemes of a similar nature are already being successfully trialled across England. Kettering Borough Council, for example, offers a voluntary tenant-passport scheme for those currently in social housing who wish to move into private rented accommodation. This allows potential landlord to see that they have been good tenants, even though they may have poor credit history.

RICS has also called on the Government to develop and test mechanisms to replace ‘like-for-like’ homes sold through the regional Right to Buy pilot announced as part of the Autumn Statement; to establish a light-touch landlord registration system which would ensure that all let properties across England are known to HMRC and the Home Office; and to return councils to the market place as developers in their own right with a focus on the provision of affordable housing.

The Rented Sector Policy Paper is being launched to coincide with the RICS anti-homelessness campaign – A Home For Cathy – which will see industry leaders from up and down the country come together to develop a manifesto of solutions through which the property and construction sectors could contribute to tackling the homelessness crisis.