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A new body called the Lodger Landlords Association (LLA) has been launched to drive forward greater protection and regulation for individuals in the room rental lodgers market.

Established by entrepreneurs Jerome Mcbean and Shaun Barrett, the LLA will cater to people who rent out a room in their home as well as lodgers who rent these rooms, with a goal to raise protection to levels that exist in other areas of the private rented sector (PRS).

Lobbying for a new legal framework

MT Finance – MPU

The LLA will be lobbying for the existence of a legal framework and wants to provide non-professional live-in landlords with guidance and education to ensure they meet their legal and safety requirements. Non-compliance will also be monitored and discouraged.

As well as working towards a safer sector for everyone, the LLA have also developed insurance solutions specifically for landlords, designed to protect contents and prevent voiding existing cover when taking on a lodger. Other products include a lodger deposit guard and viewings assistance.

The LLA want lodgers to be given the protection of a clear written licence agreement and an unambiguous inventory of the accommodation. They also want deposits to benefit from full regulatory protection within an approved scheme such as what already exists in the wider rental market.

Providing guidance

Richard Blanco, London representative of the National Landlords Association (NLA), commented: “Many live-in landlords would benefit from education and guidance on best practice; the skills that the team at the Lodger Landlords Association aim to deliver will properly equip all who desire to rent a room in their home, without the unnecessary pitfalls that not having the correct guidance can cause.

“Having rightly identified the need for such support, I would recommend those with lodgers take advantage of the membership, training and accreditation being offered, similarly to the NLA for the wider landlord community.”

An LLA spokesperson, Patrick, commented: “With accommodation prices soaring in the UK, especially in London, fewer professionals are able to afford the cost of housing in the capital and other major cities.”

Patrick added: “Though the new tenant fees ban that came into force on June 1st 2019 includes a licence to occupy tenancy that encapsulates lodgers, there remains an overall disregard for the safeguarding and protection of lodgers and landlords that generate over £3.3 billion in the UK economy, leaving millions within this marketplace feeling bypassed as they continue to be the commonly-ignored anomaly in the room rental sector.”

Addressing market concerns

There are currently serious concerns for deposit protection and exploitation of lodgers by landlords, which needs to be addressed, according to the founders of the LLA, Jerome Mcbean and Shaun Barrett. They believe their association is the first step to addressing very real issues for both lodgers and landlords.

The body will also campaign for room rental and flatshare platforms to be subject to some form of recognised regulation, as these are not currently covered by the same rules as agents are.

Given the central role in arranging lettings and lodgings, the LLA believe these platforms need to take more responsibility in terms of vetting to prevent vulnerable parties from being exploited.

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Jim Kersey
Jim focuses on the socio-economic impact of housing. His reporting for Property Notify often touches on topics such as changes in sentiment among investors in various housing sectors, as well as the impact of various developments on the average person.

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3 Comments

  1. Regulation, regulation, regulation, the same old cry that so often crushes and constrains growth. Yes, we badly need more rooms to rent but over regulation is not the way to encourage it. Market competition and the real growth of choice is a far more effective out come.
    Owner occupiers who decide to let rooms are simply not going to do so if they are to be bound in red tape and have their right of control over their own asset compromised. This will reduce supply not increase it.

  2. The simplest way to encourage homeowners to open up their sparerooms to lodgers is to abolish all take on lodger income.
    That will send a massive message to homeowners who may well take the bait and take in lodgers.
    Doing so would greatly assist tenant demand by single people.
    There is massive underutilisation of Residential properties in the UK
    There are reckoned to be 19 million unused spare rooms.
    It is criminal that Govt is not making such spare rooms attractive to let out.
    The current tax free limit should be simply abolished.
    I would suggest that very few live-in LL pay any tax on lodger income even if they receive more.
    There is no way Govt can find out as lodgers pay in cash.
    Lodger LL should be encouraged.
    Get rid of the Room For Rent Allowance allowing all lodger rental income to be tax free.

  3. Taking in lodgers is a very personal thing.
    However I would have no issue in mirroring AST conditions.
    So that would be a 6 month FTT which would then proceed onto a rolling 1 month lodger licence.
    The LL would give two months notice and the tenant one EXCEPT in cases of rent default when the LL would remove the lodger after 1 month notice even if still within a FTT period.
    So lodgers would know as long as they complied with their licence as far as rent was concerned they would have at least 6 months though of course the LL could give that 2 month’s notice at the beginning of the 5th month of a 6 month licence.
    Of course this is the maximum licence conditions.
    If lodgers and LL wished to agree their own conditions then they would be able to do so.
    Lodgers and live-in LL need to be able to finely tune their licence agreements commensurate with their respective domestic requirements.
    It is after all the home of the LL
    As such the LL must have the whip-hand in controlling lodgers in their home.

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