Recommendations & Conclusions
30 items
1
Conclusion
Fifth Report - Reforming the Private Re…
Acknowledged
The abolition of fixed-term tenancies, combined with the abolition of section 21, would undoubtedly give tenants greater security of tenure. We understand the argument that fixed-term tenancies should remain available where both parties want them, but in practice, given the current shortage of private rental properties, this would likely result …
Read more
The abolition of fixed-term tenancies, combined with the abolition of section 21, would undoubtedly give tenants greater security of tenure. We understand the argument that fixed-term tenancies should remain available where both parties want them, but in practice, given the current shortage of private rental properties, this would likely result in tenants having fixed terms forced on them. A reasonable balance needs to be struck between security of tenure for tenants and a degree of certainty for landlords. We therefore recommend that tenants be unable to give two months’ notice to leave until they have been in a property for at least four months. This will give landlords the legal certainty of at least six months’ rent at the start of a tenancy.
Show less
Government response AI summary
The government states tenants will be able to give notice at any point during the tenancy to avoid replication of fixed terms, and has increased the notice period to two months to ensure landlords have sufficient guarantee of rent.
Read full response →
Ministry of Housing, Communities and Local Government
2
Recommendation
Fifth Report - Reforming the Private Re…
Accepted in Part
The one exception is the general student PRS market. The abolition of fixed-term contracts could make letting to students considerably less attractive to private landlords and so ultimately push up rents or reduce the availability of student rental properties, at a time when the market in many university towns and …
Read more
The one exception is the general student PRS market. The abolition of fixed-term contracts could make letting to students considerably less attractive to private landlords and so ultimately push up rents or reduce the availability of student rental properties, at a time when the market in many university towns and cities is already very tight. The exemption for purpose-built accommodation will only make the situation worse by potentially forcing students into that side of the market, which is already more expensive and less appropriate for students beyond the first year of study. We recognise, however, that some landlords might seek to abuse the exemption by letting to non-students and thereby circumventing the tenancy reforms. The Government should retain fixed-term tenancies in the entire student housing sector but require all landlords letting to students to sign up to one of the existing government-approved codes of conduct. In the longer term, the Government should consider replacing the existing codes with a single national code. It should also consider ways of preventing or deterring landlords from abusing the exemption, including by introducing financial penalties for those who do not let student accommodation primarily to non-students.
Show less
Government response AI summary
The government will introduce a ground for possession that will facilitate the yearly cycle of short-term student tenancies, but rejects retaining fixed terms as it unfairly locks students into contracts. It will not introduce codes which cover all student housing.
Read full response →
Ministry of Housing, Communities and Local Government
3
Conclusion
Fifth Report - Reforming the Private Re…
Accepted in Part
We recognise that the majority of private landlords are responsible and have no desire or financial incentive to evict tenants without good reason, and that for these landlords section 21 feels like an indispensable means of evicting bad tenants, but the blight of unfair eviction and insecurity of tenure experienced …
Read more
We recognise that the majority of private landlords are responsible and have no desire or financial incentive to evict tenants without good reason, and that for these landlords section 21 feels like an indispensable means of evicting bad tenants, but the blight of unfair eviction and insecurity of tenure experienced by too many tenants today can only be remedied by its repeal. We remain concerned, however, that the proposed sales and occupation grounds, as currently designed, could be too easily exploited by bad landlords and become a backdoor to no-fault evictions.
Show less
Government response AI summary
The government is retaining the two-month notice period and will mitigate misuse of the sales/occupation grounds by restricting landlords from remarketing/reletting within three months of using those grounds.
Read full response →
Ministry of Housing, Communities and Local Government
4
Recommendation
Fifth Report - Reforming the Private Re…
Accepted in Part
We recommend that the Government: • increase from six months to one year the period at the start of a tenancy during which the landlord may not use either ground; • increase the notice period from two months to four months, to give tenants time to save up for moving …
Read more
We recommend that the Government: • increase from six months to one year the period at the start of a tenancy during which the landlord may not use either ground; • increase the notice period from two months to four months, to give tenants time to save up for moving costs and find alternative accommodation; 58 Reforming the Private Rented Sector • increase from three months to six months the period following the use of either the sales ground or the occupation ground during which the landlord may not market or relet the property; and • in the case of the sales ground, encourage landlords to sell with sitting tenants—for example, by requiring the property to be advertised for sale with sitting tenants for six months before an eviction notice can be served.
Show less
Government response AI summary
The government has declined to increase the initial period where landlords cannot use grounds for possession to one year or increase the notice period to four months, but will maintain the current six-month restriction and two-month notice period. The government will mitigate misuse of grounds …
Read full response →
Ministry of Housing, Communities and Local Government
5
Conclusion
Fifth Report - Reforming the Private Re…
Acknowledged
Before section 21 can be repealed, landlords must have confidence in their ability to regain possession under section 8, especially in the case of rent arrears and antisocial behaviour. The biggest obstacle to this is the capacity of the courts. We continue to maintain that the best way to improve …
Read more
Before section 21 can be repealed, landlords must have confidence in their ability to regain possession under section 8, especially in the case of rent arrears and antisocial behaviour. The biggest obstacle to this is the capacity of the courts. We continue to maintain that the best way to improve the housing court system is to establish a specialist housing court, and we do not think the Government has given a satisfactory reason for rejecting this proposal. We are concerned that the Government does not fully appreciate the extent to which an unreformed courts system could undermine its tenancy reforms.
Show less
Government response AI summary
The government recognises the importance of making the court process smooth and efficient and is working with the Ministry of Justice and HM Courts and Tribunal Service to drive forward improvements to the court possession process, including digitising the process, exploring prioritisation of certain cases, …
Read full response →
Ministry of Housing, Communities and Local Government
6
Recommendation
Fifth Report - Reforming the Private Re…
Accepted in Part
We strongly recommend that the Government introduce a specialist housing court as the surest way of unblocking the housing court process. Whether it does this or not, it is absolutely essential that the Government significantly increase the courts’ ability to process possession claims quickly and efficiently and in a way …
Read more
We strongly recommend that the Government introduce a specialist housing court as the surest way of unblocking the housing court process. Whether it does this or not, it is absolutely essential that the Government significantly increase the courts’ ability to process possession claims quickly and efficiently and in a way that is fair to both landlords and tenants. This must involve prioritising and fast-tracking all possession claims in respect of rent arrears and antisocial behaviour. In consultation with landlords, the Government should also agree how quickly the courts need to be processing possession claims before landlords can have confidence in the system, and then commit to meeting this target before abolishing section 21. It should also collect and regularly publish data on its progress towards meeting this target.
Show less
Government response AI summary
The government is working with the Ministry of Justice and HM Courts and Tribunal Service to improve the court possession process, including digitizing more of the process, exploring prioritization of certain cases like antisocial behavior, improving bailiff recruitment, and providing early legal advice for tenants. …
Read full response →
Ministry of Housing, Communities and Local Government
7
Recommendation
Fifth Report - Reforming the Private Re…
Accepted in Part
A properly functioning courts system should resolve most of the issues with the process of seeking possession under section 8, but further adjustments to the discretionary ground for possession in respect of antisocial behaviour are also necessary. As currently designed, the discretionary nature of this ground will make it more …
Read more
A properly functioning courts system should resolve most of the issues with the process of seeking possession under section 8, but further adjustments to the discretionary ground for possession in respect of antisocial behaviour are also necessary. As currently designed, the discretionary nature of this ground will make it more difficult to prove antisocial behaviour, as residents might be less likely to give evidence if the outcome is uncertain. Whilst we recognise the argument for giving the courts discretion when someone’s home is at stake, we think the impact of antisocial behaviour on communities and landlords, and the compensating abolition of section 21, justify making this ground mandatory. The Government should make existing ground 14 mandatory and issue guidance to the courts setting out the precise definition of antisocial behaviour and the circumstances in which they must grant possession. It should also publish equivalent guidance to landlords and tenants on what constitutes antisocial behaviour and the evidential threshold required to prove it in court. (Paragraph 50) Housing standards and enforcement
Show less
Government response AI summary
The government agrees with the intent to ensure landlords can act more quickly to evict antisocial tenants and will make grounds for possession faster and easier to prove, while maintaining judicial discretion in antisocial behaviour cases and will reduce the notice period for the mandatory …
Read full response →
Ministry of Housing, Communities and Local Government
8
Recommendation
Fifth Report - Reforming the Private Re…
Deferred
The rate of non-decency in the private rented sector (PRS) is much higher than in the social housing sector, so we welcome the introduction of a legally binding decent homes standard (DHS). The cost to landlords of meeting the new standard could, in some instances, become an obstacle to compliance, …
Read more
The rate of non-decency in the private rented sector (PRS) is much higher than in the social housing sector, so we welcome the introduction of a legally binding decent homes standard (DHS). The cost to landlords of meeting the new standard could, in some instances, become an obstacle to compliance, but we do not think this point should be overstated. As the Government says, four-fifths of PRS homes already Reforming the Private Rented Sector 59 meet the social housing DHS. Furthermore, since compliance with criterion A (the requirement that all homes be free of category 1 hazards) is already effectively a legal requirement, under the Homes (Fit for Human Habitation) Act 2018, this part of the new DHS would not place a significant additional expectation on landlords, and the Government should feel under no obligation to consider the financial burden on landlords whose properties do not comply.
Show less
Government response AI summary
The government welcomes the introduction of a legally binding Decent Homes Standard (DHS) and has held technical consultations with stakeholders to consider implementation issues. These include the time landlords need to comply, how to balance certainty and minimum standards, and the need to align implementation …
Read full response →
Ministry of Housing, Communities and Local Government
9
Conclusion
Fifth Report - Reforming the Private Re…
Deferred
In respect of criteria B, C and D, the Government says it is considering a cap on costs, above which landlords would be considered compliant, as is already the case with the minimum energy efficiency standards (MEES). We agree with this, on the basis that it would be unreasonable and …
Read more
In respect of criteria B, C and D, the Government says it is considering a cap on costs, above which landlords would be considered compliant, as is already the case with the minimum energy efficiency standards (MEES). We agree with this, on the basis that it would be unreasonable and counter-productive to expose landlords with older stock to the cost of upgrades. In the case of the MEES and criterion D, however, this should not mean that some homes get neglected, especially given the extremely strong correlation between energy efficiency and decency. We also do not understand why the Government does not simply align criterion D with the MEES. It would seem an easy, if modest, simplification of an overly complicated regulatory regime.
Show less
Government response AI summary
The government is considering a cap on costs and alignment of criterion D with MEES, and is working to understand landlords’ circumstances through ongoing technical consultations.
Read full response →
Ministry of Housing, Communities and Local Government
10
Conclusion
Fifth Report - Reforming the Private Re…
Rejected
We are concerned that detached private rented homes with a floor space under 50 square metres are exempt from the MEES, although it is unclear how many homes fall into this category.
Government response AI summary
The government has scrapped proposals to require landlords to meet EPC C from 2025 in their private rented properties; landlords can still take advantage of government-backed schemes to improve energy efficiency but at a time that suits them.
Read full response →
Ministry of Housing, Communities and Local Government
11
Recommendation
Fifth Report - Reforming the Private Re…
Rejected
Given the importance of the MEES to the Government’s net zero strategy, not to mention the health, cost and other benefits of living in a warm home, we recommend that the MEES be incorporated into criterion D and that the Government come up with financing solutions for PRS landlords for …
Read more
Given the importance of the MEES to the Government’s net zero strategy, not to mention the health, cost and other benefits of living in a warm home, we recommend that the MEES be incorporated into criterion D and that the Government come up with financing solutions for PRS landlords for whom the cost of the necessary improvement works would exceed the £10,000 cap. We also recommend that the Government determine the number of homes in the PRS exempt from the MEES by virtue of having a total floor space under 50 square metres and then consider the possible merits of legislating to revoke this exemption.
Show less
Government response AI summary
The government scrapped proposals to require landlords to meet EPC C from 2025, stating landlords can still use government-backed schemes to improve energy efficiency at a time that suits them.
Read full response →
Ministry of Housing, Communities and Local Government
12
Recommendation
Fifth Report - Reforming the Private Re…
Acknowledged
If the decent homes standard is to improve standards in the private rented sector, local authorities will have to enforce it vigorously, but at the moment levels of housing enforcement activity vary hugely between local authorities. We accept that much enforcement activity is, and should remain, informal, especially, at least …
Read more
If the decent homes standard is to improve standards in the private rented sector, local authorities will have to enforce it vigorously, but at the moment levels of housing enforcement activity vary hugely between local authorities. We accept that much enforcement activity is, and should remain, informal, especially, at least initially, where landlords are non-compliant out of ignorance, but if the proposals are to deter the very worst landlords, enforcement rates will have to improve significantly across the vast majority of local authorities. For this reason, we welcome the proposals to improve enforcement, particularly the property portal, which could be revolutionary, provided it is designed and implemented properly and holds the right information. To this end, the Government should include the following in the information landlords are required to enter on the property portal: all gas and electrical safety certificates and reports; any other reports generated by tradespeople; energy performance data; and details of ombudsman membership and membership of a deposit protection scheme. Furthermore, the Government should take action now to digitise the certificates and other reports that are to be uploaded to the portal, so that rather than being a mere repository of information that has to be trawled through, a coding system can be implemented to enable the portal to verify that documentation is in date and that there are no issues that need addressing. To deter landlords from entering false or misleading information, the 60 Reforming the Private Rented Sector Government should also introduce financial penalties for such offences. This would be consistent with its proposal for deterring landlords from self-declaring inaccurate information regarding compliance with the decent homes standard. Finally, we urge the Government to incorporate the functions of the database of rogue landlords and property agents into the portal as soon as possible.
Show less
Government response AI summary
The government agrees a strong enforcement regime is vital and is committed to ensuring local councils have the powers and resources they need to tackle criminal landlords. The Levelling Up, Housing and Regeneration Bill includes measures to set minimum standards for enforcement, which they will …
Read full response →
Ministry of Housing, Communities and Local Government
13
Conclusion
Fifth Report - Reforming the Private Re…
Acknowledged
We are conscious, however, that the financial position of local authorities remains extremely precarious, that this partly explains the lack of enforcement activity, and that some of these proposals will place an additional burden on local authorities’ resources. The Government is yet to carry out the new burdens assessment it …
Read more
We are conscious, however, that the financial position of local authorities remains extremely precarious, that this partly explains the lack of enforcement activity, and that some of these proposals will place an additional burden on local authorities’ resources. The Government is yet to carry out the new burdens assessment it promised in the White Paper, but we are aware that many of the proposals are intended to be self-financing, either through fines on non-compliant landlords or fees paid by all landlords (for the ombudsman and the property portal). It appears, then, that the biggest new burden on local authorities will be enforcement of the DHS, particularly the inspection of properties, at least during the initial phase of the new regime, before it has had time to become self-financing.
Show less
Government response AI summary
The government agrees a strong enforcement regime is vital and is committed to ensuring local councils have the powers and resources needed and is addressing inconsistencies in enforcement activity.
Read full response →
Ministry of Housing, Communities and Local Government
14
Recommendation
Fifth Report - Reforming the Private Re…
Acknowledged
In the current economic climate, we accept that the Government is unlikely to provide significant additional long-term funding for local authorities, but it must consult them, if it has not already done so, on how much short-term funding they will need to get the regime up and running. In particular, …
Read more
In the current economic climate, we accept that the Government is unlikely to provide significant additional long-term funding for local authorities, but it must consult them, if it has not already done so, on how much short-term funding they will need to get the regime up and running. In particular, local and central government should agree what staffing levels will be required and then fund their recruitment. The Government should also assess the availability of environmental health officers and other enforcement staff and work with the sector to ensure that enough places on training courses are available. Local authorities will need many more enforcement officers if the proposals are to make a meaningful difference.
Show less
Government response AI summary
The government agrees a strong enforcement regime is vital and is committed to ensuring local councils have the powers and resources needed and is addressing inconsistencies in enforcement activity.
Read full response →
Ministry of Housing, Communities and Local Government
15
Conclusion
Fifth Report - Reforming the Private Re…
Acknowledged
The new regulatory regime will only become self-financing if local authorities can recoup the cost of enforcement from non-compliant landlords, but we have heard from local government representatives that the civil penalties regime, which in theory should fund enforcement activity, is currently not working for local authorities, and this is …
Read more
The new regulatory regime will only become self-financing if local authorities can recoup the cost of enforcement from non-compliant landlords, but we have heard from local government representatives that the civil penalties regime, which in theory should fund enforcement activity, is currently not working for local authorities, and this is evident from the data on their use. We are also concerned by the apparent difficulty some local authorities experience when seeking to prosecute landlords for housing offences, including the claim that landlords can avoid prosecution by simply transferring ownership.
Show less
Government response AI summary
The government agrees a strong enforcement regime is vital and is committed to ensuring local councils have the powers and resources needed and is addressing inconsistencies in enforcement activity.
Read full response →
Ministry of Housing, Communities and Local Government
16
Recommendation
Fifth Report - Reforming the Private Re…
Acknowledged
If it is not already doing so, the Government should consult local authorities about what amendments are needed to the civil penalties regime and include any necessary legislative changes in the proposed renters reform Bill. In particular, we recommend that non-payment of a civil penalty be made a criminal offence …
Read more
If it is not already doing so, the Government should consult local authorities about what amendments are needed to the civil penalties regime and include any necessary legislative changes in the proposed renters reform Bill. In particular, we recommend that non-payment of a civil penalty be made a criminal offence and that local authorities be given the power to register an unpaid penalty as a legal charge on the property. We also again recommend that the Government remove the requirement on local authorities to obtain the permission of the Secretary of State to introduce a selective licensing regime covering more than 20% of private rented homes in their areas. It should be for local government, unencumbered by too much central control, to decide the best way to enforce housing standards. Finally, on prosecutions, we repeat the recommendation of our predecessor Committee in its 2018 report, Private rented sector, that courts require offenders to pay costs to local authorities that reflect the actual cost of the enforcement action. We also ask the Government to clarify whether Reforming the Private Rented Sector 61 landlords are able to avoid prosecution for housing offences by transferring ownership of the property before the court hearing. If this is the case, we recommend it consult on what changes are necessary to prevent this from happening. (Paragraph 93) Affordability
Show less
Government response AI summary
The government agrees a strong enforcement regime is vital and is committed to ensuring local councils have the powers and resources they need to tackle criminal landlords. The Levelling Up, Housing and Regeneration Bill includes measures to set minimum standards for enforcement, which they will …
Read full response →
Ministry of Housing, Communities and Local Government
17
Conclusion
Fifth Report - Reforming the Private Re…
Acknowledged
The data suggests that the reduction in the size of the PRS, which the Minister partly attributed to the covid pandemic, began three years before the pandemic, in 2016–17. For this reason, we see little reason to believe the decline is short term, although the pandemic may have exacerbated the …
Read more
The data suggests that the reduction in the size of the PRS, which the Minister partly attributed to the covid pandemic, began three years before the pandemic, in 2016–17. For this reason, we see little reason to believe the decline is short term, although the pandemic may have exacerbated the trend. The only certainty is that the Government does not know what is happening in the PRS and has not said what role it wants it to play in the wider housing mix. In particular, it is difficult not to suspect, given the changes to how the buy-to-let sector is taxed, that the Government would like landlords with smaller portfolios to leave the sector. Whatever the Government’s ultimate intentions, however, there can be no doubt that landlords with small portfolios are currently critical to the provision of private rented accommodation, and the impact of any measures that could make the sector less attractive to them should be carefully thought through.
Show less
Government response AI summary
The government acknowledges the importance of the private rented sector and values the involvement of all responsible landlords, regardless of portfolio size, and states that it wants a thriving private rented sector that helps to accommodate people's housing needs.
Read full response →
Ministry of Housing, Communities and Local Government
18
Recommendation
Fifth Report - Reforming the Private Re…
Acknowledged
We recommend that the Government review the impact of recent changes to taxation rules in the buy-to-let sector, with a view to making changes to make it more financially attractive to smaller landlords. If it is not willing to do this, it should at least be much clearer about what …
Read more
We recommend that the Government review the impact of recent changes to taxation rules in the buy-to-let sector, with a view to making changes to make it more financially attractive to smaller landlords. If it is not willing to do this, it should at least be much clearer about what role it wants the private rented sector to play in the wider housing mix and, in particular, whether it values the involvement of landlords with very small portfolios.
Show less
Government response AI summary
The government acknowledges concerns about the impact of taxation rules but states that the intention was to level the playing field and the private rented sector remains stable in size.
Read full response →
Ministry of Housing, Communities and Local Government
19
Conclusion
Fifth Report - Reforming the Private Re…
Acknowledged
We welcome the Government’s introduction of a tourist accommodation registration scheme and its commitment to consulting on changes to the Town and Country Planning (Use Classes) Order 1987, but it remains to be seen if this will suffice to control the holiday-let market, which is having a serious impact on …
Read more
We welcome the Government’s introduction of a tourist accommodation registration scheme and its commitment to consulting on changes to the Town and Country Planning (Use Classes) Order 1987, but it remains to be seen if this will suffice to control the holiday-let market, which is having a serious impact on some local communities around the country, especially coastal communities. In particular, it is not clear whether a registration scheme introduced under the provisions could place conditions on registration that would allow local authorities to control the spread of the holiday-let market.
Show less
Government response AI summary
The government acknowledges concerns and notes that consultations were held on a registration scheme for short-term lets and a new use class, and the responses are being considered.
Read full response →
Ministry of Housing, Communities and Local Government
20
Recommendation
Fifth Report - Reforming the Private Re…
Deferred
We recommend that the Government use the powers in the Levelling-up and Regeneration Bill, if passed by Parliament, to implement a tourist accommodation registration scheme as soon as possible. We ask that the Government also update us on whether the scheme could and will be used to allow local authorities …
Read more
We recommend that the Government use the powers in the Levelling-up and Regeneration Bill, if passed by Parliament, to implement a tourist accommodation registration scheme as soon as possible. We ask that the Government also update us on whether the scheme could and will be used to allow local authorities to protect their communities from the holiday-let market. The Government should also announce what further action it will take, as soon as the scheme has clarified the extent of the damage being caused by the sector.
Show less
Government response AI summary
The government is introducing a registration scheme for short-term lets and consulted on a new use class. They are carefully considering responses and will respond in due course.
Read full response →
Ministry of Housing, Communities and Local Government
21
Recommendation
Fifth Report - Reforming the Private Re…
Accepted
The current high cost of private renting is rooted in the decades-long failure of successive Governments to build enough homes. We accept that the purpose of the White Paper was not to make the PRS more affordable, and that the Government is investing in house building, but there are questions …
Read more
The current high cost of private renting is rooted in the decades-long failure of successive Governments to build enough homes. We accept that the purpose of the White Paper was not to make the PRS more affordable, and that the Government is investing in house building, but there are questions about the sector’s ability to deliver the necessary number of new homes, particularly given the enormous financial pressures on housing associations and local housing authorities. Ultimately, the affordability crisis in the PRS, the source of many of the other problems in the 62 Reforming the Private Rented Sector sector, can only be properly solved by a significant increase in house building, particularly affordable housing. We call on the Government to recommit to delivering the affordable homes the country needs, particularly the 90,000 social rent homes we have previously concluded are needed every year.
Show less
Government response AI summary
The government states it is on track to meet its manifesto commitment to deliver one million homes and highlights ongoing commitments to housing supply and regeneration, including revisions to the National Planning Policy Framework and support for the Build to Rent sector.
Read full response →
Ministry of Housing, Communities and Local Government
22
Recommendation
Fifth Report - Reforming the Private Re…
Acknowledged
The failure of local housing allowance (LHA) rates to keep pace with market rents is quite obviously making the private rented sector even less affordable for many people who are only there because the social housing sector has been cut back and can no longer accommodate them. If the Government …
Read more
The failure of local housing allowance (LHA) rates to keep pace with market rents is quite obviously making the private rented sector even less affordable for many people who are only there because the social housing sector has been cut back and can no longer accommodate them. If the Government believes the PRS is the right place for those on the lowest incomes, it should at least make sure housing benefit does what it was designed to do and covers benefit recipients’ housing costs. For this reason, it should increase LHA rates to realign them with the 30th percentile in each broad rental market area, and commit to conducting a review as soon as possible into whether they should once more be aligned with the 50th percentile.
Show less
Government response AI summary
The government acknowledges the issue but does not commit to increasing LHA rates to the 30th or 50th percentile, instead highlighting Discretionary Housing Payments and a commitment to reviewing LHA rates annually.
Read full response →
Ministry of Housing, Communities and Local Government
23
Conclusion
Fifth Report - Reforming the Private Re…
Acknowledged
When a tenant objects to an in-tenancy rent increase, they can refer their case to the First-tier Property Tribunal, which determines the market rent for the property. The Government says it will remove the tribunal’s power to increase rents and thereby give tenants greater confidence to challenge unjustified increases. If …
Read more
When a tenant objects to an in-tenancy rent increase, they can refer their case to the First-tier Property Tribunal, which determines the market rent for the property. The Government says it will remove the tribunal’s power to increase rents and thereby give tenants greater confidence to challenge unjustified increases. If this proposal has the desired effect, it ought to result in a heavier workload for the tribunal, yet the process is time-consuming and resource-intensive, as it relies on each individual property being physically inspected and on both parties presenting evidence of local market rents based on online listings. This is inefficient and results in uncertainty for both landlords and tenants around what a justified increase would be.
Show less
Government response AI summary
The government states rents should be agreed between landlords and tenants, and it is not for government to intervene. The First-Tier Tribunal is best placed to resolve disputes, and it will update guidance to support all parties in engaging with the Tribunal.
Read full response →
Ministry of Housing, Communities and Local Government
24
Conclusion
Fifth Report - Reforming the Private Re…
Rejected
Tenants and landlords need access to reliable data on local market rents in comparable properties. The closest available data appears to be that held by the Valuation Office Agency (VOA), which is used to determined local housing allowance rates for broad market rental areas. If sufficiently accurate and granular, this …
Read more
Tenants and landlords need access to reliable data on local market rents in comparable properties. The closest available data appears to be that held by the Valuation Office Agency (VOA), which is used to determined local housing allowance rates for broad market rental areas. If sufficiently accurate and granular, this data could form the basis of a much more efficient system for ensuring justified rent increases. Either the data could be made publicly available or the VOA could be given initial responsibility for determining whether a rent increase is justified. Its decision could then be appealed to the tribunal.
Show less
Government response AI summary
The government rejects intervening in rent setting and states the First-Tier Tribunal is best placed to resolve disputes, and it will update guidance to support engagement with the Tribunal.
Read full response →
Ministry of Housing, Communities and Local Government
25
Recommendation
Fifth Report - Reforming the Private Re…
Rejected
The Government should assess whether the data held by the VOA could be used to determine justified rent increases in the PRS. If it concludes that it could, we recommend either that this information be made public so that landlords and tenants can easily see what a justified rent increase …
Read more
The Government should assess whether the data held by the VOA could be used to determine justified rent increases in the PRS. If it concludes that it could, we recommend either that this information be made public so that landlords and tenants can easily see what a justified rent increase would be or, if it cannot be, that the VOA be given initial responsibility for determining whether an increase is justified, with the tribunal serving as an appeals court. If the Government determines that the data is not suitable for this purpose, it should consider ways of collecting it. One way might be for it to require landlords to declare rent levels through the property portal. Whatever the Government chooses to do, it should explore alternative mechanisms to those currently used for establishing justified rent increases with a view to removing some of the burden from landlords and tenants themselves.
Show less
Government response AI summary
The government rejects intervening in rent setting and states the First-Tier Tribunal is best placed to resolve disputes, and it will update guidance to support engagement with the Tribunal.
Read full response →
Ministry of Housing, Communities and Local Government
26
Recommendation
Fifth Report - Reforming the Private Re…
Rejected
By getting rid of rent review clauses, the Government could be removing a mechanism for predictable and fair rent rises and replacing it with a system that relies on a resource-intensive and time-consuming appeals process. We recommend Reforming the Private Rented Sector 63 that the Government not abolish rent review …
Read more
By getting rid of rent review clauses, the Government could be removing a mechanism for predictable and fair rent rises and replacing it with a system that relies on a resource-intensive and time-consuming appeals process. We recommend Reforming the Private Rented Sector 63 that the Government not abolish rent review clauses but make it a requirement that they stipulate by how much rents will increase. It should also legislate to require all rent review clauses to include break periods during which tenants may appeal to the First-tier Property Tribunal if they think their rent has risen above local market rents. (Paragraph 129) Miscellaneous
Show less
Government response AI summary
The government will not abolish rent review clauses, but states that landlords can increase rents once a year and tenants can challenge this at the First-tier Tribunal if they think it is above market levels. It will not set or steer rent increases.
Read full response →
Ministry of Housing, Communities and Local Government
27
Recommendation
Fifth Report - Reforming the Private Re…
Accepted in Part
Currently, letting agents are required to belong to one of two government-approved ombudsman schemes, the Property Redress Scheme or the Property Ombudsman, but membership for landlords is voluntary. The White Paper proposes the introduction of an ombudsman for all private landlords, regardless of whether they use an agent. The Government …
Read more
Currently, letting agents are required to belong to one of two government-approved ombudsman schemes, the Property Redress Scheme or the Property Ombudsman, but membership for landlords is voluntary. The White Paper proposes the introduction of an ombudsman for all private landlords, regardless of whether they use an agent. The Government says a single scheme will mean a streamlined service for tenants and landlords and avoid the confusion and perverse incentives resulting from multiple schemes. On this basis, we do not understand why the Government is not proposing to replace the existing letting agent schemes with a single ombudsman covering all letting agents and landlords. A single ombudsman for the entire sector is the best way of avoiding the confusion the Government says it wants to avoid. We recommend that the Government introduce a single ombudsman for the whole of the private rented sector and that mediation be firmly embedded within its remit.
Show less
Government response AI summary
The government recognises the value of consolidating the housing redress system, but will address it through the Landlord Ombudsman service and does not think it is necessary to bring different elements of housing redress under a single legal framework.
Read full response →
Ministry of Housing, Communities and Local Government
28
Recommendation
Fifth Report - Reforming the Private Re…
Accepted in Part
The Government says it will make it illegal for landlords to have blanket bans on letting to benefit recipients. If this is a commitment to preventing landlords from discriminating against benefit recipients, it is unrealistic. If it is a commitment to preventing landlords from stating explicitly that they will not …
Read more
The Government says it will make it illegal for landlords to have blanket bans on letting to benefit recipients. If this is a commitment to preventing landlords from discriminating against benefit recipients, it is unrealistic. If it is a commitment to preventing landlords from stating explicitly that they will not consider letting to benefit recipients, it is unambitious. Landlords who do not want to let to benefit recipients will simply choose not to do so. The real issue is twofold: there are not enough homes for rent; and local housing allowance rates have not kept pace with the market in recent years. We call on the Government to explain in response to this report how it intends to prevent landlords from refusing to let to benefit recipients, and we again recommend that it uprate local housing allowance rates so that housing benefit better covers the cost of renting in the private rented sector.
Show less
Government response AI summary
The government will prohibit blanket bans on benefit recipients, but landlords can still make final decisions based on referencing checks. They will work with the insurance sector, explore improvements to welfare support information, and raise awareness of services provided by local councils.
Read full response →
Ministry of Housing, Communities and Local Government
29
Recommendation
Fifth Report - Reforming the Private Re…
Rejected
The proposal to make it easier for landlords to allow pets by making pet insurance a permitted payment under the Tenant Fees Act 2019 is a sensible and proportionate measure that could make a meaningful difference. On the other hand, the proposal to make it illegal for landlords to unreasonably …
Read more
The proposal to make it easier for landlords to allow pets by making pet insurance a permitted payment under the Tenant Fees Act 2019 is a sensible and proportionate measure that could make a meaningful difference. On the other hand, the proposal to make it illegal for landlords to unreasonably withhold consent from those who request permission to have a pet seems impractical, even if a satisfactory definition of “unreasonably withholding consent” could be produced. We recommend that the Government abandon their promise to legislate to make it illegal to unreasonably withhold consent when a tenant requests permission to have a pet. If it cannot accept this recommendation, it should set out in response to this report what would constitute “unreasonably withholding consent” and explain in what circumstances it would be acceptable to force landlords to accept pets, especially where those landlords have had previous negative experiences of tenants with pets.
Show less
Government response AI summary
The government disagrees with abandoning the proposal to strengthen tenants' rights to request to keep a pet, stating landlords can refuse animals if it is reasonable, taking into account factors like the size of the pet and property.
Read full response →
Ministry of Housing, Communities and Local Government
30
Recommendation
Fifth Report - Reforming the Private Re…
Accepted in Part
The success of the Government’s reforms depends to a great extent on tenants knowing their rights, and on landlords knowing that they know them. For this 64 Reforming the Private Rented Sector reason, the Government should update the How to Rent Guide to include details of tenants’ and landlords’ rights …
Read more
The success of the Government’s reforms depends to a great extent on tenants knowing their rights, and on landlords knowing that they know them. For this 64 Reforming the Private Rented Sector reason, the Government should update the How to Rent Guide to include details of tenants’ and landlords’ rights and responsibilities, including, in particular, how tenants can seek redress, and produce foreign language versions of this guide. It should then assess the level of compliance among landlords with the requirement to provide tenants with a copy at the start of a tenancy and, if necessary, consider ways of increasing awareness of it. A tenant whose landlord fails to provide them with a copy of the guide should be able to complain to the ombudsman, and, where the ombudsman upholds such a complaint, it should have the ability to award compensation. More widely, the Government should review the adequacy of advice and support services to tenants, particularly the most vulnerable, and report back to us on how it plans to make sure tenants have the knowledge and confidence to hold their landlord to account. (Paragraph 153) Reforming the Private Rented Sector 65
Show less
Government response AI summary
The government plans to update the 'How to Rent' guide and modernize the way it communicates tenants' rights and responsibilities. They will work with various groups to maximize access to advice and report back to the Select Committee, though the specific request for the ombudsman …
Read full response →
Ministry of Housing, Communities and Local Government