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 …
Government response. 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.
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 …
Government response. 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.
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 …
Government response. 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.
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 …
Government response. 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 …
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 …
Government response. 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, …
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 …
Government response. 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 …
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 …
Government response. 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 …
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, …
Government response. 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 …
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 …
Government response. 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.
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. 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.
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 …
Government response. 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.
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 …
Government response. 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 …
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 …
Government response. 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.
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, …
Government response. 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.
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 …
Government response. 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.
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 …
Government response. 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 …
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 …
Government response. 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.
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 …
Government response. 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.
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 …
Government response. 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.
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 …
Government response. 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.
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 …
Government response. 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 …
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 …
Government response. 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.
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 …
Government response. 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 …
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 …
Government response. 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.
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 …
Government response. 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.
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 …
Government response. 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 …
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 …
Government response. 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.
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 …
Government response. 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 …
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 …
Government response. 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.
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 …
Government response. 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 …
Ministry of Housing, Communities and Local Government