4th Report - Housing Conditions in the Private Rented Sector

We welcome the government’s plans to raise the standard of homes in the privately rented sector over the next decade. While most renters are satisfied with their homes, a substantial minority of private renters are living in homes that are sub-standard. Poor conditions in the private rented sector are symptomatic of the country’s wider housing crisis, especially the lack of social and affordable housing. (Conclusion, Paragraph 27)

We urge the government to publish the long-awaited long-term housing strategy by the end of September 2026. We will be assessing whether the strategy addresses the drivers that contribute to poor housing across the country, including in the private rented sector. (Recommendation, Paragraph 28) Raising standards

We welcome the government’s decision to apply the new Decent Homes Standard to privately rented homes. The government has a difficult balance to strike between the need to deliver better homes to tenants quickly while allowing landlords the time they need to upgrade their homes. Regrettably, the ministry’s impact assessment assumes that landlords are likely to wait until shortly before the standard comes into effect in 2035 before upgrading their properties. With over 1 million privately rented homes estimated to be below the existing Decent Homes Standard, we are concerned that many renters will be waiting a long time for their homes to be improved. The government should establish incentives to encourage landlords to upgrade their homes sooner. (Conclusion, Paragraph 41)

The effectiveness of the government’s plans to apply the Decent Homes Standard to the private rented sector rests on how effectively local authorities enforce this standard. We are disappointed that the government only plans to place a duty on local authorities to take enforcement action when Criterion A is breached. This fails to provide sufficient additional 80 protection to tenants. A stronger deterrent could act as an incentive for landlords to ensure their properties comply with the new standard. (Conclusion, Paragraph 42)

We recommend that the government place a duty on local authorities to take enforcement action against any breach of the new Decent Homes Standard, not just breaches of Criterion A. This will act as a stronger incentive for landlords to comply. (Recommendation, Paragraph 43)

The new Private Rented Sector Database provides a useful mechanism for landlords to proactively demonstrate that their properties comply with existing and upcoming standards, including the Decent Homes Standard. This is not a substitute for strong, proactive enforcement. However, we are of the view that the database could provide a useful mechanism to drive up standards, especially as the Act includes provisions designed to deter landlords from providing false information. (Conclusion, Paragraph 44)

We recommend that the new Private Rented Sector Database allows private landlords to self-declare that their properties comply with the new Decent Homes Standard at the earliest opportunity. Using the database in this way would allow landlords who already comply to differentiate themselves from their competitors and encourage early adoption among others. To deter landlords from falsely declaring compliance, local authorities should be supported to use their powers to investigate landlords’ self-declarations and take enforcement action against landlords who falsely declare compliance, especially if they do so knowingly and continuously. The database should also provide an easy mechanism for tenants to report self-declarations they suspect are false. (Recommendation, Paragraph 45)

We welcome the government’s decision to introduce stronger minimum energy efficiency standards that private landlords will need to comply with from 2030. This will help to lift households out of fuel poverty and reduce their exposure to the health risks of living in a cold home. Overall, our view that is that the government has taken proportionate steps in the final design that will help ensure the new standard delivers benefits for tenants without adversely impacting supply. However, we are concerned that the effectiveness of the new standard, and the public’s confidence in it, will be undermined if local authorities are not adequately resourced to enforce it. (Conclusion, Paragraph 53)

The government must ensure local authorities are adequately resourced to ensure landlords comply with the new standard. More detail on this is set out in Chapter 5. (Recommendation, Paragraph 54)

We welcome the government’s decision to apply Awaab’s Law to the private rented sector. While landlords are already required to keep their homes free from serious hazards, Awaab’s Law will strengthen this protection 81 by establishing clear timeframes landlords need to meet to make their homes safe. We are disappointed, however, that the government has not yet committed to a clear timeframe for introducing these protections. (Conclusion, Paragraph 61)

We recommend that the government should begin rolling out Awaab’s Law in the private rented sector this year to ensure that these legal protections are fully in place across the private rented sector by the end of 2028/29. (Recommendation, Paragraph 62) Empowering tenants

The abolition of Section 21 of the Housing Act 1988 will go long way to give tenants greater confidence to complain about poor housing conditions without the worry that their landlord will evict them. However, tenants are still vulnerable to the risk of a retaliatory rent increase that they cannot afford. With many renters already struggling to afford their rent, retaliatory rent increases could act as a form of economic eviction. We are not currently convinced that stricter measures to stabilise rents would be a proportionate step to mitigate this risk, due to the potential consequences this could have on the supply of affordable properties. (Conclusion, Paragraph 71)

The government’s immediate priority must be to ensure the protections that are in place against above-market rent increases through the First- Tier Tribunal are functioning effectively. Tenants must have confidence that the tribunal will settle challenges quickly and accurately. To support the effectiveness of the First-tier Tribunal, we recommend that: a. the government accelerate the establishment of a new body or mechanism to make initial rent determinations; b. require landlords to include current advertised rents and rent histories on the private rented sector database; and c. conduct an initial review of the performance of the First-Tier Tribunal to be published by 1 May 2027 to assess if these protections are working effectively. (Recommendation, Paragraph 72)

We welcome the creation of a new Private Rented Sector Ombudsman. If implemented well, we are confident that the new ombudsman will provide an effective alternative route for redress. However, the government needs to provide further clarity on how the new ombudsman will interact with other parts of the regulatory system, especially local authorities. (Conclusion, Paragraph 75) 82

In its official response to this report, we request that the government provide more information about how the new Private Rented Sector Ombudsman will interact with local authorities and the courts. (Recommendation, Paragraph 76)

We welcome the creation of a private rented sector database. The private rented sector database provides an opportunity to empower prospective and existing tenants with comprehensive information on the fitness of landlords and the quality of the privately rented homes as well as educate tenants on their rights and enable them to report concerns. While we do not wish to delay the rollout of the database, our view is that the government should be more ambitious on the role this database can play. We would like to see further information and functionalities added over time. (Conclusion, Paragraph 79)

The government must ensure that the private rented sector database includes, as a minimum, information on the condition and accessibility of privately rented properties, including details of previous enforcement actions, and the current rent and rent histories. Following the initial rollout, we recommend that the database is developed to provide tenants with guidance on their legal rights and enable them to report concerns to their local authority. (Recommendation, Paragraph 80)

The government is taking positive steps through the Renters’ Rights Act 2025 to empower tenants. While we support the Renters’ Rights Act 2025, we are concerned too much onus remains on individuals to take action against their landlord, either through to courts or soon by approaching the ombudsman for redress. This approach risks neglecting the most vulnerable tenants, especially those at the lowest end of the market where poor conditions are concentrated and vulnerable tenants who may be targeted by rogue landlords seeking to exploit them. For this reason, we are in favour of stronger, more proactive regulation and enforcement of standards in the private rented sector. This is covered in more detail in Chapter 5. (Conclusion, Paragraph 85)

We are concerned that the effectiveness of the Renters’ Rights Act 2025 could be undermined if courts are not ready and sufficiently resourced to cope with the new demands for housing cases. (Conclusion, Paragraph 87)

We recommend that the government publish the metrics it will use to assess whether the courts are coping with the new demands placed on them by the Renters’ Rights Act and regularly report on their progress. (Recommendation, Paragraph 88) 83 Supporting landlords

Most landlords recognise their responsibility to provide tenants with a safe, decent and comfortable home. The government nationally and locally has a role to reduce unintentional non-compliance by educating landlords about their legal responsibilities and supporting them to adopt more professional practices. Nationally, the forthcoming Private Rented Sector Database has the potential to be a useful tool to reduce unintentional non-compliance by providing guidance and training to landlords about their legal responsibilities and encouraging them to undertake works that will ensure their properties meet the required standard. There is also a role for local authorities and strategic authorities to proactively support landlords to ensure their properties meet required standards. (Conclusion, Paragraph 94)

The government must ensure that the private rented sector database provides a useful tool to educate and better inform landlords about their role and responsibilities and encourage them to adopt more professional practices. The database must include information and guidance to landlords on their responsibilities. Over time, the database should be adapted to notify landlords of the introduction of new standards and steps they can take to comply. (Recommendation, Paragraph 95)

The government should provide local authorities and strategic authorities with a ring-fenced portion of the fees from the Private Rented Sector Database to support them to adopt initiatives, such as the Good Landlords Charter, that help tackle unintentional non-compliance among landlords. (Recommendation, Paragraph 96) Regulation and enforcement

We are disappointed to hear a postcode lottery of local authority regulation and enforcement of standards in the private rented sector has persisted for many years. Far too many local authorities are failing to protect tenants and provide a meaningful deterrent against rogue landlords. While local authorities should continue to have discretion over the way they regulate their local private rented markets, the government must do more to ensure councils are held accountable for their performance. (Conclusion, Paragraph 107)

The government must require councils to publish annual reports on the regulation and enforcement of their local private rented markets, including information on their inspection and enforcement activity. Doing so will enable better scrutiny and accountability of local authorities’ activities and responsibilities in each area. (Recommendation, Paragraph 108) 84

We are concerned that many local authorities do not have enough suitability skilled staff to robustly regulate and enforce standards in their private rented markets. If not addressed this problem threatens to undermine the steps the government is taking to raise standards and the effectiveness of other reforms introduced by the Renters’ Rights Act. (Conclusion, Paragraph 113)

The government must conduct and publish a full assessment of the resources and powers currently available to local authorities to regulate and enforce standards in the private rented sector, including the new duties placed on local authorities under the Renters Rights Act. The assessment should consider the resources that will be necessary to allow local authorities to adopt a more proactive approach to regulating standards. (Recommendation, Paragraph 114)

Councils need sustainable, predictable sources of revenue to fund a much- need expansion of regulatory activity. In principle, our view is that the costs of regulating the private rented sector should be borne by all landlords, not just those who breach the law. We fully support the government’s intention to use registration fees from the Private Rented Sector Database as way of funding local authorities’ regulation of the private rented sector, although in practice it is possible that these costs could also be passed on to tenants. It critical that an increase in funding from landlords through fees comes with greater transparency and accountability over local authorities’ performance. (Conclusion, Paragraph 117)

The government must ensure the fees landlords need to pay to register on the Private Rented Sector Database are sufficient to fund a substantial increase in local authority capacity. The government should then use this income to provide an annual ringfenced amount to local authorities to help fund their regulatory activities. (Recommendation, Paragraph 118)

Selective licensing remains a useful tool that local authorities can use to proactively target enforcement activity at areas with the poorest housing conditions. The new Private Rented Sector Database has the potential to complement selective licensing by helping local authorities to target their resources even more effectively at the areas with the poorest housing. More targeted enforcement can help protect the most vulnerable tenants, who may struggle to advocate for themselves and exercise their rights. It is right that local authorities can chose whether to introduce selective licensing schemes. However, we would like to see more local authorities making use of these powers. The government can help by removing barriers that inhibit the uptake and effectiveness of these schemes. (Conclusion, Paragraph 123) 85

We welcome the government’s decision to remove the need for local authorities to seek approval from the Secretary of State before establishing selective licensing schemes. The government needs to go further to remove further barriers that inhibit the uptake and effectiveness of selecting licensing. We recommend that the government should: • extend the maximum length of time for selective licensing schemes to 10 years. Within this period, councils should be required to periodically review their schemes to ensure they remain effective and proportionate. • allow councils to apply to selective licensing schemes regardless of whether the PRS makes up a significant proportion of local housing market or not. • enable local authorities to set licenses conditions that require landlords to make improvements to the physical state of licensed properties. (Recommendation, Paragraph 124) Impact on the supply and affordability of homes

Overall, our view is that the Renters’ Rights Act and other reforms to raise standards constitute a proportionate package of measures that will improve housing conditions for tenants, without having a substantial adverse impact on supply. These reforms need to be a complemented by measures to give greater protections to renters at the lowest end of the market, who are more vulnerable to rent increases and other potential unintended consequences. (Conclusion, Paragraph 136)

We remain of the view that the government should unfreeze the Local Housing Allowance and ensure it matches at least the 30th percentile of market rents to protect households on lower incomes. Doing so will help reduce the risk of rent increases leading to households on the lowest incomes being displaced into poorer accommodation or made homeless. (Recommendation, Paragraph 137) 86