Recommendations & Conclusions
26 items
2
Conclusion
Forty-Ninth Report - Regulation of priv…
Local authorities do not have the capacity and capability to ensure an appropriate level of protection for private renters. Compliance with legal minimum standards is inconsistent across England, and the proportion of privately rented properties with category 1 hazards ranges from 9% in London to 21% in Yorkshire and the …
Government response. 2023. This will reflect the revised costs for defueling/deconstruction and uncontracted liabilities. 2.3 As noted to the Committee, Électricité de France’s (EDF) strategies, plans and the estimated costs are scrutinised, challenged, and approved by the Non-NDA liabilities assurance team (NLA) …
HM Treasury
3
Conclusion
Forty-Ninth Report - Regulation of priv…
The Department is not doing enough to support local authorities to regulate effectively. The dozens of legislative powers used by local authorities are complex and spread across multiple enforcement bodies, creating a fragmented and disempowered regulatory system. Local authorities say that they could regulate better with more support and sharing …
Government response. The government agrees with the Committee’s recommendation. Target implementation date: Summer 2023 3.2 The department recognises the value in sharing good practice across LAs and have supported them to develop their approaches to driving up standards through e.g., roadshows. The …
HM Treasury
4
Conclusion
Forty-Ninth Report - Regulation of priv…
Local Authorities are constrained by the Department’s approach to licensing landlords. In 2010, the Department introduced legislation allowing local authorities to require licences from landlords for more properties that the minimum requirements (the only properties that need licenses are larger houses in multiple occupation—those with at least five people from …
Government response. The government disagrees with the Committee’s recommendation. 4.2 Selective licensing schemes when used as part of a wider, well planned, coherent initiative, can be an effective tool for LAs to drive better outcomes for good landlords and tenants. 4.3 LAs …
HM Treasury
5
Conclusion
Forty-Ninth Report - Regulation of priv…
The Department lacks good enough data to understand the nature and extent of problems renters face. The Department lacks sufficient data on the challenges facing landlords, tenants, and local authorities within the sector. For example, it lacks robust data on complaints, overcrowding, harassment and evictions, and has a limited understanding …
Government response. The government agrees with the Committee’s recommendation. Target implementation date: Spring 2023 5.2 The department utilises a range of data from various sources to inform policy decisions and ensure effective private rented sector (PRS) regulation, regularly engaging with other government …
HM Treasury
6
Conclusion
Forty-Ninth Report - Regulation of priv…
The Department’s forthcoming White Paper offers an opportunity for significant improvement to the private rented sector. In the past ten years, the Department has made several positive legislative changes in the private rented sector, such as providing tenants with protection from eviction during the COVID-19 pandemic and banning unnecessary charges …
Government response. The government agrees with the Committee’s recommendation. Target implementation date: Spring 2023 6.2 The government recognises the importance of developing a coherent approach to PRS reforms. The role of PRS has changed in recent decades, as the sector has doubled …
HM Treasury
1
Conclusion
Forty-Ninth Report - Regulation of priv…
On the basis of a report by the Comptroller and Auditor General, we took evidence from the Department for Levelling up, Housing and Communities (the Department).3
Government response. Based on a report by the National Audit Office, the Committee took evidence on 31 January 2022 from the Department for Levelling Up, Housing and Communities. The Committee published its report on 13 April 2022. This is the government’s response …
HM Treasury
7
Conclusion
Forty-Ninth Report - Regulation of priv…
Lack of capacity constrains local authorities’ support to renters and use of enforcement powers. Many local authorities take a light touch or “fire-fighting” approach, as they do not have the capacity to protect tenants and ensure landlords comply with regulations.14 For example, tenancy relations officers provide valuable support to tenants …
Government response. 1. PAC conclusion: The considerable uncertainty facing the Programme has caused a loss of the critical skills needed to develop the business case, created delays and increased the risk of nugatory spending and health and safety incidents. 1. PAC recommendation: …
HM Treasury
8
Conclusion
Forty-Ninth Report - Regulation of priv…
The Department has introduced various pieces of legislation which give local authorities a range of tools and powers to enforce compliance in the private rented sector, such as civil penalties and banning orders.19 However, over time this has resulted in dozens of legislative powers used by local authorities, which are …
Government response. The government agrees with the Committee’s recommendation. Target implementation date: Summer 2023 3.2 The department recognises the value in sharing good practice across LAs and have supported them to develop their approaches to driving up standards through e.g., roadshows. The …
HM Treasury
9
Conclusion
Forty-Ninth Report - Regulation of priv…
The Department therefore has an important role to play in using its national perspective to identify and disseminate good practice among local authorities and help them regulate effectively.22 While it has provided some grant funding for project work (£6.7 million since 2019) and held roadshows across England, much of this …
Government response. The government agrees with the Committee’s recommendation. Target implementation date: Summer 2023 3.2 The department recognises the value in sharing good practice across LAs and have supported them to develop their approaches to driving up standards through e.g., roadshows. The …
HM Treasury
10
Conclusion
Forty-Ninth Report - Regulation of priv…
The Department does not have a good enough understanding of what regulatory approaches work at local level to help local authorities ensure that landlords comply with their obligations. It has limited data on what tools and approaches are even used by local authorities, as there is no requirement for councils …
Government response. 3: PAC conclusion: The Department is not doing enough to support local authorities to regulate effectively. 3: PAC recommendation: The Department should take a more proactive approach to supporting local regulators and sharing good practice. To do so, it should …
HM Treasury
11
Conclusion
Forty-Ninth Report - Regulation of priv…
The Department also does not know in detail what challenges local authorities are facing, and lacks an early warning system to identify where local regulation is failing private renters. It does not collect data, for example, on the number of complaints, the number of inspections, or the number of staff …
Government response. 3: PAC conclusion: The Department is not doing enough to support local authorities to regulate effectively. 3: PAC recommendation: The Department should take a more proactive approach to supporting local regulators and sharing good practice. To do so, it should …
HM Treasury
12
Conclusion
Forty-Ninth Report - Regulation of priv…
In 2010, the Department introduced legislation allowing local authorities to require licences from landlords for more properties than the minimum requirements (the only properties that need licenses are larger houses in multiple occupation—those with at least five people from more than one household).26 The Department told us that local authorities …
Government response. 4: PAC conclusion: Local Authorities are constrained by the Department’s approach to licensing landlords. 4: PAC recommendation: As part of its planned reforms, the Department should assess whether current arrangements for licensing schemes are working, and whether alternative arrangements may …
HM Treasury
13
Conclusion
Forty-Ninth Report - Regulation of priv…
In 2015, the Department added a requirement that selective licensing schemes covering over 20% of a council’s local area or rented housing stock must be approved by the Secretary of State. It told us it introduced this requirement to ensure robustness and consistency in the way licensing schemes are used.28 …
Government response. 4: PAC conclusion: Local Authorities are constrained by the Department’s approach to licensing landlords. 4: PAC recommendation: As part of its planned reforms, the Department should assess whether current arrangements for licensing schemes are working, and whether alternative arrangements may …
HM Treasury
14
Conclusion
Forty-Ninth Report - Regulation of priv…
To apply for approval for a selective licensing scheme, local authorities need a good understanding of their local private rental market, which is hard to gather without already having a scheme in place.30 The time and resource needed to produce an application, and the requirement that schemes last only five …
Government response. 4: PAC conclusion: Local Authorities are constrained by the Department’s approach to licensing landlords. 4: PAC recommendation: As part of its planned reforms, the Department should assess whether current arrangements for licensing schemes are working, and whether alternative arrangements may …
HM Treasury
15
Conclusion
Forty-Ninth Report - Regulation of priv…
Long wait times, made worse during the COVID-19 pandemic, are also a barrier to local regulation.33 For example, Liverpool City Council had a city-wide scheme from 2015 to 2020 that was popular locally, which lapsed while the Department was considering the Council’s application to renew the scheme for another five …
Government response. 4: PAC conclusion: Local Authorities are constrained by the Department’s approach to licensing landlords. 4: PAC recommendation: As part of its planned reforms, the Department should assess whether current arrangements for licensing schemes are working, and whether alternative arrangements may …
HM Treasury
16
Conclusion
Forty-Ninth Report - Regulation of priv…
Tenants have a legal right to a safe and secure home that is free from serious health hazards. However, they face significant barriers to realising this right, and many experience significant issues which can result, for example, in serious illness, harassment or homelessness. Some 13% of privately rented homes in …
Government response. 1: PAC conclusion: It is too difficult for renters to realize their legal right to a safe and secure home. 1: PAC recommendation: Alongside its Treasury Minute response the Department should write to the Committee to set out how it …
HM Treasury
17
Conclusion
Forty-Ninth Report - Regulation of priv…
The current system for renters to resolve problems relies on them being aware of, and enforcing, their own rights. However, tenants often do not know how to complain or do not have the confidence to do so. Charities such as Shelter and Citizens Advice try to plug the gaps where …
Government response. 1: PAC conclusion: It is too difficult for renters to realize their legal right to a safe and secure home. 1: PAC recommendation: Alongside its Treasury Minute response the Department should write to the Committee to set out how it …
HM Treasury
18
Conclusion
Forty-Ninth Report - Regulation of priv…
The complaints and redress mechanisms available to renters are also limited and complex. While there are mandatory redress schemes for social housing and for letting agency work, these are voluntary for private landlords and so most tenants must use the courts system to resolve disputes.40 We heard from tenant representatives …
Government response. 1: PAC conclusion: It is too difficult for renters to realize their legal right to a safe and secure home. 1: PAC recommendation: Alongside its Treasury Minute response the Department should write to the Committee to set out how it …
HM Treasury
19
Conclusion
Forty-Ninth Report - Regulation of priv…
The Department told us that as part of its reform agenda, it plans to end Section 21 work and introduce a mandatory redress scheme for landlords, with which it intends to empower tenants and improve landlord compliance.42 However, the Department is yet to assess the success of its existing redress …
Government response. 1: PAC conclusion: It is too difficult for renters to realize their legal right to a safe and secure home. 1: PAC recommendation: Alongside its Treasury Minute response the Department should write to the Committee to set out how it …
HM Treasury
20
Conclusion
Forty-Ninth Report - Regulation of priv…
To ensure that regulation and other forms of support are effective in protecting renters, the Department needs good data and insight into their experiences and the challenges they face. The Department told us that as part of its upcoming White Paper proposals, it is committed to understanding tenants’ perspectives and …
Government response. 5: PAC conclusion: The Department lacks good enough data to understand the nature and extent of problems renters face. 5: PAC recommendation: The Department should develop a coherent data strategy to identify and collect the data it needs to: • …
HM Treasury
21
Conclusion
Forty-Ninth Report - Regulation of priv…
However, the Department acknowledged gaps and limitations in its current data, and it is reliant on tenant representatives such as Shelter and Citizens Advice to understand tenant experiences.47 For example, it estimates that during the COVID-19 pandemic, over-crowding peaked at 15% of rented homes, double what it was in 2019–20. …
Government response. 5: PAC conclusion: The Department lacks good enough data to understand the nature and extent of problems renters face. 5: PAC recommendation: The Department should develop a coherent data strategy to identify and collect the data it needs to: • …
HM Treasury
22
Conclusion
Forty-Ninth Report - Regulation of priv…
Data gaps also mean the Department does not collect the information it needs to evaluate the impact of recent legislative changes. For example, in 2015 it introduced changes in the Deregulation Act to protect tenants from retaliatory eviction after raising complaints with their local authority.51 However, we heard from tenant …
Government response. 5: PAC conclusion: The Department lacks good enough data to understand the nature and extent of problems renters face. 5: PAC recommendation: The Department should develop a coherent data strategy to identify and collect the data it needs to: • …
HM Treasury
23
Conclusion
Forty-Ninth Report - Regulation of priv…
Many issues facing both landlords and tenants relate to other policy areas, such as housing benefits, tax laws and courts systems. There is therefore a need for cross-government working and data-sharing to understand the wider impacts of planned legislative changes on landlords and tenants.54 The Department told us that it …
Government response. 6: PAC conclusion: The Department’s forthcoming White Paper offers an opportunity for significant improvement to the private rented sector. 6: PAC recommendation: As part of its planned reforms, the Department should ensure it has a full understanding of the cumulative …
HM Treasury
24
Conclusion
Forty-Ninth Report - Regulation of priv…
The Department has made some improvements to the private rented sector in the past ten years. This includes banning unnecessary charges through the Tenant Fees Act 46 Q 90 47 Qq 91, 93 48 Q 65 49 Qq 92, 93; C&AG’s Report, para 2.14 50 C&AG’s Report, para 19 51 …
Government response. The government recognises the improvements made to the private rented sector in the past ten years, including banning unnecessary charges through the Tenant Fees Act and deposit protection schemes.
HM Treasury
25
Conclusion
Forty-Ninth Report - Regulation of priv…
The Department highlighted that its recent work has rightly focused on responding to the COVID-19 pandemic, during which it introduced protections through a temporary restriction on eviction proceedings. The Department told us it continues to monitor the situation as restrictions are lifted. Landlords have also suffered during the pandemic, for …
Government response. The government recognises the challenges of the COVID-19 pandemic, including pressures faced by both landlords and tenants.
HM Treasury
26
Conclusion
Forty-Ninth Report - Regulation of priv…
The Department told us it is now returning to the strategic reform agenda and intends to publish a White Paper later in 2022.59 It has highlighted specific issues it plans to address as part of its reforms, including security of tenure, enforcement, and redress.60 However, it has not set out …
Government response. The government recognises the need for greater fairness in the system to allow renters to realise their right to a safe and secure home and will bring forward a landmark Renters Reform Bill in this Parliamentary session. The government published …
HM Treasury