Recommendations & Conclusions
11 items
3
Recommendation
Forty-Ninth Report - Regulation of priv…
Accepted
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 …
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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 of good practice, but the Department is not sufficiently proactive at providing this. 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. The Department also does not know what challenges local authorities are facing, and lacks an early warning system to identify where local regulation is failing private renters. The Department could learn lessons from other areas of consumer protection (such as Trading Standards services), where a national team provides intelligence and support to local regulators. Recommendation: The Department should take a more proactive approach to supporting local regulators and sharing good practice. To do so, it should learn from other consumer protection systems that provide central intelligence and support to local regulators.
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Government response AI summary
The government will run pilot schemes, strengthen LAs' ability to tackle criminal landlords, explore bolstering national oversight of LAs' enforcement, seek to introduce a national framework for setting fines, and continue to fund the National Trading Standards Estates and Lettings Agency Team.
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HM Treasury
6
Recommendation
Forty-Ninth Report - Regulation of priv…
Accepted
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 …
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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 through the Tenant Fees Act and deposit protection schemes. However, these changes have been piecemeal, and the Department does not have a good understanding of what impact they have had on renters, on landlords or on wider issues such as the supply or affordability of rented homes. The Department says that its focus over the past two years has been on responding to the COIVD-19 pandemic, and it is now returning to its commitment to address issues in the private rented sector with an upcoming White Paper. However, it is yet to set out its ambition for the sector and does not yet have a strategy for the market as a whole. Recommendation: As part of its planned reforms, the Department should ensure it has a full understanding of the cumulative impact of proposed changes on tenants, landlords and the housing market as a whole. In doing this, it should work closely with other departments, including formally where appropriate, to understand how the reforms may affect or be affected by other policy areas such as benefits and tax. 8 Regulation of private renting 1 Regulation by local authorities
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Government response AI summary
The government agrees to fully understand the cumulative impact of proposed changes on tenants, landlords, and the housing market, working with other departments and completing an impact assessment by Spring 2023, as well as developing its approach to data collection to monitor the impact of …
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HM Treasury
8
Recommendation
Forty-Ninth Report - Regulation of priv…
Accepted
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 …
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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 complex and spread across multiple enforcement teams including Environmental Health, Trading Standards and Tenancy Relations.20 This creates a fragmented and disempowered regulatory system, particularly in two-tier authorities where some enforcement responsibilities sit separately between district and county councils.21
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Government response AI summary
The government will run pilot schemes trialling improvements to enforcement of existing standards, strengthen LAs’ ability to tackle criminal landlords, bolster national oversight of LAs’ enforcement by requiring them to report on their enforcement activity, and explore seeking to introduce a national framework for setting …
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HM Treasury
9
Recommendation
Forty-Ninth Report - Regulation of priv…
Accepted
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 …
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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 work was stopped due to the COVID-19 pandemic. Local authorities say that they could regulate better with more support and sharing of good practice, but the Department is not proactive at providing this.23 12 Written evidence submitted by Derby City Council dated January 2022 13 C&AG’s Report, para 3.4 14 Qq 1, 2; C&AG’s Report, para 3.11 15 C&AG’s Report, para 3.6 16 C&AG’s Report, para 13 17 Q 2 18 Qq 33, 34 19 C&AG’s Report, para 3.3 20 Q 31 21 C&AG’s Report, para 3.5 22 C&AG’s Report, para 3.1 23 C&AG’s Report, para 21, 3.12- 3.13 10 Regulation of private renting
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Government response AI summary
The government will run pilot schemes, strengthen LAs' ability to tackle criminal landlords, explore bolstering national oversight of LAs' enforcement, seek to introduce a national framework for setting fines, and continue to fund the National Trading Standards Estates and Lettings Agency Team.
Read full response →
HM Treasury
10
Recommendation
Forty-Ninth Report - Regulation of priv…
Accepted
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 …
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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 to record their regulatory activity in the private rented sector or report such information to the Department. It has therefore undertaken only limited evaluation of how council’s powers and regulatory approaches are working in practice. Local authorities said they would find evaluations of what regulatory tools are effective and when particularly helpful, as well as guidance on topics such as setting civil penalties or cross-team working in two-tier authorities.24
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Government response AI summary
The government will run pilot schemes, strengthen LAs' ability to tackle criminal landlords, explore bolstering national oversight of LAs' enforcement, seek to introduce a national framework for setting fines, and continue to fund the National Trading Standards Estates and Lettings Agency Team.
Read full response →
HM Treasury
11
Recommendation
Forty-Ninth Report - Regulation of priv…
Accepted
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 …
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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 who carry out tenancy relations duties that tackle harassment and illegal eviction. The Department does not have a national framework to provide intelligence and support to local regulators and enable them to work together effectively. It could learn lessons from other areas of consumer protection where this type of support exists, such as Trading Standards services.25 Landlord licensing
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Government response AI summary
The government will run pilot schemes, strengthen LAs' ability to tackle criminal landlords, explore bolstering national oversight of LAs' enforcement, seek to introduce a national framework for setting fines, and continue to fund the National Trading Standards Estates and Lettings Agency Team.
Read full response →
HM Treasury
16
Recommendation
Forty-Ninth Report - Regulation of priv…
Accepted
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 …
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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 England have at least one category 1 hazard—a serious threat to health and safety. There is also evidence of discrimination with 25% of landlords unwilling to let to non-British passport holders and 52% unwilling to let to tenants who receive Housing Benefit.35 Through a Section 21 notice, landlords can evict tenants without reason. Half of renters surveyed by the tenant union ACORN, said they had chosen not to raise complaints due to fear of retaliatory eviction.36 A London- based homeless charity also told us that tenants give up on their rights and tolerate poor conditions due to fear of landlord’s threats and intimidation.37
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Government response AI summary
The government will introduce a property portal requiring all private landlords to join, giving private tenants a free redress service, and will learn from a recent mediation pilot to improve alternative dispute resolution.
Read full response →
HM Treasury
17
Recommendation
Forty-Ninth Report - Regulation of priv…
Accepted
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 …
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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 local authorities are struggling to provide support.38 The Department told us it produces clear ‘how to rent’ guides, but acknowledged the difficulty of ensuring vulnerable tenants are supported.39
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Government response AI summary
The government agrees to improve renters’ ability to exercise their rights by bringing forward a landmark Renters Reform Bill, introducing a new property portal that all landlords will be required to join, and learn from the recent mediation pilot.
Read full response →
HM Treasury
18
Recommendation
Forty-Ninth Report - Regulation of priv…
Accepted
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 …
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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 that court action is too complicated, time consuming and, due to reductions in legal aid, unaffordable for most tenants.41
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Government response AI summary
The government will introduce a property portal requiring all private landlords to join, giving private tenants a free redress service, and will learn from a recent mediation pilot to improve alternative dispute resolution.
Read full response →
HM Treasury
19
Conclusion
Forty-Ninth Report - Regulation of priv…
Accepted
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 …
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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 scheme for letting agents and does not know how it has affected tenant experiences of the lettings process.43 We heard from the Chief Executive of the National Residential Landlords Association that the Government’s commitment to abolish abolition Section 21 would provide a ‘new opportunity to refresh the sector’, while tenant representatives stressed that the success of the scheme relies on its design.44 For example, if there are multiple schemes instead of a single ombudsman, it may create a market for landlords to choose from but be more confusing for renters.45 35 C&AG’s Report, para 18–19 36 Written evidence submitted by ACORN dated January 2022 37 Written evidence submitted by Glass Door Homeless Charity dated January 2022 38 Q 3 39 Qq 60, 61, 87 40 C&AG’s Report, para 4.5 41 Qq 4, 15 42 Q 55 43 C&AG’s Report, para 4.6 44 QQ11–14 45 Pre panel Q 3 Regulation of private renting 13 Understanding tenants’ experiences
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Government response AI summary
The government agrees to improve renters’ ability to exercise their rights by bringing forward a landmark Renters Reform Bill, introducing a new property portal that all landlords will be required to join, and learn from the recent mediation pilot.
Read full response →
HM Treasury
23
Recommendation
Forty-Ninth Report - Regulation of priv…
Accepted
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 …
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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 has engaged with other areas of government, such as the Ministry of Justice and Department for Work and Pensions, during the COVID-19 pandemic. However, much of its cross-government work is not formalised, meaning it is reliant on informal relationships to maintain engagement and understanding.55 The Department’s strategy for the sector
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Government response AI summary
The government agrees to fully understand the cumulative impact of proposed changes on tenants, landlords, and the housing market, working with other departments and completing an impact assessment by Spring 2023, as well as developing its approach to data collection to monitor the impact of …
Read full response →
HM Treasury