Source · Select Committees · Public Accounts Committee
Recommendation 19
19
The Department told us that as part of its reform agenda, it plans to end...
Conclusion
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
Government Response
Not Addressed
HM Government
Not Addressed
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 will use its planned reform programme to: • Better support renters to understand what their rights are; and • Improve renters’ ability to exercise their rights by learning from complaints and redress mechanisms used in other consumer markets. 1.1 The government agrees with the Committee’s recommendation. Target implementation date: Summer 2026 1.2 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 a white paper on 16 June 2022 setting out details of the planned reforms. 1.3 As part of these reforms, the department will introduce a new property portal helping landlords to understand their obligations and giving tenants the information they need to make informed choices. Full roll-out of the digital product will happen in phases but the government expect early public Beta testing of the new property portal to commence Summer 2023, and after Royal Assent, with full roll-out by Summer 2026. 1.4 The government is also committed to learn from other consumer markets to improve renters’ ability to access redress and to resolve complaints. The government will abolish section 21 evictions (Housing Act 1988) empowering tenants to challenge poor practice without the risk of retaliatory eviction. 1.5 A new single ombudsman will be introduced that all private landlords will be required to join. This will give private tenants, as social tenants currently have, a free redress services and make landlords accountable for their conduct and legal responsibilities. The department will also learn from the recent mediation pilot to explore how it can improve alternative dispute resolution and mediation offerings within the sector. 1.6 The government is committed to supporting renters to understand their rights in the current and reformed system. The Department for Levelling Up, Housing and Communities (the Department) currently produces a series of housing ‘how to’ guides that summarise the rights and responsibilities of both tenants and landlords. The department is committed to using a range of strategies and channels, including working with other partners, for example, the Department for Work and Pensions and Citizens Advice, to make sure messages reach the right groups, including digitally excluded and marginalised groups.