Changes to rental law are vital – but are only the first step in rebalancing power in the private rented sector
By Joshua Davies, Programme Manager for Transforming the Private Rented Sector
This week, the Renters’ Rights Bill passed a significant milestone as it ended its passage through the House of Commons. While the Bill is not perfect and we still think changes need to be made, it is now highly likely that the Bill will become law in the next few months, after its passage through the House of Lords.
England’s 11 million private renters are in dire need of change, with the private rented sector (PRS) often failing to provide security, affordability, or a decent standard of living. This reform is a vital step in changing the sector for the better, but the problems with renting do not end just by giving renters new rights in law.
Without a proper scheme of implementation that helps renters know and use their rights, we risk a continuation of the same system that has left millions of renters living in poor conditions, without the confidence to challenge bad practice and at risk of unlawful eviction. Our funded research into similar tenancy reform in Scotland found that even though private rented sector law changed in Scotland seven years ago, it is having limited impact today because tenants do not know or use their rights, and can’t get help when they need it. We can’t let this happen again.
Thankfully, there are steps that government can take now and in the future, to ensure renters know and use their rights:
- Support local councils to deliver more and better enforcement
- Deliver a national landlord register that works for everyone
- Take advantage of the opportunities created by devolution
- Educate and encourage renters to know and use their rights
1. Support local councils to deliver more and better enforcement
Enforcement is about ensuring that, according to the laws in place, people or organisations are doing what they should be. In the PRS, enforcement is the responsibility of local councils. Private renters can contact their council if they think their landlord isn’t doing what’s required of them, and councils should then investigate the problem.
There’s no way around it: cash-strapped local councils need more funding to be able to deliver enforcement effectively, so that renters can get help. Currently, enforcement in the private rented sector is often inconsistent, ineffective and hard for tenants to obtain. A recent report found that very few local councils carry out formal enforcement action, and the frequency of property inspections carried out is not linked to the number of complaints actually received.
The government says they recognise the challenge, so will provide funding for the ‘new burdens’ placed on local authorities by the new laws, and willl ensure fees for the national landlord register (explained below) take account of enforcement costs. However, this won’t be enough to fill the gaps that already exist. Enforcement isn’t working, and that’s the case even now – before all the new regulations are added.
Importantly, in the often divided debate on the PRS, this is one thing that both landlords and renters agree on: better enforcement is a key requirement to deliver a better PRS. It’s not just about funding though. Local councils must report regularly on the use of all their enforcement powers (both formal and informal) so it can be clear which councils need to improve. We also need to encourage collaboration between local authorities and share best practice, supporting local innovations to develop and improve enforcement practice.
Selective licensing is an important method by which local councils can fund and target their enforcement activity, allowing local councils to designate all private rented sector properties within a particular area as requiring a license, and then using license fees to fund increased inspections and enforcement action. We welcome the government’s recent decision to allow councils to introduce licensing schemes of any size, but there are still many more things it can do to make it easier for local authorities to use licensing schemes to improve housing standards.
2. Deliver a national landlord register that works for everyone
For the first time, the Renters’ Rights Bill will introduce a national landlord register (also known as the ‘PRS Database’), requiring all landlords and properties to be registered before they are let. This register is a key opportunity to support renters to know and use their rights. It must capture sufficient data on the PRS, support landlords to fulfil their legal obligations, require the right information from landlords, and provide meaningful information to renters.
If done right, the register has the potential to help renters to make informed decisions about renting, and importantly, help landlords to know their rights and responsibilities. Beyond this, the register can help local authorities to understand their local PRS, and therefore enforce more easily. Crucially, the register can also support everyone to understand the PRS better, by gathering data on the PRS including rent levels.
Our funded partner New Economics Foundation is currently completing research into the potential for the landlord register to support enforcement.
3. Take advantage of the opportunities created by devolution
Devolved governments are an essential tool to improve the local PRS, ensuring it can meet the needs of private renters and address local challenges. The government has promised a ‘devolution revolution’ with more powers for mayors; this must include support for local and regional governments to improve their local PRS, co-ordinate activity, and share best practice.
Regional authorities like Greater Manchester Combined Authority are already ahead of the curve when it comes to improving the PRS. Mayor Andy Burnham has introduced the Good Landlord Charter (a voluntary scheme that will allow landlords to prove they are meeting high standards), pledged to let tenants request a property check at any time, supported more enforcement capacity across the region, and has increased collaboration between the ten Greater Manchester local authorities. This comes on the back of our funded six-year project seeking to transform the private rented sector in Greater Manchester, that produced key findings about ways to change the PRS locally.
As a part of its devolution package, the government should provide more powers, funding and capacity to support innovation like that in Greater Manchester.
4. Educate and encourage renters to know and use their rights
Our RentBetter research into Scottish tenancy reform showed that even when renters get new rights, they still often don’t believe that they have more power, and will remain fearful of challenging poor practice or seeking help. It is no wonder renters are disempowered, after nearly 40 years of a tenancy regime that puts them at a significant disadvantage. The government is expanding renters’ ability to seek repayment of rent if their landlord has breached regulations, which is a welcome step, but won’t be enough to fix the problem. We need to do more to tackle this underlying disempowerment, by educating renters on their rights and how to use them, and encouraging renters to feel confident to challenge poor practice.
We know from our funding of the five-year tenant voice programme that it takes time and commitment to overcome engrained disempowerment. A government funded information campaign to educate renters on their new rights would be a good place to start. In addition, renter unions and renter organising projects across the country are changing the way that renters view themselves. Government engagement with and investment in these pioneering organisations will be beneficial to transforming the way that private renters understand and use their rights.
The next stage for the Renters’ Rights Bill is the House of Lords, but the real challenge in changing the PRS comes after – ensuring the Bill is implemented effectively. We’ll be working alongside our partners to make this happen, ensuring the PRS can truly change for the better.
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