The Government must be congratulated on its resolve to enact the Renters’ Rights Bill at the earliest opportunity, in sharp contrast to the endless delays to the Conservatives’ Renters (Reform) Bill which finally bit the dust before the General Election.
It is important, though, to ensure that haste does not risk loopholes in this once in a generation chance to transform the experience of renting.
Abolishing Section 21 evictions to restore the security of tenure removed by the Thatcher Government is obviously a cornerstone to transformation. But, after more than three decades of shorthold tenancies, it will take years before renters realise that their landlord cannot kick them out, and many will continue to leave when given notice before there is general awareness that renters can once again regard their tenancy as their home.
The Bill does not introduce ‘rent controls’, though it does expand the opportunity for renters to challenge rent increases through the Property Tribunal. Again, it will take years for renters to become aware of this, and many will remain too intimidated to act due to the power imbalance between them and their ‘Landlord’ (the title, like the relationship, hasn’t changed since feudal times). Renters may therefore have to wait for something approaching ‘affordable’ rents until the promised seismic increase in social rented homes reduces demand.
But most important of all, the Bill has the potential to ensure that renters’ homes are decent and safe. This is clearly the aim of the Housing Minister, Matthew Pennycook. With reference to extending Awaab’s Law to the PRS during the Bill’s Committee stage, he stated, “We need to go further and ensure that no tenant is forced to live in a home that places their health and safety at risk”. So, bearing in mind that the most vulnerable renters who are often in the very worst accommodation and will rarely feel able to fight for their right to a decent and safe home, we must devise a way to ensure that these protections are provided from Day 1 and maintained throughout the tenancy.
The best way to achieve this is through the ‘Private Rented Sector Database’ to be introduced through Regulations, following enactment of the Bill.
We know that landlords will be required to register themselves and their properties on the Database as a prerequisite for letting. However, details of the Database have not yet been published, but we can assume that there will be a consultation in due course.
London Labour Housing Group’s view is that, after a phasing in period, landlords must provide independent evidence of compliance with physical and management standards (based on a new Decent Homes Standard and Awaab’s Law) as a prerequisite for registration. This would include evidence of current requirements (gas and electrical safety, Deposit protection, Energy Performance, etc), plus an independent inspection report, based on a physical check of health and safety requirements. This model is based on the current requirement for owners of road vehicles to obtain an MOT certificate.
While there is broad acceptance of this model for the Database, some concerns have been expressed around the availability of suitably qualified inspectors to produce reports, and of their independence if inspectors are commissioned by landlords.
While assurances can be given to counter such concerns, an alternative approach could be considered.
This is prompted by the Government’s recent decision, in relation to the Leasehold and Freehold Reform Act 2024, to accredit property agents who meet objectively approved standards under the Regulation of Property Agents (ROPA). ROPA accreditation will include letting agents managing properties on behalf of landlords, so it would be possible to exempt properties managed by ROPA-accredited agents from inspection in advance of registering for the Database. There is no data on the number of landlords who use high-standard letting agents to manage their homes, but the majority of those who do are those with the largest portfolios, so could account for around 40% percentage of rented homes.
Conveniently, and for the first time, the Bill provides for enforcement of standards under Selective Licensing, so it would be appropriate for local authorities to inspect and enforce these standards before a Licence is issued, charging fees that will cover the costs. Thus, Database registration for self-managing landlords would be restricted to those with an appropriate Licence. The increase in enforcement officers needed to ensure prompt inspections could be met by specific training for this task, based on the short course ‘Housing Conditions and Interventions’ currently provided by Middlesex University.
We must hope that this vital issue of ensuring standards is raised at the Bill’s Report Stage on 14 January, and that these important compliance issues are given further thought when the Bill passes to the House of Lords. If the Government can get this right, the private rented sector will truly be transformed.
Jacky Peacock, OBE, is the chair of Advice for Renters but is writing in a personal capacity.