Rental reforms will fail without proper investment

Government reforms to the private rented sector will fail without sufficient resources to ensure they can be enforced.

The warning comes as MPs on the All-Party Parliamentary Group (APPG) for the private rented sector have published views from across the sector on the future of the rental market.

Measures set out in the Renters (Reform) Bill include the development of a new decent homes standard for the private rented sector, a new Property Portal for rental housing and the end of section 21.

A common theme among all those who contributed to the publication was the need to take steps to address the actions of rogue and criminal landlords.

But the cross-party group of MPs and peers is seriously concerned that local authorities will struggle to enforce planned changes without a significant boost to their resources. This follows a warning from the Local Government Association which explains that almost 1 in 5 local authorities expect to serve a section 114 notice in the next year.

In its evidence to the Renters (Reform) Public Bill Committee, the Chartered Institute for Environmental Health warned that the number of environmental health officers (EHOs) are “not sufficient to deal with the existing numbers of tenant complaints.” It cited data showing that for every 10,000 private rented homes there were less than 3 EHOs.

The APPG has also expressed concerns that renters and responsible landlords will likely struggle to defend their rights in the courts when section 21 evictions are scrapped.

With the end of section 21 likely to lead to an increase in contested possession hearings heard by the courts, the Law Society notes how “the courts are vastly overstretched: possession claims and the eviction process can take many months, sometimes more.”

The APPG is concerned not just about how long the justice system is likely to take to process legitimate possession claims under the new system, but also about the ability of tenants to uphold their rights.

Some 42% of people in England and Wales currently have no access to a legal aid provider in their area equipped with expertise in housing law. The president of the Law Society has stated that reforms in the Bill will be “in vain” without greater investment in legal aid.

Andrew Lewer, chair of the APPG for the Private Rented Sector, said: “It is vital that the Bill provides security to tenants, gives confidence to responsible landlords and roots out rogue and criminal landlords providing sub-standard housing.

“However, none of this will be possible without robust enforcement of the powers being proposed.

“The government needs to provide substantial multi-year funding to ensure councils have the resources they need to enforce the planned decent homes standard and ensure all rented homes are safe and secure.

“Likewise, tenants and landlords need to be confident that they will be able to enforce their rights in court in a timely and effective way when section 21 ends. It is simply unacceptable that ministers have provided scant detail about what improvements to the justice system will look like and when they will happen.”

Polly Neate, chief executive of Shelter, spoke of the need to “help local authorities to crack down on criminal behaviour” whilst the chief executive of the National Residential Landlords Association (NRLA), Ben Beadle, warned that, “the government must prioritise enforcement of regulations to stamp out illegal activity.” Similarly, the Centre for Social Justice has called for investment in enforcement capacity.

 

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2 Comments

  1. CSM

    9 months to get a possession order the tenant ignored. Back to court to get a bailiff – another 2/3 months
    Cost and rent arrears approaching £14K to date and climbing
    Will still have costs of damages and repairs when we finally get him out
    The court system is broken now. Abolishing section 21 pushes more landlords into a system that is already not coping and they wonder why small landlords are getting cold feet and selling up which only exacerbates the problems of too few properties and higher rents. When are they going to wake up…………………

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  2. Peter Merrick

    What the authorities and particularly politicians and do-gooders conveniently forget is the severe damage that this sort of behaviour does to good tenants when the landlord is covering massive losses instead of spending the money to improve their property or house more tenants.

    Nobody in their right mind would take any risk at all with a tenant these days. Proof of solvency, financial responsibility, good credit rating and payment history, guarantors, 12 months’ rent up front, all becoming the norm until we are ordered to rent without proper checks and then goodbye PRS as they always wanted.

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