By Richard Donnell, executive director, Zoopla

Rental reform is back on the agenda for the new government with a rebranded Renters’ Rights Bill. It’s important that the government strikes the right balance between improving renters’ rights while encouraging more supply of private rented homes. 

While debates on rental reform are often framed in examples of poor or bad practice, the reality is that most private renters are satisfied with their experience of renting. Research by the TDS Charitable Foundation finds 85% of renters are satisfied with the rental experience while 86% are satisfied with the condition of their rented home. 

However, there remains a small but not insignificant number of homes which are in poor condition where renters are having a poor or unsatisfactory experience. The survey highlights that lower income and/or disadvantaged households are more likely to have poorer outcomes from renting. 

While the growth in the number of private rented homes has stalled since 2016, the stock of social rented homes has been static for 20-plus years. The doubling in the size of the private rented sector since 2000 has seen a growing proportion of demand from those in the greatest housing need accommodated in the private rented sector. A quarter of private renters are on low incomes and in receipt of full or partial housing benefit. 

Consumers recognise the challenges of static supply facing the private rental market. A pre-election survey by Zoopla and Ipsos found that controlling the pace of rent rises was number four in the top ten priorities for a new government while rolling out improved rights and protections for renters came in at number ten. Focusing on private renters alone, they cited these two areas in their top three priorities for a new government, along with building more homes, which was number one overall for all respondents. 

The new Renters’ Rights Bill has avoided any proposals for rent controls for England and the overall focus of housing policies is on growing housing supply. This is the most sustainable long-term solution to avoid a prolonged scarcity of homes for rent in both the private and social rented sectors. However, it will take time to build momentum in new supply, which is why rental reforms are back on the government agenda to increase protections for renters.

Zoopla’s Lettings Advisory Board, formed of leading industry figures across the private rented sector, has put forward proposals to the government to improve standards across the private rented sector. The letter acknowledges that the majority of agents and landlords that rent out and manage rented homes are good. They strive to ensure that tenants are provided with housing that meets a decent standard which is reflected in tenant surveys.

The first proposal is to introduce mandatory training for property professionals who let and manage homes to create a level playing field and a baseline level of knowledge over this complex area. Mandatory training has long been called for and many estate agent operators already train their staff on a voluntary basis to a Level 3 qualification standard. Such agency training is widely available through several accredited examination bodies and could be extended to cover all operators that let and manage homes.

The second proposal from the Board is to ensure properties for rent meet a minimum standard and this is recorded in the proposed Private Rented Property Register, which returns in the new Renters’ Right Bill. This database opens up the opportunity to streamline the patchwork of licensing for private rented homes while creating a platform for a new decent homes standard for rented homes.

On the rest of the new rental reform proposals the big challenge remains reforms to the court system so landlords don’t face unprecedented delays getting possession of their homes. While a small proportion of landlords will continue to look to sell but I believe we are over the worst of the shake-out since the introduction of the 2016 tax changes and the more recent impact of higher mortgage rates.