Review of the private rented sector

A major review to improve the private rented sector has been announced by the Department for Communities and Local Government (CLG).

With almost 2.6 million homes in England being rented from over half a million private landlords, Government Housing Minister Yvette Cooper has commissioned an independent review to look at what problems tenants and landlords face and what works well in the sector.

Welcoming the CLG review, Chief executive of property-careers.com, Stephen Callaghan said "This independent government review of the private rented sector recognizes the growing importance of this growing sector to the overall picture, particularly with EPCs (Energy Performance Certificates) of rented properties becoming a mandatory requirement  from October 2008. The Tenancy Deposit Scheme seems to have worked reasonably well, and could provide an even better focus for further improvements in the housing stock".

A Citizens Advice Bureau report last year found 1 in 5 tenants were dissatisfied with the quality of repairs carried out by their landlord and feared retaliatory action if they complained to authorities. On the other hand, landlords can face problems with poor tenants not paying rent and anti-social behaviour.   

The review will look how the increasing number of buy to let accommodation and student tenants has impacted on the private rented sector, the quality of homes and who the users of the sector are. It will also examine the impact of demographic and social change on the future demand and supply in the sector. 

The Government has already introduced positive legislation such as Tenancy Deposit Protection and action on houses of multiple occupation. The Government will consider the reviews recommendations to see what else can be done to improve the sector for both landlords and tenants.

Julie Rugg and David Rhodes from the Centre for Housing Policy at York University will head the review.

Yvette Cooper said: "Most of us have rented a flat or house at some stage in our lives and the private rented sector is, at its best, a vital provider of good housing. But too few people are aware of their rights and responsibilities, either as tenants or landlords. We have seen a big increase in the private rented sector and particularly in buy to let. It is important we review the impact of this.

"I would like to take this opportunity to thank Julie Rugg and David Rhodes for taking on this important role and look forward to their final report towards the end of the year."

Julie Rugg said: "Many people experience renting privately at some point in their lives, but private renting as a sector isn't well understood. This is a good time for a review."

Julie Rugg and David Rhodes start work immediately and will deliver their final report by the end of October.

For more information visit the CLG website.

TERMS OF REFERENCE FOR THE REVIEW OF PRIVATE RENTED SECTOR (PRS) HOUSING

Housing is central to the quality of life in our communities, to helping people meet their aspirations, to the economy and to the environment.  The Private Rented Sector plays an important part in successful housing markets and is an important tenure of choice for those not seeking home ownership. It offers convenience, flexibility, and accessibility.

After a period of deregulation flowing from the 1988 and 1996 Acts which has seen the sector grow from 8% to 12% of households, the Housing Act 2004 introduced specific provisions to enable local authorities to work to secure improved management arrangements and property conditions within the sector.

A strong housing market, high demand for social housing, the emergence of the ‘buy to let' landlord, demographic changes and an increasingly mobile society, means that the role of the private rented sector in meeting housing need is increasingly being brought into focus.  From a consumer perspective, the sector has the challenge of ensuring it offers a quality product that ensures its tenants enjoy a decent home where both the landlord and tenant can exercise their legal rights in a responsible manner.

The Minister for Housing and Planning is commissioning a review of the private rented sector to improve our understanding of the sector, consider what barriers exist in ensuring the sector consistently offers a fit for purpose product, what role it has into the future and what actions could be taken to influence and support that role.        

Areas which will be looked at are:

• What is the composition of the private rented sector and the regional characteristics?
• Who lives in the sector and who are the providers?
• Given demographic and social change, what impact might this have on future demand and supply pressures in the sector and how should key players respond to this?
• What are the possible actions necessary to ensure the sector delivers the right type of homes of good quality that meet local demand both now and into the future?
• Given the recent regulatory changes, what more should or could be done to ensure a professionally managed and quality sector to meet demand pressures?
• What are the tenant and landlord views and experiences of the sector?   
• What are their priorities for change and how can these contribute to policy development?