PRS reforms must benefit tenants and landlords

A robust rental sector is vital for the growth of the housing sector. The UK's Private Rental Sector witnessed several changes in the recent past. Even though it plays a crucial role by providing housing to over 4.4 million households, about 20 percent of Uk households The Private Rental Sector urgently needs reforms to meet consumer needs.

PRS reforms must benefit tenants and landlords

The declining supply of social housing and steep hike in property prices are two factors encouraging families to consider the rented housing option. Rented accommodation is not only the choice for bachelors and students anymore, affordability has delayed the first house purchase pushing the average age of the first-time buyer to well into their thirties, and therefore driven the exponential rise in families living in rented homes.

There was a time when a rented home used to be a temporary arrangement before a family moved into their own house. Several factors now force families to consider rented homes as their long-term abode. This is driving an urgent need to improve the quality of rented homes, besides allowing tenants access to a greater variety of options. There is huge scope to improve services by letting agents and creating a system to help landlords and tenants.

Renters reforms would support millions of renters

Renters reforms would support millions of renters

The recent white paper on a Fairer Private Rented Sector guarantees reforms supporting millions of tenants struggling with the cost-of-living crisis. It also promises protection to over 4.4 million renters in the Private Rental Sector. The following statistics are enough to appreciate the plight of private renters:

1 incessant hike in rents for the last five years

2 over 1.3 million families in private rental homes are with children

3 over 382,000 households have people over 65 years of age

4 approximately one-fifth of private renters are living in unfit properties

Improving the quality of rented homes

Improving the quality of rented homes

The subpar quality of rented homes threatens the health and safety of over 12 percent of households, as over a half million rented homes are unfit to live in making the approximate number of people who live in seriously low-quality homes in the UK around 1.6 million. These factors cause a higher cost burden on the NHS. The upcoming private renters reform aims at making landlords responsible for maintaining properties in sound condition with no serious risks to the health and safety of tenants. Councils will levy fines and use enforcement pilots to ensure compliance with the regulations.

The Private Rental reform will empower tenants to seek legal action and refund of rent if landlords hike rents without meeting the Decent Housing Standards. The new reform bill proposes the tenancy will not end against the tenant's will. The landlord will have to provide a valid reason to end the tenancy. The plan is to halve the number of unfit homes by 2030.

Putting a stop to No-Fault Evictions

Putting a stop to No-Fault Evictions

The new legislation will seek to ban section 21 evictions. A landlord will no longer end a tenancy with no valid reason. There were several evictions in 2019 and 2020, it is reported that as much as 20 percent of tenants (or 1 in 5) had their tenancy ended against their wishes. The Rental Reform will deal with illogical increases in rent by landlords. It will allow tenants to challenge arbitrary rent increases.

Supportive measures for landlords

Supportive measures for landlords

The Private Rental Reform bill will include measures to support private landlords for out-of-court settlement of disputes. A Private Renter's Ombudsman will have powers to reduce legal disputes and costs. An online platform will help landlords access the necessary information. It will help tenants and councils understand their responsibilities for greater compliance.

To conclude

To conclude

Despite it being already five months since publishing the white paper on Fairer Private Rented Sector, there has been no considerable progress.

Letting Agents report that legislation is a prime cause for many landlords moving away from the private rental sector and selling their properties. Nearly fifty percent of these properties do not return to the rental sector and it is this that is fueling a challenging market, rising rents, queues and having to outbid other applicants just to get somewhere to call home. We say bring on accelerators of tenants-what-it-means-for-the-uk-build-to-rent-sector'>build to rent, free up the planning system - read our planning reforms wish list here.