Improving private renting

This content applies to England only.

Many people have had a bad experience of renting in the private sector at some point in their lives, whether because of poor living conditions or an unscrupulous landlord.

However, with high house prices and a lack of decent social housing, millions rely on the private rented sector to meet their housing needs. It's critical therefore that the private rented sector is reformed as a matter of urgency to ensure it can provide people with decent and secure homes.

An overview of the private rented sector

Private rented housing is owned, managed and let out by private landlords. The landlord could be an individual or a company. Sometimes management companies or estate agents will manage and let out the property on the owner's behalf. Unlike renting in the social housing sector, most private rental properties are let out on a purely commercial basis, with no allowance for affordability, and typically on relatively insecure, fixed-term contracts.

The problems with the private rented sector

Many people renting in the private sector are unable to afford expensive rents and deposits. Families and individuals often resign themselves to living in some of the poorest living conditions in the UK. 45 per cent of homes in the private rented sector in England fail to meet the Government's Decent Home Standard. [1]

Shelter deals with many clients who are experiencing problems with private rented tenancies. In addition to complaints about atrocious living conditions, the most commonly reported problems were rent arrears and the threat of being made homeless due to eviction. The assured shorthold tenancy, widely used within the private sector provides tenants with little security. As a result, many tenants avoid complaining about disrepair and damp, for fear of eviction.

With nearly 1.8 million households on housing waiting lists, [2] the Government increasingly relies on the private rented sector to house homeless households. However, those homeless households reliant on housing benefit are often subject to the following financial penalties when renting privately:

• shortfalls between housing benefit and rental payments are common
• the 'single room rent' rule reduces housing benefit for people under 25
• steep reductions in housing benefit on gaining employment
• some full-time students are also not eligible for housing benefit
  

How can the private rented sector be improved?

Shelter believes the primary purpose of the private rented sector is to provide decent and stable homes for tenants. In April 2007, following years of campaigning by Shelter and other organisations, the tenancy deposit protection scheme, was introduced. This scheme is now benefiting thousands of private tenants who previously faced problems getting their deposits returned by unscrupulous landlords.

However, Shelter believes a lot more needs to be done to reform the private rented sector, and in particular, the following five key objectives need to be achieved to make the private rented sector fit for purpose:

• improved affordability within the private rented sector: Shelter believes the Government and local councils urgently need to find ways to make the private rented sector more affordable to tenants on low incomes - addressing rents, deposits and other charges that currently make renting inaccessible to many
• better availability of longer-term tenancy agreements: for those tenants who would like to have this option
• better and safer housing conditions: to protect the well-being of tenants and their families
• a re-balanced landlord-tenant relationship: where both parties know their rights and duties
• a reformed housing benefit system: where more people on low incomes can afford a decent choice of housing.

Campaign demands

Shelter calls on the Government and landlords to:

• consider innovative models to improve affordability of private sector rents, deposits and charges
• increase the use of longer-term tenancies
• improve housing conditions in the private rented sector
• review the landlord-tenant relationship to ensure tenants can effectively enforce their rights
• reform the system of housing benefit to ensure people on low incomes have decent access to housing and employment.

[1] CLG, English House Condition Survey 2007 Headline Report, 2009

[2] Rents, Lettings and Tenancies, Live Tables, Table 600, www.communities.gov.uk

[1] CLG, English House Condition Survey 2007 Headline Report 2009.

[2] Rents, lettings and Tenancies, Live Tables, Table 600, www.communities.gov.uk.