Reforming the Private Rented Sector
Housing, Communities and Local Government Committee
Closed
Inquiry
The purpose of the inquiry is to scrutinise the Government’s proposals for reforming the private rented sector as set out in its White Paper, A Fairer Private Rented Sector .
19
Recommendations
11
Conclusions
1
Report
2
Oral sessions
14
Letters
2
Events
Activity timeline 20 events
20 Oct
2023
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11 Jul
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13 Jun
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13 Jun
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6 Jun
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26 May
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23 May
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18 Apr
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7 Mar
2023
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9 Feb
2023
2023
Report published
7 Feb
2023
2023
Oral evidence sessions 2 sessions
7 Nov 2022
View on parliament.uk
Oral evidence
Charlotte Spencer · Department for Levelling Up, Housing and Communities
Councillor Ben Fitter-Harding · Canterbury City Council
Councillor Ian Corkin · Cherwell District Council
Felicity Buchan · Department for Levelling Up, Housing and Communities
5 Sep 2022
View on parliament.uk
Oral evidence
Ben Beadle · National Residential Landlords' Association
Ben Beadle · National Residential Landlords Association
Councillor Darren Rodwell · Local Government Association
Councillor Matt Noble · Westminster Council
Councillor Tom Renhard · Bristol Council
Eloise Shepherd · London Councils
Nikita Quarshie · Shelter
The Baroness Kennedy of Cradley · Generation Rent
Theo Plowman · British Property Federation
Reports 1 report · click to expand
| Title | HC No. | Published | Items | Response |
|---|---|---|---|---|
| Fifth Report - Reforming the Private Rented Sector | HC 624 | 9 Feb 2023 | 30 | Responded |
Recommendations & Conclusions
30 results
1
Conclusion
Acknowledged
Fifth Report - Reforming the Priva…
The abolition of fixed-term tenancies, combined with the abolition of section 21, would undoubtedly give...
The abolition of fixed-term tenancies, combined with the abolition of section 21, would undoubtedly give tenants greater security of tenure. We understand the argument that fixed-term tenancies should remain available where both parties want them, but in practice, given the …
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Government Response
The government states tenants will be able to give notice at any point during the tenancy to avoid replication of fixed terms, and has increased the notice period to two months to ensure landlords have sufficient guarantee of rent.
Ministry of Housing, Communities and Local Government
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2
Recommendation
Accepted in Part
Fifth Report - Reforming the Priva…
The one exception is the general student PRS market.
The one exception is the general student PRS market. The abolition of fixed-term contracts could make letting to students considerably less attractive to private landlords and so ultimately push up rents or reduce the availability of student rental properties, at …
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Government Response
The government will introduce a ground for possession that will facilitate the yearly cycle of short-term student tenancies, but rejects retaining fixed terms as it unfairly locks students into contracts. It will not introduce codes which cover all student housing.
Ministry of Housing, Communities and Local Government
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3
Conclusion
Accepted in Part
Fifth Report - Reforming the Priva…
We recognise that the majority of private landlords are responsible and have no desire or...
We recognise that the majority of private landlords are responsible and have no desire or financial incentive to evict tenants without good reason, and that for these landlords section 21 feels like an indispensable means of evicting bad tenants, but …
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Government Response
The government is retaining the two-month notice period and will mitigate misuse of the sales/occupation grounds by restricting landlords from remarketing/reletting within three months of using those grounds.
Ministry of Housing, Communities and Local Government
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4
Recommendation
Accepted in Part
Fifth Report - Reforming the Priva…
We recommend that the Government: • increase from six months to one year the period...
We recommend that the Government: • increase from six months to one year the period at the start of a tenancy during which the landlord may not use either ground; • increase the notice period from two months to four …
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Government Response
The government has declined to increase the initial period where landlords cannot use grounds for possession to one year or increase the notice period to four months, but will maintain the current six-month restriction and two-month notice period. The government will mitigate misuse of grounds by restricting landlords from remarketing or reletting the property within three months of using moving or selling grounds.
Ministry of Housing, Communities and Local Government
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5
Conclusion
Acknowledged
Fifth Report - Reforming the Priva…
Before section 21 can be repealed, landlords must have confidence in their ability to regain...
Before section 21 can be repealed, landlords must have confidence in their ability to regain possession under section 8, especially in the case of rent arrears and antisocial behaviour. The biggest obstacle to this is the capacity of the courts. …
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Government Response
The government recognises the importance of making the court process smooth and efficient and is working with the Ministry of Justice and HM Courts and Tribunal Service to drive forward improvements to the court possession process, including digitising the process, exploring prioritisation of certain cases, and improving bailiff recruitment.
Ministry of Housing, Communities and Local Government
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6
Recommendation
Accepted in Part
Fifth Report - Reforming the Priva…
We strongly recommend that the Government introduce a specialist housing court as the surest way...
We strongly recommend that the Government introduce a specialist housing court as the surest way of unblocking the housing court process. Whether it does this or not, it is absolutely essential that the Government significantly increase the courts’ ability to …
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Government Response
The government is working with the Ministry of Justice and HM Courts and Tribunal Service to improve the court possession process, including digitizing more of the process, exploring prioritization of certain cases like antisocial behavior, improving bailiff recruitment, and providing early legal advice for tenants. Implementation will not take place until sufficient progress has been made to improve the courts, and the abolition of Section 21 will not proceed until reforms to the justice system are in place.
Ministry of Housing, Communities and Local Government
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7
Recommendation
Accepted in Part
Fifth Report - Reforming the Priva…
A properly functioning courts system should resolve most of the issues with the process of...
A properly functioning courts system should resolve most of the issues with the process of seeking possession under section 8, but further adjustments to the discretionary ground for possession in respect of antisocial behaviour are also necessary. As currently designed, …
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Government Response
The government agrees with the intent to ensure landlords can act more quickly to evict antisocial tenants and will make grounds for possession faster and easier to prove, while maintaining judicial discretion in antisocial behaviour cases and will reduce the notice period for the mandatory antisocial behavior ground. They will ensure courts can make a possession order where tenants are evicted on the grounds of ASB and later convicted of an offence and will not make Ground 14 mandatory.
Ministry of Housing, Communities and Local Government
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8
Recommendation
Deferred
Fifth Report - Reforming the Priva…
The rate of non-decency in the private rented sector (PRS) is much higher than in...
The rate of non-decency in the private rented sector (PRS) is much higher than in the social housing sector, so we welcome the introduction of a legally binding decent homes standard (DHS). The cost to landlords of meeting the new …
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Government Response
The government welcomes the introduction of a legally binding Decent Homes Standard (DHS) and has held technical consultations with stakeholders to consider implementation issues. These include the time landlords need to comply, how to balance certainty and minimum standards, and the need to align implementation with wider reforms to the PRS.
Ministry of Housing, Communities and Local Government
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9
Conclusion
Deferred
Fifth Report - Reforming the Priva…
In respect of criteria B, C and D, the Government says it is considering a...
In respect of criteria B, C and D, the Government says it is considering a cap on costs, above which landlords would be considered compliant, as is already the case with the minimum energy efficiency standards (MEES). We agree with …
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Government Response
The government is considering a cap on costs and alignment of criterion D with MEES, and is working to understand landlords’ circumstances through ongoing technical consultations.
Ministry of Housing, Communities and Local Government
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10
Conclusion
Rejected
Fifth Report - Reforming the Priva…
We are concerned that detached private rented homes with a floor space under 50 square...
We are concerned that detached private rented homes with a floor space under 50 square metres are exempt from the MEES, although it is unclear how many homes fall into this category.
Government Response
The government has scrapped proposals to require landlords to meet EPC C from 2025 in their private rented properties; landlords can still take advantage of government-backed schemes to improve energy efficiency but at a time that suits them.
Ministry of Housing, Communities and Local Government
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11
Recommendation
Rejected
Fifth Report - Reforming the Priva…
Given the importance of the MEES to the Government’s net zero strategy, not to mention...
Given the importance of the MEES to the Government’s net zero strategy, not to mention the health, cost and other benefits of living in a warm home, we recommend that the MEES be incorporated into criterion D and that the …
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Government Response
The government scrapped proposals to require landlords to meet EPC C from 2025, stating landlords can still use government-backed schemes to improve energy efficiency at a time that suits them.
Ministry of Housing, Communities and Local Government
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12
Recommendation
Acknowledged
Fifth Report - Reforming the Priva…
If the decent homes standard is to improve standards in the private rented sector, local...
If the decent homes standard is to improve standards in the private rented sector, local authorities will have to enforce it vigorously, but at the moment levels of housing enforcement activity vary hugely between local authorities. We accept that much …
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Government Response
The government agrees a strong enforcement regime is vital and is committed to ensuring local councils have the powers and resources they need to tackle criminal landlords. The Levelling Up, Housing and Regeneration Bill includes measures to set minimum standards for enforcement, which they will consult on.
Ministry of Housing, Communities and Local Government
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13
Conclusion
Acknowledged
Fifth Report - Reforming the Priva…
We are conscious, however, that the financial position of local authorities remains extremely precarious, that...
We are conscious, however, that the financial position of local authorities remains extremely precarious, that this partly explains the lack of enforcement activity, and that some of these proposals will place an additional burden on local authorities’ resources. The Government …
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Government Response
The government agrees a strong enforcement regime is vital and is committed to ensuring local councils have the powers and resources needed and is addressing inconsistencies in enforcement activity.
Ministry of Housing, Communities and Local Government
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14
Recommendation
Acknowledged
Fifth Report - Reforming the Priva…
In the current economic climate, we accept that the Government is unlikely to provide significant...
In the current economic climate, we accept that the Government is unlikely to provide significant additional long-term funding for local authorities, but it must consult them, if it has not already done so, on how much short-term funding they will …
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Government Response
The government agrees a strong enforcement regime is vital and is committed to ensuring local councils have the powers and resources needed and is addressing inconsistencies in enforcement activity.
Ministry of Housing, Communities and Local Government
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15
Conclusion
Acknowledged
Fifth Report - Reforming the Priva…
The new regulatory regime will only become self-financing if local authorities can recoup the cost...
The new regulatory regime will only become self-financing if local authorities can recoup the cost of enforcement from non-compliant landlords, but we have heard from local government representatives that the civil penalties regime, which in theory should fund enforcement activity, …
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Government Response
The government agrees a strong enforcement regime is vital and is committed to ensuring local councils have the powers and resources needed and is addressing inconsistencies in enforcement activity.
Ministry of Housing, Communities and Local Government
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16
Recommendation
Acknowledged
Fifth Report - Reforming the Priva…
If it is not already doing so, the Government should consult local authorities about what...
If it is not already doing so, the Government should consult local authorities about what amendments are needed to the civil penalties regime and include any necessary legislative changes in the proposed renters reform Bill. In particular, we recommend that …
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Government Response
The government agrees a strong enforcement regime is vital and is committed to ensuring local councils have the powers and resources they need to tackle criminal landlords. The Levelling Up, Housing and Regeneration Bill includes measures to set minimum standards for enforcement, which they will consult on.
Ministry of Housing, Communities and Local Government
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17
Conclusion
Acknowledged
Fifth Report - Reforming the Priva…
The data suggests that the reduction in the size of the PRS, which the Minister...
The data suggests that the reduction in the size of the PRS, which the Minister partly attributed to the covid pandemic, began three years before the pandemic, in 2016–17. For this reason, we see little reason to believe the decline …
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Government Response
The government acknowledges the importance of the private rented sector and values the involvement of all responsible landlords, regardless of portfolio size, and states that it wants a thriving private rented sector that helps to accommodate people's housing needs.
Ministry of Housing, Communities and Local Government
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18
Recommendation
Acknowledged
Fifth Report - Reforming the Priva…
We recommend that the Government review the impact of recent changes to taxation rules in...
We recommend that the Government review the impact of recent changes to taxation rules in the buy-to-let sector, with a view to making changes to make it more financially attractive to smaller landlords. If it is not willing to do …
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Government Response
The government acknowledges concerns about the impact of taxation rules but states that the intention was to level the playing field and the private rented sector remains stable in size.
Ministry of Housing, Communities and Local Government
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19
Conclusion
Acknowledged
Fifth Report - Reforming the Priva…
We welcome the Government’s introduction of a tourist accommodation registration scheme and its commitment to...
We welcome the Government’s introduction of a tourist accommodation registration scheme and its commitment to consulting on changes to the Town and Country Planning (Use Classes) Order 1987, but it remains to be seen if this will suffice to control …
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Government Response
The government acknowledges concerns and notes that consultations were held on a registration scheme for short-term lets and a new use class, and the responses are being considered.
Ministry of Housing, Communities and Local Government
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20
Recommendation
Deferred
Fifth Report - Reforming the Priva…
We recommend that the Government use the powers in the Levelling-up and Regeneration Bill, if...
We recommend that the Government use the powers in the Levelling-up and Regeneration Bill, if passed by Parliament, to implement a tourist accommodation registration scheme as soon as possible. We ask that the Government also update us on whether the …
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Government Response
The government is introducing a registration scheme for short-term lets and consulted on a new use class. They are carefully considering responses and will respond in due course.
Ministry of Housing, Communities and Local Government
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21
Recommendation
Accepted
Fifth Report - Reforming the Priva…
The current high cost of private renting is rooted in the decades-long failure of successive...
The current high cost of private renting is rooted in the decades-long failure of successive Governments to build enough homes. We accept that the purpose of the White Paper was not to make the PRS more affordable, and that the …
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Government Response
The government states it is on track to meet its manifesto commitment to deliver one million homes and highlights ongoing commitments to housing supply and regeneration, including revisions to the National Planning Policy Framework and support for the Build to Rent sector.
Ministry of Housing, Communities and Local Government
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22
Recommendation
Acknowledged
Fifth Report - Reforming the Priva…
The failure of local housing allowance (LHA) rates to keep pace with market rents is...
The failure of local housing allowance (LHA) rates to keep pace with market rents is quite obviously making the private rented sector even less affordable for many people who are only there because the social housing sector has been cut …
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Government Response
The government acknowledges the issue but does not commit to increasing LHA rates to the 30th or 50th percentile, instead highlighting Discretionary Housing Payments and a commitment to reviewing LHA rates annually.
Ministry of Housing, Communities and Local Government
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23
Conclusion
Acknowledged
Fifth Report - Reforming the Priva…
When a tenant objects to an in-tenancy rent increase, they can refer their case to...
When a tenant objects to an in-tenancy rent increase, they can refer their case to the First-tier Property Tribunal, which determines the market rent for the property. The Government says it will remove the tribunal’s power to increase rents and …
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Government Response
The government states rents should be agreed between landlords and tenants, and it is not for government to intervene. The First-Tier Tribunal is best placed to resolve disputes, and it will update guidance to support all parties in engaging with the Tribunal.
Ministry of Housing, Communities and Local Government
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24
Conclusion
Rejected
Fifth Report - Reforming the Priva…
Tenants and landlords need access to reliable data on local market rents in comparable properties.
Tenants and landlords need access to reliable data on local market rents in comparable properties. The closest available data appears to be that held by the Valuation Office Agency (VOA), which is used to determined local housing allowance rates for …
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Government Response
The government rejects intervening in rent setting and states the First-Tier Tribunal is best placed to resolve disputes, and it will update guidance to support engagement with the Tribunal.
Ministry of Housing, Communities and Local Government
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25
Recommendation
Rejected
Fifth Report - Reforming the Priva…
The Government should assess whether the data held by the VOA could be used to...
The Government should assess whether the data held by the VOA could be used to determine justified rent increases in the PRS. If it concludes that it could, we recommend either that this information be made public so that landlords …
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Government Response
The government rejects intervening in rent setting and states the First-Tier Tribunal is best placed to resolve disputes, and it will update guidance to support engagement with the Tribunal.
Ministry of Housing, Communities and Local Government
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26
Recommendation
Rejected
Fifth Report - Reforming the Priva…
By getting rid of rent review clauses, the Government could be removing a mechanism for...
By getting rid of rent review clauses, the Government could be removing a mechanism for predictable and fair rent rises and replacing it with a system that relies on a resource-intensive and time-consuming appeals process. We recommend Reforming the Private …
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Government Response
The government will not abolish rent review clauses, but states that landlords can increase rents once a year and tenants can challenge this at the First-tier Tribunal if they think it is above market levels. It will not set or steer rent increases.
Ministry of Housing, Communities and Local Government
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27
Recommendation
Accepted in Part
Fifth Report - Reforming the Priva…
Currently, letting agents are required to belong to one of two government-approved ombudsman schemes, the...
Currently, letting agents are required to belong to one of two government-approved ombudsman schemes, the Property Redress Scheme or the Property Ombudsman, but membership for landlords is voluntary. The White Paper proposes the introduction of an ombudsman for all private …
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Government Response
The government recognises the value of consolidating the housing redress system, but will address it through the Landlord Ombudsman service and does not think it is necessary to bring different elements of housing redress under a single legal framework.
Ministry of Housing, Communities and Local Government
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28
Recommendation
Accepted in Part
Fifth Report - Reforming the Priva…
The Government says it will make it illegal for landlords to have blanket bans on...
The Government says it will make it illegal for landlords to have blanket bans on letting to benefit recipients. If this is a commitment to preventing landlords from discriminating against benefit recipients, it is unrealistic. If it is a commitment …
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Government Response
The government will prohibit blanket bans on benefit recipients, but landlords can still make final decisions based on referencing checks. They will work with the insurance sector, explore improvements to welfare support information, and raise awareness of services provided by local councils.
Ministry of Housing, Communities and Local Government
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29
Recommendation
Rejected
Fifth Report - Reforming the Priva…
The proposal to make it easier for landlords to allow pets by making pet insurance...
The proposal to make it easier for landlords to allow pets by making pet insurance a permitted payment under the Tenant Fees Act 2019 is a sensible and proportionate measure that could make a meaningful difference. On the other hand, …
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Government Response
The government disagrees with abandoning the proposal to strengthen tenants' rights to request to keep a pet, stating landlords can refuse animals if it is reasonable, taking into account factors like the size of the pet and property.
Ministry of Housing, Communities and Local Government
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30
Recommendation
Accepted in Part
Fifth Report - Reforming the Priva…
The success of the Government’s reforms depends to a great extent on tenants knowing their...
The success of the Government’s reforms depends to a great extent on tenants knowing their rights, and on landlords knowing that they know them. For this 64 Reforming the Private Rented Sector reason, the Government should update the How to …
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Government Response
The government plans to update the 'How to Rent' guide and modernize the way it communicates tenants' rights and responsibilities. They will work with various groups to maximize access to advice and report back to the Select Committee, though the specific request for the ombudsman to award compensation for failing to provide a copy of the guide was not addressed.
Ministry of Housing, Communities and Local Government
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Government Response AI assessment · 30 of 19 classified
Accepted
1
Acknowledged
12
Deferred
3
Rejected
6
Total
19 recs + 11 conclusions
Correspondence 14 letters
11 Jul 2023
To committee
Letter from the Minister of State for Housing and Planning to the Chair dated 5 July 2023 concerning reforming the private rented sector
Parliament page
13 Jun 2023
To committee
Letter from the British Property Federation to the Chair dated 1 June 2023 concerning the Renters (Reform) Bill
Parliament page
13 Jun 2023
To committee
Letter from the Chair to the Minister of State for Housing and Planning dated 12 June 2023 concerning the response to the Committee's report on Reforming the Private Rented Sector
Parliament page
6 Jun 2023
To committee
Letter from the Minister of State for Housing and Planning to the Chair dated 2 June 2023 concerning the Renters (Reform) Bill
Parliament page
26 May 2023
To committee
Letter from the Chair to the Secretary of State dated 25 May 2023 concerning the Renters (Reform) Bill and the private rented sector
Parliament page
23 May 2023
To committee
Letter from the Secretary of State to the Chair dated 17 May 2023 concerning the introduction of the Renters (Reform) Bill
Parliament page
18 Apr 2023
To committee
Letter from the Minister of State for Housing and Planning to the Chair dated 6 April 2023 concerning the Government response to the Committee's report on Reforming the Private Rented Sector
Parliament page
7 Mar 2023
Briefing note from the National Residential Landlord Association to the Committee concerning evidence given before the Committee on 5 September 2022
Parliament page
7 Feb 2023
Note from Ben Beaumont, Barrister, and Robert Ashdown, CPA, dated 8 January 2023, concerning arbitration in the Private Rented Sector
Parliament page
7 Feb 2023
To committee
Letter from the Large Agents Representation Group to the Chair dated 2 February 2023 concerning the property portal for the private rented sector
Parliament page
6 Dec 2022
To committee
Letter from the Minister for Housing and Homelessness to the Chair dated 30 November 2022 concerning Reforming the Private Rented Sector
Parliament page
6 Dec 2022
To committee
Letter from the National Residential Landlords Association to the Chair dated 28 November 2022 concerning the Private Rented Sector
Parliament page
12 Oct 2022
To committee
Letter from the National Residential Landlords Association to the Chair dated 22 September 2022 following up evidence given to the Committee on Reforming the Private Rented Sector
Parliament page
6 Sep 2022
To committee
Letter from the Parliamentary Under Secretary for Rough Sleeping and Housing to the Chair dated 4 August 2022 concerning the Committee's inquiry into Reforming the Private Rented Sector
Parliament page