Regulation of private renting

Public Accounts Committee Closed Inquiry
Opened: 8 Dec 2021 Closed: 2 Sep 2022 Parliament page
The number of people living in private rented accommodation has doubled in the last 20 years, and there are now an estimated 4.4 million privately rented households in England, with rents outside London increasing at the fastest rate on record in 2021. While most tenants have a good experience of … Read more
15 Recommendations
11 Conclusions
1 Report
1 Oral session
3 Letters
1 Event
Activity timeline 7 events
8 Sep
2022
Correspondence
2 Sep
2022
Report published
13 Apr
2022
Report published
22 Feb
2022
Correspondence
22 Feb
2022
Correspondence
31 Jan
2022
Oral evidence
31 Jan
2022
Formal meeting (oral evidence session) · The Grimond Room, Portcullis House
Oral evidence sessions 1 session
31 Jan 2022
View on parliament.uk
Regulation of private renting
Anny Cullum · Acorn the Union Ben Beadle · National Residential Landlords' Association Ben Beadle · National Residential Landlords Association Caroline Crowther · The Department for Levelling Up, Housing and Communities Jeremy Pocklington CB · Ministry of Defence Ms Ruth Ehrlich · Shelter Tamara Sandoul · The Chartered Institute of Environmental Health Tracey Waltho · Ministry of Housing, Communities and Local Government
Title HC No. Published Items Response
Forty-Ninth Report - Regulation of private renting HC 996 13 Apr 2022 26 Responded
Recommendations & Conclusions
26 results
2 Recommendation Not Addressed
Forty-Ninth Report - Regulation of…
Local authorities do not have the capacity and capability to ensure an appropriate level of...
Local authorities do not have the capacity and capability to ensure an appropriate level of protection for private renters. Compliance with legal minimum standards is inconsistent across England, and the proportion of privately rented properties with category 1 hazards ranges … Read more
Government Response
The government's response discusses Électricité de France’s (EDF) strategies, plans and the estimated costs, which is irrelevant to the recommendation about local authority resources for regulating private renting.
HM Treasury
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3 Recommendation Accepted
Forty-Ninth Report - Regulation of…
The Department is not doing enough to support local authorities to regulate effectively.
The Department is not doing enough to support local authorities to regulate effectively. The dozens of legislative powers used by local authorities are complex and spread across multiple enforcement bodies, creating a fragmented and disempowered regulatory system. Local authorities say … Read more
Government Response
The government will run pilot schemes, strengthen LAs' ability to tackle criminal landlords, explore bolstering national oversight of LAs' enforcement, seek to introduce a national framework for setting fines, and continue to fund the National Trading Standards Estates and Lettings Agency Team.
HM Treasury
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4 Recommendation Rejected
Forty-Ninth Report - Regulation of…
Local Authorities are constrained by the Department’s approach to licensing landlords.
Local Authorities are constrained by the Department’s approach to licensing landlords. In 2010, the Department introduced legislation allowing local authorities to require licences from landlords for more properties that the minimum requirements (the only properties that need licenses are larger … Read more
Government Response
The government considers current arrangements for licensing schemes strike the right balance, allowing local authorities to use selective licensing effectively without placing undue burdens on landlords where additional licensing schemes are not needed.
HM Treasury
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5 Recommendation Acknowledged
Forty-Ninth Report - Regulation of…
The Department lacks good enough data to understand the nature and extent of problems renters...
The Department lacks good enough data to understand the nature and extent of problems renters face. The Department lacks sufficient data on the challenges facing landlords, tenants, and local authorities within the sector. For example, it lacks robust data on … Read more
Government Response
The government agrees with the recommendation to develop a coherent data strategy and states they utilize a range of data from various sources to inform policy decisions, and are working to further develop its approach to data to support its renters reform program.
HM Treasury
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6 Recommendation Accepted
Forty-Ninth Report - Regulation of…
The Department’s forthcoming White Paper offers an opportunity for significant improvement to the private rented...
The Department’s forthcoming White Paper offers an opportunity for significant improvement to the private rented sector. In the past ten years, the Department has made several positive legislative changes in the private rented sector, such as providing tenants with protection … Read more
Government Response
The government agrees to fully understand the cumulative impact of proposed changes on tenants, landlords, and the housing market, working with other departments and completing an impact assessment by Spring 2023, as well as developing its approach to data collection to monitor the impact of reforms.
HM Treasury
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1 Conclusion Not Addressed
Forty-Ninth Report - Regulation of…
On the basis of a report by the Comptroller and Auditor General, we took evidence...
On the basis of a report by the Comptroller and Auditor General, we took evidence from the Department for Levelling up, Housing and Communities (the Department).3
Government Response
Acknowledgement of the report and the date evidence was taken.
HM Treasury
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7 Conclusion Not Addressed
Forty-Ninth Report - Regulation of…
Lack of capacity constrains local authorities’ support to renters and use of enforcement powers.
Lack of capacity constrains local authorities’ support to renters and use of enforcement powers. Many local authorities take a light touch or “fire-fighting” approach, as they do not have the capacity to protect tenants and ensure landlords comply with regulations.14 … Read more
Government Response
The Clerk of the Houses will commit to meet the indicative timeframe and set out how they will recruit and retain the skills and expertise needed to deliver the Programme.
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8 Recommendation Accepted
Forty-Ninth Report - Regulation of…
The Department has introduced various pieces of legislation which give local authorities a range of...
The Department has introduced various pieces of legislation which give local authorities a range of tools and powers to enforce compliance in the private rented sector, such as civil penalties and banning orders.19 However, over time this has resulted in … Read more
Government Response
The government will run pilot schemes trialling improvements to enforcement of existing standards, strengthen LAs’ ability to tackle criminal landlords, bolster national oversight of LAs’ enforcement by requiring them to report on their enforcement activity, and explore seeking to introduce a national framework for setting fines.
HM Treasury
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9 Recommendation Accepted
Forty-Ninth Report - Regulation of…
The Department therefore has an important role to play in using its national perspective to...
The Department therefore has an important role to play in using its national perspective to identify and disseminate good practice among local authorities and help them regulate effectively.22 While it has provided some grant funding for project work (£6.7 million … Read more
Government Response
The government will run pilot schemes, strengthen LAs' ability to tackle criminal landlords, explore bolstering national oversight of LAs' enforcement, seek to introduce a national framework for setting fines, and continue to fund the National Trading Standards Estates and Lettings Agency Team.
HM Treasury
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10 Recommendation Accepted
Forty-Ninth Report - Regulation of…
The Department does not have a good enough understanding of what regulatory approaches work at...
The Department does not have a good enough understanding of what regulatory approaches work at local level to help local authorities ensure that landlords comply with their obligations. It has limited data on what tools and approaches are even used … Read more
Government Response
The government will run pilot schemes, strengthen LAs' ability to tackle criminal landlords, explore bolstering national oversight of LAs' enforcement, seek to introduce a national framework for setting fines, and continue to fund the National Trading Standards Estates and Lettings Agency Team.
HM Treasury
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11 Recommendation Accepted
Forty-Ninth Report - Regulation of…
The Department also does not know in detail what challenges local authorities are facing, and...
The Department also does not know in detail what challenges local authorities are facing, and lacks an early warning system to identify where local regulation is failing private renters. It does not collect data, for example, on the number of … Read more
Government Response
The government will run pilot schemes, strengthen LAs' ability to tackle criminal landlords, explore bolstering national oversight of LAs' enforcement, seek to introduce a national framework for setting fines, and continue to fund the National Trading Standards Estates and Lettings Agency Team.
HM Treasury
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12 Conclusion Rejected
Forty-Ninth Report - Regulation of…
In 2010, the Department introduced legislation allowing local authorities to require licences from landlords for...
In 2010, the Department introduced legislation allowing local authorities to require licences from landlords for more properties than the minimum requirements (the only properties that need licenses are larger houses in multiple occupation—those with at least five people from more … Read more
Government Response
The government considers current arrangements for licensing schemes strike the right balance, allowing local authorities to use selective licensing effectively without placing undue burdens on landlords where additional licensing schemes are not needed.
HM Treasury
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13 Recommendation Rejected
Forty-Ninth Report - Regulation of…
In 2015, the Department added a requirement that selective licensing schemes covering over 20% of...
In 2015, the Department added a requirement that selective licensing schemes covering over 20% of a council’s local area or rented housing stock must be approved by the Secretary of State. It told us it introduced this requirement to ensure … Read more
Government Response
The government disagrees with the recommendation to assess the current arrangements for licensing schemes, stating that the current balance allows effective use of selective licensing without undue burdens on landlords. However, they will work with local authorities and the Local Government Association to develop a selective licensing best practice sharing support for LAs and simplified the selective licensing application form.
HM Treasury
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14 Conclusion Rejected
Forty-Ninth Report - Regulation of…
To apply for approval for a selective licensing scheme, local authorities need a good understanding...
To apply for approval for a selective licensing scheme, local authorities need a good understanding of their local private rental market, which is hard to gather without already having a scheme in place.30 The time and resource needed to produce … Read more
Government Response
The government disagrees with the recommendation to assess current arrangements for licensing schemes, stating that the current system strikes the right balance.
HM Treasury
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15 Recommendation Rejected
Forty-Ninth Report - Regulation of…
Long wait times, made worse during the COVID-19 pandemic, are also a barrier to local...
Long wait times, made worse during the COVID-19 pandemic, are also a barrier to local regulation.33 For example, Liverpool City Council had a city-wide scheme from 2015 to 2020 that was popular locally, which lapsed while the Department was considering … Read more
Government Response
The government disagrees with the recommendation to assess current arrangements for licensing schemes, stating that the current system strikes the right balance.
HM Treasury
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16 Recommendation Accepted
Forty-Ninth Report - Regulation of…
Tenants have a legal right to a safe and secure home that is free from...
Tenants have a legal right to a safe and secure home that is free from serious health hazards. However, they face significant barriers to realising this right, and many experience significant issues which can result, for example, in serious illness, … Read more
Government Response
The government will introduce a property portal requiring all private landlords to join, giving private tenants a free redress service, and will learn from a recent mediation pilot to improve alternative dispute resolution.
HM Treasury
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17 Recommendation Accepted
Forty-Ninth Report - Regulation of…
The current system for renters to resolve problems relies on them being aware of, and...
The current system for renters to resolve problems relies on them being aware of, and enforcing, their own rights. However, tenants often do not know how to complain or do not have the confidence to do so. Charities such as … Read more
Government Response
The government agrees to improve renters’ ability to exercise their rights by bringing forward a landmark Renters Reform Bill, introducing a new property portal that all landlords will be required to join, and learn from the recent mediation pilot.
HM Treasury
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18 Recommendation Accepted
Forty-Ninth Report - Regulation of…
The complaints and redress mechanisms available to renters are also limited and complex.
The complaints and redress mechanisms available to renters are also limited and complex. While there are mandatory redress schemes for social housing and for letting agency work, these are voluntary for private landlords and so most tenants must use the … Read more
Government Response
The government will introduce a property portal requiring all private landlords to join, giving private tenants a free redress service, and will learn from a recent mediation pilot to improve alternative dispute resolution.
HM Treasury
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19 Conclusion Accepted
Forty-Ninth Report - Regulation of…
The Department told us that as part of its reform agenda, it plans to end...
The Department told us that as part of its reform agenda, it plans to end Section 21 work and introduce a mandatory redress scheme for landlords, with which it intends to empower tenants and improve landlord compliance.42 However, the Department … Read more
Government Response
The government agrees to improve renters’ ability to exercise their rights by bringing forward a landmark Renters Reform Bill, introducing a new property portal that all landlords will be required to join, and learn from the recent mediation pilot.
HM Treasury
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20 Conclusion Acknowledged
Forty-Ninth Report - Regulation of…
To ensure that regulation and other forms of support are effective in protecting renters, the...
To ensure that regulation and other forms of support are effective in protecting renters, the Department needs good data and insight into their experiences and the challenges they face. The Department told us that as part of its upcoming White … Read more
Government Response
The government agrees with the recommendation to develop a coherent data strategy and states they utilize a range of data from various sources to inform policy decisions.
HM Treasury
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21 Conclusion Acknowledged
Forty-Ninth Report - Regulation of…
However, the Department acknowledged gaps and limitations in its current data, and it is reliant...
However, the Department acknowledged gaps and limitations in its current data, and it is reliant on tenant representatives such as Shelter and Citizens Advice to understand tenant experiences.47 For example, it estimates that during the COVID-19 pandemic, over-crowding peaked at … Read more
Government Response
The government agrees with the recommendation to develop a coherent data strategy and states they utilize a range of data from various sources to inform policy decisions.
HM Treasury
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22 Conclusion Acknowledged
Forty-Ninth Report - Regulation of…
Data gaps also mean the Department does not collect the information it needs to evaluate...
Data gaps also mean the Department does not collect the information it needs to evaluate the impact of recent legislative changes. For example, in 2015 it introduced changes in the Deregulation Act to protect tenants from retaliatory eviction after raising … Read more
Government Response
The government agrees with the recommendation to develop a coherent data strategy and states they utilize a range of data from various sources to inform policy decisions.
HM Treasury
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23 Recommendation Accepted
Forty-Ninth Report - Regulation of…
Many issues facing both landlords and tenants relate to other policy areas, such as housing...
Many issues facing both landlords and tenants relate to other policy areas, such as housing benefits, tax laws and courts systems. There is therefore a need for cross-government working and data-sharing to understand the wider impacts of planned legislative changes … Read more
Government Response
The government agrees to fully understand the cumulative impact of proposed changes on tenants, landlords, and the housing market, working with other departments and completing an impact assessment by Spring 2023, as well as developing its approach to data collection to monitor the impact of reforms.
HM Treasury
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24 Conclusion Acknowledged
Forty-Ninth Report - Regulation of…
The Department has made some improvements to the private rented sector in the past ten...
The Department has made some improvements to the private rented sector in the past ten years. This includes banning unnecessary charges through the Tenant Fees Act 46 Q 90 47 Qq 91, 93 48 Q 65 49 Qq 92, 93; … Read more
Government Response
The government recognizes the improvements made to the private rented sector in the past ten years, including banning unnecessary charges through the Tenant Fees Act and deposit protection schemes.
HM Treasury
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25 Conclusion Acknowledged
Forty-Ninth Report - Regulation of…
The Department highlighted that its recent work has rightly focused on responding to the COVID-19...
The Department highlighted that its recent work has rightly focused on responding to the COVID-19 pandemic, during which it introduced protections through a temporary restriction on eviction proceedings. The Department told us it continues to monitor the situation as restrictions … Read more
Government Response
The government recognises the challenges of the COVID-19 pandemic and pressures faced by both landlords and tenants.
HM Treasury
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26 Conclusion Acknowledged
Forty-Ninth Report - Regulation of…
The Department told us it is now returning to the strategic reform agenda and intends...
The Department told us it is now returning to the strategic reform agenda and intends to publish a White Paper later in 2022.59 It has highlighted specific issues it plans to address as part of its reforms, including security of … Read more
Government Response
The government recognizes the need for greater fairness in the system to allow renters to realize their right to a safe and secure home and published a white paper on 16 June 2022 setting out details of the planned reforms.
HM Treasury
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Government Response AI assessment · 26 of 15 classified
Accepted 11
Acknowledged 7
Not Addressed 3
Rejected 5
Total 15 recs + 11 conclusions
Correspondence 3 letters
8 Sep 2022 Correspondence from Jeremy Pocklington CB, Permanent Secretary, Department for Levelling Up, Housing and Communities to Dame Meg Hillier, Chair, Committee on Public Accounts, re Regulation of private renting, dated 13 July 2022
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22 Feb 2022 Correspondence from Jeremy Pocklington CB, Permanent Secretary, Department for Levelling Up, Housing and Communities, re Further information following the oral evidence session: Regulation of private renting, Public Accounts Committee, dated 10 February 2022
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22 Feb 2022 Correspondence from Caroline Crowther Director, Private Rented Sector & Leasehold, re Further information following the oral evidence session: Regulation of private renting, Public Accounts Committee, dated 11 February 2022
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