The private rented sector in England is not fit for purpose, failing both landlords and tenants, plagued by issues of sub-standard accommodation, insecurity and ineffective redress, according to a damning consumer report.
The research from consumer giant Which? found evidence of wide ranging issues from substandard property conditions to anxiety about insecure tenancies and a fear of reporting problems. This was combined with a lack of knowledge from tenants and landlords about rights and responsibilities, and a failure by some letting agents to provide necessary information.
With half of those already renting expecting to do so for at least the next five years, Which? is calling for fundamental reform of the sector. It says that all landlords should be registered with local authorities, with information logged on a publicly available database linked to the existing register of rogue landlords and agents established in April 2018.
It also backs the creation of an independent regulator for lettings and management agents with a mandatory, legally binding code of practice and strong penalties for rogue operators and it calling for the Government to introduce reforms to improve tenure security and review eviction procedures to reduce unnecessary delays for landlords when repossession is justified.
Which? also calls for a review of tenancy agreements used by letting agents to establish how widespread use of unfair, inaccurate or misleading terms and conditions is and to see if further action, for example an investigation by the Competition and Markets Authority, is required.
It adds that the Government must provide consumers with an effective and accountable alternative dispute resolution scheme, review the current deposit adjudication schemes and consider options to avoid tenants being forced to cover multiple deposits at the same time.
‘Our comprehensive look at the experiences of tenants exposes the failings in a rental sector that has failed to keep pace with changes in society that have made renting a long term reality rather than just a stepping stone for millions of people. The Government must tackle the issues we have identified in our report head on, to ensure the rental market delivers for consumers,’ said Which? chief economist Rocio Concha.
The research found that millennials seem to be particularly vulnerable to a number of common issues. Some 68% of this group say they have experienced problems with letting agents and they are nearly one and a half times more likely than tenants aged 38 and over to report poor standards of accommodation. One in five said that they did not receive a written tenancy agreement when they moved into a property.
As more families are priced out of the property market, there has been a dramatic rise in the number of private renters living with dependent children in the past decade but the research reveals that many of them fear losing their homes due to a lack of security of tenure.
Indeed, some 59% of families told Which? they were worried about having to leave their property before they wanted to, while almost two in five felt that their previous notice period was too short.
Which says that its research raises serious concerns about a lack of regulation for letting agents, with reports of rogue operators pressuring house hunters to pay holding deposits or sign contracts without the information needed to make informed decisions. When we asked a housing lawyer to undertake an initial review of tenancy agreements, they found unclear language and clauses that could be considered unfair to tenants such as making tenants liable for costs that are a landlord’s responsibility or banning tenants from changing gas or electricity supplier.
The vast majority of tenants, some 81%, said they have experienced problems with the standard of their accommodation, with damp or mould being the most common issues. The next most widespread reported problems were with condensation, draughts and problems with plumbing.
A recent undercover investigation into letting agent practices also revealed that prospective tenants going on property viewings were in many cases met with a critical lack of important safety information and were shown properties plagued by damp.
It also found that 45% of tenants have ordered, carried out or paid for repairs themselves, with a significant proportion, 23%, saying they did so to avoid causing problems with their landlord. Tenants and landlords find the current system of redress confusing and complex. Only 44% tenants who felt like making a complaint did so, with 58% fearing repercussions from their landlord.
It suggests that landlords need better information about their rights and responsibilities. Only 21% could correctly identify their legal obligations, and 43% said they would like better information, training and advice.
