Renter groups call on the next government to ‘fix our broken rental system’

Renter groups call on the next government to ‘fix our broken rental system’

0:01 AM, 13th June 2024, About 5 months ago 15

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Groups representing renters in England have sent every political party an open letter urging them to address the ‘unprecedented crisis’ facing tenants.

They say that renters ‘face constant insecurity’ from the threat of Section 21 ‘no-fault’ evictions and that a quarter of tenants have lived in at least three rented homes in the last five years.

The letter writers – there are 27 organisations including Generation Rent and Shelter that have signed – claim that England’s private rented sector (PRS) ‘is rife with disrepair and poor conditions’.

They warn that 22% of PRS households say they don’t complain because they fear being evicted – with 46% of those who do receive a section 21 notice within six months.

‘Being charged rents they cannot afford’

The letter also highlights that annual rent rises of 9% mean low-income households are ‘being charged rents they cannot afford’ and there are no alternative housing options.

In turn, that means more people are being made homeless and putting councils under financial strain.

The letter states: “The failure to pass a Renters (Reform) Bill that delivered on these commitments in the 2019-2024 Parliament was a huge disappointment.

“The next tranche of homelessness statistics will likely show the number of households made homeless as a result of section 21 evictions since then to have reached 100,000 – a shameful number.

“Clearly, renters cannot afford more policy failures.”

‘Unaffordable in-tenancy rent increases’

The letter writers want the next government to abolish section 21 – ‘including those that take place through unaffordable in-tenancy rent increases’.

They also want ‘longer notice periods when evictions are taking place and severe penalties for landlords who abuse the new system’.

Along with a national landlords’ register, which must work alongside existing licensing schemes, it must also show the landlord’s contact and address details.

The register should also contain past enforcement action against the landlord, all eviction notices to be registered and for safety information and Energy Performance Certificate information to be listed.

It should also show the current and previous rents charged for the property.

Reinstate minimum EPC certificate of C

Despite Rishi Sunak binning the move for all rented homes to have a minimum EPC certificate of C, the letter writers want that brought back ‘as soon as possible’.

They also want councils to be funded to carry out landlord enforcement and ‘crackdown on illegal evictions’.

Landlords might raise their eyebrows to see that tenants should have access to increased legal aid funding for ‘timely legal advice’.

And the eviction case should be heard before a judge with the discretion to deny an eviction ‘when circumstances require’.

The result for the next government, the letter states, is that renters will enjoy housing that is more affordable, more secure and better quality.

Also, they will be ‘treated with respect by their landlord and the state’ if the demands are put in place.


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Mark C

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12:49 PM, 13th June 2024, About 5 months ago

Reply to the comment left by Reluctant Landlord at 13/06/2024 - 11:27
I don't think Landlords are passing on all their costs. My mortgages doubled and now I breakeven even though I put up the rent 20% - I am still 20% below market value rent. Now in a loss as the boiler broke.
Luckily I have a Ltd Company so will ride it out and carry forward the loss.

Beaver

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13:35 PM, 13th June 2024, About 5 months ago

Reply to the comment left by Ian Narbeth at 13/06/2024 - 12:11
I'm not sure that the government needs to subsidise private landlords as such as much as stop penalising them. At the moment small portfolio landlords (the majority) are penalised by the tax system as they are unable to deduct their finance costs against rents; the people that can do it are the people running limited companies so this is a policy that hurts the majority of small people and does nothing for tenants.

If by subsidy you mean providing the tax breaks that allow us to offset investments in renewables against operating expenditure rather than as capital expenditure then I agree. But that's not a subsidy. That's just common sense.

Ian Narbeth

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15:46 PM, 13th June 2024, About 5 months ago

Reply to the comment left by Beaver at 13/06/2024 - 13:35
In principle I would agree with you. However, given the shortage of landlords, something bold needs to be done. How about restoring wear and tear allowances? Grants for EPC upgrades and help with renewables?

Unless landlords see that a corner has been turned, their confidence will not be restored.

Beaver

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16:52 PM, 13th June 2024, About 5 months ago

Reply to the comment left by Ian Narbeth at 13/06/2024 - 15:46
OK...on grants for EPC upgrades and moving to renewables I agree with you. Without them the numbers don't stack up.

Lisa008

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16:42 PM, 18th June 2024, About 5 months ago

The Renters Reform Coalition ought to form a property development arm and build some more houses.

They also ought to have another arm that has a team that will buy houses that are in a terrible state of disrepair... and spend the thousands to carry out the works to bring the property to an EPC C level...

And then with the rest of the funds that they can magic out of thin air, they should have a rental arm that can provide social housing with rents below market value, so that the money they've just spent doing up the place, can be recouped over the course of the next 10-15 years... by which time, they'll need a complete refurb and new boiler again... but not to worry... they can sell to the residing tenant, make no money, and conjure up some more money out of thin air and repeat the process.

Problem solved.

Everyone is housed and paying for it themselves.

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