Change law so councils can tackle standards in private rented sector: report

The Housing Act 2004 should be amended so that councils have more flexibility in introducing selective licensing and tackling poor standards in the private rented sector, think tank LGiU and the Electrical Safety Council have argued.

In a report, House Proud, the two organisations also called on the Government to:

• Give councils more power to recoup the costs of enforcements;
• Allow councils to choose to introduce compulsory accreditation;
• Address the gap left by the closure of LACORs and promote the sharing of best practice. “Better investment in sector-led guidance would free up local authorities to focus their limited resources on engagement and enforcement”.

The LGiU and the ESC also made a number of recommendation to local authorities. These were to:

• Engage with the best landlords to encourage self-regulation. Landlord ‘PRS Champions’ should be better incentivised to work closely in partnership with the council and the wider landlord community;
• Empower tenants by using a range of communication channels to disseminate information about the rights and responsibilities of tenants and landlords. “This may involve publicising information about good landlords who have been accredited, or poor ones who have recently been prosecuted”;
• Make use of resources outside the council, “encouraging businesses and local residents to engage with the issue by recognising and reporting suspected instances of criminality, such as ‘beds in sheds’”;
• Show strong political leadership by setting out a clear vision. “Local political leaders have an important role to play in articulating their willingness to work with responsible landlords, as well as demonstrating that they are prepared to enforce standards in the worst properties.”

The LGiU and the ESC said the growth in the private rented sector over the last decade had created new challenges, with more than a third of properties (35%) failing to meet the Decent Homes Standard.

“Local authorities are responsible for ensuring adequate standards in the sector, but to do this effectively they must be able to operate freely without excessive central control,” the LGiU and the ESC added.

Jonathan Carr-West, chief executive of the LGiU, said: “The massive growth of the private rented sector presents a variety of challenges. Whilst the majority of the private rented sector properties meet appropriate standards, a minority of landlords actively pursue criminal activity to the detriment of those living in their properties.

“Councils can play a key role in tackling poor standards in the private rented sector, but to do this effectively, they must be freed from central government red tape. There is no one-size-fits-all model. Rather, local authorities must be given the freedom and capacity to respond to the needs and issues in their areas.”