In order for meaningful improvement to be made to England's PRS, it’s crucial to implement enforcement correctly. DLUHC has gaps in its understanding of what problems are occurring within the PRS and where, as well as lacking data on key issues where regulatory action may be required (such as evictions and disrepair that is not being addressed).
The report claims that DLUHC will struggle to measure the impact of its interventions without this data but has not yet developed a plan to improve the information it has available.
As such, the department does not yet have a strategy for what it wants the regulation sector to look like as a whole, although it told NAO that it’s currently defining the strategic objectives of its reform programme.
Additionally, the report brings into consideration the way in which local authorities are taking different approaches to regulate the PRS within their areas. This includes ensuring landlords comply with legal obligations, with some local authorities inspecting almost none of the privately rented properties in their areas, and others inspecting a large proportion.
Without strengthening current processes and providing adequate funding to local authorities, the UK Government will continue adding red tape to the PRS, despite landlords already being under considerable legislative pressures. This could lead to a further decline in stock levels at a time where supply is already low.
To support DLUHC’s plans to introduce reforms to the PRS through producing a Renters’ Reform White Paper, which was recently postponed until 2022, NAO recommended that the department defines an overall vision and strategy for the regulation of the PRS.
The private rented sector needs balance and must work for both tenants and landlords evenly. Figures from the latest English Housing Survey point to a steady decline in the size of the private rented sector over the last five years and should act as a warning sign to protect the sector.
The pending Renters’ Reform White Paper presents a once in a lifetime opportunity to design a package of reforms that creates a fair private rented sector. It is paramount that the UK Government ensures it proposes a deal that does not further push landlords out of the market.
The proportion of private renters living in properties that are unsafe or fail the standards for a decent home is concerning. The government relies on these tenants being able to enforce their own rights, but they face significant barriers to doing so.
The Department for Levelling Up, Housing and Communities should improve the quality of its data and insight into the private rented sector, so that it can oversee the regulation of the sector more effectively. It should develop a clear strategy to meet its aim of providing a better deal for renters.
