Private rented housing

This section explains government policy for strengthening the private rented sector through improved standards of the quality of its properties and landlords' management of those properties and tenancies.

It points out a range of statutory requirements (such as licensing) and voluntary schemes (such as accreditation) that landlords and tenants should be aware of and includes links to useful information for tenants and landlords.

News releases

On 13 May 2009, a major new package of measures to strengthen consumer protection for tenants living in private rented accommodation was announced by former Housing Minister Margaret Beckett. This formed the Government's response to the independent, Review of Private Rented Sector Housing (external link), headed by Julie Rugg of the University of York.

This package of proposals represents a long-term strategy for the private rented sector, and many of the proposals will require primary legislation to be implemented. The consultation on these proposals ended on 7 August 2009 and we aim to report on the responses in November 2009. The proposals can be found in the document - The private rented sector: professionalism and quality - The Government response to the Rugg Review Consultation.

Communities and Local Government's policy on the private rented sector

Private rented housing is a vital and growing part of the housing market (almost 14 per cent of all households, or nearly three million homes in England).

The sector has been changing: Buy to Let has brought better quality property into the sector - but also many more smaller investors. The private rented sector (PRS):

offers a flexible form of tenure and widens choice and meets a wide range of housing needs, including those receiving Housing Benefit
contributes to greater labour market mobility
is increasingly the tenure of choice for the young (45 per cent of heads of household in the PRS are under 30, compared to 23 per cent in social renting and 32 per cent in owner occupation)
has responded to the growth in student numbers (although this may have led to the studentification of some areas).

The Government wants to strengthen the private rented sector through improved standards of the quality of its properties and landlords' management of those properties and tenancies.

Key measures are:

the provisions of the Housing Act 2004, including:
- from 6 April 2006 mandatory licensing of larger Houses in Multiple Occupation (HMOs) which pose the greatest risk to the health and safety of occupiers and often pose the greatest management challenges
- local authority powers to take over the management of the poorest managed private rented properties in their areas, through management orders
- from 6 April 2007, tenants' deposits are required to be protected in a designated scheme. This means that when a tenant has paid a deposit and is entitled to get it back, he or she will have the assurance that it will be given back
- the new Housing Health and Safety Rating System. Local authorities can now assess the severity of health hazards such as electrical hazards, cold and damp and decide on the appropriate action to remove or reduce hazards
encouraging voluntary measures such as accreditation and landlords forums, and
encouraging local authorities and private landlords to work together in meeting housing need.

The Government's response to the Rugg Review of the Private Rented Sector includes proposals for:

introducing a light-touch national register of every private landlord in England to increase protection for vulnerable tenants and good landlords. Landlords will need to include their registration number on all tenancy agreements and could be removed from the register for persistent poor performance, like failing to carry out essential repairs, or not protecting tenants' deposits
full regulation for private sector letting agents. Letting and managing agents don't currently need to have professional credentials. This means that both tenants and landlords have no realistic redress when things go wrong. To tackle these problems, the government proposes creating an independent regulator for all letting and managing agents
an improved complaints and redress procedure for tenants. For the first time, the Government will look to set up a mechanism whereby tenants are able to register official complaints about sub-standard landlords, and if these complaints are substantial and proven then landlords may be removed from the national register
greater local authority support for good landlords. Local authorities will be encouraged to create 'local lettings agencies' to better facilitate tenancies in the private rented sector for those in housing need, including Housing Benefit recipients

Consultation on these proposals ended on 7 August 2009. We aim to report on the responses by the end of 2009. The proposals can be found in the document - The private rented sector: professionalism and quality - The Government response to the Rugg Review Consultation.

Information for landlords

Landlords can benefit from belonging to a local accreditation scheme - a set of standards (or codes) relating to the management or physical condition of privately rented accommodation. Landlords who join a scheme and abide by the standards are accredited. Although voluntary there may be many advantages to those who join.

The Letting your property pages of the Directgov website (external link) provide further information on accreditation and on landlords' rights and responsibilities.

The Business Link website also carries some information about the responsibilities of residential landlords.

Communities and Local Government also publishes booklets for landlords (and Assured Tenancy Forms) (available to order or download).

Information for tenants

The Private renting pages of the Directgov website (external link) provide information on tenants' rights and responsibilities and the different types of private tenancy arrangements.

Communities and Local Government also publishes booklets for tenants (and Assured Tenancy Forms) (available to order or download).

Key search terms: Private rented sector, PRS, private rented housing, licensing, accreditation, landlord, tenant