flickr photo by umjanedoan shared under a Creative Commons (BY) license
Landlords are making ‘billions of pounds’ from private sector tenants living in homes that fail to meet basic legal housing standards, according to a new report by Citizens Advice and the New Policy Institute (NPI).
Damp and mould, excess cold, rat infestations and pollutants such as Asbestos – the most dangerous ‘category 1 hazards’ – were found in as many as 700,000 privately rented homes in England.
It’s not just low income households vulnerable to renting unsafe housing. 30% of households surveyed reported an annual income of £30,000 and 18% more than £40,000, according to the ‘Paying a high price for a faulty product’ report.
Private renters on the rise
The number of those renting privately is set to increase. Figures by the National Office of Statistics show households in the private sector have risen by 12% in the last decade. Price Waterhouse Cooper (PwC) reports that private rented households will rise to a quarter by 2025 as more people are priced out of home ownership by rising house prices of 5% a year.
Renting in the private sector is the most expensive form of housing yet the poorest in quality. Despite paying significantly more in monthly payments than social housing tenants and home owners, private tenants live in households with a larger number of category 1 hazards. Private rented homes have 5% more category 1 hazards than owner-occupied homes, and three times the number than social rented homes. Average monthly costs for private renters is £765 compared to just £409 for social renters and £664 for home owners paying a mortgage.
Call for rent ‘refunds’
Campaigners are calling for the Government to provide tenants with the same level of protection seen in consumer law. The recently updated Consumer Rights Act (2015) replaces the Sales of Good Act (1979) and aims to make buying and selling – and redressing complaints – easier. The laws that protect consumers do not translate in housing law, and campaigners want to see this changed.
Citizens Advice is asking for a new housing bill that gives rights such as the ‘right to refund’ in rent when housing problems are ignored. Despite the right to refund proposal being accepted by the government in the current Housing and Planning Bill, rent refunds currently require pursuing through the courts – with tenants footing the bill.
Campaigners say more needs to be done to make rent refunds easier, especially for those not in receipt of housing benefit. Private tenants also need greater protection from ‘retaliation eviction’
License landlords and ‘rogue’ database
Local landlord licenses and a database of ‘worst offenders’ is being considered, alongside the right to refund in the current Housing and Planning Bill. There will be tougher rules to protect tenants from rogue landlords who fail to maintain safe households and new legislation to prevent letting agents from charging extortionate and unnecessary fees in England.
However, there is fear that landlords will respond to increased legislation by selling housing stock and further exasperating the demand for housing in the private housing.
Citizen Advice Press Release
Citizens Advice Report: Paying a high price for a faulty product
Link to Housing bill
Link to Price Waterhouse Cooper report summary