Local authorities need greater powers to break the business models
of criminal landlords who exploit vulnerable tenants,
the Housing, Communities and Local Government
Committee has concluded, with the most egregious
offenders facing the confiscation of their properties.
In a report on the private rented sector out today, the Committee
says the most vulnerable tenants need greater legal protections
from retaliatory evictions, rent increases and harassment so they
are fully empowered to pursue complaints about repairs and
maintenance in their homes.
The Committee is calling on the Government to address a ‘clear
power imbalance’ in parts of the sector, with tenants often
unwilling to complain to landlords about conditions in their
homes such as excess cold, mould or faulty wiring.
The report calls for more robust penalties to deal with the very
worst landlords and for the Government to give local authorities
the power to confiscate properties from those committing the most
egregious offences and whose business model relies on the
exploitation of vulnerable tenants.
During the inquiry, the Committee heard how in some areas up to
25 people could be found living in houses of just three-bedrooms,
while some landlords charge rent of up to £500 for a bed in a
room with four bunkbeds.
While the Committee acknowledges the legislation introduced in
recent years to strengthen protections for tenants – including
civil penalties of up to £30,000 and banning orders for criminal
landlords - the Committee heard that local authorities have
insufficient resources to undertake their enforcement duties.
MP, Chair of the Housing,
Communities and Local Government Committee, said:
“The imbalance in power in the private rented sector means
vulnerable tenants often lack protection from unscrupulous
landlords who can threaten them with retaliatory rent rises and
eviction if they complain about unacceptable conditions in their
homes.
Local authorities need the power to levy more substantial
fines against landlords and in the case of the most serious
offenders, ultimately be able to confiscate their
properties.
Such powers are however meaningless if they are not enforced
and at the same time councils need more resources to carry out
effective prosecutions.
Stronger powers, harsher fines and a new commitment to
cracking down on unscrupulous practices will go some way towards
rebalancing the sector and protecting the many thousands of
vulnerable residents who have been abused and harassed by a
landlord.”
The report recommends:
- Tenants need
greater legal protections from retaliatory eviction, rent
increases and harassment. For example, the Deregulation Act could
be strengthened to give greater protections to tenants after they
make a complaint about conditions in their homes.
- The
establishment of a new fund to support local authorities to
undertake informal enforcement activities.
- The
introduction of new ways of informing tenants and landlords of
their rights and responsibilities.
- A
requirement for local authorities to publish their enforcement
strategies online.
- A review of
legislation relating to the private rented sector aimed at
bringing more clarity for tenants, landlords and local
authorities.
The report found that a significant minority of homes in the
private rented sector are ‘shockingly inadequate’. While the
proportion of non-decent homes has declined over the last ten
years, the absolute number has increased as the sector has grown.
The Committee concluded that enforcement of existing legislation
to protect tenants had been ‘far too low’ with six out of 10
councils not prosecuting a landlord in 2016.
