UK Parliament has released a briefing which highlights the current state of the Private Rented Sector (PRS) in England, focusing on housing quality and the government’s push for significant reform.  In summary:

The Current State of the PRS

The Private Rented Sector remains a critical part of the housing market, accommodating approximately 4.6 million households, representing nearly one-fifth (19%) of all households in England.

• Diverse Tenants: The sector now houses a more diverse population, including more families with children and older renters, with many relying on it for long-term accommodation.
• Affordability Challenge: Private renters continue to spend a higher proportion of their income on housing costs compared to owner-occupiers or social renters, an issue particularly acute for low-income households.
• Landlord Profile: The vast majority of landlords (94%) are individuals, not companies, and most (83%) own fewer than five properties. Many view their property primarily as a long-term investment contributing to their pension.

The Quality and Compliance Drive

Poor housing conditions in the PRS are the primary focus of the new regulatory agenda.

• Worst Quality Tenure: The PRS has the poorest housing quality across all tenures. The English Housing Survey estimated that around 21% to 23% of PRS homes did not meet the Decent Homes Standard in recent years.
• Serious Hazards: Private rented homes are significantly more likely to contain a Category 1 hazard (those posing the highest risk of serious harm or death) under the Housing Health and Safety Rating System (HHSRS) compared to owner-occupied or social-rented homes.
• The Goal: The Government has committed to halving the number of non-decent rented homes by 2030.

Key Reforms on the Horizon

The Renters’ Rights Bill (based on the “A fairer private rented sector” White Paper) is set to fundamentally change the regulatory landscape for landlords:

1. Decent Homes Standard: For the first time, privately rented homes will be legally required to meet the Decent Homes Standard—a requirement previously limited to the social housing sector.
2. End of ‘No-Fault’ Evictions: The most anticipated change is the abolition of Section 21 (no-fault evictions), shifting all tenancies to periodic agreements and requiring landlords to rely on updated Section 8 grounds for possession.
3. New Regulatory Bodies:
   • Single Ombudsman: A new single, mandatory Ombudsman will be introduced, requiring all private landlords to join and offering tenants a mechanism for dispute resolution outside of the courts.
   • Property Portal: A new digital Property Portal is planned to ensure tenants, landlords, and local authorities have the necessary information regarding property standards and compliance.
4. Strengthened Enforcement: Local authorities are expected to receive strengthened enforcement powers to tackle non-compliance and poor standards.