As the private rented sector has grown and developed, concerns about the need to improve standards in it have come into sharper focus within policy and practice, writes Jennifer Harris.
The Renters (Reform) Bill introduced to parliament on 17 May aims to deliver “safer, fairer and higher quality homes”. Evaluating the effectiveness of the proposals in raising standards will require extensive and timely data and evidence. However, there’s a lack of research routinely collected on the sector, particularly in relation to tenant experiences.
A new national survey
The TDS Charitable Foundation has launched a new continuous survey which will collect data from tenants across England and Wales at six-month intervals. The study is based on a representative sample of more than 2,000 participants and collects information on tenant characteristics, tenure security and access, affordability, property conditions, dispute resolution and energy efficiency. The study aims to explore how tenants’ experiences and trends are changing over time and identify which households are facing the greatest strain.
The most recent wave was carried out in March/April 2023. The findings demonstrate the significance of rising rents and supply shortages in framing tenants’ experiences and their response to problems associated with the quality of their property. These findings have important implications for the Renters (Reform) Bill, which does little to address issues relating to the affordability of renting and the lack of rental stock.
Here we discuss some of the key findings in more depth.
Who lives in the private rented sector?
The findings show that the private rented sector is accommodating a diverse range of households including a high proportion of households with children (44%). Nearly a quarter of all tenants receive benefits to help pay the rent and a fifth are living on the lowest incomes. Over a quarter of tenants are from minority ethnic groups and a significant proportion report living with a long-term mental or physical health condition (33%). The data shows that it’s these groups who disproportionally bear the brunt of problems in the sector, such as poor-quality accommodation.
A third of all tenants fall into the higher income bracket (33%), for whom renting privately may well represent a positive choice. Indeed, most tenants said they had positive relationships with their landlord (72%) and just over half rated the condition of their property as good or excellent (33% rated it as acceptable, 14% rated it as poor or very poor).
These findings demonstrate the importance of recognising the diversity in tenants’ needs, characteristics and experiences, as well as the diversity in stock condition and management practices. Policy strategies and a language which reflect this heterogeneity of the private housing market and people’s experiences are essential.
What are the main challenges faced by tenants?
The data shows that issues related to affordability, accessing the sector and energy efficiency are experienced by a high proportion of tenants.
Almost one in three tenants are now finding it difficult to afford their rent, and just over half are regularly cutting down on household essentials to meet their rental payments. Single parents (67%), tenants in receipt of benefits (62%) and larger families (76%) are significantly more likely to cut back on household essentials.
The data shows rents across England and Wales have risen by 7% in the past six months, whilst in London they increased by 13%. Almost half of all tenants who moved into a new tenancy in the past six months are struggling to afford their monthly rent whilst 68% of this cohort said it was difficult to find a suitable property.
Difficulties keeping the house warm was the most commonly reported problem relating to housing condition, whilst over half of tenants feel that the energy efficiency of their homes could be improved. Some 44% of all renters said they struggled to afford their utility bills in February/March.
The implications for improving housing standards
The current regulatory system relies on tenants reporting issues to their local council. Multiple reports have indicated that tenants are unwilling to ask for repairs or complain about housing conditions.
Our data suggests that active reporting of issues by tenants is, in fact, more widespread. The large majority of those experiencing a repairs or maintenance issue in the past six months have reported the problem to their landlord or letting agent (87%). Only a small minority were deterred from raising issues primarily due to apathy, a preference for self-help or because they didn’t want to ‘bother’ the landlord.
However, the data shows that when issues aren’t resolved by landlords or letting agents, most tenants are reluctant to escalate complaints to councils or other redress bodies. Only 23% of tenants complained to their council or another redress scheme, such as the Property Ombudsman. Fears about jeopardising the tenancy operated as a stronger deterrent. Concerns about eviction (35%), rent increases (30%) and the difficulties associated with finding another property (27%) were the main reasons for not complaining to the council or one of the schemes.
Only 39% of tenants who believed the energy efficiency of their property could be increased asked their landlord to make improvements. The data, however, shows that where requests are made, this can prompt landlord action: 23% of those who asked for improvements were happy with the landlords’ response whilst 51% were somewhat happy. Most tenants, however, haven’t requested improvements (61%). This was primarily due to concerns that the landlord might increase the rent or ask them to leave. In an increasingly competitive and expensive housing market, the lowest-risk strategy for tenants may be to not make requests.
Conclusion
Amidst a surge in the cost of renting and a growing mismatch between supply and demand, concerns about endangering tenancies influence tenants’ willingness to escalate complaints and request energy efficiency upgrades. Unless steps are taken to address supply shortages and affordability issues, the government’s ambition to improve standards in private rented sector may have limited impact.
The full report can be accessed at https://www.tdsgroup.uk/research
Jennifer Harris is Head of Policy, Research and Strategy at the TDS Charitable Foundation www.tdsfoundation.org.uk
