Industry News


Renters’ Rights Bill to cost £33 million T


he Ministry of Housing, Communities and Local Government has published its impact assessment for the Renters’ Rights


Bill, estimating the net cost to businesses will total £33 million a year. According to the Government’s assessment the


cost for landlords will be £12 per rented property annually and for agents £1,700 a year. It says it does not predict a mass exodus of


landlords from the sector as a result of the changes – the biggest shake up of the private rented sector in more than 30 years. According to the document the main costs –


excluding Awaab’s Law and the Decent Homes Standard – fall on landlords, although it argues there will also be a gross benefit of £9 per rented property per year to landlords, coming from a reduction in letting agents’ fees.


Using the same rationale, it says tenants are


expected to benefit by £28 per household per year from this, arguing the greater security of tenure that will come about as a result of the Bill, will lead to fewer moves, therefore ‘avoiding the associated costs and disruption’.


SUPPLY CRISIS Te NRLA has argued changes will impact supply, with evidence suggesting some landlords are already leaving the sector – with even more planning to do so over the next 12 months. However, the Government document says that


while this is a ‘risk’ it does not expect supply to take a major hit. It says: “Tere is a risk that costs from the legislation may result in some landlords leaving the sector. Tis is difficult to estimate precisely,


though we would expect it to be substantially mitigated by the additional cost per rented property being a very small fraction of average annual rent and asset value. “Te available evidence to date does not suggest


that similar reforms to abolish section 21 in Scotland have negatively impacted supply, nor changes introduced by the 2019 Tenant Fees Act, despite concerns they would. “Te most recent English Housing Survey data


shows the proportion of PRS households has remained relatively stable since 2013/14, suggesting that there have been no significant impacts on supply to the sector from various reforms.” It goes on to say that those landlords facing the greatest costs as a result of the new measures will be the ones currently providing the poorest service to their tenants.


Regulator of Social Housing issues ‘C3’ consumer gradings to three local authorities


Te Regulator of Social Housing has found three local authorities are failing to meet the necessary standards. Te three authorities are Southwark Council in London, Southampton Council and West Northamptonshire Council. An RSH inspection found Southwark


Council failed to self-refer despite more than half of its homes having no smoke alarms. More than half had also not had electrical condition test for over five years. It was also found to have almost 2,000 overdue fire safety remedial actions, while its last stock condition survey was undertaken in 2010. Kieron Williams, leader of Southwark Council,


said: “I want to apologise to tenants who have been let down. We will continue to drive up the quality of our services and homes for you. While we have made progress, we know there is much more to do.


“We will be making sure our action plan delivers


the improvements that the regulator has identified. We’re investing over £250 million over the next three years to make our homes safe and decent.” Southampton City Council was found to have


47% of its homes not meeting the Decent Homes Standard. RSH also found the Hampshire local authority had poor routine repairs performance, weaknesses around asbestos safety, little evidence of tenant views being take into account and issues with complaints handling. Jamie Brenchley, director of housing at


Southampton City Council, said: “We fully acknowledge and accept the regulator’s findings and are committed to improving the service that we provide to tenants. We are making improvements as quickly as we can and welcome


the opportunity to work closely with the regulator, and most importantly our tenants, as we deliver our improvement plan.” West Northamptonshire Council self-referred


itself to the RSH in September aſter identifying an issue with data quality and health and safety compliance. RSH subsequently found a lack of assurance over safety checks for fire, electrical, water, asbestos, liſts and smoke and carbon monoxide alarms. It also found “limited” evidence that remedial actions were being completed within appropriate timescales. Adam Brown, leader of West Northamptonshire


Council said the authority is “sorry” standards have fallen short of what tenants should expect. He said: “Since identifying these failings


and submitting a self-referral, we have taken immediate action, prioritising safety concerns and working closely with [housing manager] Northampton Partnership Homes to ensure robust processes are in place. We have also strengthened oversight by appointing additional directors and housing experts to the board to guide and support the recovery process.”


New rented homes database must include vital safety information


Te Private Rented Sector property database - set to be introduced under the Renters’ Rights Bill - must include meaningful information on safety and standards if it is to work for landlords and tenants. While ministers pledge the database will give


‘assurances’ to tenants, no detail has been provided as to the nature of the information to be included. Te National Residential Landlords Association


has issued the warning, explaining responsible landlords need to be able to demonstrate compliance with all their obligations, while tenants must be empowered to identify the homes - and landlords – that meet all required standards. At a minimum the NRLA wants gas and


electricity safety certificates to be fully digitised so they can be easily uploaded onto the database, alongside already digitised Energy Performance Certificates. Te database should also include a signed declaration by a landlord which confirms that a


14 | HMMDecember/January 2025 | www.housingmmonline.co.uk


property meets the requirements of the planned decent homes standard for the sector. Without this essential information, the database will fail to help tenants determine whether properties are safe and secure, undermining its intended purpose. Ben Beadle, NRLA chief executive said: “Te


database of private rented properties must go beyond a basic directory. It needs to provide tenants with clear, meaningful information designed to empower informed decisions on their next home. “Tis will help tenants identify the vast majority


of homes that are safe, secure and well-managed by responsible landlords. It would be a travesty if the database simply became a bureaucratic list of homes and landlords with little else besides.”


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