A leading voice in the redress sector has raised serious concerns about the future of the private rental market once the Renters Rights Bill comes into force this autumn.
Sean Hooker, head of redress at the Property Redress Scheme, has warned that the new legislation could trigger a surge in unlawful practices, including ‘sham licences, illegal subletting, and exploitative rent-to-rent arrangements’.
Following the BBC One documentary “For Rent: Rooms Under the Radar”, which aired last Friday and exposed the growing issue of illegal and unlicensed HMOs, Hooker felt compelled to speak out about the potential impact that the proposed legislation could have on the private rented sector.
He said: “This demonstrates the extent of the challenges the sector faces. While it represents a small fraction of the overall rental market, private renting now forms such a large part of housing supply that the actual numbers involved are frightening. The BBC’s findings, uncovering the shocking conditions many tenants endure, highlight just how urgent this issue is.
“Given the chronic shortage of housing, the economic and affordability issues faced by renters, it is all too easy for the unscrupulous to exploit vulnerable tenants.
“Licensing schemes are increasingly common and, where properly enforced, they have raised standards. However, this depends heavily on how well local authorities are resourced and how effectively they work with the rental community to create a collaborative and cooperative landscape, one that fosters compliance and creates a hostile environment for those who choose to break the law.
“The proposed private rented sector database, which will require all rental properties to be registered nationally, has huge potential to make a difference if rolled out effectively. Better data sharing would enable authorities to focus on where criminality is going under the radar. There is also an ongoing need to help educate tenants about their rights, where to access help and to reduce the fear that making a complaint will leave them homeless.
“We know that when rules are tightened, the worst offenders simply find new ways to bypass them. Once the Renters’ Rights Bill becomes law, it is likely we will see a rise in creative criminal practices such as sham licences, illegal subletting, and exploitative rent-to-rent arrangements.
“Until we can clearly distinguish between what a safe, transparent and well-regulated sector looks like, and shine a beacon on this, the rogue element will continue to operate in the shadows, endangering tenants and destroying the reputation of those who play by the book.”
For Rent: Rooms Under the Radar is available to watch now on BBC iPlayer.
