Almost £9bn paid in rent for non-decent homes in England branded ‘scandal’

By Aine Fox, Reorter19th April 202319th April 2023News EnglandHousing / Homelessness, Local Authorities, News England, Welfare / Benefits

Landlords collected almost £9 billion in rent for sub-standard privately-rented homes across England in 2020, analysis has suggested.

The City Hall findings have been branded “a scandal” and “an outrage”, and calls have been repeated for the Government to introduce the long-awaited Renters’ Reform Bill.

A home is considered to be “non-decent” and therefore substandard if it does not meet the basic legal health and safety standards for housing; is not in a reasonable state of repair; does not have reasonably modern facilities and services; or has insulation or heating that is not effective.

Analysis of the 2020 English Housing Survey by the Greater London Authority suggested some £8.97 billion had been paid in rent for non-decent homes in England.

Some £1.61 billion of that came from housing benefit, City Hall said.

London saw the highest rent paid for non-decent homes at £3.49 billion that year, with Yorkshire and the Humber coming in second at almost £1 billion in rent for such homes.

In the South West, the figure was £874 million while the East came next with £834 million.

Mayor of London Sadiq Khan (pictured) said there must be “national action” to support renters and reiterated a call for no-fault evictions to be banned.

He said: “It is a scandal that some private landlords are profiting from letting sub-standard housing that is unfit for 21st-century living.

“Renters would feel more secure raising complaints about the condition of their property if they didn’t face the threat of arbitrary eviction, which is why I have long called for Section 21 ‘no fault’ evictions to be abolished.

“The Government should also give me the power to drive up standards and introduce a rent freeze in London to help people during this cost-of-living crisis.

“If we are to continue building a better London for everyone, we need the Government to step up to empower our city’s renters. Ministers must urgently introduce the long-promised renters’ reform legislation, properly fund borough private rented sector enforcement teams and increase the fines for landlords who break the rules.”

Dan Wilson Craw, acting director for campaign group Generation Rent, said: “It is an outrage that not only can private landlords provide worse accommodation than social landlords, but they get paid more for it.

“Increasing reliance on the private sector to provide housing has resulted in a higher bill for the public purse with nothing to show for it but poorer living standards.

“The Government has an opportunity with the upcoming Renters’ Reform Bill to give private renters higher expectations of their landlord and introduce much tougher penalties for landlords who fall short of the Decent Homes Standard.”

A spokesperson for the Department for Levelling Up, Housing and Communities, said: “Councils should use the powers we’ve given them to crack down on rogue landlords, including issuing fines of up to £30,000 and banning those who rent out unsafe homes.

“Our White Paper, A Fairer Private Rented Sector, set out plans to fundamentally reform the sector and level up housing quality in this country, including introducing a legally binding Decent Homes Standard in the Private Rented Sector for the first time ever.

“Evidence shows rent controls in the private sector do not work – leading to declining standards and a lack of investment and may encourage illegal subletting.”