Issue - meetings

The Panel considered the report of  the Executive Director – Corporate Services detailing an introduction to the shape of the private rented sector I the City, the needs and concerns of renters, national legislation and policy and how the Council and its partners are seeking to manage and oversee the sector in the City.

The Panel received the following representations:

Conor O’Shea, Policy and Public Affairs Manager Generation Rent outlined the challenges experienced by private sector renters in the UK, the reasons these challenges exist and the opportunities to improve outcomes and summarised the key issues as:

·  20% of the UK population (13 million people) rent from a private landlord; 23% of families live in private rented homes; 41% of an average couple’s income is spent on private rental; 619,000 rental properties are estimated to fail safety standards.

·  Key challenge 1 – Availability of properties. There is increasing demand for rental properties as people return to cities after Covid. In many areas demand outstrips supply. Gazumping and bidding wars for rental properties have been witnessed.

·  Key challenge 2 – Affordability of rental properties. Rents at a peak cause unaffordability and the highest percentage of incomes spent on rent since records began. This is partly linked to lack of supply and the increasing number of long term rental properties becoming holiday lets.

·  Key challenge 3 – Standard of private rented sector accommodation. The energy efficiency of rented homes can be poor. One in four private renters are living in fuel poverty (1.19 million people), which is a higher rate than in social housing and owner-occupation.  Poorly insulated homes are costing tenants an average of £570 more for energy every year.  ECO Grants are not used by tenants for fear of eviction. The MEES (Minimum Energy Efficiency Standards) uplift to Energy Efficiency Level C was recently cancelled. HMO licensing exists in Southampton, and licensing could be extended.

·  Renters (Reform) Bill 2023 – Key legislation going through Parliament. More local authority enforcement powers are proposed under amendments in the Bill.  There are proposals to introduce open-ended tenancies and abolish Section 21 (no fault) evictions although implementation of that proposal has been delayed until courts are reformed. All landlords must register on the property portal. Homes in the private rented sector must meet the Decent Homes Standard.  Rent increases limited to once a year.

·  Solutions beyond the Bill:

o  Increase the supply of housing.

o  Consider advocating rent controls.

o  Deposit passporting (deposit moves home with you).

o  Licensing scheme for holiday lets.

o  Energy efficiency measures.

o  Effective local authority enforcement. Good local authority practice is predominantly associated with employing sufficient enforcement officers to proactively enforce legislation.

Phil Tyler and David Carr, Directors of Southampton Tenants Union advised the Panel that:

·  Southampton Tenants Union has been operating for a year and was formed to fight for better housing and to reduce the exploitation of tenants.

·  The key issues identified in the private renters survey reflected the issues impacting on private renters in Southampton  ...  view the full minutes text for item 4