Agenda item

The Panel considered the report of the Scrutiny Manager concerning security, stability and overcrowding in the private rented sector.

The Panel received the following representations:

Maria Byrne, Service Lead for Housing Needs and Welfare Support, Southampton City Council outlined the link between the private rented sector and homelessness in Southampton.  Key points raised in the presentation included the following:

·  Local authorities have a duty to provide advice and information to people on housing issues. The number of households approaching the authority has increased over the past few years.

·  The top three reasons that households become homeless in Southampton are family or friends no longer willing to accommodate; the end of a private rented tenancy under an assured shorthold tenancy; Domestic Abuse.

·  The top reasons why households become homeless from private rented accommodation are the Landlord wishing to sell or re-let the property; Tenant’s experiencing financial difficulties; Increase in rents.

·  To assist households that become homeless Southampton City Council works with both tenants and landlords to resolve any issues where possible to enable the tenant to remain in the property; Assist households in securing alternative private rented accommodation; Provide financial assistance to help households find alternative accommodation.

·  So far this year the team has assisted 320 households into the private rented sector.

·  There are 7,666 live applications on the Housing Register.

·  Due to the limited availability of social housing in the City households are looking for alternative housing options and rely on the private rented sector.

·  There are 182 households in temporary accommodation at present funded by Southampton City Council. 150 people are in nightly paid accommodation.  This is expensive provision.

·  Southampton City Council wants to work more with landlords and tenants to sustain existing private rented accommodation and also assist those who need to move to new accommodation.

·  Southampton City Council has recently launched a five-year homelessness and rough sleeping strategy which sets out a vision over the next five years of “A city where everyone has a safe place to call home”.

·  Priority 1 is prevention; Priority 2 is intervention; Priority 3 is working together and Priority 4 is housing solutions.

·  Southampton City Council will work with the private rented sector,reviewing its landlord offer and considering models around leasing options, and a rent deposit scheme. It is looking to work with landlords at the earliest opportunity to provide support to prevent homelessness. Consideration will be given to  better ways to engage with landlords in the private rented sector.

·  Consideration is being given as to whether a landlords’ forum would be beneficial in Southampton.

·  Southampton City Council is developing a ‘call before you serve’ project to consider better ways to work with landlords and is looking at good practice examples that are being carried out by other local authorities such as BCP that provide grants to landlords to improve the standard of the private rented sector properties in return for nomination rights to the properties.

·  Prevention, and maintaining tenancies, is a cheaper option for local authorities than temporary accommodation and delivers better outcomes.

·  Steven Hayes-Arter’s team have helped train Maria Byrne’s team on what to look out for when visiting private rented properties and there is a close working relationship between the two teams.

Professor Helen Carr and Dr Mark Jordan, University of Southampton, delivered a presentation outlining the regulation relating to security, stability and overcrowding in the private rented sector.  Key points raised in the presentation included the following:

·  Deregulation of the private rented sector was based on the vision of the sector as a source of housing for ‘transitional’ households. The revival of the sector has challenged this vision. One third of renters are families with children (8,400 households in Southampton), and one third are low income, struggling or vulnerable households.

·  The average renter has lived in their home for 4.4 years and many expect to stay for medium to longer term.

·  Ending of an Assured Shorthold Tenancy is a ‘significant cause of homelessness’ (31% of cases in 2015/16) and the use of ‘no-fault’ evictions has increased by almost 50% since 2022.

·  Private rented sector instability has major regulatory and resource implications for local authorities as it triggers homelessness prevention and other duties such as proactive tenancy relations; Lack of social housing has meant growing use of highly expensive temporary accommodation (£1.74 billion in 2023); 47% of families with children were forced to move schools as a result of living in temporary accommodation (Shelter, 2023).

·  Legal security of tenure

o  Housing Act 1988

o  Protection from Eviction Act 1977

o  Renters (Reform) Bill - Abolition of s.21 will constrain retaliatory eviction; Landlords redress scheme may provide a more accessible way to enforce standards for tenants; Extension of Banning Orders; Extension of Decent Homes Standard to private rented sector enforced through civil penalties and RROs and a duty on local authorities to ensure housing meets the standard.

o  Reforms in Scotland can inform likely outcomes. The Private Residential Tenancy (Scotland) Act 2016 abolished no fault evictions and extended protections for tenants. The impact was a slight decline in the private rented sector but an increase in the Social Rented Sector and signs that landlords have exited the market and turned to ‘short term lettings’ but there is new regulation of this activity (2023).