The government believes that there is an urgent need to reform the regulation of the private rented sector following over three decades since the last overhaul in the late 1980s. The private rented sector has doubled in size since 2002 and is now the second largest housing tenure. There are 4.7 million households (c. 11 million people) that rent from a private landlord, accounting for 19% of the housing market – remaining relatively stable at this level since 2013-14. 1 This compares to 65% of households in the owner-occupied sector and 16% in social housing.
	With this historic growth of the sector, both landlords and tenants have become increasingly diverse. Many more tenants, especially families and older renters, rely on the sector for a stable and secure home as well as young professionals and students seeking flexibility. 2 There is also great variety in landlords. The English Private Landlord Survey 2021 found that some are large corporates with large portfolios, while others are individuals letting a property as an investment for the future or may have become landlords more by circumstance than design and 4% originally became a landlord in order to let property as a full-time business.
	There is clear evidence that there needs to be change in the private rented sector, including that:
							Section 21 evictions have led tenants to feel reluctant to challenge poor standards due to the risk of eviction without reason. Short notice moves which can occur because of section 21 have negative effects on outcomes and reduce investment in local communities.
							The private rented sector has a higher proportion of properties that do not meet standards than other housing tenures. According to the 2023-24 English Housing Survey, 21% of privately rented properties do not meet the Decent Homes Standard (the government’s main metric for decency). This is compared to 10% in the social rented sector. Likewise, hazards that present an imminent risk to health exist in 10% of properties – compared to 4% of local authority rented properties. Private rented homes containing these hazards are estimated to cost the NHS £340 million annually (Health Equity in England: The Marmot Review 10 Years On, February 2020).
							There are higher concentrations of homes that do not meet the Decent Homes Standard in certain parts of the UK with lower productivity such as Yorkshire and the Humber. The Building Research Establishment (BRE) has estimated that poor quality housing across all tenures is costing society £18.6 billion every year. 3
							Landlords report problems in recovering properties when faced with anti-social behaviour or rent arrears. They face difficulties being able to access information and support to navigate the legal landscape. Landlords are frustrated when criminal landlords undercut those landlords who take their responsibilities seriously and this can be compounded by limited redress options meaning disputes escalate to more costly and protracted court proceedings. Private landlords can voluntarily join an agent redress scheme or the Housing Ombudsman.
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