Centre for Housing Policy

BACKGROUND

The PRS Review included detailed secondary analysis of data on private renting, and an extended series of stakeholder meetings that took place between January and April 2008. The Review covered a number of issues relating to the sector including the impact of buy-to-let, the need for institutional investment, professionalism, property quality, the existing legal structure for tenancies, the use of the PRS to help homeless households, and ‘problem’ private renting. The report concludes with a series of recommended ‘policy directions of travel’. The Review was an independent process, and the report will be launched at the University of York on 23^rd October.

TERMS OF REFERENCE FOR THE REVIEW OF PRIVATE RENTED SECTOR (PRS) HOUSING

Housing is central to the quality of life in our communities, to helping people meet their aspirations, to the economy and to the environment. The Private Rented Sector plays an important part in successful housing markets and is an important tenure of choice for those not seeking home ownership. It offers convenience, flexibility, and accessibility.

After a period of deregulation flowing from the 1988 and 1996 Acts which has seen the sector grow from 8% to 12% of households, the Housing Act 2004 introduced specific provisions to enable local authorities to work to secure improved management arrangements and property conditions within the sector.

A strong housing market, high demand for social housing, the emergence of the ‘buy to let’ landlord, demographic changes and an increasingly mobile society, means that the role of the private rented sector in meeting housing need is increasingly being brought into focus. From a consumer perspective, the sector has the challenge of ensuring it offers a quality product that ensures its tenants enjoy a decent home where both the landlord and tenant can exercise their legal rights in a responsible manner.

The Minister for Housing and Planning commissioned a review of the private rented sector to improve our understanding of thesector, consider what barriers exist in ensuring the sector consistently offers a fit for purpose product, what role it has into the future and what actions could be taken to influence and support that role.

Areas looked at are:

• What is the composition of the private rented sector and the regional characteristics? Who lives in the sector and who are the providers?
• Given demographic and social change, what impact might this have on future demand and supply pressures in the sector and how should key players respond to this?
• What are the possible actions necessary to ensure the sector delivers the right type of homes of good quality that meet local demand both now and into the future?
• Given the recent regulatory changes, what more should or could be done to ensure a professionally managed and quality sector to meet demand pressures?
• What are the tenant and landlord views and experiences of the sector? What are their priorities for change and how can these contribute to policy development?