The Audit Commission no longer carries out research on housing-related issues. This briefing summarises the key findings of our research that related to the private rented sector.
The private sector is a significant proportion of the rented housing market
The private rented sector has grown in recent years and is now a significant part of the housing market. Overseeing the standard of the homes provided by private landlords is a challenge for local government.
Private rented accommodation is an important source of accommodation for homeless and vulnerable households.
The growing number of transient households, such as migrant workers using the sector continues to have an impact on the demand for accommodation.
Greater emphasis is needed on providing private housing
There is often limited political pressure placed on private sector housing at a local level, and a shortage of staff with the relevant skills in this area. As a result, the private sector housing function may be considered less important by councils than social housing.
Yet, in 2006, 81 per cent (4.76 million) of non-decent properties in the country were in the private sector.
The best councils take full account of the role of private sector housing and regulation in their overarching housing strategy. By working closely with private sector landlords, they increase the availability of good quality accommodation.
Councils play a key role in providing affordable housing
Many councils focus largely on providing affordable housing to meet housing needs. However, the best consider the contribution strategic housing policies can have to broader aims.
By paying attention to local issues, good councils reduce homelessness or the risk of people losing their homes with relatively modest resources. This includes encouraging local residents to help young people secure stable accommodation on leaving care or by incentivising owners of empty properties to bring them back into use.
Private sector leasing has played a significant role in reducing homelessness. Local authorities have the power to regulate this sector through licensing which enables the quality of housing to be maintained and helps to drive out ‘bad landlords’.
Well-designed choice-based lettings schemes, nomination agreements with approved private sector landlords, and rent deposit schemes, give people choice of accommodation and go some way to preventing homelessness.
Audit Commission resources
Councils can use previous Audit Commission resources to assess and improve their approaches to the local private sector rental market.