Assembly debates motion on the future regulation of the private rented sector

Yesterday, the Assembly debated a motion on the future regulation of the private rented sector. The motion was put forward by Fra McCann MLA and Alex Maskey MLA.

That this Assembly notes its concerns at the continued growth of the unregulated private rented sector which is the biggest provider of socially rented accommodation, a sector which receives tens of millions of pounds in housing benefit but still has little legislation or regulation; calls on the Minister for Social Development to review the role of the private sector in the provision of social rented accommodation to ensure it is fit for purpose; and further calls on the Minister for Social Development to introduce measures to regulate this sector.

MLAs response to regulation of the private rented sector

Fra McCann spoke about the amount of public money spent annually on Housing Benefit in the private rented sector; some £300m is paid to private landlords and yet they are not regulated. He also raised concerns that almost a year has passed since the Minister announced the review and yet there does not appear to have been any progress. He also queried the level of compliance with the landlord registration scheme and the tenancy deposit schemes. He stated:

“We need to be told what action is being taken to deal with the landlords who ignore these pieces of legislation. How many have been brought to court, and what has been the outcome of those actions?” Fra McCann MLA

Dolores Kelly supported the motion for better regulation and went on to express concerns about the lack of security of tenure for tenants. She specifically spoke about tenants whose properties are upgraded following the input of public money from the Affordable Warmth Scheme. She said:

“We would like to see better regulation and guarantees around that to protect tenants when there is an investment out of the public purse on the property. I think that that should be reflected in some security of tenancy for the occupants.” Dolores Kelly MLA

Roy Beggs agreed that the review announced by the Minister needs to come to a conclusion and there needs to be some progress. He also stated that the private rented sector should only be regulated when it is necessary and when it can make a difference. He highlighted some issues that he would like addressed: a basic tenancy statement is needed, the tenancy deposit scheme must run smoothly to make sure that tenants' deposits are protected, annual gas safety checks are needed, landlords should be completing repairs in a timely fashion and meeting the needs of tenants, possible need to have electrical surveys every so often.

Stewart Dickson spoke about how important an issue this is for his constituents and that his own office has daily experience of trying to assist those trying to access social housing. In many instances they have no choice but to refer people to the unregulated private rented sector. He went on to say

“We have regulation in social rented accommodation, but we need to move to a much higher standard of regulation in the private rented sector. The key to solving the problem is, of course, building more social housing...We also need smaller homes for today's needs, especially one-bedroomed homes...”  Stewart Dickson MLA

Finally, Phil Flanagan responded to the motion by giving some of his personal experiences as a private rented tenant. He expressed particular concerns about the lack of compliance with the Rent Book regulations and the tenancy deposit schemes. He highlighted the need for better enforcement of the legislation that already exists.

“On the whole, when you look at it, we are too reliant on the private rented sector. We need to get additional investment into our social houses, because we are now in a situation where the private rented sector is the dominant force in renting houses. For the first time ever, it has the monopoly. There are now more houses rented privately than are rented through the social housing structure. That is a situation that we need to change.”  Phil Flanagan, MLA

Agreement for change

Last November, at the Housing Rights Bigger and Better Conference, the Minister for Social Development, Mervyn Storey, announced that there would be a fundamental review of the private rented sector. The announcement was made against the backdrop of a changing private rented sector, in which 1 in 5 people now live.

It is encouraging that many of the members showed agreement on the need for measures to be taken to improve the sector.  Housing Rights and the Private Tenants’ Forum have called on decision makers to make the private rented sector a real housing option, rather than a default tenure, and we look forward to being involved in discussions around its future.

Housing Rights Private Rented Sector Conference 2015

Our second Private Rented Sector conference takes place on 17 November 2015, at Riddel Hall. Titled Fit for the Future?, the conference will cover improving standards, increasing supply and promoting professionalism within the private rented sector in NI.

Early bird offers are available until the 9th October £99 for members and £126 for non members (10% discount).