“Nobody should be left to live in dangerous conditions for days, have to fight for money they’re owed or be charged illegal fees. But our advisers are helping tenants with these kinds of problems regularly.
“The new Renters’ Rights Act is a huge moment for private tenants – a reform Citizens Advice has long campaigned for. But this landmark legislation will only deliver its true potential if the government holds letting agents to account with better regulation and tougher enforcement of the existing rules.”
The Renters’ Rights Act promised to improve the standard of homes as well as giving tenants more security.
The new law will eventually introduce a decent homes standard to the private rented sector for the first time and Awaab’s Law, which forces landlords to fix serious hazards to strict timeframes, will also be extended to the sector.
Under the legislation, letting agents and landlords are blocked from holding bidding wars while deposits are limited to four weeks’ rent.
The measures are meant to deal with a situation where private rented homes are the most likely to be in poor condition while rents took up more of their income.
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The English Housing Survey found that private rented properties were more likely to contain hazards than social homes while 10% contained damp. That’s despite private tenants paying 34% of their income on housing costs, compared to 28% for social renters and 19% for homeowners.
Despite the outlay, Citizens Advice found evidence that tenants faced illegal practices from letting agents.
More than half of renters using a zero-deposit scheme were misleadingly told they needed to use the scheme to rent their home. The scheme that lets renters move into a property without paying a traditional five-week cash deposit up front, but which can cost more overall.
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The end result was tenants ended up out of pocket.
More than a quarter of renters with an emergency repair faced extra costs or higher bills as a result, Citizens Advice found.
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In total, 43% of renters said trying to address emergency repairs affected their mental health.
Around 30% of tenants cut back or went without essentials in order to pay rent in the last year while 3.5 million renters, including half a million families with children, borrowed money or took out a loan to cover rent.
Nathan Emerson, CEO at Propertymark, which represents the property sector, said: “Housing represents one of the most fundamental requirements needed within society, and it is essential that for those who choose to rent that the interaction with letting agents always delivers fairness and professionalism.
“The lettings sector has evolved massively in recent years with growing consumer demand. Because of limited investment regarding new housing stock and the backdrop of new legislation designed at better protecting consumers, it is important the sector remains responsive.
“It is also important that the sector delivers on all current and future expectations, with Propertymark keen to see new regulation specific to both sales and lettings agents implemented. The sector must continue to listen to concerns and collaboratively work together to form a framework of best practice that delivers progression and consumer-centric relationships.”
Citizens Advice’s warning comes after Keir Starmer told Big Issue that the Renters’ Rights Act would give people “the basic security that I think everybody should have”.
“As a member of parliament, at least half of my inbox is all about housing and a lot of it’s about renting,” said Starmer.
“The proportion of people that this will affect, there’s millions of people across the country. We came into power to change lives for the better. And with this act, we’ve been able to do it.”
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The rate at which rents have been rising across the UK has been slowing but each month continues to bring record highs, according to the Office for National Statistics’ count.
Starmer told Big Issue that the Renters’ Rights Act will help young people facing challenges due to their housing costs.
He added: “So many young people say to me, because they are paying so much of their income in rent, they can’t afford to save up a deposit or something like that to get a house. And so it’s holding them back in a broader way.”
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