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£1.6bn in housing benefit paid to private landlords for non-decent homes, research reveals
Billions of pounds in rent is ending up in the pockets of private landlords who are letting dangerous, cold or dilapidated homes across England – with £1.6bn coming from housing benefit – according to an estimate by the mayor of London.
London mayor Sadiq Khan has branded it “a scandal” after an analysis by his office revealed that landlords are collecting £9bn a year in rent for ‘non-decent’ privately rented homes, with £1.6bn of this coming from housing benefit.
‘Non-decent’ is an official government designation for homes that pose a risk to residents’ health or life, are in a bad state of repair, are cold or lack modern facilities.
The analysis revealed that London has the highest rent spend at £3.5bn, £500m of which comes from housing benefit, every year from around 180,000 privately rented, non-decent homes in London.
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The second worst-affected region is Yorkshire and the Humber at nearly £1bn in rent, including around £130m a year in housing benefit.
The figure is slightly less in the South West, where private landlords received £870m in rent, with more than £160m from housing benefit.
Mr Khan is calling on the government to urgently implement the long-promised renters’ reform legislation, including proposals to abolish Section 21 ‘no fault’ evictions and establish a Property Portal, incorporating an expanded version of the government’s National Rogue Landlord Database.
He also wants powers to freeze rents during the cost of living crisis to stop bad landlords profiteering from poor homes and to drive up private renting standards in the capital.
Mr Khan said: “We need to see national action to support renters. It is a scandal that some private landlords are profiting from letting sub-standard housing that is unfit for 21st century living.
“Renters would feel more secure raising complaints about the condition of their property if they didn’t face the threat of arbitrary eviction, which is why I have long called for Section 21 ‘no fault’ evictions to be abolished. The government should also give me the power to drive up standards and introduce a rent freeze in London to help people during this cost of living crisis.”
He added: “Ministers must urgently introduce the long-promised Renters’ Reform legislation, properly fund borough private rented sector enforcement teams, and increase the fines for landlords who break the rules.”
Dan Wilson Craw, acting director at Generation Rent, said: “It is an outrage that not only can private landlords provide worse accommodation than social landlords, but they get paid more for it. Increasing reliance on the private sector to provide housing has resulted in a higher bill for the public purse with nothing to show for it but poorer living standards.”
Mr Khan’s office calculated the figures based on English Housing Survey data on non-decent homes and average rents, coupled with estimates of the proportion of housing benefit. More detail is available here.
A government spokesperson said: “Councils should use the powers we’ve given them to crack down on rogue landlords, including issuing fines of up to £30,000 and banning those who rent out unsafe homes.
“Our white paper, A Fairer Private Rented Sector, set out plans to fundamentally reform the sector and level up housing quality in this country, including introducing a legally binding Decent Homes Standard in the private rented sector for the first time ever.
“Evidence shows rent controls in the private sector do not work – leading to declining standards and a lack of investment and may encourage illegal subletting.”
