Half a million children in ‘non-decent’ private rented homes in England

• There is a north-south divide in private rented homes, with 27 per cent of private rented homes in the North ‘non-decent’, and only 17 per cent in the South
• Based on progress since 2010, it would take 35 years to bring all private rented homes up to the government’s Decent Homes Standard
• New Fabian Society report recommends banning private landlords selling poor quality homes on the open market, backed by 70 per cent of people surveyed in England

As the Renters’ Rights Bill advances to Report Stage tomorrow, the Fabian Society today reveals a major ‘housing quality crisis’ that affects over one million homes in England’s private rented sector and has left over 500,000 children living in homes that affects their health, education and wellbeing.

The report, Home Comforts: A plan to eradicate England’s poor quality rented accommodation finds that 21 per cent of private rented sector households live in a poor-quality rented home, defined as failing to meet the government’s Decent Home Standard. A fifth of children live in rented accommodation live in a home that fails basic standards.

There is a ‘north-south divide’ in the quality of private rented homes. Fabian Society analysis finds that 27 per cent of privately rented homes in the North are non-decent. The Midlands has the same proportion of non-decent privately rented homes, compared to 17 per cent in the South – and 19 per cent in the East of England.

The report argues that non-decent homes lower education attainment, cause poorer health, and prevent people from working. Homes that are hazardous can worsen medical conditions, increase the risk of injuries through trips and falls, and lead to people being off work or school. The government must therefore improve housing quality to stand the best chance of tackling economic inactivity, relieve pressure on the NHS, and breaking down barriers to opportunity.

Fabian-YouGov polling in England found the public were more in favour of improving existing properties than building new homes, including those who rent privately. When asked to select between two approaches:

• 66 per cent of English adults favoured investment to “improve existing properties to meet basic housing standards, even if it means reducing the number of homes that are built each year”. Just 15 per cent favoured investment to “build new homes each year in places that need them, even if it means neglecting improvements to existing properties”. A fifth (20 per cent) said either ‘neither’ or ‘don’t know’.
• 58 per cent of respondents who rent privately supported investment to improve existing properties, even if it resulted in fewer homes being built. A fifth (20 per cent) prioritised building more new homes, even if it meant neglecting improvements to existing properties. A similar proportion (22 per cent) said either ‘neither’ or ‘don’t know’.

The report recommends phasing in a ban for private landlords selling low quality stock on the open market to other PRS landlords. In the short term, permission from the local authority would be required for landlords to sell low quality properties to homeowners or other landlords. This permission would be provided as part of the conveyancing process with a fee charged by the local authority to ensure they have the necessary capacity. PRS landlords could freely sell their property to councils, social housing providers, and other community groups.

Councils, housing associations, and other community organisations would also receive £570m a year for a decade to purchase and upgrade these non-decent properties. Transferring stock into the social rented sector means more cost-effective improvements, a tougher regulatory environment, and a non-profit driven approach that will lead to homes being brought up to standard faster. It will also end the cycle of landlords flipping poor quality properties for a profit, which allows them to avoid raising standards in the homes they provide.

The report also recommends that the government should:

• Introduce a new ‘Good Homes Standard’, replacing the Decent Homes Standard for private and socially rented homes, and targeting the elimination of serious health, safety and wellbeing hazards by 2030, including from 572,000 PRS homes. The standard should include new requirements on accessibility for disabled and older people, preventing overheating homes, and suitable floor coverings.

• Provide new financial support for private landlords to meet the Good Home Standard, through a decade-long PRS Housing Quality Scheme. The scheme would offer £500m a year in grants, alongside additional loans for those who need extra support. The government should incentivise landlords to improve their properties swiftly by cutting the available support over time.

• Empower all councils to improve housing quality through selective licensing schemes, by building on the government’s announcement of general approval in December 2024 as part of the Devolution White Paper. Schemes should be effectively permanent – coming to an end only when there is clear evidence that they are no longer required, rather than after five years as currently. And for the first time, councils should be allowed to enforce property conditions and improvements through licensing.

Fabian Society research manager and report author Ben Cooper said:

“A home should be the foundation for a good and long life. But for too many people, their home is making them sicker, holding back their child’s education, and causing financial hardship – especially in the private rented sector.

“Families in England can’t wait 35 years for an end to poor quality private rented accommodation. While we do need to build more homes, the public wants the government to take bold action to improve existing homes. Alongside funding to improve properties, we need to break the cycle that allows some landlords to sell their property at a profit, failing to meet basic housing standards.

“A ban on selling non-decent private rented housing to other PRS landlords will shift the incentives away from flipping poor quality property for a quick buck, and toward investment in lifting the standards of the properties landlords own. Councils, housing associations, and other community groups will be able to affordably buy these houses, bring them up to a ‘Good Home Standard’, and use them to house people who would otherwise be on waiting lists for many years.”

Notes

1. Contact: Emma Burnell, Media Consultant, Fabian Society burnell@fabians.org.uk or 07851 941111..
2. The report will be published at 00:01 on 13.01.2025. If you would like an advanced embargoed copy, please email Emma Burnell.
3. Home Comforts: A plan to eradicate poor quality rental accommodation in England is written by Ben Cooper and published by the Fabian Society. It was edited by Kate Murray and Iggy Wood.
4. Further regional and local authority analysis is available on request.
5. All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 3,692 adults. Fieldwork was undertaken between 5th – 7th November 2024.  The survey was carried out online. The figures have been weighted and are representative of all adults in England (aged 18+).
6. The Fabian Society is Britain’s oldest political think tank. Founded in 1884, the society is at the forefront of developing political ideas and public policy on the left. The society is alone among think tanks in being a democratically-constituted membership organisation, with around 7,000 members. It is constitutionally affiliated to the Labour party.