Research: Private landlords need information and education to improve standards for tenants

The UK Collaborative Center for Housing Evidence (CaCHE) study, conducted by Dr Jennifer Harris and Professor Alex Marsh from the University of Bristol, covers the whole of the UK and is based on a survey of over 1,000 landlords and 68 in-depth interviews with landlords, agents and experts. The study adds to the limited research conducted from the perspective of landlords.

The study looks at the behavior and practices of landlords that affect tenants’ ability to make a home in the sector. These include ensuring the property is in good condition, selecting tenants and complying with relevant laws and regulations. Most owners do not run lettings as a professional business and manage a small number of properties alongside their normal work.

Very little research has been done from the perspective of landlords. This is the latest project carried out as part of a collaboration between CaCHE, TDS Charitable Foundation and SafeDeposits Scotland Charitable Trust.

Dr Jennifer Harris said: “Many landlords want to be good landlords and believe they are, but the definition of good can vary. Regulators must play an active role in training and supporting landlords to provide decent housing for tenants.”

Steve Harriott, on behalf of both the TDS Charitable Foundation and the SDS Charitable Trust, said: “This report provides an important insight into the role that landlords play in the UK private rented sector and in particular their advice needs and information that is best suited to their particular circumstances. It will provide food for thought to letting agents, membership organisations, providers and policy makers who all want to raise standards in the private rented sector. We very much hope that this will spark new debates about what needs to be done in the coming months and years.

The research shows that many landlords do not know how to effectively manage their property finances. Only 30% calculated monthly cash flow, and many did not have money set aside for repairs (21%) or cavities or turnover (47%). Even minor repairs can become a problem if not budgeted for, and can become increasingly important as the cost of living crisis deepens. More than half of landlords (59%) said they had recently faced challenges related to repair and maintenance costs. This can lead to delays for tenants and ultimately health and safety risks.

Many landlords said they rely on tenants to report problems with the property (76%). Only 46% have taken a more planned approach to ensuring the property is kept in good condition. Letting agents said increased demand for housing and difficulties accessing the sector meant tenants were often reluctant to complain or “rock the boat”. 46% of landlords said they faced challenges with tenants not reporting problems. This can make minor problems more expensive and difficult to resolve.

There have been significant changes to the law governing private letting in recent times and further changes are proposed in every country in the UK. However, landlords often do not understand their legal rights and responsibilities. 70% of landlords surveyed said it was difficult to keep up with the changes in the law and 60% said the changes in the law were not clearly communicated. Only 41% believe it is the responsibility of the individual landlord to ensure they are up to date.

Lack of understanding or ignorance of the law means that personal preferences and beliefs will often guide decisions. 89% of landlords said the main criterion they used to assess the physical condition of their rental property was whether they themselves would be happy living there. A smaller proportion cited legal frameworks (58%). However, personal standards can vary and some problems may not be identified by the inspection, but only become apparent if you live in the property for a period of time.

A lack of understanding of their role also means that landlords may not know what to do when something goes wrong. Landlord practices are often aimed at minimizing risk. Our research shows that landlords are adopting a range of informal and formal means of assessing tenants at the time of application, and the increased demand for housing allows them to introduce more criteria and be more selective. This can make it difficult for tenants to access the rental market and create a risk of discrimination.

For those who lack the time, knowledge or skills required to effectively manage a property, one option is to use a letting agent. However, our findings show that landlords’ experiences with letting agents can vary widely, with many reporting issues or problems with their services.

The study concluded with a series of recommendations to improve the provision of advice, information and training to landlords.