Our Mortgages Managing Director, Richard Rowntree, discusses the findings of our Raising the standards of privately rented property report and how they challenge the rhetoric on renting.

We recently launched our report Raising the standards of privately rented property. It shows how standards of property in the private rented sector (PRS) have improved significantly over the past decade, driven by investment from landlords.

The Government’s English Housing Survey shows that in 2008, 44% of PRS homes were classed as non-decent. Investment by landlords, supported through buy-to-let lending, has seen that figure drop to 23%, marking the most notable improvement across all housing tenures.

During this period, progress was driven by an injection of good quality homes that has diluted the proportion of substandard stock. In 2008, 1.8 million privately rented homes were classed as decent, increasing by 83% to 3.3 million by 2021.

Further to this, landlords have enhanced the PRS stock through renovation and refurbishment, with eight in 10 upgrading every property they add to their portfolio.

In addition to figures highlighting how privately rented homes are now larger, newer and finished to a higher standard than a decade ago, they are also more energy efficient, benefitting tenants, landlords and the environment.

Government data reveals 1.9 million rental properties in England have an EPC rating of A-C, an increase of 1.2 million compared with 2011, with the sector boasting a higher proportion of homes in the bracket compared to owner-occupation.

This may surprise a few people because it seems totally at odds with reports in the media that seem to solely focus on shocking examples of poor-quality homes.

I feel that instead of any vendetta against landlords, this is more an example of media understanding our penchant for news that outrages us, an age-old strategy turbocharged in a time of click bait content and relentless information. Nevertheless, such reporting is a misrepresentation of the reality where the vast majority of landlords do a fantastic job at meeting the needs of their tenants.

The narrative pushed by sections of the media is problematic because it shapes the opinion of a public that has home ownership ingrained in its psyche and is inextricably linked with Government policy, influenced by and influencing our politicians.

Leading political figures overtly demonise landlords and buy-to-let, often pitting them against hardworking families and first-time buyers while failing to acknowledge that improvement in privately rented homes has coincided with investment into the sector facilitated through buy-to-let finance. Figures published by UK Finance reveal a 61% increase in the value of outstanding buy-to-let balances to £280 billion between 2013 and 2021.

There is clearly more work to do to drive out the minority of unscrupulous operators and rid the sector of the remaining non-decent properties. We fully support plans to introduce a minimum ‘Decent Homes Standard’, proposed by both Conservatives and Labour, and call on local authorities to use the powers they have available to help them achieve this.

Responsible buy-to-let lending can be a powerful tool here too, with finance only provided on properties that make the grade now or in future.

With demand reported by landlords hitting record high levels last year, further fuelling rent increases, there is a clear need for rented homes, particularly while social housing supply continues to fall short of demand.

While the rhetoric may mean that it’s unpopular with voters, private investment is required to meet that need so I feel it is important for politicians to recognise the PRS as an essential provider of homes meeting the varied needs of millions, different but equal to the social and owner occupier sectors.

Doing so and changing the narrative from one where buy-to-let landlords are cast as the enemy will help to move the debate on from one that is currently dominated by soundbite politics that look no further than the next election.

We’ll continue to work with our industry partners and other interested parties to ensure the sector’s voice is heard so that future housing policy is pragmatic first, popular second.