The government estimates that extending Awaab’s Law to private rented homes will result in annual net costs to landlords of £42.2 million, after accounting for expected savings due to fewer tenant moves and shorter void periods as serious hazards are fixed more quickly.

It is consulting on how the reforms will be extended to the PRS and in an impact assessment reports that this excludes the cost of the actual repairs and investigations. It has only counted the additional cost of carrying these out more quickly, on the basis that landlords are already legally responsible for addressing hazards.

It estimates that the average annual cost could range from £5.64 to £10.69 per property, compared with the central estimate of £8.17. The assessment reckons that preparing and sending letters or emails will add up to an estimated £335 million over the next 10 years – assuming each property needs an average of seven repairs a year, and half of faults require urgent repairs. It puts the additional cost of these communications at £8.37 per property per year.

Evidence

“Some costs may be passed through to tenants in the form of higher rents,” it explains. “We do not have sufficient evidence to accurately model this, but we do not expect the full level of costs to be passed through to tenants. Even if that did happen, it would lead to only a £8.17 average increase in rents per year.”

It acknowledges that smaller landlords may be more likely to be non-compliant and could find it more expensive to become compliant because they cannot benefit from economies of scale when arranging repairs.

It adds that the reforms could cause some to leave the sector, although suggests properties might instead be taken over by more professional landlords.

Committee

Abena Oppong-Asare MP, chair of the Housing, Communities and Local Government Select Committee, has labelled conditions in parts of the private rented sector as “utterly appalling”. However, she adds that overstretched councils already struggle to enforce standards.

“We urge the government to phase-in these new protections at pace,” says Oppong-Asare. “Landlords will need time to adapt. Smaller landlords, with one or two properties, already struggle to access skilled tradespeople, especially in more rural areas. Far too many councils are failing to adequately protect tenants and provide a meaningful deterrent against rogue landlords prepared to exploit them.”

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