Private landlords pocketing billions of pounds in housing benefit for dangerous homes across capital

New analysis by City Hall has revealed private landlords are receiving billions of pounds for sub-standard homes. 

Mayor of London Sadiq Khan has called for immediate action to boost renters rights after the new analysis showed billions of pounds in rent has ended up in the pockets of private landlords, who are letting dangerous, cold or dilapidated homes.  

The analysis also showed that landlords across the country have been collecting £9billion a year in rent for “non-decent” privately rented homes, with £1.6billion 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. 

Dan Wilson Craw, acting director of 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. 

“The government has an opportunity with the upcoming Renters Reform Bill to give private renters higher expectations of their landlord, and introduce much tougher penalties for landlords who fall short of the Decent Homes Standard.”

The analysis also revealed that London has the highest rent spend, with landlords receiving £3.5billion in rent, £500million of which comes from housing benefit, every year from around 180,000 privately rented, non-decent homes in London. 

The Mayor has called for urgent implementation of renters reform legislation, including proposals to abolish Section 21 “no fault” eviction.

Mr Khan is also urging the Government to give him the power 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 are building a record number of new affordable homes in London, but 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. 

“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.”

A spokeswoman for the Department for Levelling Up, Housing and Communities 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.”

Pictured top: London flats (RBKC)