Britain’s top antitrust enforcer will probe discrimination by private landlords after an initial investigation found some are unlawfully excluding tenants with low incomes, children or disabilities.
(Bloomberg) — Britain’s top antitrust enforcer will probe discrimination by private landlords after an initial investigation found some are unlawfully excluding tenants with low incomes, children or disabilities.
The Competition and Markets Authority said in a statement Friday it was “ready to take enforcement action if needed” on five areas that required further investigation. Among those are landlords barring housing benefit claimants from properties, as well as indirect discrimination against women.
Some landlords are demanding extensive guarantees to secure a rental contract, which may disadvantage poorer tenants who lack family support, the CMA has found in its investigation that began in February. It has also found landlords asking for excessive amounts of rent in advance of a contract, with some even asking for 12 months of payments upfront.
Read more: UK Cracks Down on Landlords in Private Rental Sector Reform
The UK government has already laid out a series of extra protections for tenants this year, in the biggest shake-up of the private rental market for a generation. Under the Renters’ Reform Bill introduced to Parliament in May, the government will abolish the existing “section 21” provision allowing landlords to remove tenants via so-called no-fault evictions.
The CMA’s latest work will also focus on zero deposit schemes, sham licenses, guarantee clauses and retirement housing fees in the next phase of its market study. The watchdog said it would consider options including recommending changes in the law, or launching a market investigation.
“We’re taking action to provide updated guidance for lettings agents so that both tenants and landlords are really clear about their own rights and responsibilities,” CMA Chief Executive Officer Sarah Cardell said in the statement.
Homebuilding Probe
The CMA will also investigate five areas of concern in the housebuilding sector, focusing on estate management charges, land banks, planning rules, competition among builders, and barriers for new developers. The initial investigation found that complex planning rules and slow decision-making were hindering the delivery of new homes, particularly for small homebuilders with fewer resources.
The watchdog’s analysis also showed the nation’s largest builders, which own swathes of land across the country, may be limiting competition and slowing build-out rates. This could concern the government in the lead up to the next general election, with the opposition Labour Party pledging to revive mandatory home-building targets scrapped by the ruling Conservatives last year.
Read more: UK Home Buyers Thwarted by System That Can’t Build Enough Houses
The CMA said it will investigate each of these issues further — while considering the economic conditions affecting the sector — and provide an update later in the autumn.
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.