Introduction

This book is written by policy analysts and legal specialists interested in the role played in the contemporary housing system by the private rented sector (PRS). The reason for bringing them together is because at the heart of the historic and contemporary position are cross-disciplinary issues, focusing principally on the nature of the tenant–landlord relationship. This relationship is encapsulated in complex and confusing statutory and judicial statements, although it is little understood by either tenants or landlords (Nelken, 1983). The policy context also involves this relationship but looks more widely at the macro-economic setting, the social security system (especially housing benefit), the role of local authorities, the housing market and changing demographic structures, which establish the parameters in which the PRS functions. Drawing on specialist knowledge within legal studies and policy analysis the book aims to provide an evaluation of this small but pivotal housing tenure as a new century dawns. The PRS was subject to dramatic changes at the end of the 20th century through long-awaited market liberalisation. The early years of the new century are, therefore, an opportune moment to draw together recent research and reflections on the newly deregulated PRS.

The Conservative governments in the 1980s signalled a strong intention not only to revive the long-declining PRS but also to change its ownership structure by bringing in more business-orientated landlordism to challenge the amateurism typical of the PRS's long history dating back at least to the 19th century. The 1988 Housing Act created a new form of tenancy, the assured tenancy, which set in train the deregulation of the sector by enabling rent increases and the limitation of tenants’ security of tenure. These two elements shifted the balance in the landlord–tenant relationship very decisively in favour of landlords, bringing to an end a 70-year period in which the rights of tenants to enjoy their home were placed above the commercial interest and property rights of landlords. Subsequently assured shorthold tenancies became the norm for the sector under the 1996 Housing Act and these now account for three quarters of lettings.

‘New’ Labour has continued with the same agenda and has made no attempt to challenge the basic premise of the previous government that the future lay in the radical deregulation of the market.