A BBC investigation has laid bare a growing crisis in London's private rented sector, where unlicensed Houses in Multiple Occupation (HMOs) are leaving tenants in dangerous, overcrowded homes.
The programme, fronted by reporter Tarah Welsh, highlights the grim reality being faced by many renters, who are often forced to endure substandard conditions due to a severe housing shortage and lax enforcement.
The investigation reveals a stark disparity between licensed and unlicensed HMOs.
Now, one PRS expert says that the Renters' Rights Bill will worsen the situation as criminal landlords will exploit tenant demand without bothering to be licensed.
Bill will lead to more exploitation
The head of redress at Property Redress, Sean Hooker, told Accommodation for Students: "Once the Renters' Rights Bill becomes law, it is likely we will see a rise in creative criminal practices such as sham licences, illegal subletting, and exploitative rent-to-rent arrangements.
"We know that when rules are tightened, the worst offenders simply find new ways to bypass them."
He added: "Until we can clearly distinguish between what a safe, transparent and well-regulated sector looks like, and shine a beacon on this, the rogue element will continue to operate in the shadows, endangering tenants and destroying the reputation of those who play by the book."
The PRS is facing challenges
Mr Hooker went on to say the investigation 'demonstrates the extent of the challenges the sector faces.'
He added: "While it represents a small fraction of the overall rental market, private renting now forms such a large part of housing supply that the actual numbers involved are frightening.
"The BBC's findings, uncovering the shocking conditions many tenants endure, highlight just how urgent this issue is."
More unlicensed HMOs than licensed
The investigation found that in one London borough, officials estimate that for every 3,000 registered HMOs, there could be two to three times as many operating illegally.
In Newham, a single area might house more than 700 unlicensed HMOs, compared to just 75 on the official register.
Similarly, parts of Tower Hamlets could be home to 500 unregulated properties, with only 50 listed publicly.
In Southwark's Old Kent Road area, the number of illegal HMOs may exceed 300, outstripping the 232 licensed ones.
Enforce licensing schemes
Mr Hooker said: "Given the chronic shortage of housing, the economic and affordability issues faced by renters, it is all too easy for the unscrupulous to exploit vulnerable tenants.
"Licensing schemes are increasingly common and, where properly enforced, they have raised standards.
"However, this depends heavily on how well local authorities are resourced and how effectively they work with the rental community to create a collaborative and cooperative landscape, one that fosters compliance and creates a hostile environment for those who choose to break the law."
Illegal HMOs have hazards
The programme also revealed the harrowing stories of renters trapped in hazardous situations.
One tenant shared their experience of living in a two-bedroom flat crammed with 20 people, where a fire broke out, putting lives at risk.
Another family of four was found squeezed into a single room, lacking basic amenities or privacy.
These cases underscore, the reporter said, a black-market housing crisis, where unscrupulous landlords exploit vulnerable renters while evading regulations.
Landlord database solution
One potential solution to tackle rising numbers of unlicensed HMOs could, Mr Hooker said, be in the proposed landlord database under the Bill.
He explained: "The proposed private rented sector database, which will require all rental properties to be registered nationally, has huge potential to make a difference if rolled out effectively.
"Better data sharing would enable authorities to focus on where criminality is going under the radar. "
Mr Hooker also said that there's a need to help educate tenants about their rights, where to access help and to reduce the fear that making a complaint will leave them homeless.
Student landlords with London HMOs
Simon Thompson, the managing director of Accommodation for Landlords, said: "The BBC's investigation into London's unlicensed HMOs highlights the urgent need for compliance and transparency in the private rented sector.
"Student landlords with HMOs in London will already appreciate there are lots of unlicensed properties evading the rules.
"With the Renters' Rights Bill on the horizon and a proposed national database set to tighten regulations, landlords catering to students must prioritise legal standards to avoid hefty penalties and reputational damage."
He added: "Most, if not all student landlords, will be licensed already and investigations like these also highlight the discrepancy between councils investigating good landlords with quality properties, but seemingly avoiding the criminal landlords putting lives at risk."
More information
The programme, For Rent: Rooms Under the Radar, is currently available on iPlayer.
