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Renting Homes: The Final Report - Law Commission

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THE LAW COMMISSION<br />

RENTING HOMES: THE FINAL REPORT<br />

To the Right Honourable the Lord Falconer of Thoroton, Secretary of State for<br />

Constitutional Affairs and Lord Chancellor<br />

PART 1<br />

INTRODUCTION<br />

INTRODUCTION<br />

1.1 <strong>Renting</strong> homes is big business. Almost a third of the population rent their homes.<br />

Despite the attention paid to the owner-occupied sector, rented housing remains<br />

a significant part of the housing market in England and Wales. An active, well-run<br />

rental market is needed:<br />

(1) to provide choice for those who want to rent;<br />

(2) to meet social need by providing housing for those who cannot afford to<br />

buy;<br />

(3) to increase flexibility in the accommodation and labour markets by<br />

enabling people to move quickly to take up job opportunities or to explore<br />

new housing options.<br />

1.2 It is generally accepted that the rented housing sector needs regulation. Market<br />

mechanisms cannot redress imbalances in the bargaining power of landlords and<br />

occupiers. At the same time, the regulatory framework must be one that works<br />

and can be delivered in a cost-effective way.<br />

1.3 At the heart of our recommendations – the result of one of the largest<br />

consultation exercises ever undertaken by the <strong>Law</strong> <strong>Commission</strong> 1 − are two<br />

radical changes to the legislative approach to the regulation of rented housing.<br />

<strong>The</strong>se recommendations are encapsulated in the Rented <strong>Homes</strong> Bill which we<br />

are publishing alongside this <strong>Report</strong>.<br />

1 We published two Consultation Papers: <strong>Renting</strong> <strong>Homes</strong> 1: Status and Security (2002) <strong>Law</strong><br />

<strong>Commission</strong> Consultation Paper No 162, in April 2002,<br />

http://www.lawcom.gov.uk/docs/cp162.pdf; <strong>Renting</strong> <strong>Homes</strong> 2: Co-occupation, Transfer and<br />

Succession (2002) <strong>Law</strong> <strong>Commission</strong> Consultation Paper No 168, in September 2002,<br />

http://www.lawcom.gov.uk/docs/cp168.pdf (last visited 15 March 2006). We addressed<br />

over 70 public events; we received over 400 written responses to the Consultation Papers.<br />

<strong>The</strong> essential contribution made by consultees was acknowledged in our <strong>Report</strong> <strong>Renting</strong><br />

<strong>Homes</strong> (2003) <strong>Law</strong> Com No 284, at Annex D.<br />

11

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