The private rental sector: misery, stress and poverty

Renting is the new normal, but for many it means no security and a constant risk of exploitation.

Much of the coverage regarding Britain's housing crisis has concentrated on the misery our over reliance on the private rental sector has inflicted on young people seeking to buy their first house. It's valid, but the sector takes a greater toll on those families who end up in its clutches.

For an illustration of this, listen to Paul Smith's story. He's 44, and he works in IT. Back in 2006 Paul was living in Malta with his wife and two children, then aged eight and six. They owned a house on the island, and decided it was time to move back to England. They put their house on the market; due to the discrepancy in property value, it only raised them about £30,000.

The family had no prior banking history in the UK, so they struggled to secure a mortgage. They put up a £7,000 deposit to rent a house in Bracknell. The house was fine, but Paul wanted more security for his family – he wanted them to go some way to having assured tenancy. Upon moving, the owners of the house, a private rental firm, hit Paul and his family with a bill for £1,500 due to alleged damage to the furniture.

(Your correspondent has actually been done over by a similar scheme when renting many years back – the owners of the house I was renting had called in a dodgy survey company to inspect the house at the start and end of my tenancy; being young and naive I'd not had a survey of my own done, so it seemed better to reach a settlement rather than fight it in the small claims court, much as I wanted to.)

The family moved to a run-down cottage in Ironbridge. After two years there, they were told the landlord wanted the place back. The landlord, who was registered through the local council, hit them with a bill for £600, despite the fact that the local council's environmental health team had helped them move (the place even had damp rot around the electrical sockets). The council claimed Paul would be able to get the £600 back: in fact, he was awarded £70 in compensation. For the third time in two years, the family moved – this time to a much more pleasant house in Telford. It was far better, but at the start of 2008 the family were offered a place with the housing association in Ludlow. They snapped it up, despite the fact that Paul had now lost his job in the financial crisis and work would be harder to find there.

The trouble was that the stress of constantly moving, coupled with the ebbing away of their financial situation (their savings were gradually eaten away by the costs of high rents and constant moves) had taken an unbearable toll on Paul's marriage. He and his wife split up last September.

"It was worse for the children," he tells me. "Every move involved finding them a new school, but they struggled to make friends before being dragged away to a new place. They never felt stable. It had a profound effect on my family."

Renting is the new normal. Over the last fifteen years, the number of people who rent their home from a landlord has almost doubled to 8.5 million people, and nearly a third of renters are members of families with children. Typically, these people are on contracts of 12 months or fewer. Paul's family were among the 67 per cent of families in the private rental sector who moved house in the last three years. Last year 310,000 out of 1,017,000 families with children in the sector moved: a shocking 30 per cent of all families. In comparison, 122,000 out of 3,863,000 families with children who own their home moved house last year: just three per cent.

Paul's situation was hardly unusual: as the charity Shelter has revealed, almost half of people who are renting privately say that housing costs are causing stress and depression in their family – a higher rate than any other group. The children of these families are not just suffering because of the constant upheaval - they're suffering because of the effect of parents who are poorer (the charity has also shown showed that 38 per cent of families with children who are renting privately have cut down on buying food to pay their rent), and more prone to arguing.

There are two reasons those in the private rental sector don't feel as if their accommodation is stable – the possibility of eviction with just two months' notice, and constant worries about when rent rises will hit. It's why Shelter is calling for a Stable Rental Contract, which it claims would offer the stability of five year tenancies.

The problem isn't necessarily due to the oft-imagined stereotype of cruel, Rachmanite landlords. In fact, it's often due to the fact that they are reliant on letting agents because they don't feel confident enough to rent the properties themselves – and the agents "add value" by encouraging short-term tenancies. Shelter has cited research by Jones Lang LaSalle, a real estate services firm, which shows that not only would it provide more security for tenants - it makes business sense for landlords, with a steadier, long-term income rising more gently with inflation that could increase their returns.

"I'm now an avid campaigner for affordable house building," Paul tells me. "It's a mystery to me why the Government is looking at spending money on things like HS2 when a comprehensive programme of affordable houses would put people in work and improve the lives of thousands. I wouldn't wish what I've been through on anybody."

 

Nearly a third of renters are members of families with children. Photograph: Getty Images

Alan White's work has appeared in the Observer, Times, Private Eye, The National and the TLS. As John Heale, he is the author of One Blood: Inside Britain's Gang Culture.

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Donald Trump ushers in a new era of kakistocracy: government by the worst people

Trump will lead the whitest, most male cabinet in memory – a bizarre melange of the unqualified and the unhinged.

“What fills me with doubt and dismay is the degradation of the moral tone,” wrote the American poet James Russell Lowell in 1876, in a letter to his fellow poet Joel Benton. “Is it or is it not a result of democracy? Is ours a ‘government of the people by the people for the people’, or a kakistocracy rather, for the benefit of knaves at the cost of fools?”

Is there a better, more apt description of the incoming Trump administration than “kakistocracy”, which translates from the Greek literally as government by the worst people? The new US president, as Barack Obama remarked on the campaign trail, is “uniquely unqualified” to be commander-in-chief. There is no historical analogy for a President Trump. He combines in a single person some of the worst qualities of some of the worst US presidents: the Donald makes Nixon look honest, Clinton look chaste, Bush look smart.

Trump began his tenure as president-elect in November by agreeing to pay out $25m to settle fraud claims brought against the now defunct Trump University by dozens of former students; he began the new year being deposed as part of his lawsuit against a celebrity chef. On 10 January, the Federal Election Commission sent the Trump campaign a 250-page letter outlining a series of potentially illegal campaign contributions. A day later, the head of the non-partisan US Office of Government Ethics slammed Trump’s plan to step back from running his businesses as “meaningless from a conflict-of-interest perspective”.

It cannot be repeated often enough: none of this is normal. There is no precedent for such behaviour, and while kakistocracy may be a term unfamiliar to most of us, this is what it looks like. Forget 1876: be prepared for four years of epic misgovernance and brazen corruption. Despite claiming in his convention speech, “I alone can fix it,” the former reality TV star won’t be governing on his own. He will be in charge of the richest, whitest, most male cabinet in living memory; a bizarre melange of the unqualified and the unhinged.

There has been much discussion about the lack of experience of many of Trump’s appointees (think of the incoming secretary of state, Rex Tillerson, who has no background in diplomacy or foreign affairs) and their alleged bigotry (the Alabama senator Jeff Sessions, denied a role as a federal judge in the 1980s following claims of racial discrimination, is on course to be confirmed as attorney general). Yet what should equally worry the average American is that Trump has picked people who, in the words of the historian Meg Jacobs, “are downright hostile to the mission of the agency they are appointed to run”. With their new Republican president’s blessing, they want to roll back support for the poorest, most vulnerable members of society and don’t give a damn how much damage they do in the process.

Take Scott Pruitt, the Oklahoma attorney general selected to head the Environmental Protection Agency (EPA). Pruitt describes himself on his LinkedIn page as “a leading advocate against the EPA’s activist agenda” and has claimed that the debate over climate change is “far from settled”.

The former neurosurgeon Ben Carson is Trump’s pick for housing and urban development, a department with a $49bn budget that helps low-income families own homes and pay the rent. Carson has no background in housing policy, is an anti-welfare ideologue and ruled himself out of a cabinet job shortly after the election. “Dr Carson feels he has no government experience,” his spokesman said at the time. “He’s never run a federal agency. The last thing he would want to do was take a position that could cripple the presidency.”

The fast-food mogul Andrew Puzder, who was tapped to run the department of labour, doesn’t like . . . well . . . labour. He prefers robots, telling Business Insider in March 2016: “They’re always polite . . . They never take a vacation, they never show up late, there’s never a slip-and-fall, or an age, sex or race discrimination case.”

The billionaire Republican donor Betsy DeVos, nominated to run the department of education, did not attend state school and neither did any of her four children. She has never been a teacher, has no background in education and is a champion of school vouchers and privatisation. To quote the education historian Diane Ravitch: “If confirmed, DeVos will be the first education secretary who is actively hostile to public education.”

The former Texas governor Rick Perry, nominated for the role of energy secretary by Trump, promised to abolish the department that he has been asked to run while trying to secure his party’s presidential nomination in 2011. Compare and contrast Perry, who has an undergraduate degree in animal science but failed a chemistry course in college, with his two predecessors under President Obama: Dr Ernest Moniz, the former head of MIT’s physics department, and Dr Steven Chu, a Nobel Prize-winning physicist from Berkeley. In many ways, Perry, who spent the latter half of 2016 as a contestant on Dancing with the Stars, is the ultimate kakistocratic appointment.

“Do Trump’s cabinet picks want to run the government – or dismantle it?” asked a headline in the Chicago Tribune in December. That’s one rather polite way of putting it. Another would be to note, as the Online Etymology Dictionary does, that kakistocracy comes from kakistos, the Greek word for “worst”, which is a superlative of kakos, or “bad”, which “is related to the general Indo-European word for ‘defecate’”.

Mehdi Hasan has rejoined the New Statesman as a contributing editor and will write a fortnightly column on US politics

Mehdi Hasan is a contributing writer for the New Statesman and the co-author of Ed: The Milibands and the Making of a Labour Leader. He was the New Statesman's senior editor (politics) from 2009-12.

This article first appeared in the 19 January 2016 issue of the New Statesman, The Trump era