CMA launches research into consumer safeguards in the private rental sector

The Competition and Markets Authority (CMA) has begun a new consumer research project to examine the challenges facing tenants and landlords in the private rented market. The initiative was launched on 28 February 2023 after the regulator identified a range of issues during its leasehold investigation and set out to map concerns across England, Scotland, Wales and Northern Ireland.

On 25 August 2023 the CMA published an update report that summarised feedback received from a wide variety of stakeholders during a three‑month engagement period. The consultation helped the authority pinpoint the topics it will focus on next, including zero‑deposit schemes, so‑called sham licences, guarantees, potentially unlawful discrimination and exit or other event fees that can arise in retirement homes.

The regulator has indicated that it may consider enforcement action where it finds evidence of consumer‑protection gaps, a stance that could give renters additional leverage when negotiating tenancy terms. It also plans to refresh its guidance for letting agents in the draft Annual Plan for 2024‑2025, with a further update expected in spring 2024.

Tenants are advised to remain vigilant: ask to see the landlord’s licence, check any guarantee or alternative deposit arrangement, and request a clear breakdown of any fees that could be triggered at the end of a tenancy. Keeping a paper trail of communications, receipts and licence checks can be useful if concerns need to be raised.

Anyone with comments on competition or public‑interest issues can send written representations to the CMA at general.enquiries@cma.gov.uk. As the project progresses, the insights gathered may lead to stronger protections for renters across the United Kingdom, helping to make the private rented sector a fairer place to call home.