New research led by criminology expert Georgios Antonopoulos from Northumbria University found councils and police forces across the UK were failing to tackle criminal landlords operating on the edges of the private rented sector (PRS).
The reports, funded by UK Research and Innovation’s Economic and Social Research Council, showed the current laws and enforcement left vulnerable tenants at risk while repeat offenders continued with little fear of punishment.
Civil penalties were found to be quicker with higher fines, but criminal prosecutions needed to remove landlords from the market were slow and under-resourced, with courts giving fines as low as £100 for illegal evictions.
Less than 40 landlords have received banning orders in 10 years under the Housing and Planning Act 2016.
Councils pointed to repeat offenders involved in hazardous housing, harassment and illegal evictions, saying it was nearly impossible to remove them permanently due to the law.
Additionally, the research found police sometimes assisted in unlawful evictions because of unclear procedures and lack of collaboration.
Julie Rugg from the University of York’s School for Business and Society said: “The deterrent for these crimes are so weak that criminality, such as rent-to-rent scams, slum rentals, cannabis farms, and money laundering have become embedded in the rental system.
“Stronger and consistent collaboration between agencies can stop this cycle, but local authorities and the police lack resources to investigate and skills to prosecute.
“It causes unimaginable harm to those who have no choice but to rent housing in the shadow private rented sector, where criminals operate with impunity.”
Rugg added: “To come home one day, perhaps as a single parent, working shifts, to find the locks have been changed, is terrifying.
“Illegal eviction often robs victims of their home and all their belongings.
“Renters are told by the council and the police that it is ‘not their area’ to intervene.”
She said: “We have seen cases where the police have actually helped the landlord evict someone.
“The legislation that offers protection from illegal eviction dates from the 1970s, it is now time for a change.”
The lowest end of the PRS was described as “fertile ground” for abuse, with tenants living in unsafe homes or being forced into criminal activity.
The charity Safer Renting, which contributed to the project, said some tenants could not challenge their landlord without risking destitution.
Antonopoulos said: “This research demonstrates that the current system enables criminality, with multiple points at which offences can occur – whether through informal letting arrangements, power imbalances between landlords and tenants, high demand that allows poor standards to persist, patchy enforcement, or inadequate sanctions.
“The private rented sector offers affordances that can be exploited. Changing a single element will not be enough.
“The findings point to the need for coordinated interventions across the whole system: strong, targeted enforcement for criminal landlords, alongside better support for those who may only occasionally breach regulations.”
Researchers called for councils to use more proactive strategies, including banning orders and interim management orders, to remove the worst landlords.
They recommended a review of the Protection from Eviction Act, simpler routes for councils to prosecute, better support for victims, easier access to rent repayment orders, and mandatory inspections before tenants are placed by local authorities.
Xavier L’Hoiry from the University of Sheffield said: “Our report shows distinct patterns of exploitation.
“We have slum landlords who rent out unsafe or overcrowded accommodation; scam landlords that often illegally convert properties into multiple occupancy or use fake tenancy agreements; and criminal letting agents, who may facilitate illegal activities such as cannabis farms.
“At the more extreme end we have organised crime groups in the rental market that includes human trafficking, benefit fraud and modern slavery.”
L’Hoiry added: “We have criminal connections across the sector that are far more widespread than we expected.”
The research highlighted that new legislation like the Renters Rights Act would have limited effect without proper funding for enforcement.
The focus should be on protecting the most vulnerable renters who cannot escape the shadow private rented sector.
David Scully, Deputy Head of Service for Safer Renting said: “This report details the psychological, physical and financial scars carried by renters who have experienced shocking levels of abuse at the hands of their landlords and agents.
“It exposes a shadow private rented sector where people behave as if they expect never to face accountability for their actions and, as the report illustrates, this is a reasonable assumption for them to make.
“Now is the time for the whole sector to work together to puncture this atmosphere of impunity and exploitation.”
Scully added: “Tenants who report abuse should be supported effectively by professionals and the perpetrators of abuse must be held accountable using the full range of powers available.”
