Lord Hylton (CB)
My Lords, the Minister will be aware that residential landlords very often, particularly in Greater London, go to some length to seek out companies and embassies as tenants for their properties. That in itself constitutes discrimination against the ordinary individual or family. I agreed with virtually every word that the noble Baroness, Lady Lister, said, particularly when she referred to the unintended consequences that are likely to affect black and coloured citizens of this country as a knock-on effect of what is intended to deal only with migrants. This category will include citizen students who come from British ethnic minorities. The noble Baroness was quite right to go on to mention lodgers. I would much prefer that Clause 15 did not stand part. If it has to be in the Bill at least there should be a carefully designed and carefully evaluated pilot project.
The Parliamentary Under-Secretary of State, Home Office (Lord Taylor of Holbeach) (Con)
My Lords, perhaps I may start by talking about the pilot. A number of noble Lords have expressed interest in a pilot and I can see its significance.
The Government have made public commitments in relation to the implementation of these provisions and have reiterated those commitments in correspondence with the Joint Committee on Human Rights. The Government’s intention is that the provisions relating to landlords and their agents will be subject to a phased implementation on a geographical basis. This will allow a proper evaluation of the scheme to ensure that it delivers its objectives without unintended consequences such as discrimination. Noble Lords are quite right to emphasise their concerns and I recognise that it is up to me to reassure noble Lords on that point. Through the courtesy of the noble Lord, Lord Best, I heard from Crisis directly when we had meetings with parties interested in this provision.
Discrimination is one factor and increased difficulties in the vulnerable accessing accommodation is another. We intend to work with bodies such as crisis in conducting the evaluation. It will not be an evaluation in which the Government examine their proposals on their own in isolation. The first phase and evaluation will also enable the Government to develop and deliver suitable support services for landlords and tenants, a point made by a number of noble Lords.
The Government have agreed that we will initiate the first phase from October 2014; that a formal evaluation will be produced; and that decisions on implementing the scheme more generally will be taken in the next Parliament on the basis of this proper evaluation. Implementation beyond the initial phase will be via a negative resolution order, enabling a debate to be triggered in both Houses of Parliament at that stage if there remain concerns following the initial phase.
These carefully constructed commencement provisions are already provided for in Clause 67. The proposed new clause goes no further. It would require Parliament to debate not only the wider rollout but also the establishment of the initial phase, and it would require all this to take place during the current Parliament rather than the more careful approach we have set out, which involves an initial phase and evaluation during this Parliament, with decisions to be taken on wider implementation under the next Parliament on the basis of a proper evaluation. We believe that this latter approach, which is provided for in the Bill, is the right one.
The commencement provisions in Clause 67 indicate the Government’s commitment to ensuring that, should it wish to do so, Parliament may scrutinise the implementation of the scheme following the initial rollout and before the subsequent stage commences. Any commencement order which brings the landlord provisions into operation in a subsequent area following the initial rollout will be subject to the negative resolution procedure. The House will be able to trigger a debate regarding the further rollout of the measures and any questions can then be addressed.
I am grateful to the noble Baroness, Lady Hamwee, and the noble Lord, Lord Clement-Jones, for raising their concerns by way of these amendments, which are intended to be helpful and to improve the operation of the proposed landlord scheme. I recognise the particular concern that has been raised about the risk of unlawful discrimination. The Government are clear that race discrimination is unlawful, unacceptable and should be confronted.
Baroness Hamwee
My Lords, I shall speak also to Amendments 50B, 51B, 51C, 51D and 54ZA. This group of amendments takes us to the type of accommodation. Amendment 50A deals with a point that has been referred to already—that is, where there is no exclusive right of occupation.
The Minister has referred a number of times to the known unknowns, or the unknown knowns. I think there may be a lot of unknown unknowns in this, and my amendment asks whether the Government are confident that arrangements can work where what comes within the definition of a tenancy is, as we have heard, not what one normally understands to be a tenancy, such as lodgers and all sorts of licences which are not exclusive licences. A lot people live in premises on an informal basis, which is hardly the ideal home, but they may be the only residents, and that is what brings the accommodation into the Bill. Noble Lords have already referred to whether a landlord will go through the checks, whether discrimination will be fed and whether an underground black market will be created. Amendments 55B and 55D, tabled by the noble Lord, Lord Best, address similar points.
The Minister told us not that long ago that there would be a range of penalties. He talked about £80 perhaps going up to £500 for multiple offences and £1,000 going up to £3,000. I am not sure whether I got his words quite correctly, but he referred to something like a proper mechanism for evaluating the level of the fine. I do not know whether he is in a position to say a little more about what the mechanisms for evaluating the level will be. It is clear that the Government have given this some thought. Indeed, it was referred to in the evidence session of the Public Bill Committee by the representative of one of the landlords organisations. She said,
“we do not agree with the proposed disparity in penalties””.—[Official Report, Commons, Immigration Bill Committee 29/10/13; col. 56.]
That is not my point. I just want to get some clarity as soon as we can on this.
Amendment 50B would preclude the Secretary of State reducing the types of excluded—which I find quite a difficult term in this context—premises which do not come within the scheme.
Amendments 51B, 51C and 51D relate to the way in which refuges are defined in Schedule 3. I am delighted that refuges are now within the schedule. My amendments would be refinements. The schedule does not at the moment take account of the fact that costs may be provided by a voluntary organisation or charity. The term is simply “operated”. The Bill states,
“its costs of operation are provided wholly or in part by a government department or agency, or by a local authority … it is managed by a voluntary organisation”.
There are a variety of models. A hostel may be owned by a voluntary organisation and the provisions seem to stand being reread and made as extensive as they are in practice.
Amendment 51D would extend the group of those who might benefit from the provision from being simply those who have been subject to an incident or pattern of incidents of the behaviour spelt out to those who are threatened with or avoiding such behaviour or who might be subject to it. It is looking ahead to prevention, as it were.
I accept that it would be unusual for somebody to flee without actually having been subject to some of the behaviour that is listed here, but I want to ensure that we are as inclusive as possible. No one seeks a place in a refuge. Nor, indeed, would a refuge, the places in which are in short supply, provide a place lightly. We should not add to the difficulties of someone seeking refuge, nor to those of the refuge operator. I should perhaps declare an interest as having been chair of Refuge for some years. I would be concerned if the operators of refuges had to interrogate their prospective clients in the way that this clause might suggest.
Finally, Amendment 54ZA would add holiday and short-term business lettings to the excluded premises. I am probing here because of the amount of administration required; the Minister may disagree with that, given his earlier comments. However, I think that most noble Lords see the Bill as requiring a lot of administration. I hesitated before tabling this amendment, because I would not like to think that it might mean taking the use of accommodation as a home out of the ordinary private rented sector. I mention that in order to try to avoid the criticism, but also to probe the point that holiday and short-term business lettings may be excluded by Clause 15(4), which refers to,
“their only or main residence”.
Perhaps the Minister can help me on that one. I beg to move.
Lord Taylor of Holbeach
My Lords, I shall jump in quickly on this. I hope we can move this debate on because I think I can satisfy my noble friend Lady Hamwee on the points that she has raised.
Amendments 50A and 50B would exclude temporary living arrangements from the scheme and prevent the Secretary of State from removing living arrangements from the excluded list once added. In relation to the first point, I draw attention to Clause 15(4), which sets out that the restriction on letting will apply only to agreements which allow a person to occupy the premises as their only or main residence. Further, Clause 27 provides for the Secretary of State to set out in a code of practice the factors she considers when determining whether someone is occupying premises on this basis, and provide guidance relating to holiday lettings or lettings connected with business travel in particular. In relation to Amendment 54ZA, the Government have no intention of requiring a status check where these circumstances pertain.
Further, while other temporary living arrangements such as hostels and refuges are expressly excluded from the scheme by Schedule 3, excluding other instances of multiple occupations will simply undermine the scheme. I am looking carefully at Amendment 50B. This would restrict the Secretary of State’s power to amend the provisions in Schedule 3 in the future, so that she could not remove a description from the list. It may assist my noble friend if I clarify that the intention of this provision is not to allow the Secretary of State to reduce the scope of the exemptions from the scheme in the future: exemptions have been provided for arrangements which ensure important services can be provided to the vulnerable, and where the restriction would impose a double or disproportionate regulatory burden.
Careful consideration has been given to the drafting of the exclusions, and consultation has taken place with stakeholders. However, once the scheme is in operation the exclusions may need to be amended to ensure that they are and remain appropriately targeted. I am afraid that our experience is that circumstances may change over time and that many illegal immigrants will seek to exploit what they see as loopholes in the law. It is surely appropriate, particularly as the initial phase of rollout is to be evaluated, to allow the Secretary of State to address abuse where it may arise, sometimes of course through displacement.
On Amendments 51B and 51C, accommodation provided by charities or voluntary organisations in the form of refuges and hostels is already excluded. Similarly, Amendment 51D will achieve no more than the draft paragraph already provides in relation to excluding refuge accommodation provided to those suffering from or threatened with abusive behaviour. The Government have taken a great deal of care here and have discussed this paragraph in some depth with two leading organisations that provide such accommodation.
I hope that in light of those points I have been able to satisfy my noble friend. If not, I hope that she will come back to me after Committee so that we have the chance to talk about it. I hope that she will withdraw her amendments.
Baroness Hamwee
My Lords, on Amendment 50B, if the objective is to allow refinement rather than wholesale change, I hope that we may look at refining the provision so that that is quite clear in the Bill. Yes, I would welcome a further word on Amendments 51B and 51C. On Amendment 50A, sadly, some lodgers and some sofa surfers are using friends’ or—I do not know what the term is—lodging-providers’ premises as their only or main residence. That is an outcome of homelessness. Therefore I hear what the noble Lord says about the intention, but I am not sure that it quite meets the point that I am making. However, obviously at this time I beg leave to withdraw the amendment.
Lord Clement-Jones (LD)
My Lords, in moving Amendment 52 I will speak also to Amendments 52A, 53 and 54. At this time of day I feel as though I am trying to hit a moving target to some degree with these amendments. I heard what the Minister had to say about the concessions he has given as regards rejigging the exemption for residential property occupied by students, where it is owned, managed or arranged directly by a higher education institution so that there will be no need for further checks. Like the noble Baroness, Lady Smith, I, too, look forward to reading Hansard tomorrow to clarify what the Minister has given by way of an assurance on that. However, I am pretty sure that these amendments—subject to reading Hansard—go rather wider than the concessions that the Minister has given. They derive from the concerns that I, my noble friend Lady Hamwee and many noble Lords expressed at Second Reading and continue to do so about the requirement for landlords to check a prospective overseas student’s immigration status prior to renting accommodation to them.
Universities UK and many student bodies have expressed their concerns extremely cogently. Universities UK says that, while acknowledging that some student accommodation will be exempt, it is deeply concerned, as are we, that these measures will discourage landlords from letting accommodation to international students and staff or those who appear to be from outside the UK, particularly at peak times when they are under pressure to make decisions quickly. Secondly, Universities UK says that the measures may leave international students and staff unable to secure accommodation before their arrival in the UK. Given that many international students are young and living away from home for the first time, this could cause considerable anxiety, and could add to the perception that the UK is unwelcoming. The noble Baroness, Lady Warwick, made that point in the previous debate. I note the Minister’s assurance in his subsequent correspondence that this can be done on a conditional basis, but this will not be attractive to landlords who will have to take the risk that the relevant visa or residence permit will eventually be produced. The lack of certainty is the next issue posed by Universities UK, which says that the lack of certainty provided by a residential tenancy may also prove a significant barrier to non-EU staff looking to move to the UK to work in our universities. This uncertainty could be a particular disincentive to those with children. Finally, Universities UK says that exemptions for halls of residence are welcome, but it is not clear that they will cover the wide variety of arrangements between universities and privately owned student accommodation. Of course, that is the objection that I believe my noble friend has addressed in his last statement. We will examine that carefully. That is only one of the four arguments that Universities UK puts that the Minister has addressed.
Amendments 52 and 52A provide alternative ways in which to ensure that prospective tenants holding tier 4 visas who could demonstrate that they hold a certificate of acceptance of studies from a university will be exempt from further checks of their immigration status. Amendments 53 and 54 would broaden the scope of the exemption for halls of residence, which will not be subject to the residential tenancy measures.
International students already face difficulties in securing accommodation and are often made to pay large advance payments of rent. Bookings of accommodation for students often have to be made well in advance at a time when overseas students cannot prove their immigration status. Landlords will be discouraged from letting accommodation to international students and staff and they will be relegated to the back of the queue in the search for accommodation. How can causing this kind of barrier and concern to young people coming here for the first time be the right way to welcome them? How will this lack of certainty encourage overseas academic staff to come and work in our universities?
The fear of the student bodies that have briefed Members of this House is that this will lead to more discrimination against black and ethnic minority students when looking for housing. Liberty believes so too, citing the National Landlords Association and the UK Association of Letting Agents, which both expressed concerns to the Public Bill Committee that the Bill could impact on ethnic minorities. Indeed, as Liberty also says, the very inclusion of Clause 28, which requires the Home Secretary to produce a code of practice on how landlords should avoid contravening the Equality Act 2010, is tacit acceptance that the policy will encourage unlawful discrimination.
Why are additional provisions required for students? International students are already subject to extensive checks prior to arrival in the UK and require a certificate of acceptance of studies from a higher education institution. Surely being vouched for by their university when the accommodation is occupied should be enough. After all, the risk of losing highly trusted sponsor status, as the NUS has said, means that higher education institutions are now scrupulous in their monitoring of overseas students. The Residential Landlords Association and the British Property Federation have pointed out the problems with the latter, in particular stating that the proposals constitute a disproportionate burden on the landlord and tenant compared to their likely outcome for immigration control. In the NUS survey this month, 40% of international students believe that these landlord checks will negatively impact on their decision to study in the UK—and more in the case of PhD students concerned about spouse and children.
I believe that overseas students should be specifically exempt from these provisions. I beg to move.
Lord Taylor of Holbeach
My Lords, I think that most of us have spent all day trying to catch up and find out where we are. The day started off with a considerable readjustment of groupings, which has meant that sometimes matters which were going to be discussed at one point were discussed at another. I apologise if that has sometimes meant that our debates may have appeared a little disjointed.
I am sure that, in moving this amendment, my noble friend Lord Clement-Jones had not anticipated that I would be in a position to make an announcement. Although he says that it does not meet all the points that Universities UK has suggested, I think that it goes a very long way towards it. At bottom, it succeeds in making it plain that, where the university itself is responsible for arranging a student’s accommodation, be that a student coming to this country for the first time and making accommodation arrangements ahead of time, or a student already at the university who needs accommodation, they will be excluded from any further checks. I believe that this is a considerable step forward. I am pleased that I have had an opportunity to make the point again because throughout these debates we have said that we welcome the brightest and the best students. There is no limit on numbers and we are very pleased to see overseas students coming to study at our higher education institutions.
Lawful students should not be deterred by the provisions in the Bill. We need to make sure that those do not get in the way of them coming to this country. They are not designed adversely to affect students during their stay here. I understand the reasoning behind the amendments tabled by my noble friend Lady Hamwee and spoken to by my noble friend Lord Clement-Jones. We do not want to have to check the immigration status of any person more than once. Educational institutions already conduct checks of students as part of their obligations as sponsors of non-EEA migrants. They have taken a position of responsibility in respect of their students which we would like to reinforce by the amendments that we will bring forward on Report to extend their responsibilities in this regard. If accommodation is controlled by a registered educational institution, we agree that the tenancy should be exempt from any further checking requirement. The Government intend to bring forward an amendment on Report to broaden this exemption to cover a wider range of circumstances where student accommodation is arranged by the university or college.
I know that noble Lords are concerned about other matters and want to talk about other impacts of the Bill on students in general. When we had the previous debate on the amendment of the noble Lord, Lord Hannay, I indicated that I thought it would be good to have a further discussion with him. I want to make sure that we get these matters right, and it is most important that by Report we will have made every effort to do so as a result of contributions made by noble Lords. I hope that my noble friend will be prepared to withdraw his amendment.
Baroness Hamwee
My Lords, perhaps I may raise one issue for the Minister to consider before Report. Before I do so, I should say that I very much welcome the Government revisiting this issue but, as my noble friend Lord Clement-Jones said, it does not sound as if it is going to go as far as we would like.
One of the areas in which we would go further is on whether the premises are within the control of the university or college. We are looking at this matter from the student’s point of view. My noble friend Lady Manzoor, who will jump because I have mentioned her, said to me the other day that she thinks that a landlord needs to see evidence that the tenant is a student for council tax purposes. If that were so, it would go a long way towards dealing with any potential abuse. Can I leave that with the Minister to consider? Perhaps a bit of lateral thinking there might help to reassure the Government as regards the rather more extensive amendments that we are proposing.
Lord Taylor of Holbeach
It may be late but it is not too late to hear an idea that is worth considering, and I am grateful for that suggestion.
Lord Clement-Jones
My Lords, I thank the Minister for his reply and I can understand that it must be slightly frustrating to have to keep re-replying and repeating assurances, but that is the way in which the groupings have worked today.
I appreciate the concession that the Government have made and no doubt will be bringing back but we will obviously need to see the small print. My noble friend Lady Hamwee is correct: I suspect that the concession will not go as far as we would want because not all accommodation for overseas students is arranged, owned or managed by universities. However, we will no doubt take advice from UUK as to whether the concession really does move us a long way forward or whether a substantial amount of accommodation for overseas students would not be covered by it.
I took heart from the Minister’s statement that the Government did not want a situation whereby the immigration status of students, having been checked by the educational institutions, was then checked by landlords. If that is the general principle, it sounds as if we are making real progress in this part of the Bill. I look forward to seeing the text of the amendment that the Minister brings forward on Report. In the mean time, I beg leave to withdraw the amendment.