Renters (Reform) Bill (Tenth sitting)

(Limited Text - Ministerial Extracts only)

Committee stage
Tuesday 28th November 2023 Public Bill Committees

[The Chair]

With this it will be convenient to consider the following:

Government amendments 112, 115 and 116.

Government new clause 20—Decent homes standard.

New clause 60—Extension of Awaab’s law to the private rented sector—

“(1) Section 10A of the Landlord and Tenant Act 1985 is amended as follows.

(2) Omit subsections (1)(b) and (6).

(3) In subsection (7), omit the definitions of ‘low-cost home ownership accommodation’ and ‘social housing’.”

This new clause would require private landlords to deal with hazards affecting their properties.

Government new schedule 1—Decent homes standard.

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Jacob Young)]

It is a pleasure to see you in the Chair, Ms Fovargue.

Everyone deserves to live in a safe and decent home. It is completely unacceptable in this day and age that people are forced to live in homes that do not meet basic standards of decency. There is already a decent homes standard for social housing that has been successful in improving housing conditions. Since the standard was last updated in 2006, the level of non-decency in social housing has fallen from 29% to 10%, but there is no equivalent standard for the private rented sector, and homes in that sector are more likely to be non-decent.

Of the 4.6 million households that rent privately, 23% live in properties that would fail the decent homes standard that currently applies to social housing. That is around 1 million homes. That is why we committed in the levelling-up White Paper to halving the number of non-decent rented homes by 2030 and, in the “Fairer Private Rented Sector” White Paper, to introducing a legally binding decent homes standard in the private rented sector for the first time. It is also why we have tabled the Government amendments, which will allow Ministers to set a new standard to apply the private rented sector and for it to be enforced.

It is imperative that we get the content of the new standard right and that we ensure that it is both proportionate and fair. We are working closely with a range of stakeholders to co-design the standard and make sure the balance is right for landlords and tenants. For most PRS properties, our expectation is that the landlord will not need to do any additional work to meet the decent homes standard beyond what is needed to meet existing requirements and keep their properties in a good state of repair. We will provide further details on our proposals for the standard in due course.

[Matthew Pennycook (Greenwich and Woolwich) (Lab)]

It is a pleasure to continue our deliberations with you in the Chair, Ms Fovargue.

Clause 63 is a short and straightforward clause that would require the Secretary of State to prepare a report that sets out the Government’s policy on safety and quality standards in relation to supported housing and temporary accommodation and to publish it within one year of the day on which the measure comes into force. The group of Government amendments we are considering with the clause, which are intended to replace it entirely, will extend part 1 of the Housing Act 2004, which relates to housing conditions, to cover temporary accommodation, and provide for regulations to specify new requirements that will form part of a decent homes standard that applies to temporary accommodation, supported exempt accommodation and rented property more generally. We welcome both the intent and the design of the amendments.

The private rented sector is manifestly failing to provide safe and secure homes for all those who live in it. We fully accept that the absolute number and proportion of poor-quality private rented homes continues to fall—albeit steadily rather than drastically—as part of a half-century, if not longer, of improvement in housing standards. However, it remains the case that some of the worst standards in housing are to be found in the private rented sector. It should be a source of real shame for the Government that after they have been in office for 13 years, an estimated one in four homes in the private rented sector—the Minister made it clear that that equates to around a million properties—do not meet the decent homes standard, and one in 10 has a category 1 hazard that poses a risk of serious harm.

For the considerable number of private tenants who are forced to live in substandard properties—those who wake up every day to mould, vermin or dangerous hazards—what should be a place of refuge and comfort is instead a source of, at best, daily unease and, at worst, torment and misery. More must be done to bear down decisively on this problem. Measures designed to drive up standards in the sector should be enacted as a matter of urgency.

As I made clear during the debate on clause 52, the Government deserve appropriate credit for seeking to introduce a decent homes standard that covers the private rented sector through this Bill rather than through separate future legislation. We believe that Government new clause 20, new schedule 1 and the related amendments are well drafted and that they have the potential to tackle the blight of poor-quality homes in local communities and ensure that renters have safer and better homes to live in; however, I would like to take this opportunity to put to the Minister several questions about those provisions.

My first question concerns enforcement. A decent homes standard that covers the social rented sector has been in place since 2001, yet we know that far too many social tenants still live in damp, cold and mouldy properties that harm their health and their life chances. Indeed, that was one of the chief reasons why the Government felt it necessary to enact the Social Housing (Regulation) Act 2023. That demonstrates that over the 22 years of the decent homes standard’s existence, although it has led to some improvements it has not been enforceable in the social rented sector. That experience suggests that introducing a decent homes standard covering the private rented sector will not achieve its objectives unless it is properly enforced.

Given that the Government intend, by means of new schedule 1, which amends part 1 of the Housing Act 2004, for enforcement of the new standard in the PRS to be undertaken using the same powers as the regime for the housing health and safety rating system, it should be a relatively straightforward matter for local authorities. However, local authorities’ ability to do so successfully depends in practice on their capacity and capabilities. As we debated just prior to the break, in relation to clauses 58 to 61, a great many authorities are struggling when it comes to resources and skills. Will the Minister provide more detail on what steps, if any, the Government intend to take, in addition to the various proposals in the Bill, to ensure that local authorities can appropriately enforce the application of the decent homes standard to the private rented sector where it is not already being met?

My second issue concerns the nature of the standard itself. The Government consulted on the introduction and enforcement of a decent homes standard in the private rented sector in England late last year, and the responses to that consultation obviously fed into the Government amendments we are considering. However, the Government have also committed themselves to a more fundamental review of the standard at some unspecified point in the future. Will the Minister confirm whether that commitment remains in place? If so, will he give us some idea of when that more fundamental review, presumably across both the social rented and private rented sectors, might begin?

The third issue relates to the current enforcement regime for the housing health and safety rating system. The regime is primary means by which local authorities can tackle poor property conditions and compel prompt action from landlords who do not fulfil their responsibilities to provide homes free from dangerously hazardous conditions. We take it from the Government amendments that while the new decent homes standard for the private rented sector will be located in part 1 of the Housing Act 2004, it will not necessarily be the same thing as the HHSRS, which is also in part 1 of that Act. We will presumably need to wait for secondary legislation to work out how, if at all, the decent homes standard and the HHSRS differ, but their workings will need to complement each other.

In answer to a written question that I tabled on 2 May, the then Housing Minister confirmed that a review of the HHSRS, including the statutory operating and enforcement guidance, was under way. Given the obvious implications of that answer for the functioning of the new decent homes standard introduced by this group of Government amendments, will the Minister tell us whether that review has concluded, as the decent homes consultation suggested? If it has, when did it conclude, when will the results be published, and does it remain the Government’s view that any changes will require further legislation? The status and outcome of the review of the HHSRS and its associated statutory, operating and enforcement guidance are important because that guidance is applied when local authorities consider using their statutory powers to remedy defective housing conditions, including and especially damp and mould.

That brings me to our new clause 60. When the Social Housing (Regulation) Act 2023 was on Report, the Government tabled and passed, with our support, amendments designed to force social landlords to investigate and fix damp and mould-related health hazards within specified timeframes, with the threat of legal challenge if they do not, owing to the insertion of an implied covenant into tenancy agreements. The provisions were termed Awaab’s law because they were a direct response to the untimely death of two-year-old Awaab Ishak from respiratory arrest, as a result of prolonged exposure to mould in the rented Rochdale Boroughwide Housing property in which he and his family lived. Although enactment of the new requirements is dependent on secondary legislation, with the consultation having closed last week we are hopeful that the necessary statutory instrument will soon be forthcoming. We look forward to its enactment so that social landlords who continue to drag their feet over dangerous damp and mould will face the full force of the law.

New clause 60 would simply extend Awaab’s law to the private rented sector by amending the relevant section of the Landlord and Tenant Act 1985, and the reasoning behind that is straightforward. The Government were right to introduce Awaab’s law in the social housing sector, but the problem of debilitating damp and mould, and landlords who fail to investigate such hazards and make necessary repairs, is not confined to social rented homes.

A Citizens Advice report published in February made it clear that the private rented sector has widespread problems with damp, mould and cold, driven by the poor energy efficiency of privately rented homes—an issue that we are minded to raise later in the Bill’s proceedings. The report went on to evidence the fact that 1.6 million children in England currently live in cold, damp or mouldy privately rented homes. In the face of such a pervasive problem, we can think of no justification whatsoever for restricting Awaab’s law purely to the social housing sector. We hope that the Government will agree and accept new clause 60, because we can think of no reason whatsoever why they would resist doing so.

Before I conclude, I want to touch briefly on a final issue in relation to this group of amendments. We welcome the inclusion of supported exempt accommodation in a decent homes standard and part 1 of the Housing Act 2004. We believe that will resolve an issue of concern that we flagged in the Social Housing (Regulation) Bill Committee—namely, the loophole that exists, and is being exploited by unscrupulous providers, as a result of non-profit-making providers of supported exempt accommodation being able to let properties at market rents that are eligible for housing benefit support, on the basis that “more than minimal” care, support or supervision is being provided, without those properties coming within the scope of consumer regulation.

The inclusion of temporary accommodation is also welcome, but it is slightly more problematic, because local authorities are responsible both for enforcing part 1 of the Housing Act 2004 and for procuring sufficient temporary accommodation to meet their duty to prevent and relieve homelessness. As such, while there may not be a legal conflict of interest, there is certainly a potential practical conflict of interest, as local authorities will be forced to weigh the case for any potential enforcement action, outside the scope of the contract in question, against the need to retain private landlords as an ongoing source of desperately needed temporary accommodation. It is for precisely that reason that we tried to convince the Government, in the Social Housing (Regulation) Bill Committee, to have temporary accommodation regulated by a third party, such as the Regulator of Social Housing.

The Government amendments will undoubtedly help to improve the quality of some temporary accommodation, and the inclusion of temporary accommodation in a decent homes standard and part 1 of the Housing Act 2004 is to be welcomed for that reason. However, we encourage the Government to consider whether they might go further. For example—here, I again commend my hon. Friend the Member for Westminster North for her Homes (Fitness for Human Habitation) Act 2018—could the Government extend section 9A of the Landlord and Tenant Act 1985 to also cover properties occupied under licences as homelessness temporary accommodation? I would welcome the Minister’s thoughts on that, and I look forward to his response to new clause 60 and all the other issues that I have raised regarding this group of amendments.

[Jacob Young]

Let me address the hon. Gentleman’s point about local authorities and their ability to enforce. We will establish a new duty on landlords to ensure that their properties meet the decent homes standard. For landlords who fail to take reasonably practicable steps to keep their properties free of serious hazard, local councils will be able to issue fines of up to £5,000. That will encourage those landlords who do not already do so to proactively manage their properties, which will allow local councils to target their enforcement more effectively on a small minority of irresponsible and criminal landlords.

We will also explore requiring landlords to register compliance with the decent homes standard on the property portal. That will support local councils in identifying non-decent properties to target through their enforcement activity. As I have already said in response to different parts of the Bill, we will also do a full new burdens assessment for local authorities, and where there is a new burden, they will be resourced to fund that.

On the hon. Gentleman’s questions about the HHSRS review, the simple answer is that we will publish that in due course. Secondary legislation obviously needs to coincide with that, so I do not have anything further to add at this point. However, I am happy to write to him in further detail on that. Similarly, I will commit to writing to him on on the DHS review too.

[Mike Amesbury (Weaver Vale) (Lab)]

In what month is due course?

[Jacob Young]

The hon. Member is trying to press me for a specific timeframe, but I am unable to give him that commitment today.

I thank the hon. Member for Greenwich and Woolwich for tabling new clause 60. The tragic case of Awaab Ishak’s death has thrown into sharp relief the need for the Government to continue our mission to rebalance the relationship between landlords and tenants in this country. It is right that all tenants across both sectors should expect safe and decent homes from their landlords. However, our focus for the private rented sector is to strengthen the enforcement of standards by local housing authorities, as well as introducing new means of redress through the PRS ombudsman.

We do not consider it to be of interest to private rented sector tenants to introduce a further route for potential litigation and enforcement. Private tenants already have rights when it comes to repairs in their home and the safety of their home. Private landlords are required to make sure that their homes are free from the most serious health and safety hazards. If hazards are present, the local housing authority can issue an improvement notice requiring them to be remedied within a specific time. Landlords who fail to comply can be prosecuted or fined up to £30,000. Additionally, if tenants consider that their rented home is not fit for human habitation, they can seek remedy through the courts under the Homes (Fitness for Human Habitation) Act 2018, to which the hon. Member for Greenwich and Woolwich referred.

Our focus is on strengthening the new system through the Bill. As I have just set out, we intend to introduce a decent homes standard in the private rented sector for the first time. The Government’s amendment to introduce the relevant provisions will place a stronger duty on landlords to keep their properties free from serious hazards, and allow local housing authorities to take enforcement action if private rented homes fail to meet decent homes standards. Through the Bill, we are also introducing a private rented sector ombudsman, which will be able to help private tenants to resolve repair issues quickly and for free if their landlord has not acted appropriately to remedy an issue within a reasonable timeframe.

Through existing legislation and new measures introduced by the Bill, private rented sector landlords will be held to account for providing safe and decent homes, and for providing timely repairs. We do not consider that it would be in the interest of private rented sector tenants to introduce a further route for potential litigation.

[Ms Karen Buck (Westminster North) (Lab)]

Before the Minister sits down, will he deal with the issue of licences? Those of us who deal with a large number of people in homeless accommodation know that those in temporary accommodation, whose accommodation is held under licence, often endure the worst conditions of all, and very little of this legislation currently applies to them. Will he bring something forward?

[Jacob Young]

I am happy to have that conversation with the hon. Lady and the hon. Member for Greenwich and Woolwich at a later date. If there are specific points that I have not addressed, I am happy to write to her, but I ask the hon. Member for Greenwich and Woolwich to withdraw the new clause.

[Matthew Pennycook]

I welcome that response from the Minister. With regard to Government amendments, I thank him for what he said about the HHSRS and the more fundamental review of the decent homes standard across both tenures. If he has any further detail on that, I would welcome it. I particularly welcome the implied suggestion that the registration of a decent homes standard, when it is forthcoming, will form part of what is required for landlords to submit on the portal. That is a very good idea, and in that way we could help to drive up standards by making it part of the general information that needs to be submitted as part of registration with the database. That is very welcome.

On Awaab’s law and new clause 60, I have to say to the Minister that he gave a particularly unconvincing answer. I entirely understand that when it comes to standards, the Government’s focus is on the measures in the Bill. We all want to see local authorities able to enforce properly, and we all want to see the ombudsman provide a mechanism for redress. However, I still fail to understand—I do not think the Minister responded to this point—why the Government believe that Awaab’s law is appropriate for the social rented sector, but not for the private rented sector.

[Jacob Young]

rose—

[Matthew Pennycook]

I will just make this point. The Minister said that the Government do not think it is of interest to tenants; I would be very interested to know what surveys the Government have done of tenants to find out their views on this matter, because I am certainly not aware of any such evidence. I think it would be of real interest to tenants if their landlords could be forced to respond within specific timeframes to sufficiently serious cases of damp and mould, as Awaab’s law provides for the social rented sector, with the threat of legal challenge as a stock response. I am happy to give way, but I find the Minister’s arguments on this point quite unconvincing. If these measures are appropriate for the social rented sector, with all the other measures in place in that sector, they should be appropriate for the private rented sector.

[Jacob Young]

I simply say to the hon. Gentleman that there is an obvious difference between a large social housing sector landlord, which has maintenance teams that can quickly act to address an issue, and an individual landlord, who may have only one or two properties, and may not have a wealth of skill behind them to address such issues in the timeframes that we hope to set out for social landlords. As I said, local authorities can request timely changes to properties.

[Matthew Pennycook]

I thank the Minister for that answer. I fully accept that there is a difference between a large registered social landlord, and a mum-and-dad landlord, who might own only one or two buy-to-let properties. However, we should not therefore say that it is acceptable for the kinds of cases that Awaab’s law would cover, if extended to the private sector, to go on unchallenged. I am not satisfied that there are existing powers to challenge those cases. If there were such powers in the social rented sector, the Government would not have needed to bring forward Awaab’s law. Actually, if the Government were properly resourcing local authorities to enforce, Awaab’s law might not be necessary, but the Government deemed it necessary in the social rented sector.

As the Bill demonstrates, the difference between the private rented sector and the social sector will break down to some extent, whether as a result of the ombudsman, who will cover both sectors, or other measures. We think the law should cover both sectors, and I find the Minister’s response unconvincing. I will press new clause 60 to a Division.

--- Later in debate ---

[Matthew Pennycook]

I beg to move amendment 169, in clause 67, page 62, line 21, at end insert—

“, save that section 2(b) comes into force on the day on which this Act is passed only to the extent that it repeals section 21 of the Housing Act 1988; such repeal will not affect the validity of any notices served under that provision on or before the day on which this Act is passed and the provisions of that section will continue to apply to any claims issued in respect of such a notice”.

This amendment would ensure that the abolition of section 21 evictions would come into force on Royal Assent, with saving provisions for any notices served before that date.

In opening the Committee’s fifth sitting for the Opposition, I set out in exhaustive detail our concerns about the huge uncertainty that surrounds the implementation of chapter 1 of part 1 of the Bill as a result of the Government’s recent decision to tie the implementation of the new tenancy system directly to ill-defined court improvements. As I argued, because of the Government’s last-minute change of approach, private tenants have no idea when the new tenancy system will come into force. They do not even know what constitutes the requisite progress on court reform that Ministers deem necessary before the new system comes into force.

At that point in our proceedings, I put three questions to the Minister. First, do the Government believe that the county court system for resolving most disputes between landlords and tenants is performing so badly that reform is a necessary precondition of bringing chapter 1 of part 1 into force? Secondly, if the Government’s view is that reform of the court system is absolutely necessary prior to chapter 1 coming into force, what is the precise nature of the improvements that are deemed to be required? Thirdly, what is the Government’s implementation timeline for those court improvements? The Minister’s terse response to the clause 1 stand part debate provided no convincing answers whatsoever to those questions; indeed, he failed to respond to almost all the detailed and cogent points of concern raised by Opposition Members in that debate. I hope that he will take the opportunity to respond to them in debate on this amendment, and thus provide the Committee with the assurances that were sought, but not secured, earlier in our proceedings.

Toward the end of the debate on clause 1 stand part, I put a question to the Minister about clause 67. I asked why the two-stage transition process that the clause provides for, with precise starting dates for new and existing tenancies to be determined by the Secretary of State, does not afford the Government enough time to make the necessary improvements to the courts. The Minister’s reply was:

“We will come on to that point when we discuss clause 67.”––[Official Report, Renters (Reform) Public Bill Committee, 21 November 2023; c. 159.]

Well, here we are, Minister, and we would still like to know not only why the Government believe that court reform is a necessary precondition of enacting chapter 1 of part 1, what improvements they believe are necessary, and the timeline for their implementation, but why the two-stage transition process that this clause facilitates is not sufficient to get the job done. We really do deserve some answers from the Government today.

I remind the Committee that clause 67 would give the Government an incredible amount of leeway on when the new system comes into force. It allows Ministers to determine an initial implementation date at any point after Royal Assent, after which all new tenancies will be periodic and governed by the new rules, and also to determine a second implementation date, which must be at least 12 months after the first, after which all existing tenancies will transition to the new rules. Although we want firm assurances that the two-stage process will not be postponed indefinitely pending unspecified court improvements, we take the view that the proposed two-stage process is the right approach. It would clearly not be sensible to enact the whole of chapter 1 of part 1 immediately on Royal Assent. Additional time will be required for, for example, new prescribed forms for the new grounds for possession.

However, landlords and tenants need certainty about precisely when the Government’s manifesto commitment to abolish section 21 no-fault evictions will be enacted. Amendment 169 seeks to provide that certainty. It would ensure that section 21 of the Housing Act 1988 was repealed on the day that the Bill received Royal Assent, with saving provisions for any notices served before that date, so that they remain valid and of lawful effect. By ensuring that section 21 is repealed on the day the Act is formally approved, we would prevent a significant amount of hardship, and the risk of private tenants being made homeless. We urge the Government to accept the amendment.

I want to press the Minister on a final point that I raised about clause 67 during our clause 2 stand part debate. As is clearly specified in guidance published by the Government, they propose a minimum period of 12 months between the first and second implementation dates, but there is no maximum period, so the Bill would allow for all new tenancies to become periodic, but then there could be an extensive period—perhaps even an indefinite one—before existing tenancies transitioned to the new rules.

We believe that the Bill should specify a maximum, as well as a minimum, amount of time between the first and second implementation dates. The Minister agreed to write to me on that issue, but unless I have missed some correspondence, that has not been directly addressed in any of the letters I have received thus far. I would be grateful if he could give me a commitment today that the Government will revisit this issue before Report. Otherwise, we will be minded to return to it then.

[Jacob Young]

On the hon. Gentleman’s final point, I fully accept his desire for a maximum period. The reason we have not set a maximum is to give us as much flexibility as possible. There is no real incentive for a landlord today to try to get around the system. Were a landlord to introduce a new three-year fixed-term tenancy agreement to try to game the system and avoid the six or 12-month time limit, that would simply block the landlord, and they would not be able to use the powers that section 21 affords them currently. That would be restrictive to that landlord as well as to the tenant, so we do not see a situation where a landlord would try to subvert the rule.

[Matthew Pennycook]

That is an interesting point. Let me probe the Minister on it. There is no maximum period for the implementation of the second date—in other words, there is no period by which the Government have to have brought forward the date when all existing tenancies are converted. Is he saying that between the first implementation date and the second, when all existing tenancies remain as is, other measures in the Bill will apply to them? That is the logic of his argument about landlords not gaming the system. I do not think we are talking about landlords gaming the system; we are talking about the Government having too much leeway to postpone the conversion of existing tenancies to the new system.

[Jacob Young]

The vast majority of fixed-term tenancies will be a 12-month agreement, so they would naturally roll on to being a periodic tenancy at the end of that fixed-term agreement. It is unrealistic to expect there to be tenancy agreements that are longer than three years, so they would all naturally convert to this new system anyway. We want to create a gradual process for all tenancies to join the new system; otherwise, it would cause confusion and perhaps overload the portal. If that does not satisfy the hon. Gentleman, I am happy to write to him setting that out further.

On amendment 169, I understand that the hon. Gentleman’s intention is to gain more clarity on the timeline for implementation of our reforms. However, the amendment would mean that on the day of Royal Assent, section 21 would be removed immediately. There would be no transition period; no time, once the final detail of the legislation was known, to make sure the courts were ready for the changes; and no time for the sector to prepare.

As we have said a number of times in Committee, these are the most significant reforms of the private rented sector in 30 years, and it is critical that we get them right. I am as wedded to ensuring that section 21 is abolished at the earliest opportunity as the hon. Member is, in order to provide vital security for tenants, but we have to ensure that the system is ready.

It might be helpful for me to explain how we are improving the courts, and what needs to happen to prepare the courts for the new tenancy system. Court rules and systems need updating to reflect the new law; there is no way that this can be avoided. Furthermore, we have already fully committed to a digital system that will make the court process more efficient and fit for the modern age. Let me reassure the Committee that we are doing as much as possible before the legislative process concludes. The design phase of our possession process digitisation project is under way, and has more than £1 million of funding. That will pave the way for the development and build of a new digital service.

We are also working to tackle concerns about bailiff delays, including by providing for automated payments for debtors. That will reduce the need for doorstep visits, so that bailiffs can prioritise possession enforcement. We are going further with the Ministry of Justice and His Majesty’s Courts and Tribunals Service in exploring improvements to bailiff recruitment and retention policies; we touched on that. It would simply be a waste of taxpayers’ money to spend millions of pounds building a new system when we do not have certainty on the legislation underpinning it. That is why we will set out more details and implementation dates in due course.

Let me be clear that this is not a delaying tactic. There are 2.4 million landlords. Urban and rural landlords, their representatives and business tell us that they have concerns about delays in the courts. We cannot simply ignore that. We have always been clear that implementation would be phased, so that the sector has time to adjust, and we committed to giving notice of the implementation dates in the White Paper last year.

[Mike Amesbury]

How many people and families does the Minister think will be evicted while they wait for reform of the courts, or wait for them to go digital by default? What is the timescale for digital by default? There are literally hundreds of families a day being evicted through section 21 no-fault evictions; the numbers are starting to go through the roof. That is a massive cost to the state and taxpayers.

[Jacob Young]

Of course it is, and I entirely accept the hon. Gentleman’s point. However, every one of the 11 million renters in this country has a landlord. We have had representations from all the organisations representing the 2.4 million landlords in this country saying that they are concerned about the courts. Trying to introduce a new system and overriding the concerns of landlords would be unwise.

[Matthew Pennycook]

The Minister says that this is not a delaying tactic. I take him at his word. Will he therefore explain why the two-stage transition process provided for by the clause does not provide the Government with enough time to make the necessary improvements? He said that the improvements are already under way, and that huge progress is being made in a number of areas. Why is that not enough time for him to say, “By the second implementation date, we will have got the courts to where they need to be, and we can give tenants the assurance that the new system will be in place at that point”?

[Jacob Young]

As I have outlined, we need to give time for the courts to improve. We need to give them the space to do that. I do not think that the measures in the Bill mentioned by the hon. Gentleman are adequate to do that. However, if there is another mechanism for us to ensure that the courts are prepared before the implementation of the Bill, I am happy to discuss that with him further. I remind all hon. Members that this is the biggest change to the sector in a generation; it is important that we take the time to get it right. The Government are ensuring that we have a smooth transition to the new system, and I therefore ask the hon. Gentleman to withdraw his amendment.

[Matthew Pennycook]

I thank the Minister for that response. That is probably the most detail we have had on what the Government see as the necessary court improvements, but, to be frank, it is not enough detail. There are no metrics in there by which we can measure the reform that he talked about.

The Minister mentioned that the Government want the reforms introduced at the earliest possible opportunity. We have heard that they are targeting bailiff delays, processes and the new digital system. I take it from his response that the implementation of an entirely new digital system relating to possession grounds is a prerequisite to enacting part 1 of chapter 1. However, there is still too much uncertainty about what constitutes a necessary reform, and we are not convinced that the two-stage transition process provided for by the Bill does not afford the Government enough time to get the courts to a point at which we can introduce the new system. Indeed, in the evidence sessions, we heard different points of view on whether we had not better introduce the measures in the Bill and then see how the courts respond to the new system before phasing it in, so we remain unconvinced.

There is a fundamental point of difference between us on the abolition of section 21. We are deeply concerned about the number of people put at risk of homelessness while the Government have delayed bringing the legislation forward. We are deeply concerned about the additional people who will be at risk of homelessness, and who will be made homeless, while the Government get on with court improvements that, frankly, should already have been delivered, so that the Bill could be ready to go. We very much feel that tenants and landlords need certainty about precisely when section 21 will be abolished, so I will press the amendment to a vote.

Question put, That the amendment be made.

--- Later in debate ---

Division 13

Ayes: 6

---

Labour: 5
Liberal Democrat: 1

Noes: 8

---

Conservative: 8

--- Later in debate ---

[Matthew Pennycook]

I beg to move, That the clause be read a Second time.

I was going to apologise to the Committee for the slightly obscure nature of my new clause, but after all that, I think it is the Minister who should be apologising for tabling so many Government new clauses to the Government’s own Bill. Perhaps he will do so when he stands up.

New clause 53 is very consciously a probing amendment, in so far as it seeks to ascertain whether there are any safeguards against what we believe might constitute a potential loophole in Bill that could be exploited by unscrupulous landlords.

Clause 14 sets out rules about the period of notice that a tenant can be required to provide when they wish to end an assured tenancy. Specifically, it provides that a tenant’s notice to quit relating to an assured tenancy must be given not less than two months before the date on which the notice is to take effect. That two-month period is intended, rightly, to provide landlords with sufficient time to re-let the property as required. However, the two-month default period of notice can be set aside where both parties agree as much in writing, whether in the tenancy agreement or in a separate document.

There may be entirely legitimate reasons for individual landlords and tenants to agree a shorter notice period. However, we are concerned that some tenants might find themselves informally pressured to agree a shorter notice period in writing as a precondition of being granted a tenancy. For many landlords, there will be absolutely no incentive to agree a shorter notice period than the two-month default; after all, they are likely to need much of that time, if not all, to re-let their property. However, it is entirely conceivable that unscrupulous landlords, particularly in hot rental markets, would have every incentive to get a sitting tenant out as quickly as possible after the point at which that tenant had given a notice to quit, because they will have no trouble in rapidly re-letting their property, probably at a far higher rent level.

We are therefore worried that the freedom for landlords and tenants to agree notice periods shorter than two months in writing could be used to the detriment of tenants—particularly vulnerable tenants, who in all likelihood will not be aware that two months is the default period and who might come under considerable pressure from their landlord to agree to a shorter period. New clause 53 seeks to protect such tenants by simply requiring the court to authorise any agreement in writing that provides for a notice period shorter than the two-month default. I look forward to the Minister’s response.

[Jacob Young]

I apologise to members of the Committee for how long it took to get through all those new clauses. However, I do not apologise for the new clauses themselves, because they strengthen the Bill and give additional rights to tenants and landlords under it. I am very proud that we have been able to add them.

I thank the hon. Gentleman for moving new clause 53, which would prevent landlords and tenants from agreeing contract clauses that override statutory provisions protecting tenants’ rights unless a court has preauthorised it.

Subsection (1) is an unnecessary provision. It is already the case that contractual clauses cannot affect statutory rights unless legislation expressly so allows. This is a long-standing principle of our legal system.

Subsection (2) would give the courts the power to authorise the waiver of tenants’ statutory rights under the Bill. That could have unintended consequences. More importantly, subsection (2) would weaken tenants’ rights. It would allow a judge to authorise the waiver of the rights that the Bill grants them. We do not think that this is appropriate or required.

[Matthew Pennycook]

I note the Minister’s criticism of the new clause as drafted, but does he recognise the point it seeks to raise: the concern that vulnerable tenants might come under pressure from a landlord to agree in writing to a shorter notice period that they may not necessarily want but that comes as a precondition of the tenancy? Notwithstanding his concerns about our new clause, will the Government give some more thought to whether it is a potential weakness of the Bill and how that might be addressed?

[Jacob Young]

I am happy to give the matter more thought in conversation with the Opposition. We intend to give tenants as much information as possible about their rights. That has been discussed at numerous points during the Committee’s consideration. I hope he will consider that assurance sufficient to withdraw his new clause.

[Matthew Pennycook]

I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 56

Extending discretion of court in possession claims

“(1) The Housing Act 1988 is amended as follows.

(2) In Section 9 subsection (6)(a), after ‘Schedule 2 to this Act’ insert ‘, except for grounds 6A, 8 and 8A,’”.—(Matthew Pennycook.)

This new clause would extend the discretion of the court to adjourn proceedings, and stay, suspend or postpone any orders made, to cases where possession is sought under grounds 6, 8, and 8A.

Brought up, and read the First time.

--- Later in debate ---

[Matthew Pennycook]

I beg to move, That the clause be read a Second time.

In considering the replacement possession regime that the Bill will introduce, we have been at pains to convince the Government that the courts should be given a greater measure of discretion than the Bill currently provides for. Whether it is through allowing for a very limited amount of discretion in relation to mandatory grounds 1, 1A and 6A so that judges could consider whether the tenant would suffer greater hardship as a result of the possession order being granted, or through seeking to make new ground 8A entirely discretionary rather than mandatory, we believe in principle that we should be putting more trust in the judgment of the court to determine whether to make an award, taking into account all the circumstances that are pertinent in any given case.

In the Committee’s proceedings, we have deliberately not made the case for every possession ground to be discretionary. We take the view that there are some limited circumstances in which it is appropriate for landlords to have the certainty of a mandatory ground to regain possession of their property. However, as things stand, we do not believe that the Government have the balance right when it comes to the amount of discretion that the courts have been afforded in relation to the new possession regime.

New clause 56 is a final attempt to convince the Government to incorporate an additional element of discretion into the new system. It would extend the discretion of the court to adjourn proceedings and to stay, suspend or postpone any orders made to cases where possession is sought under grounds 6, 8 and 8A. In so doing, it would give the courts appropriate flexibility to cater for the circumstances where the ground is already made out, but either it is right to give the tenant more time or there is a way to resolve the dispute that does not involve the tenant losing his or her home.

Currently, for all mandatory grounds for possession, once the ground is made out, the court has no choice but to make an order, and it takes effect 14 days after the date on which it is made. Judges have a limited ability to postpone an order, but only up to six weeks from the date made and only where there would otherwise be exceptional hardship as a result. In short, the court has extremely limited flexibility.

Yet there might be extremely compelling circumstances in relation to individual ground 6 possession proceedings, where a judge might want to make an order that takes effect at a date later than six weeks thence. Take, for example, circumstances in which a landlord could not start to develop until two or three months after the hearing. A judge with the discretion provided for by new clause 56 could postpone the order until around the time at which the development could begin, giving the tenant more time to find a new home and providing the landlord with additional rent or income.

Similarly, in individual ground 8 and 8A possession proceedings, the courts currently have no flexibility to make an order suspended. Providing them with that discretion, as new clause 56 would, would allow judges to suspend an order upon terms that might allow for the outstanding arrears to be repaid under an agreed realistic payment plan, and within a timely manner.

The court could not make such a suspended order on a whim or with the mere hope of repayment without any evidence to provide reasonable reassurance that the rent would be repaid, as Liz Davies KC made plain in her evidence to the Committee on 16 November. By providing the courts with the discretion to suspend an order made in those circumstances, we would be helping both tenant and landlord: the tenant because they get to remain in their home rather than be evicted with four weeks’ notice, and the landlord because the arrears owed would have been paid off. If the tenant were to break the terms, then the landlord would still have the right to arrange for bailiffs to start the eviction process.

New clause 56 would simply give the courts the opportunity to exercise a measure of discretion in circumstances in which they were convinced that that was the right course of action, rather than constraining them, as the Bill currently proposes, in relation to mandatory possession grounds. As James Prestwich of the Chartered Institute of Housing said in evidence to the Committee two weeks ago:

“It is important that we are able to trust judges to make informed decisions based on the evidence of the case”.––[Official Report, Renters (Reform) Public Bill Committee, 14 November 2023; c. 74.]

That is all that this new clause seeks, in relation to a discrete number of mandatory grounds for possession. I do not hold out much hope, but I hope that the Minister will consider accepting it.

[Jacob Young]

I thank the hon. Member for moving new clause 56, which would allow the courts to adjourn a possession claim, stay or suspend enforcement of a possession order, or delay the enforcement of an order made under ground 6A, 8 or 8A.

Ground 6A covers situations in which evicting the tenants is the only way for the landlord to comply with enforcement measures such as banning orders; we have already discussed that issue at length earlier in our debates. Delaying enforcement action will therefore mean that the tenant continues to live in an unsafe or overcrowded property, or that the landlord fails to comply with the law. That is not an acceptable situation for either party.

Nor is it fair to ask landlords to bear significant arrears for longer, as applying the new clause to grounds 8 or 8A might. These mandatory grounds already set a high bar for eviction. Asking landlords to bear the cost of significant arrears for longer puts them under unsustainable financial pressure. The Government believe that the new clause strikes an unfair balance that will ultimately hurt tenants. I therefore ask the hon. Member to withdraw the motion.

[Matthew Pennycook]

I thank the Minister for his response. I do not intend to labour the point at any length, as we have discussed the matter on a number of occasions. I think that there is a clear difference of principle as to the amount of discretion that the courts are afforded regarding mandatory possession grounds. We think that they require a bit more flexibility to be able to exercise their judgment when there are compelling circumstances. The Government clearly do not, but I think we may return to the issue at a later stage. I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 57

Extension of rent repayment orders

“(1) In Section 40(3) of the Housing and Planning Act 2016, at end of table insert—

Division 14

Ayes: 5

---

Labour: 5

Noes: 7

---

Conservative: 7

New Clause 58

--- Later in debate ---

Division 15

Ayes: 6

---

Labour: 5
Liberal Democrat: 1

Noes: 7

---

Conservative: 7

--- Later in debate ---

Division 16

Ayes: 6

---

Labour: 5
Liberal Democrat: 1

Noes: 7

---

Conservative: 7

New Clause 60

--- Later in debate ---

Division 17

Ayes: 6

---

Labour: 5
Liberal Democrat: 1

Noes: 7

---

Conservative: 7

New Clause 61

--- Later in debate ---

Division 18

Ayes: 6

---

Labour: 5
Liberal Democrat: 1

Noes: 7

---

Conservative: 7

New Clause 62

--- Later in debate ---

Division 19

Ayes: 6

---

Labour: 5
Liberal Democrat: 1

Noes: 7

---

Conservative: 7

--- Later in debate ---

[Lloyd Russell-Moyle]

I beg to move, That the clause be read a Second time.

I am speaking to the new clause to push back a bit on the idea that the courts should not have discretion about some of the grounds. The harm caused to an individual by their being moved out of a property could be far greater than any advantage for someone moving into it. A relative of someone who is ill might have another house for a period of time, for example. Rather than there being two months’ notice, the courts should be given the discretion to decide, “You’re undergoing cancer treatment. Your relative has somewhere to live for six months, and that should be grounds for a delay of six months.” Such discretion should be permitted to the courts. Discretion is permitted in some cases: courts can rule in favour of deferred possession in other areas, but not when it comes to issues involving the non-discretionary grounds.

We have had this debate before. The Minister will respond, but I hope he is open to thinking about how the courts can be involved in areas where there can clearly sometimes be exceptional circumstances. At the moment, it is just a case of the courts asking whether the form has been filled in correctly. That does not do justice to our judges and lawyers, who usually get these things right.

[Jacob Young]

New clause 67 would make all grounds discretionary. That would remove any certainty for landlords that they could regain possession if they were seeking to sell or move in. Even more seriously, landlords would not even be guaranteed possession if their tenant was in a large amount of arrears, or had committed serious crimes. That could fatally undermine landlords’ confidence in the process for recovering possession.

In last week’s debate, we talked about getting the balance right between tenant security and a landlord’s ability to manage their properties. Where grounds are unambiguous and have a clear threshold, they are mandatory. That includes where a landlord has demonstrated their intention to sell, or a tenant has reached a certain threshold for rent arrears.

However, we completely agree that in more complex situations it is important that judges should have the discretion to decide whether possession is reasonable. Hon. Members talked last week about ground 14—the discretionary antisocial behaviour ground, which is one of those where judicial discretion is required and will remain so. The Government think the new clause strikes an unfair balance that will ultimately hurt tenants, and I ask the hon. Gentleman to withdraw it.

[Lloyd Russell-Moyle]

There remain many grounds that should involve more discretion. For example, rather than compliance with enforcement action being non-discretionary, there should be a discussion. If a landlord has been found guilty of not meeting the standards required, why should that automatically—just ticking the box—mean that the tenant is punished? Surely judges should be able to have some discretion on that ground.

Equally, there are many reasons why a wider discretion will be important when it comes to grounds for redevelopment; otherwise, there is a danger of abuse. I would like the Government to go away and think about how those thresholds are at least being met in respect of some of the grounds—not all of them, necessarily. How do we ensure that courts do not end up just going through a tick-box exercise? I totally understand the Government’s concerns about security in the sector, so I will not press the new clause to a vote. However, I do expect the Government to come back with some greater clarity on the guidelines that they will be giving to courts to ensure that the provisions are not just tick-box exercises and therefore abused by landlords. I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Schedule

Decent homes standard

“Part 1

Amendments of Housing Act 2004

1 The Housing Act 2004 is amended as follows.

2 (1) Section 1 (new system for assessing housing conditions and enforcing housing standards) is amended as follows.

(2) In subsection (3)(a), omit ‘hazard’.

(3) In subsection (8), after ‘This Part’ insert ‘, except so far as it relates to the requirements specified by regulations under section 2A,’.

3 (1) Section 4 (inspections by local housing authorities) is amended as follows.

(2) For subsection (1) substitute—

‘(1) If a local housing authority consider as a result of any matters of which they have become aware in carrying out their duty under section 3, or for any other reason, that it would be appropriate for any residential premises in their district to be inspected with a view to determining—

(a) whether any category 1 or 2 hazard exists on the premises, or

(b) in the case of qualifying residential premises, whether the premises meet the requirements specified by regulations under section 2A,

the authority must arrange for such an inspection to be carried out.’

(3) In subsection (2)—

(a) omit the ‘or’ at the end of paragraph (a), and

(b) after that paragraph insert—

‘(aa) in the case of qualifying residential premises, that the premises may not meet the requirements specified by regulations under section 2A, or’

(4) After subsection (5) insert—

‘(5A) Regulations made under subsection (4) by the Secretary of State may also make provision about the manner of assessing whether qualifying residential premises meet the requirements specified by regulations under section 2A.’

(5) In subsection (6)—

(a) omit the ‘or’ at the end of paragraph (a), and

(b) after that paragraph insert—

‘(aa) that any qualifying residential premises in their district fail to meet the requirements specified by regulations under section 2A, or’

(6) In the heading, omit ‘to see whether category 1 or 2 hazards exist’.

4 (1) Section 5 (general duty to take enforcement action) is amended as follows.

(2) For subsection (1) substitute—

‘(1) If a local housing authority consider that—

(a) a category 1 hazard exists on any residential premises, or

(b) any qualifying residential premises fail to meet a type 1 requirement,

the authority must take the appropriate enforcement action in relation to the hazard or failure.’

(3) In subsection (2)(c), for ‘a hazard’ substitute ‘an’.

(4) In subsections (3) to (6), after ‘hazard’ (in each place) insert ‘or failure’.

(5) In the heading, after ‘hazards’ insert ‘and type 1 requirements’.

5 In the heading to section 6 (how duty under section 5 operates in certain cases), omit ‘Category 1 hazards’.

6 After section 6 insert—

‘6A Financial penalties relating to category 1 hazards or type 1 requirements

(1) This section applies where—

(a) a local housing authority is required by section 5(1) to take the appropriate enforcement action in relation to—

(i) the existence of a category 1 hazard on qualifying residential premises other than the common parts of a building containing one or more flats, or

(ii) a failure by qualifying residential premises other than the common parts of a building containing one or more flats to meet a type 1 requirement, and

(b) in the opinion of the local housing authority it would have been reasonably practicable for the responsible person to secure the removal of the hazard or the meeting of the requirement.

(2) When first taking that action, the local housing authority may also impose on the responsible person a financial penalty under this section in relation to the hazard or failure.

(3) In subsections (1) and (2), “the responsible person” is the person on whom an improvement notice may be served in accordance with paragraphs A1 to 4 of Schedule 1 in relation to the hazard or failure.

(4) For the purposes of subsection (3)—

(a) it is to be assumed that serving such a notice in relation to the hazard or failure is a course of action available to the authority, and

(b) any reference in paragraphs A1 to 4 of Schedule 1 to “the specified premises” is, in relation to the imposition of a financial penalty under this section, to be read as a reference to the premises specified in the final notice in accordance with paragraph 8(c) of Schedule A1.

(5) In subsection (4)(b), “final notice” has the meaning given by paragraph 6 of Schedule A1.

(6) The amount of the penalty is to be determined by the authority but must not be more than £5,000.

(7) A penalty under this section may relate to—

(a) more than one category 1 hazard on the same premises,

(b) more than one failure to meet type 1 requirements by the same premises, or

(c) any combination of such hazards or failures on or by the same premises.

(8) The Secretary of State may by regulations amend the amount specified in subsection (6) to reflect changes in the value of money.

(9) Schedule A1 makes provision about—

(a) the procedure for imposing a financial penalty under this section,

(b) appeals against financial penalties under this section,

(c) enforcement of financial penalties under this section, and

(d) how local housing authorities are to deal with the proceeds of financial penalties under this section.’

7 (1) Section 7 (powers to take enforcement action) is amended as follows.

(2) In subsection (1), for ‘that a category 2 hazard exists on residential premises’ substitute ‘that—

(a) a category 2 hazard exists on residential premises, or

(b) qualifying residential premises fail to meet a type 2 requirement.’.

(3) In subsection (2)(c), for ‘a hazard’ substitute ‘an’.

(4) In subsection (3)—

(a) after ‘hazard’ (in the first place) insert ‘or failure to meet a type 2 requirement’, and

(b) after ‘hazard’ (in the second place) insert ‘or failure’.

(5) In the heading, after ‘hazards’ insert ‘and type 2 requirements’.

8 In section 8 (reasons for decision to take enforcement action), in subsection (5)(a), omit ‘hazard’.

9 (1) Section 9 (guidance about inspections and enforcement action) is amended as follows.

(2) In subsection (1)(b), omit ‘hazard’.

(3) After that subsection insert—

‘(1A) The Secretary of State may give guidance to local housing authorities in England about exercising their functions under this Chapter in relation to—

(a) assessing whether qualifying residential premises meet the requirements specified by regulations under section 2A, or

(b) financial penalties.’.

10 In the heading of Chapter 2 of Part 1 (improvement notices, prohibition orders and hazard awareness notices), omit ‘hazard’.

11 (1) Section 11 (improvement notices relating to category 1 hazards: duty of authority to serve notice) is amended as follows.

(2) For subsection (1) substitute—

‘(1) If—

(a) the local housing authority are satisfied that—

(i) a category 1 hazard exists on any residential premises, or

(ii) any qualifying residential premises fail to meet a type 1 requirement, and

(b) no management order is in force in relation to the premises under Chapter 1 or 2 of Part 4,

serving an improvement notice under this section in respect of the hazard or failure is a course of action available to the authority in relation to the hazard or failure for the purposes of section 5 (category 1 hazards and type 1 requirements: general duty to take enforcement action).’

(3) In subsection (2), after ‘hazard’ insert ‘or failure’.

(4) In subsection (3)(a), after ‘exists’ insert ‘, or which fail to meet the requirement,’.

(5) In subsection (4)—

(a) after ‘exists,’ insert ‘or which fail to meet the requirement,’, and

(b) in paragraph (a), after ‘hazard’ insert ‘or failure’.

(6) In subsection (5)(a), for the words from ‘that’ to ‘but’ substitute ‘that—

(i) if the notice relates to a hazard, the hazard ceases to be a category 1 hazard;

(ii) if the notice relates to a failure by premises to meet a type 1 requirement, the premises meet the requirement; but’.

(7) In subsection (6), for the words from ‘to’ to the end substitute ‘to—

(a) more than one category 1 hazard on the same premises or in the same building containing one or more flats,

(b) more than one failure to meet type 1 requirements by the same premises or the same building containing one or more flats, or

(c) any combination of such hazards and failures—

(i) on or by the same premises, or

(ii) in or by the same building containing one or more flats.’

(8) In subsection (8)—

(a) after ‘hazard’ (in the first place) insert ‘or failure’, and

(b) after ‘hazard’ (in the second place) insert ‘or secure that the premises meet the requirement’.

(9) In the heading, after ‘hazards’ insert ‘and type 1 requirements’.

12 (1) Section 12 (Improvement notices relating to category 2 hazards: power of authority to serve notice) is amended as follows.

(2) For subsection (1) substitute—

‘(1) If—

(a) the local housing authority are satisfied that—

(i) a category 2 hazard exists on any residential premises, or

(ii) any qualifying residential premises fail to meet a type 2 requirement, and

(b) no management order is in force in relation to the premises under Chapter 1 or 2 of Part 4,

the authority may serve an improvement notice under this section in respect of the hazard or failure.’

(3) In subsection (2), after ‘hazard’ insert ‘or failure’.

(4) In subsection (4), for the words from ‘to’ to the end substitute ‘to—

(a) more than one category 2 hazard on the same premises or in the same building containing one or more flats,

(b) more than one failure to meet type 2 requirements by the same premises or the same building containing one or more flats, or

(c) any combination of such hazards and failures—

(i) on or by the same premises, or

(ii) in or by the same building containing one or more flats.’

(5) In the heading, after ‘hazards’ insert ‘and type 2 requirements’.

13 (1) Section 13 (Contents of improvement notices) is amended as follows.

(2) In subsection (2)—

(a) after ‘hazard’ (in each place) insert ‘or failure’,

(b) after ‘hazards’ insert ‘or failures’, and

(c) in paragraph (b), after ‘exists’ insert ‘or to which it relates’.

(3) In subsection (5), after ‘hazard’ insert ‘or failure’.

14 In section 16(3) (revocation and variation of improvement notices)—

(a) after ‘hazards’ (in the first place) insert ‘or failures (or a combination of hazards and failures)’, and

(b) in paragraph (a), after ‘hazards’ insert ‘or failures’.

15 (1) Section 19 (change in person liable to comply with improvement notice) is amended as follows.

(2) For subsection (2) substitute—

‘(2) In subsection (1), the reference to a person ceasing to be a “person of the relevant category”—

(a) in the case of an improvement notice served on a landlord or superior landlord under paragraph A1(2) of Schedule 1, is a reference to the person ceasing to hold the estate in the premises by virtue of which the person was the landlord or superior landlord, and

(b) in any other case, is a reference to the person ceasing to fall within the description of person (such as, for example, the holder of a licence under Part 2 or 3 or the person managing a dwelling) by reference to which the notice was served on the person.’

(3) In subsection (7), for ‘or (9)’ substitute ‘, (9) or (10)’.

(4) After subsection (9) insert—

‘(10) If—

(a) the original recipient was served as a landlord or superior landlord under paragraph A1(2) of Schedule 1, and

(b) the original recipient ceases as from the changeover date to be a person of the relevant category as a result of ceasing to hold the estate in the premises by virtue of which the person was the landlord or superior landlord,

the new holder of the estate or, if the estate has ceased to exist, the reversioner, is the “liable person”.’

16 (1) In section 20 (prohibition orders relating to category 1 hazards: duty of authority to make order) is amended as follows.

(2) For subsection (1) substitute—

‘(1) If—

(a) the local housing authority are satisfied that—

(i) a category 1 hazard exists on any residential premises, or

(ii) any qualifying residential premises fail to meet a type 1 requirement, and

(b) no management order is in force in relation to the premises under Chapter 1 or 2 of Part 4,

making a prohibition order under this section in respect of the hazard or failure is a course of action available to the authority in relation to the hazard or failure for the purposes of section 5 (category 1 hazards and type 1 requirements: general duty to take enforcement action).’

(3) In subsection (3)—

(a) in paragraph (a), after ‘exists’ insert ‘, or which fail to meet the requirement,’, and

(b) for paragraph (b) substitute—

‘(b) if those premises are—

(i) one or more flats, or

(ii) accommodation falling within paragraph (e) of the definition of ‘residential premises’ in section 1(4) (homelessness) that is not a dwelling, HMO or flat,

it may prohibit the use of the building containing the flat or flats or accommodation (or any part of the building) or any external common parts;’.

(4) In subsection (4)—

(a) after ‘exists,’ insert ‘or which fail to meet the requirement,’, and

(b) in paragraph (a), after ‘hazard’ insert ‘or failure’.

(5) In subsection (5), for the words from ‘to’ to the end substitute ‘to—

(a) more than one category 1 hazard on the same premises or in the same building containing one or more flats,

(b) more than one failure to meet type 1 requirements by the same premises or the same building containing one or more flats, or

(c) any combination of such hazards and failures—

(i) on or by the same premises, or

(ii) in or by the same building containing one or more flats.’

(6) In the heading, after ‘hazards’ insert ‘and type 1 requirements’.

17 (1) Section 21 (prohibition orders relating to category 2 hazards: power of authority to make order) is amended as follows.

(2) For subsection (1) substitute—

‘(1) If—

(a) the local housing authority are satisfied that—

(i) a category 2 hazard exists on any residential premises, or

(ii) any qualifying residential premises fail to meet a type 2 requirement, and

(b) no management order is in force in relation to the premises under Chapter 1 or 2 of Part 4,

the authority may make a prohibition order under this section in respect of the hazard or failure.’

(3) In subsection (4), for the words from ‘to’ to the end substitute ‘to—

(a) more than one category 2 hazard on the same premises or in the same building containing one or more flats,

(b) more than one failure to meet type 2 requirements by the same premises or the same building containing one or more flats, or

(c) any combination of such hazards and failures—

(i) on or by the same premises, or

(ii) in or by the same building containing one or more flats.’

(4) In the heading, after ‘hazards’ insert ‘and type 2 requirements’.

18 (1) Section 22 (contents of prohibition orders) is amended as follows.

(2) In subsection (2)—

(a) after ‘hazard’ (in each place) insert ‘or failure’,

(b) after ‘hazards’ insert ‘or failures’, and

(c) in paragraph (b), after ‘exists’ insert ‘or to which it relates’.

(3) In subsection (3)(b), after ‘hazards’ insert ‘, or failure or failures,’.

19 (1) Section 25 (revocation and variation of prohibition orders) is amended as follows.

(2) In subsection (1), for the words from ‘that’ to the end substitute ‘that—

(a) in the case of an order made in respect of a hazard, the hazard does not then exist on the residential premises specified in the order in accordance with section 22(2)(b), and

(b) in the case of an order made in respect of a failure by premises so specified to meet a requirement specified by regulations under section 2A, the premises then meet the requirement.’

(3) In subsection (3)—

(a) after ‘hazards’ (in the first place) insert ‘or failures (or a combination of hazards and failures)’, and

(b) in paragraph (a), after ‘hazards’ insert ‘or failures’.

20 In the italic heading before section 28, omit ‘Hazard’.

21 (1) Section 28 (hazard awareness notices relating to category 1 hazards: duty of authority to serve notice) is amended as follows.

(2) For subsections (1) and (2) substitute—

‘(1) If—

(a) the local housing authority are satisfied that—

(i) a category 1 hazard exists on any residential premises, or

(ii) any qualifying residential premises fail to meet a type 1 requirement, and

(b) no management order is in force in relation to the premises under Chapter 1 or 2 of Part 4,

serving an awareness notice under this section in respect of the hazard or failure is a course of action available to the authority in relation to the hazard or failure for the purposes of section 5 (category 1 hazards and type 1 requirements: general duty to take enforcement action).

(2) An awareness notice under this section is a notice advising the person on whom it is served of—

(a) the existence of a category 1 hazard on, or

(b) a failure to meet a type 1 requirement by,

the residential premises concerned which arises as a result of a deficiency on the premises in respect of which the notice is served.’

(3) In subsection (3)(a), after ‘exists’ insert ‘, or which fail to meet the requirement,’.

(4) In subsection (4)—

(a) after ‘exists,’ insert ‘or which fail to meet the requirement,’, and

(b) in paragraph (a), after ‘hazard’ insert ‘or failure’.

(5) In subsection (5), for the words from ‘to’ to the end substitute ‘to—

(a) more than one category 1 hazard on the same premises or in the same building containing one or more flats,

(b) more than one failure to meet type 1 requirements by the same premises or the same building containing one or more flats, or

(c) any combination of such hazards and failures—

(i) on or by the same premises, or

(ii) in or by the same building containing one or more flats.’

(6) In subsection (6)—

(a) after ‘hazard’ (in each place) insert ‘or failure’,

(b) after ‘hazards’ insert ‘or failures’, and

(c) in paragraph (a), after ‘exists’ insert ‘or to which it relates’.

(7) In subsection (8), for ‘a hazard’ substitute ‘an’.

(8) At the end insert—

‘(9) A notice under this section in respect of residential premises in Wales is to be known as a “hazard awareness notice”.’

(9) In the heading—

(a) omit ‘Hazard’, and

(b) after ‘category 1 hazards’ insert ‘and type 1 requirements’.

22 (1) Section 29 (hazard awareness notices relating to category 2 hazards: power of authority to serve notice) is amended as follows.

(2) For subsections (1) and (2) substitute—

‘(1) If—

(a) the local housing authority are satisfied that—

(i) a category 2 hazard exists on any residential premises, or

(ii) any qualifying residential premises fail to meet a type 2 requirement, and

(b) no management order is in force in relation to the premises under Chapter 1 or 2 of Part 4,

the authority may serve an awareness notice under this section in respect of the hazard or failure.

(2) An awareness notice under this section is a notice advising the person on whom it is served of—

(a) the existence of a category 2 hazard on, or

(b) a failure to meet a type 2 requirement by,

the residential premises concerned which arises as a result of a deficiency on the premises in respect of which the notice is served.’

(3) In subsection (3), for ‘a hazard’ substitute ‘an’.

(4) In subsection (4), for the words from ‘to’ to the end substitute ‘to—

(a) more than one category 2 hazard on the same premises or in the same building containing one or more flats,

(b) more than one failure to meet type 2 requirements by the same premises or the same building containing one or more flats, or

(c) any combination of such hazards and failures—

(i) on or by the same premises, or

(ii) in or by the same building containing one or more flats.’

(5) In subsection (5)—

(a) after ‘hazard’ (in each place) insert ‘or failure’,

(b) after ‘hazards’ insert ‘or failures’, and

(c) in paragraph (a), after ‘exists’ insert ‘or to which it relates’.

(6) In subsection (8), for ‘a hazard’ substitute ‘an’.

(7) At the end insert—

‘(9) A notice under this section in respect of residential premises in Wales is to be known as a “hazard awareness notice”.’

(8) In the heading—

(a) omit ‘Hazard’, and

(b) after ‘category 2 hazards’ insert ‘and type 2 requirements’.

23 (1) Section 30 (offence of failing to comply with improvement notice) is amended as follows.

(2) In subsection (2), after ‘hazard’ insert ‘or failure’.

(3) In subsection (3), omit ‘not exceeding level 5 on the standard scale’.

(4) in subsection (5), after ‘hazard’ insert ‘or failure’.

24 In section 32 (offence of failing to comply with prohibition order etc), in subsection (2)(a), omit ‘not exceeding level 5 on the standard scale’.

25 In section 35 (power of court to order occupier or owner to allow action to be taken on premises), for the definition of ‘relevant person’ in subsection (8) substitute—

‘“relevant person” , in relation to any premises, means—

(a) a person who is an owner of the premises;

(b) a person having control of or managing the premises;

(c) the holder of any licence under Part 2 or 3 in respect of the premises;

(d) in the case of qualifying residential premises which are let under a relevant tenancy, the landlord under the tenancy and any person who is a superior landlord in relation to the tenancy.’.

26 (1) Section 40 (emergency remedial action) is amended as follows.

(2) For subsection (1) substitute—

‘(1) If—

(a) the local housing authority are satisfied that—

(i) a category 1 hazard exists on any residential premises, or

(ii) any qualifying residential premises fail to meet a type 1 requirement, and

(b) they are further satisfied that the hazard or failure involves an imminent risk of serious harm to the health or safety of any of the occupiers of those or any other residential premises, and

(c) no management order is in force under Chapter 1 or 2 of Part 4 in relation to the premises mentioned in paragraph (a)(i) or (ii),

the taking by the authority of emergency remedial action under this section in respect of the hazard or failure is a course of action available to the authority in relation to the hazard or failure for the purposes of section 5 (category 1 hazards and type 1 requirements: general duty to take enforcement action).’

(3) In subsection (2), after ‘hazard’ insert ‘or failure’.

(4) In subsection (4), for the words from ‘of’ to the end substitute ‘of—

(a) more than one category 1 hazard on the same premises or in the same building containing one or more flats,

(b) more than one failure to meet type 2 requirements by the same premises or the same building containing one or more flats, or

(c) any combination of such hazards and failures—

(i) on or by the same premises, or

(ii) in or by the same building containing one or more flats.’

27 In section 41 (notice of emergency remedial action), in subsection (2)—

(a) after ‘hazard’ (in each place) insert ‘or failure’,

(b) after ‘hazards’ insert ‘or failures’, and

(c) in paragraph (a), after ‘exists’ insert ‘or to which it relates’.

28 In section 43 (emergency prohibition notices), for subsection (1) substitute—

‘(1) If—

(a) the local housing authority are satisfied that—

(i) a category 1 hazard exists on any residential premises, or

(ii) any qualifying residential premises fail to meet a type 1 requirement, and

(b) they are further satisfied that the hazard or failure involves an imminent risk of serious harm to the health or safety of any of the occupiers of those or any other residential premises, and

(c) no management order is in force under Chapter 1 or 2 of Part 4 in relation to the premises mentioned in paragraph (a)(i) or (ii),

making an emergency prohibition order under this section in respect of the hazard or failure is a course of action available to the authority in relation to the hazard or failure for the purposes of section 5 (category 1 hazards and type 1 requirements: general duty to take enforcement action).’

29 In section 44 (contents of emergency prohibition orders), in subsection (2)—

(a) after ‘hazard’ (in each place) insert ‘or failure’,

(b) after ‘hazards’ insert ‘or failures’, and

(c) in paragraph (a), after ‘exists’ insert ‘or to which it relates’.

30 In section 49 (power to charge for certain enforcement action)—

(a) in subsection (1)(c), for ‘a hazard’ substitute ‘an’, and

(b) in subsection (2), for ‘a hazard’ substitute ‘an’.

31 In section 50 (recovery of charge under section 49), in subsection (2)(b), for ‘a hazard’ substitute ‘an’.

32 In section 54 (index of defined expressions: Part 1)—

(a) at the appropriate places insert—

[Jacob Young]

Ms Fovargue, I would like to put on record my thanks to you and the other Chairs of this Bill Committee; to all the Clerks and parliamentary staff; and to the many other people who have worked hard on this Bill, including all my officials and my private office, who have had to get up to date with this Bill in a matter of weeks.

I thank all members of the Committee, including Opposition Members, for their constructive dialogue. We have had some robust debate on several measures, but I hope we can all agree that these are important reforms—the first in a generation—for landlords and tenants. I look forward to further engagement with all hon. Members as the Bill progresses through its remaining stages.

[Matthew Pennycook]

Ms Fovargue, may I take the opportunity to put on record our thanks to you and your colleagues in the Chair for overseeing our proceedings? I also thank our exemplary Clerks for all their assistance; the Doorkeepers and Hansard reporters for facilitating the Committee’s work; and officials in the Department and our own staff for the support that they have provided. Finally, I thank the Minister—as well as the occasional Government Back Bencher who has defied the orders of the hon. Member for South West Hertfordshire and contributed to our debate. [Laughter.] There has been the odd robust exchange, but none has been uncivil, and we appreciate the spirit in which consideration of the Bill has taken place.

Question put and agreed to. 

Bill, as amended, accordingly to be reported.