Terrorism (Protection of Premises) Bill (First sitting)
Tuesday 29th October 2024
(2 days, 14 hours ago)
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The Chair
We are now sitting in public and the proceedings are being broadcast. Before we begin, I have some rules to announce. Hansard colleagues will be grateful if Members could email speaking notes to hansardnotes@parliament.uk. Please switch electronic devices to silent. Tea and coffee are not allowed during sittings.
The Minister for Security (Dan Jarvis)
I beg to move, Date Time Witness Tuesday 29 October Until no later than 10.00 am Figen Murray; Brendan Cox Until no later than 10.20 am Andy Burnham Until no later than 10.50 am National Association of Local Councils; Society of Local Council Clerks Until no later than 11.25 am Ambassador Theatre Group; The Royal Ballet and Opera Until no later than 2.20 pm Metropolitan Police Service Until no later than 2.50 pm Federation of Small Businesses; The Counter Terrorism Business Information Exchange (CTBIE) Until no later than 3.10 pm Sport and Recreation Alliance Until no later than 3.40 pm UKHospitality; The Night Time Industries Association Until no later than 4.10 pm The Concert Promoters Association; LIVE (Live Industry Venues & Entertainment Ltd) Until no later than 4.30 pm The Association of University Chief Security Officers Until no later than 4.50 pm Action with Communities in Rural England (ACRE) Until no later than 5.10 pm Home Office
That—
1. the Committee shall (in addition to its first meeting at 9.25 am on Tuesday 29 October) meet—
(a) at 2.00 pm on Tuesday 29 October;
(b) at 11.30 am and 2.00 pm on Thursday 31 October;
(c) at 9.25 am and 2.00 pm on Tuesday 5 November;
(d) at 9.25 am and 2.00 pm on Tuesday 12 November;
(e) at 11.30 am and 2.00 pm on Thursday 14 November;
(f) at 9.25 am and 2.00 pm on Tuesday 19 November;
2. the Committee shall hear oral evidence in accordance with the following Table:
3. proceedings on consideration of the Bill in Committee shall be taken in the following order: Clauses 1 and 2; Schedules 1 and 2; Clauses 3 to 12; Schedule 3; Clauses 13 to 34; Schedule 4; Clauses 35 to 38; new Clauses; new Schedules; remaining proceedings on the Bill;
4. the proceedings shall (so far as not previously concluded) be brought to a conclusion at 5.00 pm on Thursday 19 November.
I am delighted to serve under your chairship, Dame Siobhain. I look forward to detailed discussion of the provisions in the Bill with my hon. Friends on the Labour Benches and with the right hon. and hon. Members of the Opposition. On Second Reading, there was extensive agreement across the House about the merits of the Bill, not least among hon. Members who are now serving in Committee. I welcome that and trust that we will continue in that constructive spirit. I believe that the resolution before us will provide the Committee with enough time to scrutinise this important Bill and I invite the Committee to agree it.
Question put and agreed to.
Resolved,
That, subject to the discretion of the Chair, any written evidence received by the Committee shall be reported to the House for publication.—(Dan Jarvis.)
The Chair
Copies of written evidence that the Committee receives will be made available in the Committee Room.
Resolved,
That, at this and any subsequent meeting at which oral evidence is to be heard, the Committee shall sit in private until the witnesses are admitted.—(Dan Jarvis.)
The Committee deliberated in private.
The Chair
We are now sitting in public again and the proceedings are being broadcast. Before we start hearing from the witnesses, do any Members wish to make declarations of interest in connection with the Bill? None do, so we will begin to hear oral evidence.
Examination of Witnesses
Figen Murray OBE and Brendan Cox gave evidence.
The Chair
I welcome our first witnesses this morning. The Committee and I are delighted that you are our first witnesses and I congratulate you on all your efforts in relation to the Bill. I will be grateful if you could introduce yourselves.
Figen Murray: My name is Figen Murray. I am the mother of Martyn Hett.
Brendan Cox: My name is Brendan Cox. I am one of the co-founders of Survivors Against Terror and have worked with Figen on Martyn’s law.
The Chair
Before calling the first Member to ask a question, I remind all Members that questions should be limited to matters within the scope of the Bill. We must stick to the timings in the programme motion that the Committee has agreed. This panel will have until 10 am, and I call the Minister to ask the first questions.
Dan Jarvis
Q
Figen Murray: I have taken the liberty of writing something down that I would like to read out, please, if that is okay. I hope that will address some of that.
I begin by thanking absolutely every person who has had any involvement in bringing Martyn’s law to this point. It has been a long five and a half years since the campaign started, and the kindness and support people have extended to us have been quite incredible.
As I sat in Parliament on 14 October for Second Reading, I realised that the relatively long journey that still lies ahead—given all the different steps the legislation must still undergo—will not be an easy one. On Second Reading, my name was mentioned many times and many lovely words were said, but I need people to understand that I would not have progressed much without my co-campaigners, the campaign team, and the incredible support of my husband and my remaining children.
Seven and a half years ago, our life as a family was destroyed forever. I want you to note the word “forever”, as there is no coming back from this. As a family, we are damaged goods. The day Martyn died, something died inside all of us. Do not get me wrong: as a family, we are very close. Individually, however, we all carry our separate emotional scars that are now an integral part of each of us. That will be the case for every family anywhere in the world who has been hit hard by terrorism. Our numbers are growing, sadly. Outwardly, I function at a high level day in, day out, but make no mistake that my heart is in shreds—yet it is my broken heart that drives me to try to stop others from ever having to feel this way.
Coming back to Second Reading, I was buoyed that every party said that they supported the Bill. If security cannot unite us, what can? I welcome the all-party support. On Second Reading, I also heard some concerns about getting the balance right and keeping the Bill proportionate. I agree with that. Right from the start, we said that one size does not fit all, and that the Bill needs to be proportionate. It has never been intended to be burdensome.
My worry is that the increase in the capacity threshold from 100 in the draft Bill to 200 now risks getting the balance wrong. It excludes too many venues. The cost to businesses for Martyn’s law is a drop in the ocean compared with the €43 billion that the Rand Corporation estimated that terrorism cost the UK between 2004 and 2016, or even the £100,000 lost by Mr Fred Foster, a market trader at Borough market, during the attack in 2017.
However, we need to be clear that the risk from terrorism is real. Our terrorism threat level stands at “substantial”, meaning that an attack is likely. Although there have not been any successful terror attacks, it is easy to let complacency creep in. We must not forget that attack methodologies have now changed. People get radicalised and go out an use vehicles, knives, and home-made IEDs—improvised explosive devices—to kill others.
There are currently about 800 active investigations and about 2,500 subjects of interest who are being watched by the authorities as they are linked to terrorism investigations—the aforementioned 800—but there are a further 30,000 individuals who have expressed extreme views that could lead to them committing acts of terrorism. Those figures have not changed over recent years. The geopolitical situation, sadly, also means that extremists exploit the conflicts in Ukraine and Gaza to recruit more people to follow their ideology. There is no sign of those figures reducing in the near future.
The director general of MI5, Ken McCallum, has also recently spoken about 43 near misses since 2017. Those are 43 planned attacks that were stopped just in time. Everyone in this room surely must appreciate that sooner or later an attack will not be stopped in time and people will yet again die or be injured or traumatised. There is no room for complacency. The threat is out there and it is real. Terrorists do not care who they kill. They aim to kill, shock and gain notoriety.
We have had attacks such as a planned knife attack on an LGBT community in Cumbria, a knife attack against an MP inside a church hall in Essex, a bomb outside Liverpool women’s hospital, another bomb at a hospital in Leeds, a knife attack in a park in Reading, a knife attack at a conference in London, a knife attack at a high street in London, a firebomb attack at an immigration centre in Dover, a letter bomb delivered to a Scottish university, a knife attack at a railway station in Manchester, and a vehicle attack at a mosque in London. If anyone thinks that where they live is too small or too rural to be targeted, they are wrong. Our experience in this country and around the world shows us that terrorists can strike anywhere.
A lot of venues are already busy preparing and implementing as much as they can. Manchester has trained over 2,500 people in free-of-charge face-to-face ACT training, and businesses and venues across Manchester are implementing the legislation as best as they can. Venues in Manchester are doing that voluntarily because the city was badly hit. People in Manchester understand the risk as they were directly affected, but we need this legislation on the statute books; without it, people will simply not take security seriously.
Security is often seen as low priority as people do not believe their venue is at risk from terrorism. A recent tabletop exercise in Manchester for the standard-tier venues resulted in most venues saying that the cost of implementing measures is either negligible or very low cost or effort, and that it enhanced customer experience as people felt safer.
At Second Reading, a few people worried about liability and the responsibility given to volunteers. Anybody who already has any responsibility for organising or managing community spaces and events already has liabilities under civil law. Martyn’s law will not create additional liabilities—they exist already. What Martyn’s law is more likely to do is to help communities know that they are discharging those responsibilities properly. Volunteers in various venues across the country already voluntarily take on responsibility for fire safety or health and safety, and this would be simply a small add-on. Martyn’s law is asking people at the standard tier to understand how to lock down, how to evacuate, how to invacuate or how to communicate with others. It is as simple as that on the standard tier.
Another concern was around churches and schools. Our children have the right to be protected from harm. Most schools already had lockdown procedures in place, anyway, long before Martyn’s law became a topic. Places of worship are places where people of all faiths should be able to worship freely and without fear. They need to be protected. We have seen attacks on places of worship in countries such as Sri Lanka, New Zealand—in Christchurch—and France. Since the Gaza conflict a lot of synagogues are currently on high alert as the threat is understood.
To sum up, Martyn’s law will save lives. Terrorism is here to stay. The public have a right to be kept as safe as possible when they are out and about enjoying the freedom our country offers. Martyn, Saffie, Nell, Sorrell, Eilidh, Megan, Olivia, Georgina, Courtney, Philip, Kelly, Elaine, Alison, Lisa, Michelle, Wendy, Jane, John, Angelika and Marcin, Chloe and Liam were all out enjoying a great evening that night and had every right to make it safely back home. I absolutely believe that had Martyn’s law been firmly established, they would still be alive now. Please consider what is the right thing to do. I will finish by saying once again that it is time to get this done. Thank you for listening.
Brendan Cox: I would add a couple of things to that; Figen has set it out incredibly powerfully.
As I mentioned in my introduction, I am part of something called Survivors Against Terror, which is a network of about 300 survivors of terror attacks: people that have been bereaved like myself and Figen and people who have themselves been injured in attacks. What draws that network together is a desire to reduce the likelihood of future terror attacks and to reduce the harm that they do. We do that by campaigning for the rights of families to things such as mental health support and compensation, by educating the public on the role they can play in the fight against terrorism, and by campaigning for effective laws that make terror attacks less likely in the future. That is how Figen and I first started working together, right at the start of this campaign.
I got involved for two reasons. First, frankly, I was inspired by Figen and her determination to make something good come out of something that was absolutely horrific, and to make sure that no other family unnecessarily goes through what her and her family have, but also, fundamentally, because the methodology of terrorism has changed, as Figen mentioned. The age of very complex attacks, often directed by people from outside the country and involving the need to assemble a device or to work out how detonators work, gave our security services lots of opportunities to intervene and disrupt terrorism plots. We are now in an age in which people are just using knives or cars, and the way in which we respond to that terror threat has not caught up.
It is impossible for our security services to keep our country safe with this new distributed methodology. We therefore have to have much more of a partnership approach: how can we all play a little role in making each other safer? I think this comes from our experience, but as the network of survivors supporting Figen and her campaign we do not want anybody’s sympathy, we want to make people safer so that these things and the impact they have had on our lives do not happen to anyone else. There is nobody more driven in wanting to defeat terrorism than those who have been directly affected by it.
There are two ways in which terrorists can win. One is by killing and maiming people. The other is by disrupting our way of life—making us live in fear and changing our way of engaging with each other. That is why, right from the start, proportionality has been central to our thinking. We do not want this to change our way of life. We do not want terrorists to win, either by injuring people or by changing our way of life, and that is why right at the heart of this proposal, from the beginning, has been proportionality. We want everybody to be empowered to play a small role in making us all safer. We do not want airport-style security outside village halls, as some of the papers might suggest we want.
The final thing I would say is that nobody wants to have a law named after their child. What we do want to do is to make sure no-one unnecessarily goes through what Figen and her family has. We want to make sure that there is a legislative response to the clamour of action that you have had in every inquiry post-2017, whether into the Manchester attacks or into the London attacks, to say that this is a loophole that has to be closed and now is the moment to close it.
Tom Tugendhat (Tonbridge) (Con)
I have had the great privilege of meeting Figen and Brendan over many months on this, so I have no questions.
Tim Roca (Macclesfield) (Lab)
Q
Figen Murray: I think it is that as many places as possible are covered. We as a campaign team are concerned about the threshold, if I am honest. I live in a small town —more like a village—and with the original 100 threshold, quite a few of the restaurants as well as the little theatre we have and the pubs would have been covered under the law. With the change in the threshold, my little town is now not coming into scope at all and is completely not secure under Martyn’s law. It concerns me. The change from the 100 threshold to 200 will exclude about 100,000 premises. It feels like quite a lot now no longer need to be within that scope. It worries me.
Matt Bishop (Forest of Dean) (Lab)
Q
Figen Murray: The Manchester Arena inquiry obviously had Martyn’s law as one of its recommendations. If I remember rightly, Sir John’s words were that it is needed as a matter of urgency. I think he referred to training, and he also recommended—which is certainly not covered in Martyn’s law under the standard tier—that people have lifesaving training. That is not for debate in Martyn’s law at the moment. But certainly the ACT training was part of the recommendation.
Brendan Cox: To add to that, the other thing that has been amazing—I think you are hearing from Mayor Andy Burnham later—has been the extent to which Manchester has already started to operationalise some of this, so when we are having the debates about proportionality, we can consider some of the real experiences of businesses that are already implementing this. It is worth really digging into that conversation, because what it shows is that lots of businesses that fall below the threshold are voluntarily taking part in the training and starting to implement Martyn’s law, because they know what it gives them. Who does not want their venue to be safer from terror attacks? It is something that organisations in general want to do, and that is why we have been seeing the adoption of this ahead of the legislation being published, even by venues that will not be covered by the capacity legislation.
Chris Murray (Edinburgh East and Musselburgh) (Lab)
Q
Figen Murray: We had in Manchester a tabletop exercise that Nick Aldworth and I were allowed to witness. They invited us in and they gave us the results of that tabletop exercise. There were medium-sized businesses, small businesses, and venues and businesses even under the scope, and the feedback was that implementing Martyn’s law would actually be either no-cost or low-cost and that it would enhance, in a lot of cases, customer experience, because people would feel safer. The most onerous thing, in some people’s opinion, was to ask their staff to do the 45-minute, free-of-charge ACT e-learning training. Basically, they had to pay one hour of staff wages, but on the whole, they felt it was good and the staff felt better having that knowledge, because they felt better equipped to deal with a crisis.
In fact, some of the venues in Manchester were also saying they do regular real-life practice of lockdowns, for instance. For some reason, Manchester has really embraced it. A few years ago, I got called into a council meeting and they basically said, “We want to support you. What can we do?” I just looked at them and said, “Don’t wait for the legislation. Just do it anyway.” And Manchester did. They worked together with counter-terrorism police and put on the free-of-charge, once-a-month, three-hour, face-to-face ACT training. The sessions are always oversubscribed; they are very well attended.
Brendan Cox: I think that the fact that it has been taken up so strongly belies some of the idea that this is a huge burden on businesses. Of course, with any methodology like this, you can come up with a costing for how much the opportunity cost of doing x, y or z is. You have the big public campaigns around “See it, say it, sorted.” Of course, there is a cost with that. You could measure that cost through the amount you spend on it, the opportunity cost of the things that people could be doing while they are listening to it, the distraction cost—there is a whole way in which you could come up with a very big figure, but the reality is that is a proportionate response to what is a very substantial threat when it happens. As Figen mentioned, our threat is substantial at the moment, and that is therefore the proportionate response that we are trying to come up with.
In the conversations on and implementation of this in Manchester, one of the reactions we got, which was a broader reaction from the public as a whole, was, “Doesn’t this already exist?” The public expect that public venues would have an obligation to keep you safe. You have an obligation on the temperature that you need to keep food at, the number of toilets that you have and to fill in your tax return, but you do not have any obligation to keep your often paying customers safe from a very substantial threat, which is judged to be substantial by the Government. That is a massive loophole, and that is what this Bill helps to fill.
The Chair
There are no further questions, so I thank both witnesses for their contributions this morning. We will move on to our next guest, who is Andy Burnham.
Examination of Witness
Andy Burnham gave evidence.
The Chair
We have until 10.20 am for this oral evidence session. Will the witness please introduce himself for the record?
Andy Burnham: I am Andy Burnham, the Mayor of Greater Manchester. As colleagues will know, I left Parliament in 2017, two weeks before the attack at the Manchester Arena, so I have been closely involved with all the developments ever since.
Dan Jarvis
Q
Andy Burnham: Thank you very much, Minister. Before I get to the question, I will say a little more about my background, which has led me up to what I think. I was shadow Home Secretary at the time of the Paris attacks, and those at the Bataclan in particular. If that had happened here, this legislation would already be on the statute book. Obviously, as Figen said, we have lived through the terrible events of 22 May 2017, but in the seven and a half years since, the nature of the threat has changed. I do not think we could have imagined some of the incidents that we have seen since then, such as the terrible loss of a really loved colleague in Southend and the attack in Southport. We would not have expected that. I remember asking Theresa May at the time of the Paris attacks if we were prepared for an attack in an English city—even then we were thinking only of cities; we were not thinking outside of cities. I say that because all that has shaped my thinking over the years.
When Figen first came forward with the concept of this Bill, I took time to think it through with colleagues in our city region. We are part the Resilient Cities Network, which is a group of 100 cities around the world, and we are in the Strong Cities Network, so we are constantly sharing best practice with cities around the world, and it was our view that the lack of a clear set of standards for security in our venues was a real gap. We were conscious, though, that there may be an impact on venues, hence the measures that were brought forward had to be right but proportionate, and I think care has been taken over that.
As you have just heard, Manchester city council has done an exercise working with venues and surveying venues on some of the voluntary things that have already been done in our city region. As you heard a moment ago, the impact is negligible—it is low-cost—but venues also report that they think it has raised standards generally within the organisation and improved the visitor experience. The experience that people have when they visit—their sense of safety when they are in the city—matters a lot to us as a city region and we are working to raise it. We have gone ahead and, if anything, we want to keep going further and raising the bar.
I will finish by saying that my main message to the Committee this morning is that I ask all of you to please ensure that the Bill is not watered down any further—actually, I look to the Committee to strengthen it. Again, I believe that venues with a capacity of 100 to 200 should be covered by the Bill. I do not think it is right that there is no requirement for training within the standard tier; there should be a requirement for staff to take the free ACT training. The message from Greater Manchester is that we continue to support Figen and all the families who lost loved ones on that night. In one way, we support those measures for that emotional reason, and always will, but we also do so from a Resilient Cities perspective. We believe they will only strengthen people’s experience in our city. We think it is in the interest of parents whose kids come into our city to go to the many events that take place every weekend to understand that there is a basic level of security at all the venues across our city region.
Tim Roca
Q
Andy Burnham: That is a fair question. Of course, we have had those conversations. I have been at events—with Figen, actually—with our night-time economy adviser, Sacha Lord, where we have said, “Look, we think we should do this.” Then there have been conversations like, “Well, it’s difficult. The hospitality sector has had challenging times,” but as we have talked it through I think people have come round to the idea that security and safety is one thing that no venue should compromise on, because in some ways that is the first thing to get right. If you get that right, you will get lots of other things right. It is about raising the standard of what the industry does.
There is evidence that the Manchester visitor economy —I know Manchester is not far from your constituency and you probably know it well—has improved over the years and in many ways mirrors the offer that people can find in London, but we have a night-time economy adviser because we want to keep raising the bar. We are not complacent at all. There just has not been an outcry or backlash. People have worked with it. This attack happened in our city: we lost 22 people—young people, mainly, but people of other ages as well—on that night. It is incumbent on us to challenge ourselves about what we do as a city to respond to that, and to recognise that life is changing and the outlying towns and villages of Greater Manchester could see an incident of that kind.
There is a broader point here: speaking as police and crime commissioner for Greater Manchester, I do not believe yet that the country has all of its procedures in place to face what we are experiencing. I say that with reference to fire and rescue services. Currently, it is still not clear what the role of fire and rescue services is in relation to what is called a marauding terrorist attack. How can that be the case? That clearly needs to be addressed. We have done local things, but this legislation should be only the start, in my view, of really ensuring that there are arrangements in place that provide clarity to blue-light services and venues, as well as others, on the basics of responding to an incident. I think there is still work in progress on that point.
Linsey Farnsworth (Amber Valley) (Lab)
Q
Andy Burnham: That is a really important question. The guidance that I want to see would advise them to have a night-time economy strategy. That is really important for a whole host of reasons, and it is not just about the most serious attacks. We see concerns about spiking or the unacceptable treatment of women and girls, and there is a whole range of issues that need to be addressed. If we want to have the levels of safety that we all want to see in our country, there has to a more serious look taken at some of what happens within the night-time economy. For me, that would include ending out-of-area taxi working, for instance. We have a situation in our city region right now where, if you go into the city centre of Manchester pretty much any night of the week, but certainly on a Friday or Saturday, you will see hundreds and hundreds of taxis with a Wolverhampton plate.
Linsey Farnsworth
indicated assent.
Andy Burnham: You are nodding, which suggests that other places see that. It cannot be in the interest of public safety to have taxis licensed 100 miles away. I would say to local authorities that we need to start calling for change on public safety on nights out. That would include arrangements at the local authority level to ensure that taxi drivers are adequately licensed, and that the relevant criminal record checks are done at a local level and not undercut by something happening a few hundred miles away. I think that is an issue for Parliament. The time has come to end out-of-area work and require that the local authorities where people are doing their job are the ones that license those vehicles. I would like to see wider guidance given to local authorities and legislative change to support them in taking steps to protect the public when they are on nights out, both in implementing this legislation and in improving the safety of what goes on in and around venues on nights out.
Sonia Kumar (Dudley) (Lab)
Q
Andy Burnham: As we have said, smaller venues have been working with Manchester city council and the feedback has been that it is a positive thing to do. Obviously, to have specific training on how to lock down or evacuate a venue is helpful not only for the most serious of incidents but more broadly. Let us be honest: venues face a wide range of incidents on an ongoing basis. There are risks to people’s safety throughout the year. It is something that is part of the night-time economy. I think that it has to be proportionate, but the measures in the Bill are proportionate.
I would go back to that request for mandatory training. If it is free training, why is that not in the standard tier? How does that impose a burden? Did we hear that it is an hour of a member of staff’s time? I do not consider that to be burdensome, to be honest with you. I consider it to be good practice that people are supported in their working time to access and do that training. It would clearly help in a terrorist attack, but it would probably help more broadly in terms of situational awareness, vigilance, and general good practice for running and stewarding a venue and ensuring that it operates well at all times.
I personally do not see why the threshold has been raised to 200. As we have just heard, many of your constituencies will now have many venues that are not covered. Given what we have seen this year, I think it is as likely for an incident to happen in one of those venues as it is in a pub with a capacity of 300 or 400. I do not see that as less likely. Furthermore, I do not think that what is being asked of those places is unnecessarily burdensome. You could even argue that it is more important for the smaller venues to do it, because they will have less resource to call on in the event of an incident.
Mr Connor Rand (Altrincham and Sale West) (Lab)
Q
Andy Burnham: Mr Bishop made a point about recommendations from the Manchester Arena inquiry. The deputy Mayor, who is sitting behind me, has led a whole process to look at implementing every single one of those recommendations—to the letter. As I have said, what happened on 22 May 2017 has changed the city, but not in the intended way. It was intended to divide us, but it brought us together, as you have just recognised. It was also intended to weaken us, but in fact it will leave us with stronger arrangements. At no point in this process have I seen anything other than overwhelming public support for what Figen has called for. The public support has never been in any doubt whatsoever.
I want to come back to the point about the Greater Manchester Fire and Rescue Service. You may remember that, on the night, there was confusion within the fire service about what to do, and it took a long time to arrive at the arena. The service has gone through a painstaking, difficult exercise about what happened and how, and it is a very different organisation as a result.
I want to come back to this point: the role of fire and rescue services is not clear. We, along with London, are the only two fire brigades in the country to have put in place arrangements for all our firefighters to have training in marauding terrorist attacks and to have the capability to respond. That is not the case with the others. Again, I had no resistance to that training from the firefighters or the Fire Brigades Union; everybody saw that it was the right thing to do. But we are now in a position where neighbouring fire and rescue services do not have that capability. It is unclear what happens in an incident, and it should not be unclear.
The Greater Manchester experience is that we have done everything that this legislation is asking, and more. We continue to challenge ourselves and do more, but it has to be standardised nationally for the reasons we have given around the nature of the threat. The message from us is that none of it has been resisted or too difficult to implement with our public services. There is strong public support. I come back to what I said earlier to members of the Committee: please do not let this Bill be watered down any further. If anything, it should be strengthened. Amendments should be coming forward to strengthen it. The risk is that smaller venues will become the ones that are more targeted if we leave that flank open, and I hope that we will not. I think that the standard tier should go back down to venues of 100 or more.
Chris Murray
Q
Andy Burnham: Thank you, Mr Murray. We are really grateful for its support. A lot of collaboration is going on between Edinburgh and Greater Manchester at the moment; the director of the festival was with us just last week.
I have visited Edinburgh festival for the last three years, and I am left in awe at the arrangements in place there because of the depth of experience in Edinburgh of running major events with many facets and many venues, and because of the number of visitors who come into the city. There is a lot to learn from Edinburgh city council and how it manages things. The fact that it supports the Bill should say something. Those who have been to the festival know that a whole range of venues are used—all kinds of sizes. That is the point I made a moment ago in response to Mr Roca: if the smaller venues were not covered by the Bill, they would potentially become the ones more at risk and more targeted.
The point is about the whole ecosystem of venues, from the smallest to the biggest. Measures should not be disproportionate, sure, but if the Bill went through in its current form that would cause me anxiety, given my position. I would have to look at the venues that were not covered. To go back to the question that Linsey Farnsworth raised, that would not make the job of Edinburgh city council, Manchester city council or any other local authority easier. Having clarity in terms of the arrangements is not going to make the job of local authorities harder—the more arrangements are standardised, the better.
Paul Waugh (Rochdale) (Lab/Co-op)
Q
The reason Martyn went to this gig was the reason a lot of people go to gigs—they love music. You love music. Greater Manchester, and Manchester itself, is fantastic for music. Could you explain what is happening in Manchester locally to reassure some of those small-scale live music people, who are saying that this could put them out of business—“We’re not the big boys, we’re not the arena, how can we cope with this and make everyone feel safe without changing our way of life?” As Brendan said, not changing our way of life is ultimately the purpose of this legislation.
Andy Burnham: It is a good question, Paul, and it goes back to the guidance for local authorities. The way we work—when I say “we”, I am thinking of the leader of Manchester city council, Bev Craig, and deputy Mayor of Greater Manchester, Paul Dennett; people you will know—is that we get close to the venues because we all love music and we are a music city region. You will know that there has been a threat to one of our venues night and day in recent times; at different points, we have had similar issues with other venues.
We cherish the infrastructure, and we work hard to keep it. We work hard to understand the issues that venues have, and how we can work in a practical way to help them. That is what I mean by getting close to the night-time economy—that is critical, and it is one of the things we do really well in this country. It is a big reason why people come and visit Britain: not just for the big arenas, but for the grassroots music scene as well. We had WOMEX, the Worldwide Music Expo, in the city last week; Councillor Besford has been very much at the heart of that, and he runs the English folk festival. We, like Edinburgh, often have events that involve the smallest and the biggest.
My point is: do not just impose things on venues. You have to sit down and talk with them and ask what we can do to help. This is my point about Greater Manchester Fire Rescue Service—if you have a capable fire service, they can go in and help. The blue-light services can help provide the training and help people comply with the measures in the Bill. This is not just about leaving venues on their own, saying, “Here is Martyn’s law, so get on with it even if it puts you out of business.” That is not how it is done. We are doing it a different way: get down there and listen to them all. They will all have different issues, so support what they do because they are important in bringing visitors to the city.
I am just giving you the Manchester perspective. That is the way we go about things. The music infrastructure in the city, and the broader entertainment infrastructure, is highly valued. There was an era when a certain nightclub was just left to close and there are flats there now. We do not think like that these days; we protect the infrastructure and that means supporting the venues. It is tough for them, so get close to them and support them. I appreciate that times are hard, but there are blue-light services everywhere that can help them raise their game from a security point of view.
I just think that we cannot talk ourselves into a sort of thing where it is all too big a burden. I can tell you from experience: a terrorist attack is a massive burden on a city and what it does challenges everybody at every level—and that is ongoing. Like Figen said, Manchester will never be the same again after what happened. It has changed us but it has strengthened us and made us more united, and as I say, I do not want any other city to go through that. The Bill is designed to prevent people going through that and part of what I would say is that the way we and Edinburgh do it is a good model for others to look at.
The Chair
If there are no further questions, I thank Mayor Burnham for his evidence. We move on to the next panel.
Examination of Witnesses
Councillor Keith Stevens and Helen Ball gave evidence.
The Chair
Q
Helen Ball: Good morning. My name is Helen Ball. I am the town clerk of Shrewsbury town council in Shropshire and I am also the chairman of the Society of Local Council Clerks nationally.
Keith Stevens: My name is Keith Stevens and I am the chair of the National Association of Local Councils, which looks after the 10,000 parish and town councils across the country.
Dan Jarvis
Q
My question is for Councillor Stevens. I know that you have had a long-standing interest in the process. As part of the pre-legislative scrutiny in the previous Parliament, I know that a number of concerns were raised around proportionality and thresholds, and also around the lack of clarity with regard to the regulator. I would be grateful for your view on the changes that have been made to the Bill since. Also, how receptive do you think local councillors will be to those changes?
Keith Stevens: Having heard what has gone before, as a parish councillor I was quite pleased when the threshold was lifted to 200 because that is proportionate. I will give the simple example of my own parish council. The village hall where we hold all our meetings has a capacity of, I think, 190. I have to be honest: we rarely get to 190 people at a parish council meeting. Normally, it is 20 people, including the councillors, as a maximum. That is why raising the threshold to 200 was welcomed by a lot of councils, because it meant that the rules were not quite as strict. However, I do not think that means that parish and town councils will not look at the security of any venue that any event is taking place in. Security is important and we always look at it.
Sorry, what was the second part of the question?
Dan Jarvis
Q
Keith Stevens: I think they are receptive to the changes and I think that local councils and councillors are very supportive of Martyn’s law. They have all seen the things, and most parish councils have quite good relationships with the security services. In my own area, we have regular monthly meetings to talk about the situation; actually, the police often use parish councils almost as the pulse of what is going on in the village. When there were all the problems last year, the police were in contact asking us to let them know whether we had heard any rumours that got off the ground. So, yes—very supportive.
Sonia Kumar
Q
Helen Ball: We have had conversations with a lot of parish councils and parish clerks over the last few months. A lot of village halls are quite distinct in where they are, so there is some concern as to how they would actually be able to enact evacuation and lockdown procedures, particularly when you have just got a large room and you may only have one entrance and one exit. There is that level of concern.
A lot of the problems that we have at the moment are more about the fear of the unknown; people have read the Bill and are looking at the worst-case scenario. We have tried to advocate—as a society and also as NALC, as part of our Martyn’s law working group—that it is a bit of a “Keep calm and carry on” situation, and that we can do this. A lot of it is a common-sense approach to security. The sentiment from our society is that the legislation should be welcomed and that regardless of whether there are bandings within certain buildings, we should develop a culture of terrorism awareness.
“What price is a life?” is the other comment that a lot of clerks have said of late. Why would somebody’s life be less important if they were in a building that has 199 people as opposed to 201? It is incumbent upon our sector to try to encourage a better culture.
Chris Murray
Q
Helen Ball: Let me give you a bit of my perspective as a practitioner. My involvement in that kind of terrorism management came two weeks after the Manchester bombings, because we were due to have an outdoor music event with 12,000 people in our park. We were starting to get comments from the public such as, “I don’t think I’m going to feel safe. Can I have my money back?” It was incumbent upon us to sit down with the event organiser and their security team, and the counter-terrorism officers and the local police, to put measures in place that would reassure the public that they were safe.
A lot of the kind of things in the current Bill are things that we have been doing. In effect, I, as a town clerk, have had to take on that kind of responsibility. I already had the responsibility under the Health and Safety at Work etc. Act, so it is not as if it is something brand new to us; it is just a different vein.
From our sector, clerks are exceptionally resourceful individuals. They have to be, because they have lots of plates spinning at any one time. So the right kind of guidance would be beneficial—perhaps guidance that we could work within the sector, including the security industry authority, to have very specific guidance that would help our fellow clerks. I think they would take it on board, because they see that this is an important piece of legislation that we have to work towards.
Keith Stevens: In the Bill, it would be good to have slightly more clarity on the responsibilities. If the parish council owns the land, and it is let out for an event, whose responsibility is it? Yes, I think it is down to the parish council to make sure the event organiser is carrying out everything per the rule, but whose responsibility is it if that person says, “Yes, I’ll do all that.”, and then does not? It is one of the slightly grey areas that could be made clearer.
Chris Murray
Q
Helen Ball: It is something that has evolved over the years. When I became town clerk in Shrewsbury 15 years ago, when we were renting the park for an event, it used to be a case of, “Fill out the application form, send me your public liability insurance and the cheque, then drop the keys off when you are finished—thank you very much.” Now we have more stringent premises licenses that require us to ensure that there are event plans and security plans, and that they are communicated with emergency services and the emergency planning team. It has become a morphed role anyway that we have absorbed. I do not really see how Martyn’s law is going to add significantly to that. It just gives us more strength in the argument with event organisers that we have legislation backing us.
Ben Maguire (North Cornwall) (LD)
Q
Keith Stevens: I don’t think so. One of the issues stopping people coming back or standing for councillor has been the standards regime. I was pleased that it was announced that that is being looked at, and it would appear to bring back the standards regime and the recommendations of the Committee on Standards in Public Life. I think that is the only reason why people have not come forward so much, and that is a growing problem not just for councils, but for charities, because of red tape and things like that. I think people will come forward and support their parish council on issues such as safety. People in the village have children and relatives, and they want to keep them all safe. That is where I think parish town councils are almost the key to safety in the community. They are the ones that know what is going on, and people follow their lead.
Helen Ball: I agree with Councillor Stevens. Parish councils are the beating heart of a community. The fact that they have community venues, parks and open spaces, as well as holding events in there, adds to the culture and the dynamic of that community. When you have that strong community infrastructure, you are likely to have a greater mandate from people wanting to stand. Both NALC and the Society of Local Council Clerks have regional structures, which means that we can cascade that enthusiasm and culture down to grassroots level.
Keith Stevens: I would just add that a lot of parish councils are custodian trustees for their village halls, and the village halls are run by a charitable management committee. In my view, it is beholden on the parish councils to make sure that all the community groups in their villages or towns also understand the effect of Martyn’s law. However, I have to mention that it will have a cost. There is not a cost on lives but there are a lot of smaller parish councils with a lower precept; the cost to them will increase, and we will need to undertake training programmes, which has been mentioned.
Ben Maguire
Q
Keith Stevens: The costs for the extra time of a clerk. A lot of parishes have a clerk who works five to eight hours a week, and they will have to find time to do some of those things.
Ben Maguire
In terms of training?
Keith Stevens: Yes, both training and carrying out the review. When Ms Ball carried out the review, it took quite a long time, didn’t it?
Helen Ball: Yes.
The Chair
If there are no further questions from members of the Committee, I thank Councillor Stevens and Helen Ball for their evidence this morning. We will constitute the next panel.
Examination of Witnesses
Paul Laffan, Stuart Beeby, Heather Walker and Alex Beard CBE gave evidence.
The Chair
For this oral evidence session, we have until 11.25 am. Can the witnesses please introduce themselves for the record?
Heather Walker: I am Heather Walker. I am the chief operating officer at the Royal Ballet and Opera.
Alex Beard: I am Alex Beard. I am the chief executive of the Royal Ballet and Opera, formerly the Royal Opera House.
Paul Laffan: I am Paul Laffan, the group safety and security manager for ATG Entertainment.
Stuart Beeby: I am Stuart Beeby, the group operations director for ATG Entertainment.
Matt Bishop
Q
Alex Beard: In principle, these risks are ones that we face operationally day to day. We are already on the crowded places register, so we are already taking many of the actions implied in this legislation. In particular, the lens through which we do that is a risk-analysis approach, with support from the counter-terrorism security adviser and our specialist contractors.
Codifying the expectations of us through “reasonably practicable”, as well as having access to support in implementing this legislation through the relevant authorities and a regulatory body to refer to, are positive additions in principle. Of course, that is subject to there not being any cracks in the obligations between the various actors, and there being sufficient resource for the regulator to deliver its functions. I see this as building on the practice that is already in place. I would just like to stress that we are fully supportive of the legislation. We were involved in its consultation and we regard it as being a good thing.
Stuart Beeby: ATG Entertainment’s perspective is as a multi-site operator. We have 64 venues across Germany, America and the UK. 33 of those are in the UK, from Torquay to Glasgow. Similarly to the Royal Ballet and Opera, we have been involved in the creation of this Bill. While we feel we are already on a good footing with our processes and training and are fully supportive, it is a similar message from us if the process is too formulaic—a one size fits all.
Right now we work with all the security elements, be it contractors and risk assessments and the like or our counter-terrorism colleagues in the local constabularies. The challenges that we face running a 1,000-seat theatre in Torquay are very different from those at our two large theatres in Manchester or our 10 in the west end. So we are very supportive and feel that we are in a good position moving forward with training and processes, but we have an eye on how formulaic this may be with—forgive me—a cookie-cutter approach to it.
Sonia Kumar
Q
Paul Laffan: For us, we already have the processes built in. We have been doing this for a number of years to ensure that we are prepared, as we should be as a public space. Although our venues are vast and wide, the majority are quite straightforward in terms of what we do. The events themselves do not vary a great deal—it is either a play, a musical, a comedy or whatever—the operation of the building does not alter too much and the buildings themselves are predominantly listed, large buildings.
We would expect to conduct initial assessments, which we have already done, and to review them at a similar frequency to all our health and safety approaches; just regular touchpoints subject to any massive changes. We therefore do not feel that the risk assessment element would be overly onerous upon us. For others in our industry, where they have more dynamic spaces and second spaces, it could be slightly trickier; having that resource and knowledge could be challenging. However, we do not foresee its being a huge concern for us.
Heather Walker: One of our thoughts is that the public will need to understand how venues will operate under this Bill. As an example, post covid when we were all opening up, we all worked very closely together to make sure the kinds of mitigations and arrangements in place, so that the public felt safe coming back into theatres, were similar.
Whichever theatre you went to, you saw the same sorts of things in place. I think the nature of risk assessing for this arrangement, which I totally agree with, is going to mean different things for different people. Having different kinds of events, or a different audience profile attending those events, will perhaps change what mitigations you put in place. From the public’s perspective, they will need to understand that not everybody is doing the same thing. That might create some concerns about just how safe one place is compared with another.
Paul Laffan: If I may add to that, I think this comes back to “reasonably practicable” and how we apply that. Someone’s risk assessment can vary from operator to operator, person to person, so it is a question of how much guidance there will be around the expectations so that, when we are weighing up that impact likelihood, cost analysis, of “reasonably practicable”, we understand how we quantify that for a large operator with significant funds behind, it versus a small operator with far less funds. That then would raise concern for me that we may inadvertently create a higher risk profile for another venue; if ATG or the Royal Opera House spent a lot of money strengthening our own resolve and it makes another operator who does not have the same access to funds appear a more viable target.
Stuart Beeby: Our principle is “deter”. That is the key thing: the counter-terrorism strategy is not “defend”, but “deter”. That means that if there is hostile reconnaissance and you look professional and so on, if you are being targeted you could be pushing them along to what is considered a softer target, although dynamically they are actually complying with all the requirements of the Bill.
Paul Laffan: There would be some shape and colour around the risk assessment process and what some of the expected outcomes and the suitable and understood control measures are that would be pragmatic and proportionate to the risk, but also replicable across the entire industry. On Heather’s point, if as a customer I go to see “Mean Girls” one day and a ballet the next, I should not be surprised that there is security and a similar experience on the front end.
Tim Roca
Q
Alex Beard: It puts additional responsibilities on the SIA, which needs the resources and expertise to fulfil those duties. It is a big step up—that is my No. 1 observation.
Heather Walker: And it needs the time to put this in place so that it is consistent and appropriate.
Paul Laffan: Certainly from our point of view, it is a good appointment. It is the logical one, given what it already does in the private security sector. Our only real concern would be around its—forgive me for using the wrong word—ability to pragmatically apply the risk assessment and the review of processes in what is quite a different industry and setting across much of live entertainment, versus the classic private security sector, but we are sure that that will come out in its guidance as it starts forming.
It would be great to have clarity in the Bill on how the SIA will interact externally, such as with public planning. As we strengthen our own four walls, if that shifts the attack vector to externals, with things like vehicle-as-weapon, we have very little control over the public spaces outside our buildings, yet we will introduce a crowd of people leaving after a show. HVM—hostile vehicle mitigation—is an example. That is something that we always push for in planning applications and it is very swiftly declined, fundamentally on the basis of cost and whether it suits the planning aesthetic of pedestrianised areas. It is about understanding how much power the SIA will have in enforcing, collaborating and engaging with external bodies on behalf both of the Bill and of us as private entities.
Alex Beard: Ensuring that there are no cracks between the obligations on individual institutions and the role of the local authority and the statutory authority is absolutely key. Even when hostile vehicle mitigation is accepted as required or desirable, the time lag in implementing it can be very considerable.
Chris Murray
Q
Heather Walker: Security is both a moral and a commercial obligation for our visitors and our staff. It is essential that the public and our staff feel safe in our building; that is an important part of their feedback and how we keep on attracting them. The reasonable practicableness is a very subjective view. As an example, we do bag searches for everybody who comes into the building. Some might feel that having security arches is reasonable, but we have to balance that with the fact that we are a theatre—we are providing entertainment and this is a social space to come into with your friends and family. All these things are about balance and assessment. Having a CTSA to guide us through that is certainly extremely valuable.
Stuart Beeby: Our view, looking across the United Kingdom, is very similar. Things are affected, and there is a groupthink. We can demonstrate with statistics how long it took people to come back into places of mass gathering for great entertainment: post covid, it has taken a long time. I speak as the largest operator of theatre in the UK. There will be areas, particularly in some constituencies, where there are still independent theatres run by local authorities. The challenge with the cost base in live entertainment is very real, given the national living wage, energy costs and just the costs of producing. There has always been a high bar, but with those three it is a bit of a perfect storm. Unfortunately, cost is a reality that makes people look.
As we tried to paint a picture earlier, when we talk about the formulaic, you could get the same effect by scanning the ticket, having the table, checking the bag, having another queue for bigger bags or maybe not even allowing bigger bags into your theatre. You can do all that. If you come to our theatre at the Lyceum, with Disney as our partner, where we are doing 2,100 people with eight shows a week, you will see dogs there. I do not use dogs at the Savoy or the Princess theatre in Torquay, but that does not mean that you are less safe. There is an assessment.
We have to constantly manage that message. We do customer feedback, and you are right that we get the two bookends: “You made us do a bag search, it was raining, it was ‘An Inspector Calls’, the average age was 65 and we were out in the rain,” versus, “You were rushing us through, I had a bag and the check by your security staff seemed cursory.” We are constantly having to balance it.
There will be a real challenge on cost, which comes back to the application. For us, I guess it is about being very clear. It needs to be effects-based in terms of how it is assessed and the mitigations you put in place, because good training and being professional are just as effective as somebody being poor and just trying to whizz everybody through an arch, which would create a lot of cost. That formulaic piece is key.
We are constantly managing the message that these are safe spaces to be, because in the theatre the average age is still higher. It is still that demographic that is 45-plus with more disposable income and, particularly in regional theatre with your matinées, there will be more retirees, so they are very receptive to trigger events.
The Chair
As no other members of the Committee have questions, may I thank all our witnesses for their evidence this morning? That brings us to the end of our morning session. The Committee will continue taking oral evidence at 2 pm, here in the Boothroyd Room.
Ordered, That further consideration be now adjourned. —(Keir Mather.)
Renters' Rights Bill (Third sitting)
Tuesday 29th October 2024
(2 days, 14 hours ago)
Public Bill CommitteesRead Full debate Renters' Rights Bill 2024-26 View all Renters' Rights Bill 2024-26 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: Public Bill Committee Amendments as at 29 October 2024 - (29 Oct 2024)
The Chair
Welcome, everybody, to the first sitting of the Committee in which we consider the Bill’s content in detail. The only announcement that I will make at the beginning is that it is very helpful to Hansard if people hand over or email any notes they may have.
I recognise that this will be the first time that some Committee members have served on a Public Bill Committee. My view is that the best way to learn and understand the procedure is to listen to what is going on rather than looking at your phones and emails. On that basis, I am not going to make massive announcements at the beginning about the rules of procedure, because I assume that people will be able to pick them up pretty quickly.
Clause 1
Assured tenancies to be periodic with rent period not exceeding a month
David Simmonds (Ruislip, Northwood and Pinner) (Con)
I beg to move amendment 48, in clause 1, page 1, line 13, at end insert—
“unless the tenant meets the student test where the tenancy is entered into.
(1A) For the purposes of this section, a tenant who meets the student test when a tenancy is entered into has the same meaning as in Ground 4A.”
The Chair
With this it will be convenient to discuss the following:
Amendment 54, in clause 1, page 1, line 13, at end insert—
“, unless the landlord and the tenant mutually agree to have a fixed term during which period the landlord agrees to suspend the ability to seek possession under Ground 1 (Occupation by landlord or family), Ground 1A (Sale of dwelling-house) or Ground 6 (Redevelopment) of Schedule 2.
(1A) During a fixed term tenancy agreed under subsection (1) the landlord shall not be entitled to increase the rent as provided for by section 13.”
Clause stand part.
Clause 2 stand part.
David Simmonds
It is a pleasure to serve under your chairmanship, Sir Christopher. I hope the Committee will forgive me; this is the first time I have served on a Public Bill Committee as a shadow Minister. I think it is the Minister’s first time as well. I am sure we will crave your indulgence as we go forward to make sure that the Committee runs efficiently and effectively.
Amendments 48 and 54 aim to address a number of issues, relating to the situation students face when securing appropriate accommodation, that were raised both in our oral evidence sessions and in evidence that several organisations submitted to the Committee for consideration. In summary, the amendments aim to ensure a carve-out— as previously considered in deliberations on the Renters (Reform) Bill—so that not just purpose-built student accommodation but student lets more generally fall outside the direct scope of the measures in the legislation.
There are in the evidence a number of examples of how the Bill will affect the ability of students to access the accommodation that they require while they are at their place of study. International students are a significant part of our UK university financial infrastructure, and the ability for them to secure, often from another country, appropriate accommodation in advance, for a fixed period of time, and sometimes for groups of students, is extremely important, not only to them, to meet their housing needs, but to the university because of the fees they contribute.
We heard representations about the impact on students of the need to take properties off the market to make them available to rent again, which occurs largely around the time of examinations, because of the annual cycle of student accommodation. Student organisations expressed a deal of concern, particularly in the context of student mental health—a significant issue that universities are concerned about—that the pressure created would be considerable if people are required to seek new accommodation at the same time as studying for examinations. We need to ensure that the student market retains the degree of flexibility that enables student landlords to address that issue.
The Bill has a broader interaction with areas where there are student communities. Most of us will know, either from our constituencies or nearby, that where there are universities, student communities have grown up and become established and there are landlords that specifically serve that market. Accommodation that may historically have been family homes has been converted specifically for student use, with landlords who specialise in that market.
We would not wish to see that supply of student accommodation significantly diminished because, given the changes in the Bill, it may become more profitable for a landlord to make a property available to the local authority for temporary accommodation, or simply to move it entirely into a different area of the private rented market. Where there is an established market for student accommodation that is vital for the local economy and for the university, we want to make sure that that is preserved.
Finally, there is the article 4 direction issue. Because of the proliferation of houses in multiple occupation in areas proximate to universities, many local authorities have introduced controls with a view to ensuring that an appropriate supply of student accommodation remains, without other types of houses in multiple occupation springing up. That is despite the fact that the physical nature of the accommodation would lend itself to a number of different uses in that market. Ensuring a carve-out would help to guarantee the long-term supply of student accommodation, so that young people who study can secure the accommodation they need at an affordable price.
I hope I have summarised the Opposition’s thinking in tabling the amendments and look forward to hearing what the Minister has to say.
The Minister for Housing and Planning (Matthew Pennycook)
It is a pleasure to serve with you in the Chair, Sir Christopher. Before I respond to amendments 48 and 54, tabled in the name of the shadow Minister, I put on the record my thanks to the witnesses who gave up their time last week to give evidence to the Committee and inform our deliberations.
It is agreeable to serve opposite the shadow Minister. He and I are of different political persuasions and, although I hope to persuade him otherwise, I fear we may not be of the same mind regarding some aspects of this legislation. He is, however, a sincere and thoughtful individual, and I know that, even when we disagree strongly in the sittings ahead, the debate will be measured and reasonable. The same applies to other Opposition spokespeople.
As the shadow Minister clearly set out, amendment 48 seeks to amend the new section 4A that clause 1 inserts into the Housing Act 1988, to provide an exemption from the single system of periodic tenancies for those who meet the student test in new ground 4A, set out in schedule 1—that is, all full-time students, irrespective of their living arrangements. The effect would be to require such students—even those who may be the sole occupant of a rented property—to continue to have fixed terms, denying them the benefits of the new tenancy system introduced by the Bill.
The shadow Minister made the case for the amendment on the basis that we require a carve-out for the student sector. I would argue that we have introduced in the Bill a limited carve-out in the form of ground 4A ground for possession. That will ensure that non-typical students can enjoy the benefits of the new tenancy system, as well as typical students, within the limited confines of that ground for possession. It should ensure that landlords can maintain the cyclical nature of that market. As I said in the evidence sessions, I suspect that that ground for possession may be used only in limited circumstances. There is no evidence to suggest that tenants overstay their tenancies en masse. We think that limited carve-out provides what is needed to maintain the unique business model in the student sector.
Amendment 54 would have the same effect for all tenants, ostensibly on a voluntary basis, providing as it does for fixed terms in circumstances where a landlord and a tenant mutually agree to them, on the basis of possession grounds 1, 1A and 6, and rent increases under section 13 are suspended for the duration.
I am afraid I cannot accept either amendment. The Government have been clear that there is no place for fixed terms of any kind in the new tenancy regime that the Bill introduces. Fixed terms mean that tenants are locked into tenancy agreements and do not have the freedom to move should their personal circumstances require that—for example, if they want to take up a job in another part of the country or if a relationship breaks down. Fixed terms also mean that tenants must pay rent regardless of whether the property is fit to live in, reducing the incentive for unscrupulous landlords to complete repairs. As a point of principle, the Government will not deny any type of tenant, including full-time students, the rights and protections afforded to them under the new tenancy system the Bill introduces.
I also find the argument that fixed-term tenancies are more beneficial to both parties than rolling periodic tenancies utterly unconvincing. In circumstances where a responsible landlord and a good tenant have a mutual wish to sustain a tenancy over a defined period without a rent increase—the conditions that underpin the rationale for amendment 54—fixed-term tenancies would provide no clear advantages beyond those that both parties will already enjoy under periodic tenancies, as introduced by the Bill.
If the shadow Minister’s argument is instead that the benefit of fixed terms is that they ensure that a tenancy is sustained, even in the event of either party having good reason to end it—for example, if the landlord wanted to sell the property, or if a tenant wanted to buy and move into a first home—that simply exposes the unnecessary restrictions that fixed terms would impose in those circumstances, locking in either party against their interests.
Finally, I want to make it clear that amendment 54 would leave the new tenancy system open to abuse. In my view, it overlooks the power imbalance between landlords and tenants. In hot rental markets across the country the mismatch between supply and demand is acute, and one could easily imagine circumstances in which a disreputable landlord says to a tenant that the only way they are going to get the tenancy, which they may be desperately in need of, is if they take on a fixed-term tenancy. Tenants could feel forced to take on a fixed-term tenancy, perhaps without even knowing the condition of the property. I accept that the two sides of the Committee may have a legitimate and sincerely held difference of opinion on fixed-term tenancies, but I urge the shadow Minister to withdraw the amendment.
On the purpose and effect of clauses 1 and 2, the single system of periodic tenancies is at the heart of the legislation, and these clauses are key to its operation. Clause 1 provides that in future all assured tenancies will be periodic and can no longer have fixed terms. Any terms of an assured tenancy providing for the duration of the periodic tenancy to be different to the rent period—in other words, fixed terms—will be prohibited and legally unenforceable, and the tenancy will instead be a periodic tenancy. The clause also ensures that the tenancy’s periods will be the same duration as the period for which the rent is paid. Terms of a tenancy that state that the duration of the tenancy is different from the rent period will have no legal effect.
Clause 1 also limits the length of the rent period of an assured tenancy, stipulating that it must either be monthly or no more than 28 days long. Terms in a tenancy agreement that try to create a longer tenancy period will, again, be of no legal effect. Instead, the tenancy has effect as if it provided for monthly periods, with rent payable on the first day of each period. It is important to note that tenancies will be able to have periods of less than a month—which is an important feature for the social sector, where rent is more likely to be paid weekly or fortnightly—but it will not be possible to have a tenancy period of longer than one month, ensuring that disreputable or rogue landlords cannot seek to abuse the clause by demanding long rent periods to recreate fixed terms.
The new tenancy system introduced by clauses 1 and 2 —and others in chapter 1 of part 1 of the Bill—will provide tenants with greater security and stability and empower them to challenge bad practice without fear of retaliatory eviction. As long as they provide the required notice, they will be able to end the tenancy at any point. Landlords will also benefit, through more straightforward regulation, clearer and expanded possession grounds, and the requirement for tenants to provide two months’ notice, which will ensure that landlords can recoup the cost of finding a new tenant and avoid lengthy void periods.
I appreciate that some landlords and groups are concerned that tenants will misuse rolling periodic tenancies as short-term or holiday lets. That concern was expressed on Second Reading and that also arose in the oral evidence. Although I understand the general apprehension and anxiety that surrounds such a significant change to the regulation of the private rented sector, those concerns are unfounded. The notion that tenants will routinely pay up to five weeks’ deposit, complete referencing checks and commit for at least two months, simply to secure a short-term or holiday let, has always struck me as improbable to say the least. As I argued on Second Reading, tenants simply do not move home unless it is absolutely necessary. Under the new tenancy system, when they do leave, they will be required to provide two months’ notice, giving landlords sufficient time to find new tenants.
Clause 2 removes the provisions of the Housing Act 1988 that established assured shorthold tenancies, so that such tenancies cannot be created in the future. The clause also removes section 21 of the 1988 Act. In addition, it removes section 6A of that Act, which provided the mechanism by which private registered providers of social housing could apply to a court to demote tenants from an assured to an assured shorthold tenancy if they committed antisocial behaviour. The change is being made because ASTs will no longer exist once the new single system of periodic tenancies has come into force.
As a result of the assured shorthold tenancy regime, and the ever-present threat of arbitrary eviction via a section 21 notice, millions of people in England live day in, day out with the knowledge that they and their families could be uprooted from their home with little notice and minimal justification. We know that a significant minority of them are forced to live in substandard properties for fear that a complaint would lead to a retaliatory eviction.
The insecurity embedded in the current system fails both tenants looking for a stable home for their families and responsible landlords who are undercut by the minority of unscrupulous landlords willing to exploit and mistreat them. A single system of periodic tenancies will provide greater security for tenants, while retaining the important flexibility that privately rented accommodation offers. It will mean that tenants can stay in their homes for longer, build lives in their communities, save—with fewer unwanted moves—and avoid the risk of homelessness.
Removing section 21 will level the playing field between landlord and tenant, empowering tenants to challenge poor practice and unjustified rent increases. It will also incentivise landlords to engage and resolve legitimate issues of concern, given that they will be able to regain possession of a property only where there is good reason, using the clear and expanded possession grounds set out in schedule 1. With a single tenancy structure, both parties will also better understand their rights and responsibilities.
Far too many tenants are evicted from a private tenancy each year without due cause, which is why so-called no-fault section 21 notices are a leading cause of homelessness in England. As I argued on Second Reading, this broken system can no longer be tolerated, not least because the private rented sector now houses not just the young and mobile, but growing numbers of older people and families with children, for whom greater security and certainty is essential for a flourishing life. To ensure that private renters get a fair deal, we need to transform how the sector is regulated and level the playing field between landlord and tenant.
This Government will succeed where the previous Government failed, by finally modernising regulation of the sector and abolishing arbitrary evictions. I commend both clauses to the Committee.
The Chair
I assume that no one wishes to participate in the debate on clauses 1 and 2 and the amendments. Unlike in the informal hearing in which we took evidence, if people wish to participate in the debate, they must rise in their places so that I can see they wish to speak. In the absence of anyone wishing to participate in the debate, I call the shadow Minister.
David Simmonds
I thank the Minister for his comprehensive response. When we consider the history of this sector of our housing supply, it is clear that there have been many attempts by Governments over many years to address the challenges that reflect different eras. Having sought the advice of the former Member for Henley, who was the Secretary of State who introduced the assured shorthold tenancy, I know that it was originally conceived as a means of increasing supply and reducing cost, so that tenants could more easily access accommodation of the necessary quality at an affordable price. There is no doubt that it achieved that end, but we also recognise that, although according to the Government’s own figures tenants in the private rented sector expressed the highest level of satisfaction with their accommodation, compared with occupants in any housing sector, there continue to be issues that partly reflect supply but also reflect the presence of some of the unscrupulous landlords the Minister referred to.
Clearly, there is a degree of philosophical and political difference, in that we on the Opposition Benches are strongly committed to the concept of freedom of contract. We can identify many examples, including those I mentioned, where people wish—for example, because they have a fixed-term contract with particular employment —to secure accommodation for a specific period. People coming for a course of study also may wish to secure accommodation for a fixed period, especially international students who are here for a period and then wish to leave the UK to return to their families elsewhere. In such cases the opportunity to have such arrangements is significant, and it is in the interests both of the landlords who specialise in providing that type of accommodation and of the tenant themselves that freedom of contract continues to be available.
Amendment 54 explores the issue that was raised previously in Parliament by the former Member for Totnes—the Mangnall amendment. Given that, as the Minister said, the Government are not minded to accept it, I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Clause 1 ordered to stand part of the Bill.
Clause 2 ordered to stand part of the Bill.
Clause 3
Sections 1 and 2: effect of superior leases
Question proposed, That the clause stand part of the Bill.
Matthew Pennycook
I will be brief, as this clause is simple and straightforward. It ensures that leaseholders can continue to sub-let under the new regime where they currently have permission to do so.
Leaseholder arrangements may currently require any sub-let to be on an assured shorthold or an assured tenancy with a fixed or minimum term. The clause will enable existing sub-leases to continue under the new tenancy system once assured shorthold tenancies and fixed terms are abolished. This will ensure that leaseholders and their superior landlords are not unduly affected by the reforms and that previously agreed arrangements can continue. It will not grant rights to leaseholders to sub-let for holiday or rental accommodation unless they were able to do so before the Bill took effect. I commend the clause to the Committee.
Question put and agreed to.
Clause 3 accordingly ordered to stand part of the Bill.
Clause 4
Changes to grounds for possession
Mr Gideon Amos (Taunton and Wellington) (LD)
I beg to move amendment 77, in schedule 1, page 155, line 6, at end insert—
“(1A) In the heading of Part 1, omit ‘must’ and insert ‘may’.
(1B) Omit the heading of Part II.”
This amendment would make all grounds for repossession discretionary.
The Chair
With this it will be convenient to discuss the following:
Amendment 73, in clause 4, page 4, leave out lines 35 to 37 and insert—
“(a) omit subsection (3);
(b) in subsection (4)—
(i) omit ‘Part II of’; and
(ii) omit ‘, subject to subsections (5A) and (6) below,’”.
This amendment would make all grounds for repossession discretionary.
Amendment 74, in schedule 2, page 175, line 40, leave out from “claims),” to the end of line 41 and insert “omit subsection (6)”.
This amendment would make all grounds for repossession discretionary.
Mr Amos
It is a pleasure to serve under your chairmanship, Sir Christopher. The intention of this amendment is to make all grounds for eviction discretionary for the court. As the Committee heard from experts during oral evidence, many in the sector are concerned that none of the grounds will be discretionary.
There are a range of circumstances in which discretion would be advisable in deciding eviction cases. The tenant may be terminally ill—a cancer patient, for example—and I understand that that example was considered during the last Parliament in relation to the previous Bill. The court would have no discretion to enable a stay of eviction in that case. The tenant could have caring responsibilities, perhaps for a disabled person. Again, there would be no discretion to vary the terms of the eviction.
There could be undue hardship caused if the tenant was unable to stay for a given period. Perhaps the tenant had already arranged to move and arranged new accommodation, but that was not available on the timescale in the Bill; in that case, there would again be no discretion. The tenant might have an impending examination to sit or a work commitment that was vital to their career. Again, there would be no discretion for the courts. The tenant may be a disabled person and need extra time or support to arrange the physical burden of moving home.
In a previous discussion, the Minister talked about the importance of taking the personal circumstances of tenants into account, and that is the intent behind this amendment. The courts will not be able to take personal circumstances into account because there will be no discretion on the terms of eviction.
Parties are especially concerned about this issue in relation to grounds 1 and 1A, which concern eviction for repossession by the landlord or their family or for the sale of the property. We heard from Liz Davies KC during oral evidence that, in many cases, a tenant could have done nothing wrong but would still be subject to eviction without any discretion for the courts to vary the terms of that.
Even if the Government do not accept the amendment, I argue that there should be discretion for the courts, if not in every case of eviction, at least in exceptional circumstances. I urge the Government to take that on board in the spirit in which I have moved this amendment.
Matthew Pennycook
I thank the hon. Gentleman for tabling these amendments, which allow us to have this debate. In my view—I think this is shared across the House —landlords must have robust and clear grounds for possession where there is good reason for them to take their property back. I hope that he will appreciate the steps the Government have already taken to ensure that the grounds are fair to both parties. We have overhauled the previous Government’s Renters (Reform) Bill to provide additional protections for tenants, including longer notice periods, a longer protected period and a higher rent arrears threshold. We have also scrapped the previous Government’s harmful proposals to introduce a new ground for repeat rent arrears, and we have reduced the discretionary antisocial behaviour threshold to behaviour “capable” of causing nuisance or annoyance.
However, amendments 73, 74 and 77, which would make all grounds discretionary, are a step too far. Indeed, I never argued for all grounds to be discretionary when we considered the previous Government’s Bill. Making all grounds discretionary would mean that landlords have no certainty that they would be awarded possession even if the grounds were otherwise met. That includes in situations of serious antisocial behaviour—where the tenant has been convinced of a serious criminal offence or has broken an injunction put in place to stop their behaviour. Landlords wanting to sell or move into their property could be prevented from doing so, and specialist sectors, such as temporary and supported accommodation, would not be able to guarantee regaining possession in order to house new individuals who require their support.
I assure the hon. Member that there are still many discretionary grounds in the Bill and that judges will have discretion in less clear cases or where possession may not always be reasonable, despite the ground having been met. It is absolutely right that judges have discretion where possession takes place in those circumstances, and that includes smaller breaches of a tenancy agreement or low levels of rent arrears. I believe the steps that we have taken to protect tenants provide sufficient protections against unfair evictions. On that basis, I ask the hon. Member not to press his amendments.
Carla Denyer (Bristol Central) (Green)
I would like to speak in favour of the amendment and to bring the Minister’s attention to the evidence we received from experts, which highlighted the fact that discretionary grounds do not make it impossible for the court to award possession. In fact, in many cases, especially ones involving antisocial behaviour, it is reasonable to assume that the courts would apply a high threshold for where to exercise discretion. Nevertheless, that does not negate the principle that there may be extremely exceptional circumstances in which discretion is needed. The Government completely tying the hands of the courts so that they are unable to consider those extenuating circumstances is counterproductive.
Mr Amos
I accept what the Minister says about the Bill’s intent and that there are very limited circumstances in which discretion would be available. It is disappointing, though, that it is not recognised that courts require more discretion than is given. The Bill would provide discretion only in those very limited circumstances.
Matthew Pennycook
Perhaps I can reassure the hon. Gentleman. The mandatory grounds for possession are very limited and specific—for example, grounds 1 and 1A, where the landlord has a clear intention to move back into the property or move a family member in or to sell the property, and they have to evidence that with the court. I ask hon. Members to consider—this was put to me many times in the evidence sessions—the challenges that our courts face and the burden that this legislation places on them. Making every ground discretionary, irrespective of how reasonable it is for a landlord in those grounds 1 and 1A circumstances, for example, to take back their property quickly, risks overburdening the courts. As I say, many of the grounds remain discretionary. However, we think that there is a good reason why a certain number of mandatory grounds are in a different bracket from the discretionary one.
Mr Amos
I hear what the Minister says. The case was made forcefully by witnesses in oral evidence that the discretionary grounds for eviction are far too limited and that we need to see further discretion given to the courts. This would not prevent evictions continuing or the courts from making the decisions in accordance with the Bill’s provisions, and it would provide discretion to the courts. I urge the Government to consider widening the categories of discretion for the courts in evictions. I hope that the Government will consider that issue during the passage of the Bill, and I am happy to withdraw the amendment on that basis.
David Simmonds
I certainly do not want to imply that there would be any degree of political love-in, but on this matter, I agree with the Minister. It is worth saying for the record that we in the Opposition understand that when the courts are considering this matter, the first issue will be an evidential test: has the necessary threshold for the mandatory ground to be triggered been met? If the court’s opinion is that there is some doubt about that, clearly it has the discretion to act differently because it considers through an evidential test that the threshold has not been met.
In practice, courts deal with this matter with a high degree of discretion, as they do with all other matters that are alike. As Members of Parliament, we will be aware of situations where constituents have been victims of serious, persistent, long-term antisocial behaviour. The grounds outlined are examples where evidence has been accumulated and a court can swiftly make a decision to grant possession in order for the situation to be resolved for the wider benefit of other people affected.
We therefore support the Government’s position that the mandatory grounds should be framed in this way and that moving to make all grounds discretionary would add an element of doubt over and above the evidential test. That would, in turn, enable those who wish to perpetrate long-term antisocial behaviour to get away with it for a longer period of time.
Mr Amos
I beg to move amendment 68, in clause 4, page 5, line 40, at end insert—
“(fa) after subsection (5A), insert—
‘(5B) Where the court makes an order for possession on grounds 1 or 1A in Schedule 2 to this Act (whether with or without other grounds), the order shall include a requirement on the landlord to file and serve evidence no later than sixteen weeks from the date of the order.
(5C) Evidence provided under subsection (5B) must—
(a) provide details of—
(i) the state of occupation of the dwelling-house since the date of the order, and
(ii) the progress of any sale of the dwelling-house, and
(b) be accompanied by a statement of truth signed by the landlord.’”
The Chair
With this it will be convenient to discuss amendment 69, in clause 4, page 5, line 41, at end insert—
“(2A) After section 7, insert—
‘7A Evidential requirements for Grounds 1 and 1A
(1) The court shall not make an order for possession on grounds 1 or 1A in Schedule 2 to this Act unless the landlord has complied with subsections (2) to (4) below.
(2) Where the landlord has served a notice for possession on grounds 1 or 1A, the court must be provided with evidence verified by a statement of truth signed by the landlord.
(3) Where the landlord has served a notice for possession on ground 1 and the dwelling house is required by a member of the landlord’s family as defined in paragraphs 2(b) to (d) of that ground, the court must be provided with evidence verified by a statement of truth signed by that family member.
(4) Where the landlord has served a notice for possession on ground 1A, the evidence referred to in sub-section (2) must include a letter of engagement from a solicitor or estate agent concerning the sale of the dwelling house.’”
Mr Amos
The amendment’s purpose is to require the evidence to be provided by landlords on grounds 1 and 1A, in the case of occupying the home or selling the property, to be clearly stated in the Bill, so that it is clear what evidence needs to be provided and the test is clearly stated. The Government have indicated that the evidence required will be contained in guidance, but it would significantly reassure Members in this House and in the other place if we could see the evidential test for landlords to gain possession. The amendment sets out the need for a statement of truth and suggests that a letter of engagement from a solicitor in the sale of a property is the kind of evidence that should be in the Bill. I believe the amendment is self-explanatory in that regard.
Matthew Pennycook
While I appreciate the sentiments behind the amendments—indeed, as a shadow Minister, I probed the previous Government on this point when discussing the previous Bill—on reflection, I do not think they are the right approach for the following reason, which relates to the previous debate. We have overhauled the Bill in a number of ways to strengthen protections for tenants, and we must be careful about tipping the balance too far the other way and penalising good landlords, who, in certain circumstances, have a right to certainty that they will get their property back and that this will move through the courts in an orderly fashion.
Amendment 68 is an attempt to deter abuse of grounds 1 and 1A, which is an honourable intention. It seeks to require landlords to present further evidence that they have fulfilled the grounds after the possession order has been granted. It does not detail what should happen if a landlord does not present the evidence. Furthermore, it will have no impact on cases that do not make it to court. Where a landlord has obtained a possession order through the courts, they will already have presented evidence to a court to satisfy a judge of their intent to meet the grounds. The amendment would also place an additional burden on courts, which would need to set up new processes to deal with the evidence, taking time away from progressing possession claims.
The hon. Member for Taunton and Wellington asked me to consider whether grounds that are currently mandatory should be discretionary, and I thought very carefully about which grounds should be discretionary and which mandatory when developing and overhauling this piece of legislation over recent months. On the basis of that reflection, I have concluded that increasing the prohibition on remarketing and reletting a property after using these grounds, including in cases that do not reach court, is a better mechanism for preventing abuse than adding requirements for evidence. This will allow a tenant to take action if they see, for example, their property advertised online following eviction.
Amendment 69 seeks to put into legislation prescribed evidential requirements for grounds 1 and 1A. We just had a discussion about how we should trust judges and their judgment on these matters. I believe that judges are best placed to consider and determine the evidence before them on these mandatory grounds. Setting an enhanced evidence threshold may mean that judges are less likely to consider wider evidence, and it could inadvertently lower the threshold where an eviction is ordered. It is right that judges have the discretion to respond to the evidence provided on a case-by-case basis. That is what the Bill provides for, and I therefore ask the hon. Member to withdraw his amendment.
Mr Amos
The Minister says that the amendment does not include what would happen if the evidence was not provided—clearly, the evidence would not be there and the case would be weakened on that basis. I contest the idea that this is an onerous or burdensome requirement. The statement of truth is an extremely simple document—many on the Committee will have seen them—that can be produced easily and at little expense. I also contest the idea that courts need separate processes to look at statements of truth. They look at statements of truth all day, every day; new processes are not required.
The engagement of a solicitor in the sale of a property is not a particularly onerous requirement on someone selling their property. I assume that the person selling the property would, in any event, have to engage a solicitor, and would therefore need a letter of engagement. It is not an onerous requirement in any shape or form. The Minister said that judges would have less discretion. Again, I contest that, because judges would simply have more evidence in front of them; it would not have any effect on the amount of discretion that judges have. I urge the Minister to continue considering the issue, but I can do the maths, so I am happy to withdraw the amendment.
David Simmonds
Again, I agree with the Government on this matter. A lot of residential property transactions are undertaken by licensed conveyancers rather than by solicitors. That is a much more affordable and efficient option, often done on a fixed-fee basis, and that is particularly relevant to smaller landlords. Introducing a requirement that a solicitor must be used would be unduly onerous and would inhibit the number of transactions in the market.
Matthew Pennycook
I wish to provide further reassurance to the hon. Member for Taunton and Wellington, because I fear that we are dancing on the head of a pin here. Under the provisions in the Bill, judges will have to consider evidence to justify the use of mandatory grounds 1 and 1A. When I gave evidence to the Committee, I provided examples of the types of evidence that judges may require. It is up to individual judges to ask for that evidence and to make a decision on the basis of what is put in front of them. We trust judges to do that. With regard to the hon. Gentleman’s amendment, I do not accept the idea that judges are not looking at evidence and not ensuring that the use of these grounds is properly justified. That is misplaced, so I am glad he has indicated that he will withdraw the amendment.
David Simmonds
I beg to move amendment 56, in clause 4, page 6, line 14, leave out “1A,”.
The Chair
With this it will be convenient to discuss the following:
Amendment 70, in clause 4, page 6, line 15, leave out “4A,”.
Amendment 57, in clause 4, page 6, line 16, at beginning insert “1A,”.
Amendment 71, in clause 4, page 6, line 20, after “4,” insert “4A,”.
David Simmonds
These amendments relate similarly to the issue of notice periods for grounds for sale. It is important to recognise that a very significant part of our housing supply continues to come from the private rented sector—in particular, from the buy-to-let market. Drawing on my experience as a financial adviser, one of the key issues for lenders in advancing buy-to-let mortgages arises because of the risks associated with them—in essence, people are much more likely to pay their mortgage payments on their own home than when they are borrowing to secure a home for investment purposes—so there is a risk premium, or a rating, on the mortgage interest. Consequently, a significant supply of finance is required to support the development of the buy-to-let market.
The introduction of significant restrictions on the length of notice periods will mean that when there is a default on those payments and they are not being made, it will be more difficult for the possession for the purposes of sale and the settlement of the outstanding debt to the bank to be progressed. That could have a chilling effect on the ability to secure finance and, in turn, an impact on the supply of properties available to those needing to secure a home in the private rented sector.
Once again, it is part of a broader, small “p”, philosophical and political argument. We are very much of the view that securing the maximum possible supply is very important, and we need to strike the correct balance so that we do not see a chilling effect having the unintended consequence of a reduction in supply.
Matthew Pennycook
As the hon. Gentleman has just made clear, amendments 56 and 57 seek to reduce the notice period for the selling ground 1A from four months to two months. The Government believe that the notice period for tenants being evicted through no fault of their own should be four months, to give them adequate time to find new accommodation. An eviction notice can turn a family’s life upside down, and four months means they will not be forced to move during a school term. I draw the Committee’s attention to the remarks I made previously about the changing nature of the private rented system and the fact that more older people and families now live in it compared with the situation in the late ’80s, when the system was introduced.
Selling a property is often a long-term decision that involves significant planning on the part of landlords. We do not believe that landlords are likely to need to evict tenants with only two months’ notice, given the time it takes to secure a sale. They also have the option of selling with tenants in situ.
Amendments 70 and 71 were tabled by the hon. Member for Taunton and Wellington. They would make an extreme change that would reduce the notice period for the new student ground 4A to a mere two weeks from the current four months.
The Government believe that students are just as deserving of adequate notice as other tenants. The purpose of the student ground is to try to balance security of tenure with the need to preserve the annual cycle of typical student tenancies. These amendments do not assist the ground in that purpose at all. Student landlords plan their business models long term around the academic year, and after our reforms will factor the four-month notice into their planning.
There is no circumstance where a competent student landlord would suddenly need to evict tenants in line with the academic year with only two weeks’ notice. Indeed, currently they have to give two months’ notice under section 21. The hon. Gentleman’s amendment is a retrograde step vis-à-vis the current iniquitous arrangements that we are trying to undo.
Students often lack the capital to organise a move at short notice. A two-week notice period means it is likely they are given notice to leave during the summer break when they might be working, or even during their exams. We believe that it is right that they have four months’ notice to organise their move.
I therefore ask the hon. Members not to press their amendments.
Mr Amos
Amendments 70 and 71 would align the two weeks’ notice for students in HMOs with the two weeks’ notice that the Bill provides that students would have in purpose-built student accommodation. All the points that the Minister has made in relation to the short-term notice period apply to the Bill because that is the Government’s intent in relation to purpose-built student accommodation. The amendments would simply align those properties under HMO ownership with those that are university or purpose-built student accommodation.
Landlords of HMO accommodation are likely to be smaller businesses than universities. Under the provisions in the Bill, universities would enjoy much greater flexibility on eviction than much smaller landlords, who would suffer as a result.
My concern is that there would be a reduction in the amount of student accommodation because of those very different terms on which HMO landlords would be able to let their properties to students compared with other tenants. Any reduction in the availability of supply of student accommodation, particularly in university towns, would have a serious impact on family housing, which is of course often occupied by students, much to the chagrin of residents who are looking for family homes.
It is vitally important that an unintended consequence of the Bill is not the reduction in supply of student accommodation. That is why we seek alignment with what the Bill provides for purpose-built student accommodation.
I urge the Government to consider reducing, if not to two weeks, then to two months, the grounds for eviction in other student accommodation, so that it is more closely aligned with the provisions that the Bill makes for the majority of student accommodation. I urge the Government to consider that and I will not press the amendment.
Matthew Pennycook
I will consider that matter further. To be candid with the Committee, some judgments on provisions relating to student accommodation are finely balanced. We are trying to strike a balance between giving student tenants the right level of security while maintaining that annual cyclical nature of student accommodation.
As the hon. Gentleman knows, we are treating purpose-built student accommodation differently from that of students living in the general PRS. We recognise the limited market for such accommodation. Regarding students in the general PRS, I am reluctant to accept the hon. Gentleman’s advice. Student landlords will adapt to the system and factor the four-month notice period into their business models. I am happy, however, to reflect further on the arguments he made.
David Simmonds
I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Matthew Pennycook
I beg to move amendment 1, in clause 4, page 7, line 6, at end insert—
“(5) After section 11 of the 1988 Act insert—
‘11A Possession on ground 6A: compensation of tenant
(1) This section applies where a court makes an order for possession of a dwelling-house let on an assured tenancy on Ground 6A in Schedule 2 to this Act (whether or not the order is also made on any other ground).
(2) The court may order the landlord to pay to the tenant such sum as appears sufficient as compensation for damage or loss sustained by that tenant as a result of the order for possession.
(3) In deciding whether to make an order under this section, and what compensation to order, the court must (in particular) take into account the circumstances which led to Ground 6A being available as a ground for making an order for possession (including any conduct by the tenant which caused or contributed to Ground 6A being available).’”
This gives the court power to order the landlord to pay compensation to the tenant where possession is obtained on Ground 6A (failure of premises to comply with planning requirements etc).
Matthew Pennycook
Without the threat of arbitrary section 21 evictions, tenants will be evicted only when landlords have reasonable grounds for doing so. Clause 4 amends the grounds for possession in schedule 2 of the Housing Act 1988. The grounds themselves are amended by schedule 1 of the Bill, which we will debate shortly. Most crucially, clause 4 sets out the notice periods for the grounds for possession. It extends notice periods for the main grounds where the tenant is not at fault, including where a landlord wishes to move in or sell the property.
In the current system, tenants can be evicted with as little as two months’ notice, even when they have done absolutely nothing wrong. In future, landlords will usually need to provide four months’ notice when the tenant is not at fault, such as when a landlord wants to sell or move in. Longer notice periods are critical to ensure that tenants have time to find alternative housing.
The previous Government’s Renters (Reform) Bill did not propose longer notice periods, maintaining the two months’ notice tenants face under existing section 21 arrangements. That was one of the main concerns expressed by the Opposition at the time, as well as by groups such as Shelter and Generation Rent. I am pleased to say we have addressed their concerns here. Crucially, four-month notice periods will also mean that families with children will never be forced to move during school term time when they are not at fault. That is fundamentally a matter of fairness from the Government’s point of view. Children’s education should not be disrupted simply to allow for the quicker sale of property, or to have another individual move in. Correcting that is at the heart of the Government’s opportunity mission.
The notice periods for the rent arrears ground will be increased from two weeks to four weeks. That will give vulnerable tenants who are struggling to pay their rent longer to find funds or alternative accommodation. I am confident that that will not burden landlords unfairly, and will give a little more time to tenants to find new accommodation if necessary, or to repay their arrears.
When landlords and communities are faced with antisocial behaviour, landlords will be able to make a possession claim to the court immediately. That will ensure that poor behaviour can be dealt with swiftly. That is currently only the case for the discretionary ASB ground 14, but we are expanding it to the mandatory ASB ground 7A, for which very serious behaviour must have occurred. It is a peculiar quirk of the current legislation that the discretionary ground allows landlords to take action more swiftly than the mandatory ground where tenants have committed very serious crimes. The clause would end that anomaly.
We acknowledge that permitting landlords to seek possession immediately, although appropriate, will not give tenants long to seek legal advice on their situation, or find a new home. The court will therefore not be able to make an order for possession that takes effect within 14 days from when the landlord serves notice on the tenant. In addition to notice periods, clause 4 would make provision for specific circumstances of possession. For example, the clause would ensure that superior landlords can continue possession claims made by an intermediate landlord, even after the head tenancy has expired. That will ensue that superior landlords requiring vacant possession will not have to begin a new claim when the intermediate landlord has already done so.
Finally, clause 4 would make further and consequential changes to the Housing Act 1988, to reflect wider changes made by the Bill, including the abolition of fixed-term tenancies and the introduction of new grounds for possession. That includes ensuring that protections for Case A tenants under the Agricultural Holdings Act 1986 continue in the new system.
Members of the Committee might wonder what the wording in subsection (4),
“Disapplication of conditions where notice dispensed with”,
is designed to achieve. The use of certain grounds, including ground 4A, 5G and 6, hinges on the serving of valid notice. However, section 8 of the Housing Act 1988 permits a court to dispense with a notice requirement when it is reasonable to do so. This change will ensure that the grounds continue to work when this dispensation has occurred. The changes we are making in clause 4 will give tenants more time to find a place to live while ensuring that landlords can recover possession in a timely way when they have a legitimate reason to seek possession. That will ensure that the system works as intended.
David Simmonds
The Opposition supports the vast majority of these measures. We all recognise situations where a landlord is in breach of planning regulations, resulting in a property being overcrowded and potentially being turned into an HMO without the appropriate licence and so on, which can bedevil our constituents. It seems appropriate to take these steps to raise the stakes for landlords who seek to behave in that manner and drive them out of the market.
Matthew Pennycook
I do not have much to add to what I have already said. I commend the clause to the Committee.
Amendment 1 agreed to.
Clause 4, as amended, ordered to stand part of the Bill.
Schedule 1
Changes to grounds for possession
Carla Denyer
I beg to move amendment 42, in schedule 1, page 155, line 9, leave out “1 year” and insert “2 years”.
This amendment would increase the minimum period before a landlord can use certain grounds for possession from 12 months to 2 years.
The Chair
With this it will be convenient to discuss the following:
Amendment 58, in schedule 1, page 156, leave out lines 14 to 16.
Amendment 43, in schedule 1, page 156, line 15, leave out “1 year” and insert “2 years”.
This amendment would increase the minimum period before a landlord can use certain grounds for possession from 12 months to 2 years.
Carla Denyer
The Bill rightly seeks to address the fact that tenants do not have security in their homes. Amendments 42 and 43 would amend schedule 1 to lengthen the proposed period of protection against eviction under grounds 1 and 1A from one year to two years. This would be just one measure to start to address insecurity of tenure. It is worth recalling that the King’s Speech background briefing notes explain that one of the primary aims of the Bill is to increase tenant security and stability.
Private renting does not have to be insecure. The median length of tenancy in the UK is just under three years, while the average in Germany is 11 years. Insecurity erodes renters’ sense of belonging, and constant moving has a heavy financial cost. For children who are in privately rented homes—the Minister pointed out that they make up an increasing proportion of private renters—this insecurity takes a wider toll. Each school move at a non-standard time of year reduces expected GCSE grades by 0.5. Shelter has found that 13% of tenants with children in their household said that their last house move was stressful or upsetting for their child.
The Committee will no doubt be aware that constant moving is a major problem for private renters. Research by Shelter in 2022 found that a quarter of all private renters had lived in three or more privately rented homes in the previous five years—three different homes in five years. Amendments 42 and 43 are part of an effort to urgently change the renting culture and our ideas about what is acceptable when a property is rented out as someone’s home. I hope the Minister will look at them, not least because a central aim of the Bill is about addressing the deep unfairness of private tenant insecurity.
That unfairness is a massive problem in my constituency of Bristol Central, where a huge 47% of households are in the private rented sector. It affects many people. To give just two examples, a constituent I spoke to had to move six times in six years, and another constituent literally received her notice as she was moving her possessions into her new flat. That is unacceptable. Security is vital to allow renters to put down roots in their community and plan for the future. It is clear from the evidence gathered by the Renters’ Reform Coalition that the vast majority of tenants want security and the power to decide when to move on. They do not want the anxiety, discomfort and expense of being forced to move by a distorted, malfunctioning market.
Unwanted, unexpected home moves are stressful and costly. Generation Rent estimated in its evidence that an unwanted move costs a typical two-adult renting household more than £2,000. Almost half of renters have no savings at all. Moving frequently or a short period of time after the previous move impacts tenants’ financial resilience. For many, those costs are prohibitive and will push them into homelessness, not least because finding somewhere new can often prove impossible or mean accepting dangerous, substandard accommodation. To give one example among many from my constituents, after months of searching with no luck, a constituent and her partner had to settle for a grim place with an “unshakeable smell of damp” that made almost everything she owned “fuzzy with mould”.
Competition for properties in the private rented sector is fierce. Tenants often have little time in which to find a new home and little power to influence the terms of their tenancy agreements. They often sign 12 or six-month contracts under the current regime simply because that is the only option available to them, not because they actively prefer to be protected for only one year. Many tenants would prefer long-term security in their home. The proposed two-year protected period in amendment 42, coupled with rolling tenancies, would allow tenants a combination of flexibility and security.
We should reflect that the two-year protected period I am proposing is not radical or new—far from it. It was what was initially proposed in the former Conservative Government’s 2019 consultation, “A new deal for renting”, to ensure that security of tenure for tenants would not be undermined once fixed-term tenancies come to an end. However, when legislation was eventually brought forward, that Government watered down the protected period to just six months. The current Minister, then a shadow Minister, rightly supported a two-year protected period with regards to grounds 1 and 1A in the Renters (Reform) Bill Committee.
As well understanding its history, it is important to reflect on the fact that a longer protected period has the potential to drive professionalism in the sector. As ever, good landlords have nothing to fear from this provision. A two-year measure of security at the beginning of a tenancy is needed to create a disincentive for any abuse of the exemptions to no-fault eviction, and it would be a triple win: better for renters, for the local communities they move into, and for homelessness reduction.
The Renters’ Rights Bill is a once-in-a-generation opportunity to set out clear principles for the roles of both landlord and tenant and to develop a regulatory regime that reflects and incentivises that vision. While some landlords will have to make changes to their business plans, a two-year protected period should not amount to a significant change for many landlords or interfere with their business model. In the Renters (Reform) Bill Committee, when speaking to his amendment to create a two-year protected period, the hon. Member for Greenwich and Woolwich rightly said:
“We believe that any landlord likely to use ground 1 or 1A in good faith will have some prior awareness that they or a family member may need the property for use at some point in the coming years, or that they may wish to sell it in the near future.”––[Official Report, Renters (Reform) Public Bill Committee, 21 November 2023; c. 173.]
Buy-to-let mortgages are often made available at fixed rates for two years or longer and, currently, the average tenancy in the private rented sector is longer than two years. This should not be overly disruptive, and it can provide much-needed stability for those in most need of it.
To conclude, the change to a two-year protected period would be one of the most important things the Government could implement in the Bill to more fully deliver on their ambition to decisively rebalance renting in favour of renters. The amendment seeks to understand the reasoning behind the proposal for a protected period of one year rather than two years, as was the Minister’s position previously. While 12 months is obviously an improvement on six, we can do better to improve the security of private renting, which has such a big impact on tenants’ health, wellbeing and life choices.
David Simmonds
I rise to speak to amendment 58. In general terms, I am very sympathetic to the points made by the hon. Member for Bristol Central. In comparison with the UK housing market, most European countries have a much higher degree of long-term rental as part of their housing supply. The UK has a more mixed supply with a more significant owner-occupation sector. That is a challenge for the new Government, as it was for previous Governments, as we see overall demographic change bringing us a bit more in line with the housing markets of other countries. The UK, however, still remains significantly adrift of that position, which is why I am concerned that the hon. Lady’s amendments would potentially have, as with mortgage finance, a chilling effect on supply.
Carla Denyer
Would the hon. Gentleman be able to speak slightly louder? It is difficult to hear down here.
The Chair
Was the hon. Gentleman able to hear what the hon. Member for Bristol Central said?
David Simmonds
I shall do my best. It may be that, although seeking to comply with the rule of speaking to the Chair, I need to turn around more regularly to address the Committee. The point I was making is that while we have a lot of sympathy with the points made by the hon. Member for Bristol Central, given that the changing nature of the UK rental market will result in these becoming more significant issues, we believe the issue of notice periods needs to be addressed through amendment 58.
Matthew Pennycook
As the hon. Member for Bristol Central has set out, amendments 42 and 43 seek to extend the protected period for the moving in and selling grounds to two years. Amendment 58, in contrast, seeks to remove the protected period for the selling ground entirely. We believe that the Bill strikes the right balance in this area.
The hon. Member for Bristol Central is right that during debate on the Renters (Reform) Bill, I probed the then-Government on increasing protections for tenants beyond the six months they had proposed. I did so given the relative lack of security that that Bill afforded to tenants, which we have improved on. I reflected very carefully on this point in the development of the Bill. Viewed in the context of the many strengths and protections that we have introduced to benefit tenants, I feel that a one-year protection period against the main landlord circumstances ground—this is not a general period of protection that applies to any arbitrary eviction, but is specific to grounds 1 and 1A—strikes the right balance between tenant security and ensuring that landlords can respond to genuine changes in their circumstances.
The shadow Minister highlighted the thinking that has led to me coming down to one year, instead of remaining with two. A two-year protected period for the moving and selling grounds is, I fear, too long. It would prevent landlords from being able to respond to changes in circumstances, and therefore harm confidence in the sector and risk decreasing supply. In some circumstances, landlords may only be able to let their property for a year—for example, if they temporarily moved abroad—and a longer period may therefore remove valuable supply from the market.
Most importantly, I was convinced that a one-year protected period would deter abuse from disreputable landlords seeking to circumvent the protections in place. The one-year protected period mirrors the typical one-year fixed-term tenancy. We think it strikes the right balance, but I am more than happy to give further consideration to the points made by the hon. Member for Bristol Central. I sympathise with and understand the significant costs borne by tenants from repeated moves. I understand, as I hope I have made clear in the debate so far, the need for stability and security, but we think that in this particular area, the one-year protected period is appropriate.
Carla Denyer
I thank the Minister for his response. I, too, have spent a lot of time reflecting on the potential effects of the amendment, including thinking about potential edge cases, exactly as he described.
Imagine someone who became an unintentional landlord, perhaps because after buying their home, they got seconded to another country for work for a year or two. While I recognise that it might be inconvenient for a landlord to have a two-year limit, it is also inconvenient for a tenant to have instability of tenure. If someone is, for example, seconded to work abroad for a year or two, with a fixed date of return to be back in their own property, they have to consider their responsibility to provide stable housing for their tenants. If they are not able to do that for a long enough time for the tenant not to be subjected to undue costs and effects on their health, stability, education and so on, maybe the landlord needs to look into short-term lets, rather than creating a situation where somebody believes they are making a permanent home. Say that person was going abroad for a year and a half, and the limit is two years—they might have to find somewhere else to live for a few months before moving back in. Yes, that would be an inconvenience, but we have to weigh that against the huge inconvenience for tenants who have their only home constantly disrupted and moved around.
I ask the Minister to look at this again, and to think about the edge cases, as well as where the greatest inconvenience and injustice really lies between the landlord and the tenant. I would be happy to have a chat with him. I will not press the amendment to a vote this morning.
Matthew Pennycook
I thank the hon. Lady for her further contribution. I have weighed very carefully in the balance, and looking at the Bill in the round, whether a two-year protected period would be appropriate. I concluded it would not be, taking into account those edge cases, for the following reasons.
While I sympathise with the point the hon. Lady made about the very significant costs that tenants face with moves, and while we obviously need to ensure that tenants under the new system have the requisite amount of stability and security, she too readily dismisses the potential impact on supply in the sector. It would be inconvenient for landlords; it would be inconvenient for tenants more widely if we saw a subsection of landlords that feel that they may need to use ground 1A and would not put their property on the rental market because of the possibility that they will need to use it.
As we heard in the evidence sessions, such is the acute nature of particularly hot rental markets across the country—hers will be one; mine is another—that if we lose a chunk of supply because we say to landlords, “It is too costly, too risky for you to put your property on the market if you may need to go abroad and work for a year,” that would be to the detriment of tenants in the round.
I think the one-year period strikes the right balance. It mirrors the sort of typical fixed-term, one-year tenancy. I urge the hon. Lady to go away and think about whether, in the round, with all of the protections we have introduced vis-à-vis the previous Government’s Bill, the one-year protected period does not do enough. We will not accept the amendment. I will, however, further reflect on the points she made because, as I have said, I am sympathetic to them and had weighed up two-year protected tenancies in the context of the previous Government’s Bill, but I think, looking at this Bill in the round, one year is the appropriate period.
Carla Denyer
I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Matthew Pennycook
I beg to move amendment 2, in schedule 1, page 157, leave out line 13.
This allows Ground 1B to be used to obtain possession whenever the landlord intends to grant an assured tenancy to another person (whether or not it is to be granted pursuant to a rent-to-buy agreement).
Matthew Pennycook
I will begin by discussing Government amendments 2, 3, 4, 5 and 9. Rent-to-buy tenancies help prospective homeowners to get on the housing ladder. New possession ground 1B will allow social landlords to take possession in specified circumstances, to ensure that rent-to-buy schemes can continue to function in the future assured regime. Landlords must be able to take possession in all the necessary circumstances. The amendments therefore widen ground 1B, so that landlords can simply grant another assured tenancy, without its having to be on a rent-to-buy scheme. That will ensure maximum flexibility for social landlords to meet the demands of local housing markets. However, the period of the existing rent-to-buy tenancy will need to have expired and the sitting tenant must have been offered the opportunity to purchase the property, in line with the contract. This means that it will never be a surprise for the rent-to-buy tenant if the tenancy is ended. The amendments also clarify the definition of “market rent” in possession grounds 1B and 5H, to ensure clarity and consistency.
I will now discuss Government amendments 6 to 8. New ground 6A will allow landlords to evict their tenants when eviction is necessary to comply with enforcement action. We have already debated this matter in relation to a previous Government amendment. For example, if a property were overcrowded or the landlord had received a banning order, new ground 6A would apply. The amendments ensure that the new ground also covers situations in which a tenant’s occupation needs to be brought to an end in order to comply with planning enforcement action. For example, where an industrial unit has been converted to residential use without planning permission, a local planning authority may issue an enforcement notice requiring the residential use to cease.
If planning enforcement were not included in ground 6A, there would be no guarantee that the landlord could evict the tenant in those circumstances. That would risk undermining the planning system’s ability to enforce effectively against unauthorised development. That could result in poor outcomes for residents, the community and surrounding businesses. This measure will ensure that landlords are not left in legal limbo, where the only way to comply with planning enforcement action is for a tenant to cease to occupy a dwelling, and ensures that the tenancy itself can be brought to an end appropriately. We are also bringing forward an amendment to ensure that tenants are fairly compensated when they are evicted under ground 6A, ensuring that the measures are balanced.
Amendment 2 agreed to.
Amendments made: 3, in schedule 1, page 157, leave out line 30.
This leaves the definition of “market rent” out of Ground 1B, as it is superseded by Amendment 4.
Amendment 4, in schedule 1, page 157, line 33, after “rent” insert
“(and here “rent” and “market rent” include any amount payable by way of service charge)”.
This ensures that any service charge is taken into account in both the rent and the market rent (when determining whether the rent is higher than 80% of the market rent).
Amendment 5, in schedule 1, page 165, line 18, leave out from “than” to “, and” in line 22 and insert
“80% of market rent (and here “rent” and “market rent” include any amount payable by way of service charge)”.—(Matthew Pennycook.)
This replaces the term “affordable rent” with a reference to rent that is no more than 80% of the market rent.
David Simmonds
I beg to move amendment 60, in schedule 1, page 168, line 26, at end insert—
“20A After Ground 6 insert—
“Ground 6ZA
The landlord or superior landlord who is seeking possession intends to undertake such works as are necessary to ensure that the property meets the standards set out by regulations under section 2A of the Housing Act 2004 and the intended work cannot reasonably be carried out without the tenant giving up possession of the dwelling-house because—
(a) the tenant is not willing to agree to such a variation of the terms of the tenancy as would give such access and other facilities as would permit the intended work to be carried out, or
(b) the nature of the intended work is such that no such variation is practicable, or
(c) the tenant is not willing to accept an assured tenancy of such part only of the dwelling-house (in this sub-paragraph referred to as “the reduced part”) as would leave in the possession of his landlord so much of the dwelling-house as would be reasonable to enable the intended work to be carried out and, where appropriate, as would give such access and other facilities over the reduced part as would permit the intended work to be carried out, or
(d) the nature of the intended work is such that such a tenancy is not practicable.””
I have realised, in the course of debate, that the Minister has the benefit of being a bit closer to the overhead microphones than I am, so I will do my best to direct my remarks in a skywards manner, Sir Christopher.
The amendment seeks to bring in additional grounds for possession, and it is partly on the basis of evidence that we are aware of as a Committee and which stems from the social sector, where we know that there are many examples of landlords, including local authorities, that have to go to enormous lengths to access a property to carry out basic maintenance—often, in the case of local authorities, at no cost to the tenant, who is a council tenant—and to ensure that minimum safety standards, for example gas inspections, electrical safety inspections and remedial works to deal with issues such as damp and mould, are applied. We know that there has been extensive debate and consideration of evidence in relation to Awaab’s law and the need to ensure that properties meet the decent homes standard. Therefore the aim of this proposal is to ensure, where it is necessary for a landlord to recover the property in order for those works to be carried out and the tenant does not wish to co-operate, that there is provision in the Bill to achieve that.
Matthew Pennycook
As the shadow Minister just made clear, amendment 60 would introduce a new mandatory ground for possession—6ZA—into schedule 2 of the Housing Act 1988. It would allow landlords to evict when they need to undertake works to meet the decent homes standard introduced by the Bill and those works cannot be completed without evicting the tenant. The objective that the hon. Gentleman seeks is reasonable and appropriate, but the Government do not believe that the ground is needed. I expect that the vast majority of works to meet decency requirements could be completed with the tenant in situ. Landlords may also undertake more substantial works between tenancies.
The proposed new ground is also unnecessary in the light of ground 6. The Bill’s revised ground 6 already permits a landlord to evict a tenant when they wish to undertake substantial redevelopment work that cannot be done with the tenant in situ. I am therefore reluctant to introduce a new ground that is not strictly needed, given what is in place in the Bill. However, I hope I have provided the Committee with sufficient reassurance that landlords will not be left unable to comply with the new decency requirements, as I say, in circumstances where the tenant must move out.
David Simmonds
I want to probe the Minister a bit on the point about substantial redevelopment. We are aware that to remedy issues of damp, for example, it is not uncommon for a landlord to need to remove all the plaster and potentially take out the flooring or ceiling for a lengthy period of dehumidification. Following that, extensive works would need to be undertaken to ensure that the damp does not reoccur. Those works being completed does not represent redevelopment of the property by, for example, building an extension or adding an additional floor, but leave the property substantially the same as before. It therefore does not seem to us that it would meet the test of redevelopment envisaged in the Bill.
The argument we are advancing is that in examples that may represent a significant risk to the health or safety of the tenant but the tenant does not wish to move, we need those additional grounds to be absolutely clear that that is a reasonable basis on which a landlord can seek to regain their property, so that they can carry out those works.
Matthew Pennycook
I thank the shadow Minister for that intervention, and I understand the point he makes. If it is acceptable to him, I will write to him with the technical detail about what substantial development entails. As I say, in most cases where substantial development is not taking place, works to ensure that homes come up to the new decent homes standard will be able to take place in situ. On the specific hard-edged case he mentions—that is, where the health and safety of a tenant is put at risk by the works required to take place or the conditions that the works are intended to remedy—I point him to provisions in the Bill like the extension of Awaab’s law, which will ensure that landlords have to respond to such hazards in a defined timescale and make accommodation for the tenant to move out in such circumstances. What I am reluctant to do here is to introduce a new ground that would have a substantial impact on tenants. They would have to leave the property and find new accommodation, and they might be owed a homelessness duty in those circumstances. That is a huge amount of disruption.
As I say, we think the existing provisions in the Bill do the job, but on the point he makes, which is a well-made one, as to precisely what the definition is and where the boundary lies between substantial and non-substantial redevelopment works, I will write to him with some more technical detail. I therefore ask the hon. Member to withdraw his amendment.
David Simmonds
On the basis of those assurances, I will withdraw the amendment. Clearly, we will have the opportunity to return to this debate later on. I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Amendments made: 6, in schedule 1, page 168, line 30, leave out “situations has occurred” and insert “applies”.
This changes the opening wording so that it works better with the provision which follows.
Amendment 7, in schedule 1, page 169, line 30, at end insert—
“(g) compliance with a planning enforcement notice or injunction would be, or is, incompatible with continued occupation of the dwelling-house by the tenant.”
This enables the landlord to obtain possession where planning enforcement action has been taken and compliance with that action would be incompatible with continued occupation under the tenancy.
Amendment 8, in schedule 1, page 169, line 37, at end insert—
““planning enforcement notice or injunction” means—
(a) an enforcement notice issued under section 172 or 182 of the TCPA 1990 that has taken effect,
(b) a breach of condition notice served under section 187A of the TCPA 1990,
(c) an injunction granted under section 187B of the TCPA 1990,
(d) a listed building enforcement notice issued under section 38, 45 or 46 of the P(LBCA)A 1990 that has taken effect, or
(e) an injunction granted under section 44A of the P(LBCA)A 1990;
“P(LBCA)A 1990” means the Planning (Listed Building and Conservation Areas) Act 1990;
“TCPA 1990” means the Town and Country Planning Act 1990;” .—(Matthew Pennycook.)
This defines the term “planning enforcement notice or injunction” which is used in Amendment 7.
David Simmonds
I beg to move amendment 62, in schedule 1, page 170, line 3, at end insert—
“(za) for the first unnumbered paragraph, substitute—
‘At the date of the service of the notice under section 8 of this Act relating to the proceedings for possession—’”.
The Chair
With this it will be convenient to discuss amendment 63, in schedule 1, page 170, line 6, at end insert—
“(ba) in paragraph (b), at end insert ‘and at the date of the hearing any rent is unpaid.’”
David Simmonds
Amendments 62 and 63 also deal with grounds for possession. Amendment 62 is intended to address situations where possession of a property may be required for persons on whom the landlord may rely in order to carry on living their lives, such as a carer. We heard evidence from organisations representing landlords in the more rural parts of our country on situations where grounds for possession may be necessary to enable a person with caring responsibilities to occupy the property.
Amendment 63 deals with a similar process in respect of antisocial behaviour. We have already debated the issue extensively, so I will not speak further to that amendment now.
Matthew Pennycook
Taken together, amendments 62 and 63 seek to remove the requirement for a tenant to meet the arrears threshold for mandatory eviction at the date of hearing. Instead, they would allow a tenant to be evicted only if they met the threshold at the date of the notice and had any arrears at all remaining at the date of their hearing. I am sure we all agree we should encourage tenants in financial difficulty to pay off their arrears, but we believe the amendments would act as a significant disincentive to even try to do so, as it would mandate eviction of a tenant who has done the right thing and tried to pay off their arrears.
I understand that, with the amendments, the hon. Gentleman is most likely trying to address the perceived problem of tenants gaming the system by paying off a nominal amount of arrears, placing them just below the threshold at the date of hearing, and thus frustrating a landlord’s attempt to evict the tenants. That was the rationale that underpinned new ground 8A in the previous Government’s legislation. However, this is not a problem recognised as occurring frequently, if at all, by me or by those who advise tenants going through the eviction process—in fact, it is hard to find cases of people trying to extensively game that system.
The previous Government’s solution to this problem was ground 8A, which we consider to be punitive. Similarly to these amendments, ground 8A would have punished tenants who did the right thing in trying to pay off their arrears. While we understand how frustrating rent arrears can be for landlords, we have to accept that most tenants act in good faith when trying to pay off their arrears, and they should be encouraged to do so. I hope hon. Members agree that we should encourage the right behaviour in tenants who are trying to bring down their rent arrears.
The amendments would therefore be fundamentally unfair and, most importantly, create the wrong incentives. I therefore ask the shadow Minister to withdraw amendment 62.
David Simmonds
I managed to make the dubious mistake of making the wrong points when I moved the amendment, but the Minister has brought us back to exactly the points I omitted to make. Concerns remain, particularly where there may be delays in accessing the courts to get a decision, either because of a lack of capacity—as we know, that remains a problem—or because of future resourcing issues in the new world that this Bill seeks to introduce, in which a number of routes will be open in the event of a dispute.
The Opposition remain concerned about the risk that those who wished to could seek to game the system. Most Members of Parliament will have had constituents who have been affected by tenants who failed to pay the rent. Those constituents may be accidental landlords renting out the property of a deceased relative while waiting for probate, and they may find that someone is occupying their property and perhaps sub-letting it for cash without passing that money on, leaving them in an incredibly difficult position. We want to ensure that people who behave in that way cannot continue to game the system. Having acknowledged the Minister’s points, however, I am happy to withdraw the amendment.
Matthew Pennycook
In addition to the points I made previously, I briefly draw the shadow Minister’s attention to the fact that ground 8 will remain mandatory, and discretionary grounds will also be available when arrears do not meet the mandatory threshold, such as in cases of repeated late payment. We think the courts have the necessary provisions to be able to take action on rent arrears. What we find particularly objectionable in the amendment is that it would mean that anyone with any amount of arrears at the hearing would be subject to mandatory eviction. We think that that goes too far, so I am glad that the shadow Minister has agreed to withdraw the amendment.
David Simmonds
I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
David Simmonds
I beg to move amendment 59, in schedule 1, page 170, line 13, at end insert—
“23A After Ground 8 insert—
‘Ground 8A
The landlord who is seeking possession, or, in the case of joint landlords seeking possession for at least one of them, requires the dwelling-house for the purposes of providing care to—
(a) a person under the age of 18;
(b) a person who has a disability under section 6 of the Equality Act 2010; or
(c) a person who requires personal care on the grounds of age, illness or injury.’”
I will not repeat at length the comments I made when I previously introduced amendment 59 in error. The amendment relates to the grounds for use when a landlord needs to put a carer into a property. It seeks to ensure that the required flexibility is available where the needs of a cared-for person must be put first.
Matthew Pennycook
As the shadow Minister has just made clear, amendment 59 seeks to introduce a new ground for possession into schedule 2 of the 1988 Act to allow landlords to evict tenants when they wish to use the property for the purposes of providing care. Although I appreciate the sentiment behind the shadow Minister’s proposals, I do not believe that this ground is needed. Ground 1, which is a mandatory ground, allows a landlord to move in close family members. That includes children, grandchildren, parents, grandparents and siblings. It could be used if the landlord wished to obtain possession to provide care for close family members.
This relates to a point that we have just discussed. We think that a two-year protected period might lead to such cases being prohibitive for landlords who need to make use of the grounds. We think the existing ground 1 is likely to cover the vast majority of cases of the kind that the shadow Minister seeks to help, without increasing the complexity in the system. I therefore ask him to withdraw the amendment.
David Simmonds
Each new Bill is an opportunity to consider as widely as possible the issues that our constituents may face. A property that has been adapted for occupation by someone with care needs may have been rented out by, for example, a military family who need to move to a placement abroad. They may find that they cannot access the property on their return, when it is essential that they are able to do so in order for those facilities to be available. We think it is reasonable to raise such situations.
Recognising the points that have been made, I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
David Simmonds
I beg to move amendment 61, in schedule 1, page 170, line 13, at end insert—
“23A In Ground 14, in each of paragraphs (a) and (aa), for ‘likely to cause’ substitute ‘capable of causing’”.
Amendment 61 seeks to broaden out the debate on the opportunity for a landlord to seek possession on grounds where antisocial behaviour on the part of the occupant is a factor. We have considered this quite extensively in Committee, but it is clear that it remains a significant issue in some cases. As I have said, most of us will have had experience, as constituency Members of Parliament, of matters arising from the antisocial behaviour of tenants. We will be aware of the enormous frustration, at both the landlord and the community level, at the inability to tackle that effectively under the current system. We want to ensure that those powers are as strong and as flexible as possible.
Matthew Pennycook
Amendment 61 seeks to expand the discretionary antisocial behaviour ground to include behaviour “capable” of causing nuisance or annoyance. Members may recall that this was proposed in the previous Government’s Renters (Reform) Bill. When in Opposition, we strongly opposed the change, because it had the potential to significantly reduce security of tenure and, most importantly, put vulnerable tenants at risk of eviction. I remain concerned that it would leave tenants open to eviction, even when their behaviour was not causing any problems.
A huge range of behaviours are “capable” of causing a nuisance or annoyance. I was tempted to say that some of the behaviour of my children, on occasion, is more than capable of causing nuisance or annoyance. We can all agree that such a subjective term potentially includes a huge range of behaviours, and it would not be fair for someone to lose their home on the basis of some of them. For example, a baby crying frequently is capable of causing another tenant annoyance. In those cases, and there are many others that I could cite, it would be fundamentally wrong to put a family at risk of eviction because of that. Worse still—this is a point I recall very clearly from the discussions I had with domestic violence charities at the time of the previous legislation—we heard from many organisations that represent victims of domestic abuse that sometimes such abuse can be mistaken for antisocial behaviour, because of loud noises, banging or disruption in the property next door. The amendment increases the risk that tenants in such a situation could be evicted.
I understand that the shadow Minister wants to ensure that landlords have confidence that they can evict tenants who engage in genuine antisocial behaviour. That is an honourable aim, but there are already measures in the Bill to address that, including reducing notice periods so that landlords can make a claim to the court immediately when using the antisocial behaviour grounds, as we have discussed. We have also made changes to section 9A of the Housing Act 1988 to include amendments to ensure that the court considers the particular impact of antisocial behaviour on victims living with perpetrators in HMOs, which was a specific concern raised by the sector. We will also encourage the use of mediation and other tools by ensuring that judges take into account whether a tenant has engaged with attempts to resolve their behaviour, making it easier to evict perpetrators who do not engage.
For the reasons that I have set out, we believe that lowering the threshold from “likely” to “capable of” causing nuisance or annoyance could have extremely damaging consequences, and I do not believe it is in the spirit of what the Bill is trying to achieve. I therefore ask the hon. Member to withdraw his amendment.
Mr Amos
I rise to support the Government on this issue, as Liberal Democrats did in the context of the Renters (Reform) Bill in the previous Parliament. To my mind, introducing a definition of antisocial behaviour that is simply about what is “capable” of causing annoyance and disturbance is tantamount to an authoritarian approach. When the Minister talks about crying babies, I cannot help being reminded that my own crying baby was complained about by the next-door neighbour when I was in rented accommodation. She does not cry so much now—she is 32. The very idea that anything capable of causing annoyance should be regarded as formally antisocial behaviour in law is an extreme concept, and it is an extremely good thing that this new Bill has left such thinking behind. This amendment should not be accepted.
David Simmonds
I will withdraw the amendment, because again the numbers are against me. It is important to recognise as we consider it, however, that there are examples—loud music is one—that might not within the definition of “likely” to cause nuisance or annoyance, but potentially would fall within our proposed definition.
I hope that the Minister and the Government will consider this issue. We know that a children’s party—I speak as a guilty individual in this regard—can be a very noisy occasion that generally takes place in the middle of the day for a brief period of time, whereas playing loud music for one’s own freedom of enjoyment all day and night may cause significant issues. Most of us, as Members of Parliament, have seen examples of behaviour that of itself and on an individual, case-by-case basis would not cause a nuisance, but that can cause significant upset to neighbours when repeated. That can range from the environmental impact of an activity such as servicing cars or maintaining vehicles to things such as loud music, and people can do those things at times of the day and night that are antisocial in the context in which the home is located. It is important that the Government give further consideration to the matter, but I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Amendment made: 9, in schedule 1, page 172, leave out lines 29 to 32.—(Matthew Pennycook.)
This is in consequence of Amendment 5.
Question proposed, That the schedule, as amended, be the First schedule to the Bill.
Matthew Pennycook
I beg the indulgence of the Committee to spend a little time setting out the Government’s position on this schedule, because it is a key part of the Bill. As we have discussed, the Bill reforms the grounds for possession to ensure that tenants have greater security in their homes and, importantly, that good landlords can regain a property when necessary. Without section 21 and the threat of arbitrary evictions, tenants will have that greater security in their homes. Landlords will have to use one of the defined grounds for possession in schedule 2 to the Housing Act 1988, as amended, when they need to evict a tenant. They will be able to repossess their property only when it is reasonable to do so.
Schedule 1 inserts new grounds and amends existing ones, ensuring that landlords have robust grounds for possession when there is good reason to take their property back. As we have discussed, that includes repossessing to sell, to move in or if their tenant engages in antisocial behaviour or falls into rent arrears. Although many of the grounds are broadly similar to those in the previous Government’s Bill, we have made some important changes that we believe ensure a fairer balance in the sector. There are three main types of ground: those relating to a change in the landlord’s circumstances, those to allow specialist sectors to operate and those where the tenant has not met their obligations. I will not cover each in detail here, but I will give a brief overview of some of the key provisions.
Mr Amos
I rise to ask the Minister to clarify something for my benefit, and possibly that of other people. The Liberal Democrats support the omission in paragraph 8 of the grounds for eviction for the purposes of creating holiday accommodation, but what will prevent a landlord from evicting to move in their own family, or purportedly for sale and then changing their mind and letting the property out as an Airbnb or holiday accommodation? There has been a massive rise in that type of accommodation; it is not scaremongering to suggest that there might be another increase. It is already a significant factor in the rental market, and it really hits some communities. I know we are debating this issue at a later stage, but I would be interested to hear what the Minister says about the schedule.
Matthew Pennycook
I thank the hon. Gentleman for that reasonable question. He and many others in the House have significant concerns about the impact of excessive concentrations of short-term and holiday lets in particular parts of the country. A landlord who has moved a family member back in under the mandatory grounds that he cites would not be able to re-let the property for 12 months and would be penalised if they attempted to do so. It was a three-month void period in the previous Government’s Bill, and we thought that it would not have acted as a serious disincentive. I frequently encounter landlords who can comfortably wear a three-month void because of the levels of rent that they charge, and I am sure that is the case in many other parts of the country. We think that a 12-month no re-let period will provide the necessary protection to ensure landlords are not incentivised, and do not feel able, to abuse the mandatory grounds for possession.
David Simmonds
The Minister has given a helpful and comprehensive overview of the matters that we have debated so far. Although we clearly have a different opinion about how to strike the correct balance, I accept that he is acting in good faith and, to a great degree, in line with the points previously made and the content of the Renters (Reform) Bill. The key issue we remain concerned about is the impact that all these regulations will have on supply. We all know that we have a constrained private rented sector, with areas in which significant numbers of people are chasing properties. We need to ensure that properties remain of a decent standard, at an affordable price, and in sufficiently ample supply. We have debated those concerns, and I hope that we can continue to deal with this Bill in the same co-operative and constructive spirit.
Schedule 1, as amended, agreed to.
Clause 5
Possession for anti-social behaviour: relevant factors
Question proposed, That the clause stand part of the Bill.
Matthew Pennycook
It is always better to resolve issues without resorting to eviction, but we recognise that when tenants are committing antisocial behaviour and it is impacting on neighbours, housemates and communities, it is sometimes necessary. In these cases, landlords need to have confidence that they can gain possession of their property quickly. The clause expands the matters that judges are directed to consider when deciding whether to award possession under the discretionary antisocial behaviour ground. We are making the change because we recognised landlords’ concerns about evicting antisocial tenants without section 21, and it is important that judges consider pertinent factors to ensure eviction can happen when it is right to do that.
Judges will take all relevant factors into account when determining whether to evict under these grounds, because they are discretionary, but under the current legislation, they are also guided to explicitly consider the impact of antisocial behaviour on victims. Clause 5 ensures that judges must also have regard to the question of whether the perpetrator has engaged with measures to resolve their behaviour. This will serve two purposes: making it more likely that landlords work with tenants to resolve poor behaviour, and making it easier to evict those tenants who do not engage. The change will contribute towards increasing the amount of dispute resolutions short of eviction in the private rented sector.
The clause also asks judges to give regard to the impact of antisocial behaviour on other tenants within houses of multiple occupation. Antisocial behaviour within house-shares can have a severe impact on those who live in close proximity. The clause will make it easier to evict perpetrators, which was a specific concern raised with us by a number of external stakeholders. Fellow tenants are the worst-affected victims of antisocial behaviour within HMOs, and landlords were concerned about their ability to evict perpetrators without section 21 notices. The clause ensures that courts can consider these factors.
David Simmonds
The Opposition welcome the points made in this debate. We want the following issue to be addressed. If it is expected that a dispute resolution process will be undertaken or that some form of external mediation will be accessed, there needs to be sufficient capacity to ensure that that happens in a timely manner. We do not have an example of a case in which someone who is evicted on grounds of antisocial behaviour is expected to endure a considerable period of time in order for mediation to take place, following which grounds for possession might then be sought. We need to make sure that the process is done swiftly and effectively, but we support the concept behind it.
Question put and agreed to.
Clause 5 accordingly ordered to stand part of the Bill.
Clause 6
Form of notice of proceedings for possession
Question proposed, That the clause stand part of the Bill.
Matthew Pennycook
Clause 6 provides for regulations that will allow the Secretary of State to publish the form to be used when landlords serve notice of intention to begin possession proceedings. It is crucial that the information landlords are required to provide reflects current law. This gives tenants the best opportunity to enforce their rights and seek appropriate support. The clause will allow regulations to be made so that we can update the forms at speed and respond to changing circumstances. It is a simple and straightforward clause.
Question put and agreed to.
Clause 6 accordingly ordered to stand part of the Bill.
Clause 7
Statutory procedure for increases of rent
Mr Amos
I beg to move amendment 76, in clause 7, page 8, line 31, leave out from “determination” to the end of line 36 and insert—
“(4AA) Where the rent for a particular period of the tenancy is to be greater than the rent for the previous period by virtue of a notice, determination or agreement mentioned in subsection (4A), the rent may not be greater than the rent for the previous period increased by the Bank of England Base Rate.
(4AB) Any provision relating to an assured tenancy to which this section applies is of no effect so far as it provides—
(a) that the rent for a particular period of the tenancy must or may be greater than the rent for the previous period otherwise than by virtue of a notice, determination or agreement mentioned in subsection (4A), or
(b) that the rent for a particular period of the tenancy, where greater than the rent for the previous period by virtue of a notice, determination or agreement mentioned in subsection (4A), must or may be greater than the rent for the previous period increased by the Bank of England Base Rate.”
This amendment would mean that the maximum rent increase can only be an increase in line with the Bank of England Base Rate.
Mr Amos
At the beginning of today’s sitting, the Minister and the shadow Minister asked the Committee to bear with them, because it was their first time leading the Committee stage of a Bill in their respective positions. I ask the Committee to spare a thought for the hon. Member for Bristol Central and me, as it is our first time being elected an MP, our first time in a Committee and our first time dealing with this Bill. There are a number of amendments that we would introduced but which have not yet made it through to the amendment paper.
Matthew Pennycook
The Bill will empower private rented sector tenants to challenge unreasonable rent increases. This will prevent unscrupulous landlords using rent increases to evict their tenants—a form of section 21 by the back door. Clause 7 amends section 13 of the Housing Act 1988 to achieve this. It provides that all rent increases for private landlords will take place via the existing section 13 process. That will ensure that tenants always have the right to challenge an unfair rent increase. Any rent increase outside this process, including rent review clauses, will be outlawed and invalid.
We will also give tenants longer to prepare for rent increases, with landlords having to provide two months’ notice to tenants. Landlords will still be able to raise rents in line with market rents once a year. These changes will not level the playing field for tenants if they are unable or do not feel confident to enforce their rights. That is why we are reforming how the tribunal will work. I will turn to that in clause 8.
Clause 7 exempts “relevant low-cost tenancies” from the rent-increase changes that the Bill is making. That means that current rent-increase provisions will be retained for social tenants who have an assured tenancy of social housing within the meaning of part 2 of the Housing and Regeneration Act 2008, where the landlord is a private registered provider of social housing.
As the hon. Member for Taunton and Wellington made clear, amendment 76 seeks to limit rent increases to no greater than the Bank of England base rate, and it retains provisions in the Bill that set out how rent increases can occur. I am grateful to the hon. Member for bringing this issue to the Commons. Several witnesses in evidence sessions also made the case for greater regulation of rents, and others contributed written evidence on these points. I would like to expand on the Government’s approach before turning to the detail of the amendment.
The debate around rent controls can quickly become complex regarding both the definition and the evidence available. What is agreed is that there is a broad spectrum of possible regulation, and different approaches have been tried around the world—and, indeed, within the UK. Perhaps the better question to ask is how we should regulate the private rented sector to achieve the best outcomes possible for tenants. That leads us to look at how the regulation of rents fits within the broader context of the entire system, including security of tenure, quality standards and better enforcement.
The Government have taken that wider approach by placing protections against excessive rent increases within an overarching set of reforms to the private rented sector. The interaction between security of tenure and rent regulation is therefore critical; if rents are too strictly controlled but evictions are too easy, tenants are left at the mercy of landlords’ whims, even if they pay the rent. If tenants have legal security from arbitrary eviction but there is no limit on rent increases, they can effectively be evicted by excessive economic rent hikes.
Many international comparisons can be cited. All should come with a health warning, but I think it is instructive to look at the experience of Sweden. The result of harder rent caps has seen the emergence of a huge, unregulated sub-letting market, which, in many ways, is the worst of all worlds, as it leaves the most vulnerable groups exposed to high costs and minimal protections.
The principle of some form of regulation of rents is already established in England. Rents for certain assured periodic tenancies are already subject to some form of regulation, as the tribunal system is there to prevent excessive increases, but as we heard in last week’s evidence sessions, it has been weakened to the point that it does not provide enough protection for tenants. That is why we have taken steps to strengthen the rent determination system and empower tenants.
In Scotland, we have seen over recent years the temporary introduction of stronger rent controls—rent freezes followed by rent caps. Anna Evans, who led the research into the Scottish experience, noted in her evidence last week that once rent freezes were introduced in Scotland, landlords were more inclined to increase rents when tenancies changed. Good landlords want stable and long tenancies but, when a new tenancy begins, landlords are strongly incentivised to set rents at, or close to, the cap, which may be at a higher level than they would have chosen in the absence of such regulation. We also heard, regarding new-build investment in the Scottish PRS, that there has been stagnation rather than growth over recent years.
As the hon. Member for Taunton and Wellington made clear, his amendment seeks to limit a rent increase to no greater than the Bank of England base rate, which is currently 5%. We believe that any attempt to use a simple metric on rent increases risks unintended consequences. Let us take an example: limiting rent increases to inflation might sound fair, but it would have resulted in rent rocketing when inflation spiked following the mini-Budget in 2022. I acknowledge that the hon. Member referred to the base rate, but others have argued for inflation-linked rent increases in the past, so my point is that there is always a price to be paid. That price can also be paid in the supply of new homes and the development of the build-to-rent sector, where we believe that these types of direct interventions discourage investment, limiting supply and leading to declining property standards.
Instead, our Bill works to strengthen tenants’ rights as a whole, with the ending of no-fault section 21 evictions being the key change. Our proposed changes— giving tenants the power to challenge excessive in-tenancy rent increases—are designed to fit with that increase in security of tenure. With every change to one part of this complex set of regulations, we must be mindful of the interactions with other parts, and the combined impacts on the system as whole. We believe that the Renters’ Rights Bill strikes the right balance. It introduces a series of powerful changes that will improve the PRS overall, including protections against unfair rent increases. We are confident that this will make a material difference to the lives of tenants. I therefore ask the hon. Gentleman to withdraw his amendment.
Mr Amos
I thank the Minister for his response on those points. We would argue that the current metric for market rents is actually more closely linked to inflation, and more likely to be affected by inflation, than would be the Bank of England base rate, which is obviously a separate—
Terrorism (Protection of Premises) Bill (Second sitting)
(2 days, 14 hours ago)
Public Bill CommitteesRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Chair
We come now to our fifth panel for the oral evidence session. We have until 2020. Can the assistant commissioner for specialist operations at the Metropolitan police, Matt Jukes, introduce himself to members of the panel?
Matt Jukes: Thank you very much. I am Matt Jukes and I am the assistant commissioner in the Metropolitan police responsible for our specialist operations, but I also carry a national role as the head of counter-terrorism policing, responsible for the investigation of terrorist offences across the country and for our work in protective security.
The Chair
I apologise, but I may have inadvertently given a date rather than a time. This panel lasts until 2.20 pm.
The Minister for Security (Dan Jarvis)
Q
I am conscious that some, but not all, members of the Committee have spent quite a lot of time thinking about the nature of the threat that we face. You are supremely well placed, given your experience, to talk about the nature of the threat. I know that there will be limitations on what you can say. However, it would be incredibly helpful for the Committee if, based on your extensive experience of policing, you were able to say something about the nature of the terrorist threat that we face today and how that compares with, say, 10 years ago. Can you also say something about your assessment of the legislation we are dealing with and its benefits?
Matt Jukes: Thank you very much, Minister, and I thank the Committee for the opportunity. Before I move on to the threat, I would like to acknowledge all those who have been directly affected by the reality of terrorism in the UK and particularly to remember the victims of the attacks that have given rise to the movement towards the Bill. I pay particular tribute to Figen Murray for her tireless campaigning to bring us to this point.
The terrorist threat in the UK remains substantial and across the years that I have been involved, we have moved from a situation where people once needed to travel to acquire terrorist training, methodologies and equipment to now being able to carry out that kind of research and reconnaissance and acquire terrorist knowledge from their bedrooms, increasingly driven by the internet. The most pronounced feature of our work of late has been low sophistication actors who are self-initiated. They are sometimes called lone wolves or lone actors, but are in fact often connected to small groups of individuals online and often inspired by terrorist rhetoric, which endures from decades of presence of that kind of material, now in the online space.
We see three principal forms of ideology driving radicalisation and risk. First, there is those who have been inspired by or are directly connected to organisations such as Daesh/ISIS or al-Qaeda—so-called Islamist extremist terrorism. Secondly, we have seen over recent years the growing presence of extreme right-wing terrorism in our casework. Thirdly, there is an increasing number of cases of individuals who are mixed, unclear or unstable in their ideology and who seek inspiration in the material online from a range of different sources, sometimes mixing and moving across those ideologies.
In contrast to the previous decade, where we saw the rise of the Syrian caliphate and travel overseas, in recent years we have seen less travel overseas to carry out acts of terrorism and we have worked incredibly hard internationally and in partnership to reduce the movement of terrorist foreign fighters. One consequence of that has been that all the major terrorist organisations, which seem at times very remote from the UK, speak in terms of attacks being carried out where you are—effectively, if you cannot travel, then you might consider an attack where you are—and we have seen examples of that ideology following through.
The major terrorist organisations, which have been significantly degraded since 2014 and the rise and fall of the Syrian caliphate, should be acknowledged, as the director general of MI5 has said, as being down but not out. Although I have spoken about the numerous, dispersed individuals who are inspired to act on self-initiation, we are seeing signals of growing and re-emerging sophistication in international terrorism. The most obvious instance of that was the Crocus City Hall attack in Moscow earlier this year.
I will finish by scaling all of that. I am fortunate to work with a range of partners, communities, victims and survivors. Our core teams in counter-terrorism policing are currently investigating, in 800 separate cases, thousands of individuals who have expressed some intent to pursue a terrorist cause. Every year, 6,000 to 7,000 people are added to the roster of those who have been referred into the prevention of violent extremism casework through the Prevent lens.
All of that takes us to the question of how to mitigate those threats. We mitigate them through the pursuit of those who are already on our radar effectively, working closely with MI5. We mitigate those risks by trying to get ahead of them, with the prevention of violent extremism through the Prevent programme and elements of deradicalisation. It is absolutely critical that, in the conditions I have just described, we are able to protect the potential targets of terrorism and prepare communities, businesses and society to respond when terrorist events take place.
The terrorist threat now is harder to spot and harder to stop than it has ever been. Therefore, however effective our investigations are, we have to be ready to prepare and protect the potential targets of terrorism. To do that, we think that the proposed measures in the Bill—Martyn’s law—are proportionate, and highly likely to be effective.
We enjoy extremely positive relationships with a range of sectors—they are giving evidence this afternoon—but the measures will move us forward from a mode of co-operation, encouragement and collaboration, to giving communities, customers and society the confidence that there is a base level of preparedness and protection in place in the venues captured by the Bill. While we have enjoyed those relationships, we know there is a great deal of inconsistency around the country, and we would not want to see in any sense a postcode lottery for those who deserve protection.
I will finish with a small illustration. You have probably already heard, and will continue to hear, fear and concerns about the proportionality, cost and scale of the impact of the Bill. Given the terrible events of 2017, it is worth remembering that in Borough market during the London Bridge attack, the simple act of encouraging customers to remain in a premises and locking the door saved lives. At the level of intervention that is proposed in the majority of premises, the simple preparedness of staff to take low-cost or no-cost interventions can absolutely contribute to saving lives in the UK. For that reason, counter-terrorism is full square behind the Bill.
Kirith Entwistle (Bolton North East) (Lab)
Q
Matt Jukes: The foundational incident for these conversations is the attack on Manchester Arena in May 2017. The evidence of the inquiry was clear that with a better prepared environment there, responders and those working on the premises could have changed the outcomes, whether by preventing an attack that evening, or mitigating its effects. One factor that has been discussed is that we will only capture a range of premises. We might touch on thresholds, but we might capture a range of premises and not all public spaces. One thing I felt quite confident in judging is that preparing businesses in these different tiers to be more security-minded, preparing people who work in those businesses to be more security aware and planful around the prospects of safety will raise overall the readiness of communities for attack.
Even though some of the attacks that we have seen over recent years have taken place in public spaces in open areas and would not be captured by this legislation, we might have seen trauma kits more readily accessible in adjacent premises. We might have seen people who were travelling to or from work who were more ready to play their part in responding as part of the community response to those incidents, and we might have been able to mitigate some of the risks of the spread of those attacks in the way I described in London bridge.
We know that where it has worked best, a combination of vigilance, preparedness and physical security can all play their part. We absolutely see both deterrent and mitigation of risk. Based on our experience of attacks over recent years, it would have to include those at major events. You are going to hear some more evidence about that. We know that in an enduring sense, major and public events remain a focus of terrorist planning.
Tim Roca (Macclesfield) (Lab)
Q
“displacing attacks from locations within scope of the Bill to a location out of scope”.
Do you want to comment on that? Then I will invite you to talk about thresholds, since you said that you had some thoughts on that.
Matt Jukes: Without making assumptions about terrorist intent, we know that there are some very enduring themes about attacks on public locations, major events and crowded places. Disrupting that through better protective measures or through better informed responses will remain an enduring feature, even if there is absolutely at the margins displacement. We see from our casework that there is evidence that better-protected targets sometimes do deflect terrorists to other targets or locations for their intent. We have seen some evidence of that.
The relevance of this Bill—I have already touched on it—serves to shift the whole of societal awareness in terms of vigilance and preparedness and increase protection overall. If there is displacement from one place to another, it is more likely still as a result of this—if this Bill were to pass and be enacted—that there will be a state of readiness, preparedness and deterrent in those other places. Tragically, the kinds of sectors and sites that have been in the sights of terrorists are much more susceptible to their ideology and their intent than they are to the shape of a particular Bill or legislation. Sadly, for example, places of worship will endure as a potential target.
For those who are fixated on targeting places of worship, it is more likely that they might desist from a particular attack or that that venue would be better prepared. There are examples from around the world. We have lots of practice in the UK where security at places of worship actually has saved lives. So I recognise Jonathan Hall’s reflections. Any sense of a rising tide of awareness and preparedness will serve to secure communities. I suspect that displacement is something that we can have in view and will continue to work at, but not something we should be preoccupied by. I would say, because it goes to thresholds, if I may bridge to that point, that there is an area of attention we need to apply to those places that are filled with smaller venues, but create big spaces.
If you think of the big public squares in London, they may be surrounded by premises with a capacity of 100, but overall they create spaces that are very significant and iconic. For that reason, going into the earlier evidence, we felt that the thresholds proposed previously were helpful, as they capture the scale of the premises that can be taken together. I could reel off the names of those squares; you would know which ones they are. I do not really want to give a target list to terrorists, but it is fairly obvious that there is a set of places across major cities in particular and towns where premises of 100 sit alongside each other and build up quite substantial public crowded places.
For that reason, we felt that 100 was a sensible place to start. You have to draw the line somewhere, and that felt like it. If we are to move upwards, we lose some of those premises, such as the bars, clubs and restaurants that would have been in Borough market, which might have been captured and therefore contributed to overall safety in that environment and may be missed. On thresholds, we are anxious about the effective moving further upwards and if there was any further consideration would have preferred that to move back down to where the earlier drafts had started.
Matt Bishop (Forest of Dean) (Lab)
Q
Matt Jukes: The first thing to say, as I am subject to a few watchdogs myself, is that the best performance of a watchdog is to raise overall standards and improve outcomes for the public. That might seldom be achieved by enforcement and best be achieved by the sharing of practice, the development of understanding and the support of the sectors involved. I do not have extant concerns about the investigatory and compliance powers, but I would expect a regulator and the authority that will come into that space to have their major focus on raising standards and for us all to hold compliance actions as the backstop to the cases that might be required.
I say that based on the fact that you will hear evidence from the Counter Terrorism Business Information Exchange, which we work with closely to work with sectors. We get an enormous amount of leverage from working with sector-specific experts themselves, and I expect that the regulator would want to do that, rather than investigate and enforce in any excessive way. Having said that, the absence of something that is rigorous and provides that backstop would undermine the overall effect of the Bill if it were not present.
Sonia Kumar (Dudley) (Lab)
Q
Matt Jukes: That is obviously a proposition that has come through close work by the Home Office and the consideration of others. In essence, just to land on a conclusion, I would definitely say that the SIA is well placed, having played a leading role in regulating security standards. I am into my 30th year of policing, and I can remember the quality of private security provision at night-time economy venues and all sorts of other places going back to the years before the SIA had its very important role, and there is no doubt that it has professionalised and raised standards across the security industry.
As well as the sector-specific support that we would get from networks such as CTBIE, which you will hear from, the SIA is very well placed to sit at the heart not just of this function as a regulator but of the private security industry, which in the end will play an important part in raising standards across the piece. It is a matter for Parliament in due course, and it has been a matter for the Home Office to bring forward its recommendation, but we could certainly support continuing to work in the way that we have with the SIA.
The Chair
A timely finish. I am afraid that brings us to the end of the time allotted for the Committee to ask questions. I thank our witness on behalf of the Committee.
Examination of Witnesses
Neil Sharpley, Mike Pearce and John Frost gave evidence.
The Chair
Thank you all. For this oral evidence session we have until 2.50 pm. Can the witnesses please introduce themselves for the record?
Neil Sharpley: Good afternoon, everyone. My name is Neil Sharpley. I am the chair for the Federation of Small Businesses covering Home Office and Ministry of Justice policy, and so embrace security industry and terrorism aspects as well as crime.
Mike Pearce: Good afternoon, Chair and Committee. My name is Mike Pearce. I am the director of security for Land Securities, otherwise known as Landsec. I am also chair of the Counter Terrorism Business Information Exchange.
John Frost: Good afternoon. I am John Frost, deputy chair of the Counter Terrorism Business Information Exchange. I also head up business continuity and safety at Marks & Spencer and lead the Retailers Business Continuity Association.
Dan Jarvis
Q
Neil Sharpley: The simple answer to that is yes. The comments we made previously have been taken into account. We think that for any piece of new legislation that is breaking new ground, which we of course support and our own research shows that there is a need for information to be disseminated to businesses about terrorism risk, the threshold has been set at the right level initially. We expect that it will be reviewed in due course as the Bill, or the Act when it becomes that, beds in, but we feel that the parameters have been set correctly at present.
The concerns we expressed previously were about very small venues, community venues, local societies and things of that sort. The one thing that is not touched on in the Bill, which I should perhaps mention initially, is what the role of local authorities should be in helping to achieve the aims of the Bill. We all agree that the aims are to ameliorate the risk as far as terrorism is concerned. I am sure it has been observed before that many open public areas are surrounded by a plethora of smaller businesses, many of which would never be in scope of the Bill but all of which, because of the current threat vectors, might possibly be at risk. My question to you is, should this Bill also contain some provision that requires local authorities to assess the risks of those open areas and to embark on some sort of training exercise in respect of the smaller businesses surrounding them, whether or not they fall within the scope of the Bill in terms of specific obligations? That is something that needs attention and something we have touched on a number of times before, and I think the local authority representative who gave evidence before the Bill was launched also touched on that. It seems to be an area where, especially in smaller towns and cities, a considerable amount of good work could be done to reduce the risk beyond what is currently envisaged within the Bill.
In general terms, we welcome the changes. We think the Bill will take some time to bed in. Businesses will become accustomed to the responsibilities and, in due course, those responsibilities may not be regarded in such an onerous way as they might be regarded now for any new piece of legislation. It may also be possible, with due consultation, to change the parameters, but that is a matter for the future; it is a matter for research and for data, and we need to do what is necessary to ameliorate the risk, not what is unnecessary but looks good in regulatory terms. We need to address the specific risks—the real risks—themselves, rather than create a system that does not target those risks as extensively as I think could be done.
Tim Roca
Q
John Frost: In our organisation, regardless of any capacities, we would adopt an approach across all of our locations. The rationale for that would be that, having suffered incidents of this nature in sites, stores or premises that are below the threshold that has been set out, we would feel that there would be a moral obligation, as well as the legislative obligation, to equip all of our stores. Therefore, we will have our own inspectorate across stores in the enhanced tiers, but we will ensure that our management teams are trained, engaged, educated and equipped proportionately to respond to acts of this nature in every site that we operate in.
The Chair
I call Sonia Cooper—sorry, Sonia Kumar. I’m making names and times up today! I apologise.
Sonia Kumar
Q
How do you anticipate Martyn’s law affecting customer experience, especially for small retailers who may not have visible security measures in place?
Mike Pearce: Shall I answer that?
Sonia Kumar
Yes, that is for all three of you.
Mike Pearce: If I may, can I just set out what the CTBIE does and what we are made up of? I think it is probably quite pertinent to this conversation. The CTBIE has been around for over a decade now, it was sponsored originally by MI5, and sits now within the purview of CT policing. My co-chair is the head of the National Counter Terrorism Security Office, and we have 30 very senior, well-experienced security professionals who sit around the table representing 16 sectors of the United Kingdom. Around that table also sits the SIA—the Security Industry Authority—the Home Office, HSG—the Homeland Security Group—and a number of other acronyms, supporting that group. Each of that group has subgroups. For example, the CTBIE has a hotel subgroup, where it will reach out to the other hotels or smaller bed and breakfasts, so that it is transmitting and amplifying messages both from Government into business and from business back into Government, specifically around countering terrorism.
We have been doing that for 10 years. It is completely voluntary, and these individuals have given up their time, to introduce some significant products into the public space—the “run, hide, tell” messaging and the platforms that we have, which were all developed with John’s help —supporting the Government in getting the message to the widest possible parts of the engine room that is our economy and getting it to businesses in such a way that it makes sense to them.
We expect each of those sector leads to translate the messaging that they need to give to their sectors, because although it is one message when it is received by us, it needs to be adapted to the particular sector that it is being transmitted into. That is part of the complexity of this great Bill, which we support across the CTBIE. We are absolutely for it. We have been in it from the very beginning, as an absolute supporter. CT should bring us together—countering terrorism should bring us together—but the overriding priority for us is that we transmit and get these messages to business in the most effective and efficient way we can.
Let us, at the CTBIE, do that for you. We are very good at doing it and we are very practised at doing it, and we can measure how effective that delivery is. There are, of course, many other groups, and I am not saying you should exclude anybody, but this is a group that has been running—and running very well—for the past 12 years, supporting the messages from Government around countering terrorism. However, it needs leadership. It needs leadership from sectors. It needs us to set examples for the smaller businesses. It needs us to grow confidence in the communities that we seek to protect over the coming years; that is the opportunity. I do not know whether I have answered your question.
Around every CTBIE member, there are small business groups that reach out to us. Only recently, I was in Southampton with the police and crime commissioner, talking to small businesses about how Landsec—as the owner of big shopping centres and so on—supports the smaller businesses. How can we ensure that they understand whether the legislation, when it comes into effect, will affect them? More importantly, what do they need to do now to remain safe and what do they not need to be doing? They do not need to be spending money, asking for advice on legislation that is not yet in place; that is another concern of the CTBIE. All of the necessary authority that we hold as a group is respected within business, and utilising it would be an opportunity to reach out to small businesses very effectively. Does that answer your question?
Sonia Kumar
Q
Mike Pearce: The one thing that every sector in the UK has in common is that we rely on customers to drive the economic engine. We rely on them coming back to our venues, our hotels, our shopping centres and our supermarkets. If they do not feel safe and if they do not understand what their responsibilities are in order to keep their families safe, they probably will not come back in the same numbers as before if there is a major event at one of those venues. We do not take that for granted.
For example, over 32 million people transit through Saint David’s Dewi Sant in Cardiff, a Landsec property that is right at the heart of the community. That is a huge number of people in a very vibrant city that we sit in the middle of, and the customer experience is everything to us. They understand—we hope, because we message our customers, including brand partners like John and others, as well as smaller brand partners and the general public—our expectations; for instance, they understand what we expect them to do if they see something suspicious. The “run, hide, tell” message has not gone away yet. We have seen examples at some of our sites—at Bluewater, particularly—that people will move quickly if they see a threat. That has taken years to bed into the public consciousness.
The experience for the public should be welcoming: “Come on in. You’re safe. Come and enjoy the venue. Come and enjoy the hotel. We’ll worry about security for you, mainly, but you have a responsibility, if you see something, to notify us—and working together, we will do something about it.”
Kirith Entwistle
Q
Neil Sharpley: Is that for me? Are you asking about the impact of the current threshold?
Kirith Entwistle
Yes.
Neil Sharpley: Within the standard tier, the impact might not be as much as one needs to worry about. For those smaller businesses that fall within the enhanced tier, there is a real risk that substantial costs will be incurred in compliance. One problem is that if you fall towards the bottom end of the enhanced tier, you may not be able to pass on the full costs to your customers and there may therefore be an effect on profitability. It will vary because there are an enormous variety of different types of businesses and premises, and different types of staff who need training. One size definitely does not fit all.
It is crucial that there is flexibility in how this provision is regulated. The consultation in respect of the regulatory aspects which are to follow will be quite important to establish some sensible and reasonable rules to accommodate all different types of business. That is very important. It is absolutely essential that the guidance is clear and comprehensive, and that it includes examples that are not limited to one type of business. In terms of regulation in relation to capacity, we do need clarity—we need to know whether we are looking at standing people or sitting people, and whether we are looking at theoretical maxima, or the actual experience of the number of people who are accommodated. It is not necessarily the only criteria for risk, as I have already said, but we do need to have clarity as to how it should be applied so that businesses know where they are.
In terms of other costs, if I can briefly speak to enforcement, it is absolutely essential—as with all legislation —that it is a collaborative, rather than a punitive, approach, and that it is an education-first approach. We all want businesses to be educated as to how they can ameliorate these risks.
John Frost: Just to build on the point about impact —working alongside Cabinet Office, the National Preparedness Committee, and the local authority, there is an aspiration to improve and enhance societal resilience in the UK. This legislation will do that, but how we do it is crucial. At the moment, we do not have the guidance or the understanding of the inspectorate, but if—during the grace period—we can work together on what that guidance looks and feels like, and if we can work alongside business to shape it, of course it will be better adopted. If we can understand the framework of inspection and contribute, that will give us a much greater and much better opportunity to win together, and agree a way forward that is proportionate for everybody.
If we reflect on Mr Jukes’s comments, by raising it from 100 to 200, we have excluded an enormous amount of sites—particularly on high streets, which will have no obligation to do anything, when actually they have experienced attacks in those very sites where colleagues and customers have been injured, and where we were able to respond using low-cost evacuation and lockdown procedures and grab bags. There is a missed opportunity if there is no obligation to do anything in those sites.
There is also a little bit of a question mark over training. In the standard tier it says that it will not be obligatory, but there are enough free products to have enough engagement and education for even the smallest of organisations to be equipped to proportionately respond for no cost or low cost.
The Chair
If there are no further questions, I thank the witnesses for their evidence, and we will move on to the next panel.
Examination of Witnesses
Cameron Yorston and Max Nicholls gave evidence.
The Chair
For this oral evidence session, we will have until 3.10 pm. Could the witnesses please introduce themselves for the record?
Cameron Yorston: Hello everyone, and thank you for having us. I am Cameron Yorston, a director at the Sport and Recreation Alliance.
Max Nicholls: Hi everyone—I am Max Nicholls, policy manager at the Sport and Recreation Alliance.
Dan Jarvis
Q
Secondly, we would like to get a sense of your views on the proposed changes in relation to the addition of the “reasonably practicable” standard. Again, we hope you will welcome that change. Your sense of those two changes would be very much appreciated.
Max Nicholls: I am happy to take that question. We certainly welcome the flexibility introduced by the change around capacity calculations, the ability to look at things such as historic attendance data and a wider range of measures that may impact how many people are on site. We have some sites in the sport and recreation sector that are quite large in their overall footprint, but which in reality have fairly few people in them at any one time. Previously, there was a concern that if a calculation based purely on footprint was to be introduced, lots of those premises could be drawn into the enhanced tier. We certainly welcome that change and the flexibility around how many people are on site based on the different criteria set out in the briefing note.
Cameron Yorston: The answer to the second question on the introduction of the “reasonably practicable” judgment is that we welcome it entirely. I also wanted to kick off a broader point that we, and the sector more broadly, welcome the intention of the Bill, as the gentlemen before us said. I think everyone can be supportive of the principle of trying to make venues in specific sectors more resilient across the country.
I suspect you will also have heard this throughout the day. What is missing—or rather, where we still need further clarity and guidance—is greater clarity on the practical implementation of the Bill and on how, in practice, that “reasonably practicable” judgment will apply. I am more than happy to elaborate and illustrate with specific examples of where it is not clear that the spirit and intention of the Bill, and those exclusions or measures you reference, will bite in the appropriate way. There is a risk of unintended consequences.
Sonia Kumar
Q
Max Nicholls: I will make an opening point generally on community sports venues and organisations. Across the country, we have roughly 100,000 grassroots sports clubs; as many on the Committee will be aware, these are predominantly volunteer-run, and do important work in the community to get people active and deliver community cohesion, as well as delivering all these other social benefits driven by participation in sport and physical activity.
We know that there are lots of challenges around recruiting and retaining volunteers, specifically post-covid. One common thing our members tell us is that volunteer recruitment is one of the key barriers to delivering more sport and physical activity. As Cameron alluded to, something we are keen to work with the Committee and Government on, through to the production of guidance, is supporting those volunteers in community-based organisations; we want to understand what their environment requirements are and give them as much information and guidance as possible to support them in the undertaking of their requirements.
As you say, that will look very different in different parts of the country. We represent a huge plethora of sports and recreational activities where the clubs and activities are very different. Having the flexibility to understand what is appropriate and practicable for those different organisations is important.
Cameron Yorston: To add to that briefly, and to reiterate the earlier point, we want to avoid unintended consequences. It is quite hard as at now to envisage all the specific impacts that might emerge from the legislation, given there is clearly a need for greater clarity and guidance.
The overarching point is that we do not want to impose any potentially prohibitive burdens or requirements on volunteers who are already very stretched, as that risks reducing the provision of sport, physical activity and recreation against the backdrop of the country’s wider challenges, such as issues with public health and a struggling NHS. What we do not want to do is inadvertently reduce people’s ability to participate in sport, recreation and physical activity, because there are adverse unintended consequences to that.
Kirith Entwistle
Q
Max Nicholls: There are some areas in which further guidance would be welcome. In a sporting context, we often have tournaments or events that are held in different venues every year: the Open golf tournament is held in a different golf club each year, for example. The interaction between the organiser of the event and the premises at which it is held is important not only from a responsible person perspective, but in terms of the requirements for the duration of the event and the rest of the year.
We would like to see flexibility where premises host an event that is classed as a qualifying event but are otherwise standard-tier premises for the rest of the year—where they understand their requirements under the obligations on standard-tier premises, but for the duration of the event only they must meet the enhanced requirements for a qualifying event. There is still some slight uncertainty about how that would work in practice, so we would welcome further engagement and clarification in the guidance.
A venue such as the Nottingham tennis centre hosts a one-week tournament with 5,000 people on site, but for the rest of the year it is a community facility with a couple of hundred people on site. We think that those are two different uses and should be treated as such, but we would welcome further engagement and clarification.
The Chair
As there are no further questions from Committee members, let me thank the witnesses for their evidence.
Examination of Witnesses
Kate Nicholls OBE and Mike Kill gave evidence.
The Chair
We have Kate Nicholls OBE, the chief executive of UKHospitality, in the Committee Room with us, and we are joined via Zoom by Mike Kill, the chief executive of the Night Time Industries Association. We have until 3.40 pm for this oral evidence session. Will the witnesses please introduce themselves for the record?
Kate Nicholls: I am Kate Nicholls, chief executive at UKHospitality, the national trade body for hospitality businesses right the way through from a single-site independent pub, bar, nightclub, restaurant or hotel to the largest national chains. Our membership also includes some large event venues and exhibition centres.
Mike Kill: My name is Mike Kill. I am the chief executive of the Night Time Industries Association, which represents businesses that operate in the ecosystem between 6 pm and 6 am. Broadly, we represent pubs, bars, restaurants, clubs, live music venues, events, casinos and the like that operate within that period.
Dan Jarvis
Good afternoon to you both. Thank you very much for appearing before the Committee today: you have a particularly valuable insight and we are looking forward to hearing from you.
We heard earlier from Mayor Andy Burnham, who was very positive about the impact that these measures are already having on the hospitality sector in Greater Manchester. I want to get a sense of whether that accords with your analysis of the impact of these measures on the hospitality sector nationally. It was very positive to hear the good news story from Greater Manchester, with the way it has been embraced by the hospitality businesses there, but it would be good to get your sense of whether there should be the same approach right around the country.
Kate Nicholls: I do not think anybody in the hospitality sector or the wider live music and events sector could have experienced the recent incidents we have had—not just in Manchester, but in London—and just sat back and waited for legislation to ensure that our customers, our public and, most importantly, our staff were safe. Since those events, and since the learnings coming out of the inquiry, we have been working collectively with our members to look at how we could take forward this protect duty within the context of our existing licensing regime—the Licensing Act 2003 puts on us a legal obligation to ensure we take account of public safety. As part of that, businesses in city centre locations, in particular, have worked with their local police forces and counter-terrorism to ensure that steps are already being taken to look at measures that could be encompassed within this duty.
I should also say that we are working to ensure that that is taken right down to the very smallest venues and that lessons are learned there, so that we have a basic level of security within the public realm. While Manchester is leading the way, quite unsurprisingly, we are working hard to make sure that we are doing the same thing and carrying out those lessons and delivering that in practice.
Sonia Kumar
Q
Mike Kill: With regard to the businesses that we represent—particularly some of the small and medium-sized enterprises and businesses that are slightly smaller and, as you can appreciate, on the lower tier—there is, without a doubt, a resonating concern around the cost base given the current economic climate.
A key area of concern for us, because the industry has a high turnover of staff, is that that continual training of staff within that high turnover is going to represent a level of cost. When we looked at things like the impact assessment, we felt that without a doubt, given the infrastructure, systems, processes and considerations at either level—whether on the standard or the enhanced tier—there is a concern that this will be onerous cost-wise, particularly around staffing levels. There is also concern with regard to certain shifts around things like the national living wage, which will drive that forward as well.
From the perspective of the industry, there is still a resonating concern that there will be an undue burden on small venues and community groups in particular, which, in the current economic climate, that could lead to further challenging situations. That is not to take away from the importance of safety; however, the reality is that we have to be honest about our position moving forward. So there are resonating concerns, but people are taking positive steps forward.
Just to reiterate and support Kate’s comments, there has been a very positive reaction to the Bill—it is very well supported. I believe the right action to move forward is happening across the sector as a whole at varying levels, but Manchester is without a doubt leading that, given the circumstances represented there.
Tim Roca
Q
Kate Nicholls: We do have some concerns about what is outlined around penalties. There are some gaps in the legislation. We know there will be secondary regulations and that there will be detail coming through in the guidance about the remit of the inspectors and the enforcement powers contained in the Bill, the level of fines and the powers available to people. We recognise this is a very serious situation, but there is an interrelationship between the Licensing Act, where you can have accelerated closure powers that could remove a licence entirely, and this piece of legislation, as well as the very high fines that could come through for the enhanced tier, particularly for those who are globally-based businesses. They are quite—eye-watering, shall we say?
There is a need to work with the industry. We appreciate that the Bill team and Ministers have worked with us to make some flexibility changes to the legislation as it has come through. We would also welcome the opportunity to work on this area, particularly around fines and the scaling of fines, the penalties that could be imposed, the way powers could be used, and the checks and balances around that enforcement mechanism, particularly to do with appeals and the ability to trade pending appeal, because there is a significant impact on a business if it is closed.
The Chair
Are there any other questions for the panel? I want to ensure I do not miss anybody again. If there are no further questions from Members, I thank the witnesses for their evidence.
I understand that we may be so far ahead of ourselves that not all the witnesses for the next panel are here.
Dan Jarvis
Dame Siobhain, may I propose that we change the order of the panel of witnesses, while remaining within the provisions of the programme order?
The Chair
Does anyone in the Committee object? No.
Examination of Witnesses
Jeremy Leggett gave evidence.
The Chair
For this evidence session, we have until 4.10 pm, so you could be answering questions for a very long time, Mr Leggett. Please could you introduce yourself for the record? Thank you for your flexibility.
Jeremy Leggett: It is my pleasure. My name is Jeremy Leggett. I am a policy adviser for ACRE, which stands for Action with Communities in Rural England. Would you like me to explain who we are as an organisation, Chair? We may not be familiar to many of the Committee. We are an England-wide charity that supports rural life throughout England. We do so primarily through 38 county charities, broadly one in each shire county, each of which has a village halls adviser who provides advice, support and training to the village halls within their county. Some counties have up to 100 or 150 entirely voluntarily run village halls.
I should say that ACRE, as the national body, prepares model documents such as hiring agreements that are used by the majority of village halls throughout England. With adaptation, they are frequently used in Wales, Scotland and Northern Ireland as well by our sister organisations. Because of that, I should also add that, as this is a reserved matter, we have been in touch with our sister organisations in the other UK nations about the implications of the Bill in their areas. I can reasonably confidently speak for my colleagues in Scotland. However, the situation with community buildings in Northern Ireland is somewhat different and has some particular complications. As I believe there is not an MP from Northern Ireland on the Committee, that may be something we could pick up on, or I could recommend who could be contacted there.
Tim Roca
Q
Jeremy Leggett: Yes. We welcome the threshold’s being raised, but I should go into a little bit of technical detail. When the threshold was set at 100, it would have included pretty much all the 10,000 or so village halls in England. That is largely to do with the village hall dimensions you need for short mat bowls and a badminton court, which give you a theatre-style capacity of a little over a hundred. Whether that capacity is ever used in that way is very questionable. So, certainly following the introduction of the Bill after the supplementary consultation on the standard tier, we welcomed the threshold’s being raised, but more because it took a lot of those village halls where the legislation would be most problematic out of scope. I am more than happy to go further into why it is problematic for them if you wish.
Katie Lam (Weald of Kent) (Con)
Q
Jeremy Leggett: Having sat in on the discussion this morning, I obviously have some anxieties about the possibility of the threshold being dropped back down to 100, as well as about having a power in the Bill for the Secretary of State to bring the threshold back down to 100 anyway if that is seen to be required. The village halls that responded to the supplementary consultation on the standard tier did so thinking that the limit was going to be 100. If you recall, the supplementary consultation was carried out before a redraft of the Bill was made public so, as I understand it, there was some concern that a lot of village halls and similar organisations were responding quite negatively to the consultation because they thought the limit was going to be 100. Raising the threshold has taken quite a lot of those out, but it is probably worth at least thinking about why so many volunteer-run premises were so concerned about the standard tier when the lower threshold was 100. I can go further if you would like.
Katie Lam
That would be helpful.
Jeremy Leggett: Almost all the village halls of that size in England, Scotland and Wales are run as unincorporated associations. The charity itself is not a legal entity. The responsibilities for managing the charity are held personally and severally by the trustees, of which there might be between six and 10. So all the obligations under the Bill would fall to that group of people. Although the trustees of village halls voluntarily manage the halls for the benefit of their community, they are very seldom on site when it is being hired out. Therefore, the distinction between the people responsible for the building and the people responsible for the events is very clear.
Some of the provisions in the Bill for placing the responsibility on individuals who manage the building do not fit well with the constitutional structure of most village halls, although a small number are now becoming companies limited by guarantee and so on. Once we put in place the briefing, the support, the information and training, there is absolutely no guarantee that the people who have received that will be in the building if something happens. For those reasons, if no other, we have to think quite differently about how this legislation is going to be enacted in voluntarily run organisations.
It is worth saying that many of those we spoke to who responded to the standard tier consultation quite negatively are people who freely volunteer their time and their talents to provide a facility for their community—which they do, safely, 365 days of the year, for no pay. These are volunteers within their community. On speaking to many of them, they felt it was too heavy a stick to make this a legal obligation and that, in fact, rather more carrot would have been helpful in assisting them to do what they wanted to do anyway to keep their communities safe, rather than putting them at the risk of the law instead. That is one of the main reasons why the Home Office received such a negative response from that size and type of charities and buildings when doing the supplementary standard tier consultation.
Paul Waugh (Rochdale) (Lab/Co-op)
Q
Jeremy Leggett: I have to say that we have not looked in great detail at that. We have been so concerned about the way the entire Bill will be perceived by volunteers, because of the risk of us losing a lot of village hall trustees—simply because they do not want to see this responsibility falling on them personally—that we have not looked very hard at the exact sanctions that might be placed on them if they do not do it properly.
Paul Waugh
Q
Jeremy Leggett: Indeed. It was troubling this morning to hear quite so much pressure being placed on the Committee to bring the threshold back down, because that would bring a lot of those organisations we are most concerned about back into scope.
Kirith Entwistle
Q
Jeremy Leggett: We feel that the Bill is better drafted now than the draft Bill that was consulted over last summer. As was said this morning, I think by the National Association of Local Councils, a lot of work will need to be done on the guidance and regulation process to make clear exactly how the responsibilities fall between premises’ owners and managers on the one hand and events organisers on the other. That guidance and those regulations will have to be tailored in a way that works for the situation as I have described it, with halls that are run by volunteers who are not on the premises.
Kirith Entwistle
Q
Jeremy Leggett: It is a very good question. Over the last 10 or 15 years, the standard by which voluntary, village hall, and community centre trustees have come up to the mark on things such as fire safety, food, and health and safety is remarkable. There has been quite a major change over the last 10 or 15 years. So when it comes to the physical preparedness of the building, I have absolutely no concerns about them coming up to that mark quite quickly.
I think the issue is the integration between what is physically there and the procedures and training for what people actually do when something happens. It is quite easy to talk about making a quick decision to lock in when something happens; as even a relatively small business, with a core staff who are trained to understand which way to jump when something happens, you could probably be confident of that. In the case of a village hall, the people who are on site running an event may not have had that training. Either that, or we are getting ourselves into a position where the village hall’s conditions of hire will have to say, “You are not going to be able to hire this building unless you have done that preparedness training.” That opens up a wider sweep of preparedness among other kinds of organisations, which I am not really qualified to talk about.
The Chair
Thank you. If there are no further questions, I thank the witness for his evidence and his flexibility.
Examination of Witnesses
Jon Collins and Melvin Benn gave evidence.
The Chair
Our next witnesses are Jon Collins, chief executive of LIVE, and Melvin Benn, spokesman for the Concert Promoters Association. This is now panel 10 of the oral evidence session, and we have until 4.30 pm. Could the witnesses introduce themselves for the record?
Jon Collins: My name is Jon Collins, and I am the chief executive of LIVE, which is the live music industry body in the UK. We pull together 15 different associations from across live music, including the Music Venue Trust, which represents the smallest music venues in the country, the British Association of Concert Halls, the National Arenas Association—taking us upscale—and the Association of Independent Festivals. The Concert Promoters Association, which Melvin is representing, also sits on my board, alongside representatives from artists, agents, managers and ticket retailers—right the way through.
Melvin Benn: My name is Melvin Benn, and I am the managing Director of Festival Republic. I am here today speaking on behalf of the Concert Promoters Association. Festival Republic is the largest festival producer and promoter in the UK, producing and promoting festivals such as Reading, Leeds, Latitude, Wireless and Wilderness, concert series in Gunnersbury park, Crystal Palace park and Finsbury park and so on.
Dan Jarvis
Q
Jon Collins: Thank you for those comments. We are attempting to be a critical friend to strengthen the Bill as it moves through the House. The first recognition is the role of licensing in our industry. Every one of the venues and festivals I have talked about will have a premises licence, be that for the event or for the venue. There are four objectives under that piece of legislation that relate to public safety, the prevention of crime and disorder and so on. We have concerns about how the requirements under this legislation will or will not align with the licence conditions that our venues and festivals will be operating within.
There is a risk of some potential conflict—particularly as the licensing process is often a multi-year process, where the local authority gets to understand the venue and the festival and comes back year in, year out. There will be the development of security advisory group sessions and the development of an event management plan. That is a long, well-developed process, but now an inspector could potentially visit just before the event and say, “I am not satisfied with all of this; you need to take these steps.” The first thing we would note is that there is no requirement for them to be reasonably practicable in the Bill, whereas the requirement for operators is to take reasonably practicable steps. We think an amendment that adds that expectation to the inspectorate would be useful.
Beyond that, could the guidance for this legislation be mirrored in the section 182 guidance for the Licensing Act 2003 in England and Wales, and its equivalents in other countries and regions? Could we have something in the legislation to say that a requirement from the inspectorate cannot conflict with a licence condition? If there was conflict, if something happened and we had to get into the whys and wherefores, there would potentially be legal considerations there: “Well, I was compliant with this legislation, but you’re saying I am not compliant over here.” There are some challenges there that we think can be addressed as the Bill moves forward and the guidance is created.
Chris Murray (Edinburgh East and Musselburgh) (Lab)
Q
Jon Collins: The Licensing (Scotland) Act 2005 is similar to the 2003 Act in its provisions. It could be, for example, a venue having a condition that says they will search everybody on entry. That will necessarily create a queue outside the premises, but it might be that from a counter-terrorism perspective you need to get everybody inside the premises as quickly as possible. Then you have a direct conflict, and the operator is trying to square that circle.
Melvin Benn: As Jon said, the two licensing Acts in England and Wales and in Scotland are very similar. In Scotland, particularly for outdoor events, licences are done on an annual basis, as opposed to a permanent premises licence as it is in England and Wales.
However, there is potential for conflict where a venue, an annual festival or an annual series of concerts has been in monthly meetings with safety advisory groups and has done all the preparation on the basis of the advice from the safety advisory group—who of course take advice from the local police force and the local CT SecCo, or counter-terrorism security co-ordinator, and so on—and the organisers will have their plan for the evening, or the festival, the weekend, or the next month or six months of the venue, all costed and budgeted, and then the regulator’s representative may come in and say, “I fundamentally disagree with that, and I need you to do this.” It appears that they have supreme powers. Certainly, in the way it is written, as Jon said, there is no factor of reasonableness in it, which we have to have. Parliament expects us to be reasonable in our endeavours, in our searching and so on. This does not have that factor of reasonableness, and it could cause conflict. It could be that the regulator and the safety advisory group have differences of opinion and we get caught in between, with what could be very significant financial penalties, not knowing quite which way to go.
Chris Murray
Q
Melvin Benn: The Bill certainly introduces conflict outside of the venue. Without question, it introduces conflict outside of the venue.
Venues are licensed premises, and we abide by licence conditions. That is how we survive in business. We work very hard to keep our customers safe, but we only have responsibility and jurisdiction over our licensed premises. We can have no jurisdiction or responsibility outside of the licensed premises, particularly when that is on the public highway. Once it is on the public highway, it is the responsibility of law enforcement. The Bill is actually trying to introduce a responsibility in something called “the vicinity”, which is very ill-defined—exceptionally ill-defined; we do not know what the vicinity is. Sometimes it is referred to as the grey space, but it is defined as “the vicinity” in the Bill, where we somehow have to take responsibility for safety.
We cannot undertake safety in a public space, because we have no legal right to affect what the public are doing in a public space. Actually, the British public, in the main, know that the only people that can charge them or direct them to do something different to what they are doing on a public highway are the police forces. So, if our security personnel, for example, are directing a crowd that do not want to be directed, to do something, they have every right—we have lots of video evidence of this in various locations—to stand their ground and say, “You have no right to tell us to do that—only the police can do that.”
The Bill is actually trying to tell us to do something that legally we are not allowed to do, and that is a very significant conflict. Even if the concept of vicinity was defined, we still have the problem of external to the licensed premises, which is very defined, where we have that responsibility. So there is conflict there.
Obviously, in terms of the general essence of the Bill, we are massively in support of its direction and desire; we are doing that, day in, day out. The Licensing Act is a really good basis for keeping customers safe—incredibly good. It is standing the test of time really well. This introduces conflict to that, unfortunately.
Paul Waugh
Q
Jon Collins: Our member, the Music Venue Trust, reckons that about 17% of their 800 members—so 140 or 150-odd—sit between 200 and 300. Fifty per cent. sit below 200 and the remainder above 300. There are a lot of small music venues out there. We heard talk about whether the threshold should be for the standard tier; there is an argument to move the threshold to 300, particularly for licensed premises, because all those venues already have the requirements of the Licensing Act, as Melvin put it.
The trust’s view is that, if this is introduced in a way that is integrated into operating practices under the licensing legislation, it does not need to be overly burdensome. It would actually align quite nicely with the standard operating practices, particularly if an organisation such as the MVT was able to develop sector-specific training, which it could then cascade out to its members. Part of the challenge in trying to understand the cost and implications of this legislation is that the tiers and the scope of the Bill are so broad, particularly—wandering off your question a bit—as the enhanced tier goes from 800-capacity venues up to 175,000-capacity festivals.
Melvin Benn: Some are even bigger than that, yes. As drafted, it literally ranges from 800 to an unlimited number. The largest festivals in the UK are for over 200,000 people, for example. Again, this is a complicated one, because safety applies to everyone, regardless of the size of space.
Jon and I have talked about this a little, particularly in respect of the previous witness, whom I only caught the end of, but if you are putting on an event in an unlicensed premise—a church hall, a community hall or something of that sort—and if it is for up to 499 people, you do not need a premises licence, but can apply for a temporary event notice. That is a licensing cut-off, in that sense. From 500 onwards, you need to have a premises licence. It would seem sensible for the Bill to mirror that to a certain extent, because once you get into the premises licensing, you get into safety advisory group meetings and sitting in front of local authority committees to get the premises licence to do everything properly.
There is that element of crossover that I think should be thought about a little. But there is that point that Jon makes, that you then go from 800 to 200,000 or greater. Should there be a different onus on a different event? The Reading festival, for example, is 105,000 people. Clearly, the intensity of planning and thought and so on, around a large event like that—the 105,000 people are all camping as well—is probably under greater scrutiny than, say, a 5,000 independent festival by the Association of Independent Festivals. That is somewhat under the radar to the world, in a way.
There is that discussion. We all accept, of course, that safety is paramount. As I mentioned, that is how we keep in business, in that sense. You just mentioned Andy’s example, and we work closely with all local authorities in Manchester and everywhere we go. It is a joint arm around each other, because with these events, local communities value the music spaces that they have, which are great for the local economy and so on. There is an element of partnership work with the smaller and larger venues. It is our business and it is what we do, but of course it must be partnership work. In our experience, the more partnership work there is in legislation, the more coherent and better it will be. At this point in time, it feels like the way in which it is written and planned is a little dictatorial and not in partnership. It is a little bit “you must do”, rather than “you must consider and take Government advice and so on”.
Paul Waugh
Q
Jon Collins: Most grassroots music venues operate on a 0.5% profit margin, which is not a profit margin, because the people who run those premises are not paying themselves properly. They actually subsidise, because of their passion and love for music.
Something like a bag check could actually create another type of security problem for venues like that. If they are 150 or 200-capacity premises, they might not have the conditions in which you need to search every person on entry, because of the scale of what they do. If that were imposed, there would be an additional cost because you would need to be able to staff that, but more concerningly there would be the creation of a queue outside the premises, which the Music Venue Trust has identified as creating a new risk. That may be addressing a risk that was not there in the first place. I apologise for being vague, but we are trying to pull numbers. Given that we are not entirely sure what the guidance in the final form of the Bill will say, the expectations of the inspectorate in terms of what operators should do are pretty challenging. However, if it is brought in in a way that is aligned with our licence requirements, it can be lower cost to comply.
Tim Roca
Q
Jon Collins: I think that is a by-product of the fact that we operate with licences and have partnerships with local authorities that go back decades. The variable that we do not want to introduce is for an inspector to come to a venue or festival and insert new requirements with no appeal, which they can do at the moment on the balance of probabilities, and disrupt that well-established way of working between the venue and the regulator.
On the Home Office’s costs, the difference between the low-end cost and the high-end cost for the total bill is eightfold—it is around £593 million and up to £4 billion. That tells you just how open-ended a lot of this legislation is at the moment. Trying to work out compliance costs and so on can therefore be a challenge, but the Manchester experience is common to our work with local authorities up and down the country.
Chris Murray
Q
Jon Collins: I will make one quick point before Melvin comes in. Because we operate with a licence, we are already considering counterterrorism safety and security in how we run the premises. The issue is the new variable. I do not see that there are two classes of venue; the Licensing Act takes care of that. If you are not meeting your obligations under that Act, your licence is at risk and can be removed. The fact that this can be imposed without appeal on a balance of probabilities, and disrupt what can be a decades-old relationship between the venue and the local authority, is the concern.
Melvin Benn: It is exactly as Jon said. Because there is an entertainment licence, the granter of the entertainment licence—be it a premises licence in England and Wales, or a yearly licence in Scotland, for example—has assessed that what the operator is doing is safe and makes the customer safe. In that sense, one could argue that there is no need for the legislation.
I think the industry generally would say that adding an additional safety piece about counterterrorism into the four pillars of the Licensing Act would have been a better route than creating an additional piece of legislation. We are not in charge of that, and we will go whichever way it is. We are fully supporting the direction of this. The simpler way would have been to add to what already exists, rather than to create something separate.
Tim Roca
Q
Melvin Benn: Obviously, I am speaking from the point of view of my industry. But it is an industry that is quite grown up and has an incredibly good safety record. In our view, adding to what already exists would have been in some ways a simpler route. There would then be something separate for unlicensed premises. The fact that the Bill almost ignores the existence of licensed premises is a little bit of a failure. That is where we see conflict—and we do see conflict—not with the overall aim, of course, but there are two jockeys on the horse at some points. That is where you are going to get to, and when there are two jockeys on a horse, that horse never wins. At least, I have never backed one that won.
The Chair
If there are no further questions, I thank the witnesses for their evidence.
Examination of Witness
Gary Stephen gave evidence.
The Chair
For this oral evidence session we have until 4.50 pm. I would be grateful if the witness introduced himself for the record.
Gary Stephen: My name is Gary Stephen, and I am representing the Association of University Chief Security Officers executive group. I am also the chair of the special interest group for CONTEST, and I represent members from the UK, Ireland, US, Australia, Europe and South Africa.
Tim Roca
Q
Gary Stephen: I am aware that in some parts of the security industry, the SIA has a poor reputation when it comes to the enforcement of licensed premises. But from the information provided to me, and with the creation of a separate entity within the SIA to manage the enforcement of new legislation, it is comforting. Looking at the alternatives, it seems like the most practical and logical appointment on the face of it.
Chris Murray
Q
Gary Stephen: The majority of higher education organisations will be in the enhanced tier with public protection measures. I strongly believe that most of my peers have significant experience in dealing with counter-terrorism risk assessments and security plans, and I would be disappointed if that was not already a priority for most of them in the planning and preparation of events. However, I am aware that not every organisation has an experienced security professional to manage events on campus.
With that in mind, we created the special interest group CONTEST to share best practice and signpost to our members what good looks like. Most organisations have very good relationships with local counter-terrorism security advisers, and due to specialist research being carried out on many sites, the security posture is normally of a good standard. So I would be conscious to make sure that vice-chancellors and COOs are aware of their obligation under the new legislation.
Kirith Entwistle
Q
Gary Stephen: For me, the difference between who is responsible for the premises—the organisation—and the event—the person—is clear. However, in the discussions I have had with my peers, we believe it is important that there is a clear understanding between the organisation and the event organiser about who exactly is responsible for what. We would hope that would be done by having the correct risk assessments and security plans in place and sharing them appropriately. On the face of it, it looks clear to us that the organisation is responsible for the premises and a person for the event. We are quite comfortable with that.
Tim Roca
Q
Gary Stephen: To give some context around that question, many higher education organisations are in a town and gown setting where the university is a small town in itself that is integrated into a busy part of the city. There are challenges of having multiple buildings with thousands of staff, students and tenants—elite sports clubs or teams; nightclubs, which you are referring to, which is where the GUU, the student union, comes into it; or commercial properties and theatres within the campus footprint. There could be confusion as to who is responsible for those buildings. The conversations we have had initially are that they are looking to us for guidance.
Most higher education organisations own the buildings and then lease them out to the smaller organisations. On the discussions we have had with them, the more premises around our institutions comply with the legislation, especially the smaller hospitality venues, the more protected our students and staff will be, both in and out of the academic setting. With that in mind, the original standard tier threshold of 100 people would be more beneficial for the Bill in my opinion. That would bring a lot more of those premises into scope and more venues would be prepared to deal with incidents. Does that answer your question?
The Chair
If there are no further questions from Members, I thank the witness for his evidence. We will move on to our next and final panel. Thank you very much.
Examination of Witnesses
Dan Jarvis and Debbie Bartlett gave evidence.
The Chair
We will now hear oral evidence from the Minister. For this final panel, we have until 5.10 pm. Can the witnesses please introduce themselves for the record?
Dan Jarvis: I am Dan Jarvis MP, the Security Minister.
Debbie Bartlett: I am Debbie Bartlett, Deputy Director for Protect and Prepare in the Homeland Security Group at the Home Office.
Paul Waugh
Q
Dan Jarvis: Yes, I am happy to do that. But with Dame Siobhain’s indulgence, perhaps you will let me say a few words about the sessions that we have had today. I hope that this has been a really useful opportunity for members of the Committee to hear from a range of authoritative stakeholders about the Bill. That, certainly from my perspective, has been incredibly useful in informing our collective understanding as the Bill moves forward in its passage through the House of Commons.
It would also be remiss of me not to reiterate the comments that I made earlier on about Figen Murray. I think that her contribution, and the contribution of the team that has supported her, has been outstanding and inspiring. We frankly would not be at this place without the incredible work that she has done over some time now. I think that that is worthy of recognition by the Committee this afternoon.
I also want to briefly reflect on the testimony that we heard from Assistant Commissioner Matt Jukes, because I think that that was significant. He very helpfully outlined the nature of the terrorist threat that our country faces, and it is reassuring to know that the analysis from him and his team is that the Bill is both proportionate and effective.
I was also struck by the very positive testimony that we heard from Mayor Andy Burnham on the Greater Manchester experience. I think that, for those who have had some concerns about proportionality and about the impact that this Bill could have on certain sectors of the business community—and the hospitality sector in particular—it was reassuring to hear the very positive experience from Greater Manchester.
Also, before turning to the substance of your question, Mr Waugh, I just want to reiterate the importance of the cross-party support that we have been able to build for this Bill. This is legislation that began its life in the previous Parliament under the previous Government, with important pre-legislative processes taking place. All that has been incredibly helpful in terms of informing the process and ensuring that the Bill is as fit for purpose as it possibly can be. I am very grateful to all of those who went before and for the contributions that they made.
I turn to the substance of your question; I will bring in Debbie in just a moment because she has dealt with the detail of this for longer than me. I think that the heart of your question is about issues of proportionality. I am struck by the fact that we have had a useful conversation today about where the threshold of the standard tier should lie. I am quite confident that if a decision had been taken to place that threshold in a different place, we would still have had a discussion about whether it was in the right place and whether the decision to have it at a lower level would have excluded some even smaller premises. We have to be realistic that whenever you are dealing with legislation that requires a threshold, there will always be a debate—it has been in that sense a very constructive one—about where that particular threshold sits.
We have got to where we are based on extensive consultation. There was the pre-legislative process that took place in the previous Parliament. There have been two quite extensive public consultations and a significant amount of contact with a range of different stakeholders who would be affected by the legislation. In the end, Government have to take a view about what is the most appropriate threshold and that is what we have done. We think that that is the right judgment, but clearly there is still a debate to be had around that. After significant consultation and consideration, that is where we have got to and as the Minister, I think that is the right judgment.
It is also worth making the point that other changes have been made to the legislation since the earlier iteration, not least the inclusion of the “reasonably practicable” test, as well as the points around reasonable expectation. I hope they go some considerable way to reassuring the concerns expressed about the impact the legislation would have on smaller venues and premises. Debbie, if there anything you want to add to that, you are welcome to do so.
Debbie Bartlett: In terms of reflecting on the change from 100 to 200, one of the clear voices we heard through the consultation and the pre-legislative scrutiny process was around those voluntary organisations and premises. Moving from a 100 to a 200 threshold reduces coverage of those village halls from 54% at the 100 threshold to just 13% at the 200 threshold, which feels more proportionate given some of the feedback we received through the pre-legislative and the consultation process.
Chris Murray
Q
On compliance and how you are dealing with organisations that do not comply, obviously the hope would be that as many organisations as you come across are complying and doing this kind of thinking already. We have heard about how things like licensing regimes pretty much encourage a lot of organisations to do compliance. Can you talk about why you have set the threshold for non-compliance at that maximum and what the process was in deciding that?
Debbie Bartlett: In setting out the compliance and sanctions regime, the decision was taken—looking at the heart of the Bill, which is proportionality—to have a primarily civil sanctions regime in place. The key role for the regulator, as has been discussed today, is around educating, bringing people up to standard and improving protective security and organisational preparedness across the country. Obviously, to enable that regime to have teeth, there needs to be some kind of compliance and sanctions regime in place. The sanctions regime allows for flexibility. We have heard from significant witnesses today that this cannot be about one size fits all. We are talking about an extensive number of sectors with different operating models, different ways of working, different staff ratios and so on. There has to be flexibility in all parts of the Bill, including compliance.
Setting the compliance regime where we have, at the £10,000 maximum for the standard tier and the £18 million or 5% of worldwide revenue for the enhanced tier, mirrors some regulatory regimes in this space, so it is not unheard of. It also gives us the flexibility because when you consider the enhanced regime in particular, you are looking at venues that could go from 800-person capacity right through to 100,000-person capacity. That is quite unique in terms of what their revenue structures and so on will be in terms of how they will differ.
The regulator will have the ability to consider what is best when thinking about compliance and what can be imposed on a venue or an event. One of the things that they can take into consideration is the ability of the responsible person to pay the revenue costs. That will have to be considered. It is about giving us maximum flexibility because, as we have said, one of the challenges around this legislation is the uniqueness and the number of venues and the number of operating models that we are trying to consider.
Kirith Entwistle
Q
Dan Jarvis: Yes, we are confident that there will be enough time. Following Royal Assent, we expect the implementation period to be at least 24 months, and given the extensive consultation with stakeholders that has already taken place, that is very much a live process. It is not a process that will come to an end; it will continue throughout.
Having looked at this very carefully, the Home Secretary is particularly keen to ensure that we have an implementation period that will allow ample time for those businesses that will be affected to prepare properly. Yes, we are confident that all of the relevant safeguards are in place, but it is important that we continue to engage with businesses and other stakeholders.
That has been a productive process. As I have said, there have been two public consultations and I think there have been more than 100 stakeholder engagement events, with hundreds of businesses being engaged throughout that process. That will continue and we will make sure that all those businesses have the information that they require to implement the legislation.
Katie Lam
Q
Debbie Bartlett: To clarify how we are treating places of worship within the legislation, they are being treated slightly differently. Regardless of their capacity, if they are over the 200 limit, regardless of whether they are over 800 or not, they will all be considered within the standard tier. That is to reflect the unique role that faith communities play in society.
In terms of “from time to time”, how we are calculating capacity within the legislation goes back again to the point about making it slightly more proportionate and more venue-specific. Venues themselves will have to consider the greatest number of people reasonably expected to be present at the same time. It is about that word, “expected”. If they know that there will be more than 200 people expected at their venue at one time, they will be caught within that.
Where “from time to time” comes from is if there is an unexpected event, which unexpectedly has 200 people, which could not have been considered beforehand. There will not be any sort of automatic “You will now be in enhanced tier”—sorry, the standard tier—or you will not jump to the enhanced tier from time to time. So it is about the expected. If you expect more than 200 people, then you will be in scope of the legislation.
Tim Roca
Q
Debbie Bartlett: Again, that goes back to the proportionality aspect of the legislation and what we are actually asking of standard-tier premises. For standard-tier premises what the Bill requires is around putting in place protective security procedures. It is not asking as much as it is of enhanced-tier premises. We did not feel that it was appropriate to put in place restriction notices that could be conceived of as being more burdensome for those smaller businesses and smaller premises.
Chris Murray
Q
Dan Jarvis: Let me pick up on the first bit of your question, then I will hand over to Debbie for the second bit. Clearly, this is an important role for the regulator, and there has been an ongoing debate for some time about how best to provide that regulatory authority. A number of options were considered by both the previous Government and this Government, and there were other ways of providing that regulatory authority. Clearly, we were mindful of the Cabinet Office guidance about how best to proceed in terms of the creation of new regulatory authorities, which is not recommended. We looked carefully at the current role and responsibility of the SIA, and the judgment taken was that it has or will have the necessary experience and skillset to provide that regulatory function. This is an important role, and Ministers will ultimately be accountable to Parliament for the performance of the regulator.
This is an important piece of regulation that does require that regulatory function. We as Ministers clearly wanted to satisfy ourselves that that is the most appropriate solution. Clearly, we have to consider other factors as well, such as cost. Having considered all those factors and looked clearly at the capacity and capability within the SIA, the judgment was made that it is the most appropriate body to take on this regulatory function, but it is important to say that clearly there will be ministerial oversight over that process. Ministers will be accountable to Parliament for the performance of the regulator, and this is a crucial part of the legislation.
I have to say that the feedback has been largely positive about the decision. There was a period of time initially when there was not clarity about the regulatory functions and who would provide that particular arms’-length-body regulatory function. The Government took the decision that the SIA was best placed to do that, and we think that that is the right solution.
Debbie Bartlett: We are absolutely alive to the fact that the SIA will have to align and work closely with a number of regulatory bodies, including those responsible for fire safety, licensing—as we heard from the gentleman before us—and health and safety, and with our other operational partners in this space, including the police, and industry themselves. There will be a lot of work to ensure that those regimes are complementary. We heard clearly from the gentleman about the concern of duplication. I do not think that is the case; it is actually about aligning. The licence regime is limited. That is why we felt this legislation was necessary over and above what is already out there.
Many of our venues and premises are already be aligned to things like health and safety and fire safety. Where possible, we have sought in the legislation to try to align and complement as much as possible. What we are asking of people should not be a huge surprise in terms of what has already been asked under those other regimes. They absolutely will have to align and, indeed, within the legislation, we are giving the SIA the powers to share information with other bodies as necessary in the delivery of their duties and those of other public bodies.
Katie Lam
Q
Debbie Bartlett: That is correct. As long as you do not expect to have more than 190 individuals at your premises, you will not be considered in scope of the standard tier. Obviously, the regulator—the SIA—will have the powers to seek information that will justify some of that decision making. For some, and we have set this out in fact sheets, depending on how you justify that decision, it could be historical attendance data or your fire safety capacity data—it depends what you use—you will then have to present to justify that decision making.
The Chair
If there are no further questions from Members, I thank the Minister and Ms Bartlett for their evidence. That brings us to the end of today’s session. The Committee will meet again at 11.30 am on Thursday to commence line-by-line consideration of the Bill.
Ordered, That further consideration be now adjourned. —(Keir Mather.)
Renters' Rights Bill (Fourth sitting)
Tuesday 29th October 2024
(2 days, 14 hours ago)
Public Bill CommitteesRead Full debate Renters' Rights Bill 2024-26 View all Renters' Rights Bill 2024-26 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: Public Bill Committee Amendments as at 29 October 2024 - (29 Oct 2024)
Mr Gideon Amos (Taunton and Wellington) (LD)
It is a pleasure to serve under your chairmanship, Dame Caroline—as it was to serve under Sir Christopher’s chairmanship until I was somewhat surprised to be interrupted by the clock. But it reminded me to get a very good lunch, including excellent apple crumble.
As I was saying, the logic of the amendment is to attach the maximum rent increase to the Bank of England base rate. We do not accept that that is capping in any other way than in the Bill, which would cap the rent increase at what is considered the market rent through recourse to the courts. In the same way, our application of the amendment would limit it to the Bank of England base rate, which is, as I said, a much better measure of the costs that landlords actually face than market rents, which are susceptible to the effects of price inflation.
Rachel Blake (Cities of London and Westminster) (Lab/Co-op)
Does the hon. Member agree that further work might come through on the way the tribunal operates and how it could operate in future under the Bill, and that the changes to how the tribunal functions might help to deal with the issues addressed by the amendment?
Mr Amos
I would be delighted if that were the case. We would welcome anything that reduced the risk of extremely steep rent increases for tenants—I think Members on both sides of the Committee would want to see that. This amendment would limit increases to the Bank of England base rate. I stress that this would apply to within-tenancy increases only. However, I accept the points that the Government have made and I am willing to withdraw the amendment.
The Minister for Housing and Planning (Matthew Pennycook)
It is a pleasure to serve with you in the Chair, Dame Caroline. I just thought I would offer a few more thoughts to try to further reassure the hon. Gentleman. As I made clear, we absolutely share his objective of limiting unreasonable within-tenancy rent increases, not least given the potential for that type of rent hike to act as an effective section 21 by the back door. On his specific point, the Government’s view is that linking rents to the Bank of England’s base rate would constitute a form of rent control. We may have a principled disagreement about whether rent controls are appropriate, but we are not convinced that they should be introduced, given the risks that I have set out.
I thought it would be helpful to touch on how the tribunal determines market rents, because I got the sense from the hon. Gentleman previously that he expected the tribunal to look purely at advertised rents. The tribunal has a high degree of expertise. It is composed of judges and industry experts. To determine the market rate, the first-tier tribunal can consider a wide range of evidence, such as the price of similar properties being advertised online, as he said, and also evidence submitted from both parties justifying or arguing against the rent increase. This could include statistics on changes to local rents and examples of the rent achieved by other properties—for example, the rent that neighbours are paying. The tribunal will be able to use its local expertise, including visiting a property if necessary. We think that the tribunal has the necessary expertise and understanding to take into account different factors that are forming market rates and to determine whether the rent that is being proposed reflects that.
To touch on the point made by my hon. Friend the Member for Cities of London and Westminster, the Government are exploring whether the database could play a role in providing data on rents. That would be in addition to data about the ownership and standard of private rented sector properties. We are considering the feasibility of recording a wider range of data to support more informed rental experiences.
Our approach will take into account the balance of benefits and burdens for different users, and we will look at how data can best be collected to minimise requirements for private landlords to submit information. We will stipulate those requirements in the regulations, but I hope that that gives the hon. Gentleman a bit more reassurance that the tribunal is not simply looking at advertised rents in making its determinations.
David Simmonds (Ruislip, Northwood and Pinner) (Con)
It is a pleasure to serve under your chairmanship this afternoon, Dame Caroline. The Opposition agree with the Government’s position on amendment 76. It is clear that interest rates set by the Bank of England are not a suitable proxy or measure to be used when setting a reasonable level of rent. If we look at examples in recent history, we see that we have gone through a period of sustained very low interest rates, followed by a rise prompted by the decision of the United States Federal Reserve, which sets the baseline for the rest of the world, to raise interest rates, so they sit at today’s present rate. Of course, inflation throughout that period was very much determined by Russia’s invasion of Ukraine and the consequent increase in energy costs in particular, and also in basic foodstuffs. All those things do not amount to an effective basket of measures that can be used. What the Minister has said on that point is important.
Mr Amos
Would the hon. Gentleman accept that the main costs landlords face are not from the price of goods in the shops, but the price of borrowing—the price of the loans with which they have acquired their properties—and, therefore, it is about the logic of the increasing costs to landlords being passed on through a relationship to the base rate of interest?
David Simmonds
No, I do not entirely accept that. For a start, we need to recognise that the costs landlords face when looking at purchasing a property will be based on the commercial cost of borrowing, rather than the Bank of England base rate. A landlord who is considering, for example, refurbishment or investment in a property is considering the rising cost of maintenance and servicing the property to the appropriate standard. The costs driving that, and the inflation behind them, are related not to the Bank of England base rate, but to what is going on in the market for those particular goods and services. It is important that we recognise that.
I hope the Government will acknowledge that it is particularly important to recognise that bringing in investment to create more private rented homes depends on the build to rent sector and on investors, including investment funds, that may specifically choose to come to this market on the basis of a reasonable, if modest, rate of return. If the investors considering creating new homes are deterred because the Government are fixing the available return on rent at a low level compared with alternative investments, that will lead to an exodus of investment from the private rented sector, which will be deeply harmful to the needs of renters.
David Simmonds
I beg to move amendment 52, in clause 8, page 11, line 38, leave out from “date” to end of the line and insert—
“of the application under section 14(A1)”.
The Chair
With this it will be convenient to discuss the following:
Amendment 50, in clause 8, page 11, line 39, leave out from “is” to “the tenancy rent” in line 2 on page 12.
Amendment 53, in clause 8, page 12, line 24, leave out from “13A(2)” to the end of line 32 and insert—
“or
(b) a date that the appropriate tribunal directs, if it appears to the tribunal that applying paragraph (a) would cause undue hardship to the tenant.”
Amendment 51, in clause 8, page 12, line 35, leave out from “is” to “the proposed rent” in line 37.
David Simmonds
The amendments relate to the role of the tribunal and the tribunal process. One of the concerns that was extensively aired in debate, and about which we have heard a great deal of evidence, is the impact of a process whereby from a tenant’s point of view, going to tribunal is a no-lose situation because the only possible decision the tribunal can take is to reduce the rent they would pay. That would mean that it would essentially always be in the tenant’s interests to go to the tribunal, because it would at worst defer the point at which any higher rent took effect. We have very significant concerns about the tribunal’s capacity to absorb that level of work and about the fact that to be fair to landlords as well, we should not have a situation where a tribunal can operate in only one direction. By proposing these amendments, we seek to make it possible for changes in rent to be backdated.
Jerome Mayhew (Broadland and Fakenham) (Con)
We are talking about perverse incentives here. One way to tackle that would be through a costs regime associated with the tribunal. Is it my hon. Friend’s understanding that the current intention is that there would be no adverse costs orders awarded against a tenant, should they go through a tribunal process and not be successful in reducing the level of rent?
David Simmonds
My hon. Friend raises an extremely good point. As he outlined, this is very much about perverse incentives. We do not want to create a situation in the market where it is always in the interests of the tenant to push this to the tribunal. We need to make sure that that point is effectively addressed, and the amendments seek to do that.
Matthew Pennycook
Clause 8 amends section 14 of the Housing Act 1988, and the amended sections set out the circumstances in which a tenant can submit an application to the tribunal to challenge the rent amount either in the first six months of a tenancy or following a section 13 rent increase notice. Amendments 50 to 53 seek to alter the process for challenging initial rents and rent increases at the tribunal.
I must stress that, in the first instance, under this new system, the Government strongly encourage landlords and tenants to communicate early about what adjustments to rent are sustainable for both parties. Where an agreement cannot be reached, the Government are clear that tenants should submit an application to the tribunal only where they believe that a rent increase is above market rates. Such rises may represent an attempt by the landlord to exploit a tenant who simply wishes to remain in their home, or they may be an underhanded attempt to remove a tenant without pursuing the very clear possession grounds laid out in schedule 1. That is why we think clause 8 is so important.
Jerome Mayhew
I understand that the Government’s intention is that tenants should not go to the tribunal unless they are clear that the asked-for rent is too high, but what prevents them from gaming the system, as we discussed?
Matthew Pennycook
What I would say to the hon. Gentleman—I will expand upon my argument in due course—is that I think he underestimates how difficult it is to take a case to the tribunal. That is why we are seeing such low numbers of tenants going to the tribunal. It is an onerous process; we need to provide support and guidance about how to do it. I do not take his point that we will see a flood of tenants taking rent increase cases to tribunal.
To be very clear—I have said this on previous occasions—the Government want more tenants to take their cases to tribunal. We think the tribunal has an important role to play in setting the effective market rate for any given area, so we want to see a proportionate number of cases go through it—we obviously do not want to see it overwhelmed. However, I think the hon. Gentleman underestimates the onerous nature of taking a case to tribunal. It will not be as simple as the tenant deciding on a whim one day that they can do that, and that it is a no-lose situation, but I recognise the incentives at play on both sides. I will expand upon what I mean and why we have come to this decision in relation to this particular clause.
The shadow Minister proposes in his amendments that rent increases, where they are challenged at the tribunal, should be backdated to the date the landlord first proposed. That would mean tenants possibly facing significant arrears immediately after the tribunal hearing. That is an incentive in the other direction, which we fear would, if introduced, see no tenants taking their case to tribunal. We have just had an extensive discussion about the need to address the affordability pressures to ensure that landlords are not exploiting the system with large, completely unreasonable within-tenancy increases. We have to take that into account as well.
Tenants should not be thrust into debt simply for enforcing their rights. As such, the Bill proposes that rent increases should apply only at the beginning of the next period after the tribunal determination, or up to two months later, in limited cases of undue hardship.
Matthew Pennycook
If the hon. Gentleman would allow me to develop my argument after his intervention, I am sure I will get to his points.
Jerome Mayhew
I am grateful—I am not intervening for the sake of it; there is an important point here. The Minister says that it would be unfair on the tenant to have a significant increase in rent and a backlog after the determination of the tribunal, but that is rent that ought properly to have belonged to the landlord and has been unjustifiably denied them for the period of the process. Why is it fair for the landlord to be denied a just rent as a result of the delay in the process, yet it is for some reason not fair for the tenant?
Matthew Pennycook
I completely understand the hon. Gentleman’s point, but let me give him a bit more insight into my thinking. I recognise his point that there are incentives that operate in both directions. There is no wholly perfect, win-win solution. We have taken this decision partly because it was in our manifesto to protect renters from unreasonable within-tenancy rent rises, and also because we believe that landlords will adjust around the point in the annual cycle when they serve the section 13 notice to account for the period of time it will take for the tribunal to make a determination.
The hon. Gentleman is right that if the tribunal determines that the rent increase is reasonable, a landlord may have missed out on a short period of the rent increase—not the whole rent, but the rent increase. We want to bring down the time of tribunal determinations so that it is a very short process. I will be very clear about this: we took the view that it was better that tenants were not, by facing the prospect of significant arrears, disincentivised from taking any cases to tribunal to challenge what could be, on a number of occasions, completely unreasonable within-tenancy rent increases. We felt that that is of more benefit than ensuring that they would face significant arrears at every point, which would be too harmful to their ability to challenge, given that we have not introduced rent controls—rent stabilisation—of the kind that other parties are calling for. To address the hon. Gentleman’s point specifically, my expectation is that landlords will adjust around the point that the section 13 notice is served.
The whole system should operate in a way that, hopefully, incentivises landlords not to propose unreasonable rent hikes that might be challenged. There is a clear incentive for landlords and tenants to come to an agreement—we know this will happen in a good number of cases—on what a sustainable rent increase is that reflects the market conditions. The hon. Gentleman is more than welcome to intervene on me again if he wants, but I will just develop my argument a bit further in relation to some of the amendments.
The shadow Minister proposes that a tribunal should be able to increase the rent above the current rent payable if the rent is challenged in the first six months of the tenancy and, where a later rent increase is challenged, that the tribunal should be able to set the rent higher than what the landlord asked for. We believe that these amendments would exacerbate the worry that tenants already face in going to a tribunal to challenge their landlord. Tenants will not challenge rents if they risk being in an even worse position following a tribunal ruling. That is the sort of perverse incentive that we believe would pertain on the part of tenants if the amendment was taken forward.
As a slight challenge to Conservative Members opposite, the shadow Minister and the hon. Member for Broadland and Fakenham, their party once recognised this point. The proposed approach in the previous Government’s White Paper, “A fairer private rented sector”, is the one that we have taken in this Bill—namely, that the tribunal cannot increase the rent beyond what the landlord asked for. It is slightly disappointing to see hon. Members rescind that previous approach, which we think is appropriate.
The Bill encourages tenants to engage with the tribunal when they have legitimate concerns. By reinforcing the rights of tenants to do so, we are disincentivising the minority of landlords who may be tempted to hike rents beyond what is reasonable. The shadow Minister’s amendments not only remove these important measures but put tenants at real risk of losing their home, undermining security of tenure, which is obviously a key principle of the Bill. I therefore ask the shadow Minister to withdraw his amendment.
David Simmonds
I am grateful to the Minister for talking through the Government’s thinking, and for his points about the debates on the previous Bill. The Opposition remain concerned that the envisaged process, whereby there will be an online application for a modest fee, will make it almost invariably in the interest of the tenant to challenge, because there is no negative outcome for them regardless. A great deal will rest on an issue we will deal with later on: the capacity of tribunals to make decisions quickly. I am mindful, however, of the numbers on the Committee, so I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
David Simmonds
I beg to move amendment 47, in clause 8, page 13, line 6, at end insert—
“(12) The Secretary of State must—
(a) conduct a review of—
(i) the impact of this section on the tribunals responsible for the determination of rent, and
(ii) the ability of tribunals to manage an increase in applications for a review of a proposed rent increase; and
(b) consult with the Competition and Markets Authority on any measures necessary to ensure that tribunals are able to assess market rents without having a distorting effect on the market.
(13) The Secretary of State must lay the review made under subsection (12) and the Government’s response to the review before Parliament.”
The Chair
With this it will be convenient to discuss the following:
Amendment 75, in clause 8, page 13, line 6, at end insert—
“(12) The Secretary of State must consult on—
(a) the adequacy of the existing resources of the tribunals responsible for the determination of rent;
(b) the need of the tribunals for further resources to manage an increase in applications for a review of a proposed rent increase.”
This amendment would require the Secretary of State to consult on whether tribunals responsible for the determination of rents are appropriately resourced to manage any additional workload arising from this Bill.
Clause stand part.
Amendment 46, in clause 142, page 150, line 26, leave out from “subject to” to end of line 27 and insert—
“—
(a) the publication of a review under section 8 on the impact of that section on the tribunals responsible for the determination of rent; and
(b) subsections (2) to (6).”
David Simmonds
Amendment 47 relates to an issue that was briefly aired in the previous debate: the capacity and ability of tribunals to deal effectively with the workload that is likely to come their way once the Bill has made its passage through Parliament.
I understand that for a new Government there is a great deal of desire to bring forward legislation to address things that may be manifesto issues, but there has also been criticism of the risk. We have seen a lack of impact assessments that would enable us as Members of Parliament to consider properly the likely impacts of the legislation, and what resources will be required to mitigate those impacts. That issue ran through the previous debate on the ability of tribunals to make timely and efficient decisions so that both landlords and tenants are treated justly. It will also run through other debates, such as that on local authorities’ capacity to enforce effectively so that both tenants’ and landlords’ rights are protected in practice, notwithstanding what the legislation says.
Amendment 47 is designed to address the issue and ensure that the Competition and Markets Authority, which has a much wider remit in looking at how regulators and markets interact, can examine this issue and, having considered the impact of the legislation, provide us with some evidence that would then inform our thinking about the timing and operation of these facets of the Bill.
Matthew Pennycook
Before I speak to clause 8 and respond to the amendments, it might be worth my making it clear to the shadow Minister that the Government submitted an impact assessment for the Bill to the Regulatory Policy Committee on 16 September 2024, and we will publish that in due course. In line with usual practice, the Government will always consider the impact of any policies when taking legislation through Parliament.
As I set out in the debate on the previous group of amendments, clause 8 amends section 14 of the Housing Act 1988. It stipulates when a tenant can submit an application to the first-tier tribunal. They may do so to challenge the rent amount in the first six months of a tenancy or following a section 13 rent increase. When a tenant brings an application to the tribunal, the tribunal will both assess what the landlord could expect to receive if the property was re-let on the open market and determine the rent. The tribunal has, as I have noted, experts who are experienced in understanding the different factors that influence the market rate, which include the rent for similar properties in the area, the quality of fixings or the proximity to amenities.
For too long tenants have feared challenging a rent increase at the first-tier tribunal. We will end that by ensuring that the tenant will not pay more than what the landlord asks for following a tribunal determination. We are going further: we will end the practice of backdating rent increases, to stop tenants being thrust into debt. To protect the most vulnerable tenants, in cases of undue hardship the tribunal will be able to delay the start of the rent increase for up to two months from the date of determination. That puts tenants in a stronger position to challenge rents through the first-tier tribunal.
It is important to note that tenants are often scared to engage with the judicial process, so we hope that the measures I have outlined will give them more confidence to do so. Although we anticipate that there will be an increase in cases, we do not accept the frankly scaremongering assertions we have heard about the tribunal being completely overwhelmed, or about tenants risking a deterioration in the critical relationship with their landlord by challenging every single rent increase that is given to them. Nor did we hear, when they gave evidence to the Committee last week, that the groups that support tenants would recommend such action. Engaging the tribunal requires effort and time, and we believe that tenants will do so only where they have legitimate concerns, such as when a within-tenancy rent increase is unreasonable. We will continue to work with the Ministry of Justice, His Majesty’s Courts and Tribunals Service and the judiciary to ensure that the tribunal has the capacity to deal with any increase in cases.
Taken together with the measures in clause 7, the provisions in clause 8 will ensure that tenants always have a right of appeal and will prevent rent increases from being used to evict them. Rent increases outside the statutory process, such as in rent review clauses, will be outlawed. We believe the measures will ensure that all parties are clearer on their rights and responsibilities and will empower private rented sector tenants to challenge unreasonable rent increases.
Amendment 46 is drafted to prevent the Bill from coming into force until a review is published on the impact of clause 8 on the tribunals responsible for the determination of rent. The review would be provided for by amendment 47. The Government are committed to ending the scourge of section 21 as quickly as possible and have also committed to empowering private rented sector tenants to challenge unreasonable rent increases, thereby stopping unscrupulous landlords from using them as a back-door means of eviction. The sector has waited far too long for these changes, so we will not tie implementation to any arbitrary requirements, as the previous Government determined to do in the previous Parliament. As I said, we are working closely with the Ministry of Justice and HMTCS to make sure that the justice system is prepared for any changes to case load and the procedures that will be required for our reforms.
Amendment 47 would introduce a legal requirement for the Government to publish a review of the impact of the reforms to rents in clause 8 on tribunals and their ability to manage any increase in the volume of applications that challenge the amount of rent payable. As I have made clear—I will put it on the record again—we are working closely with colleagues in the Ministry of Justice and HMTCS to make sure that the justice system is prepared for the Bill’s implementation, which will come at a single point at the point of commencement. In Committee last week, we heard of the growing role of the first-tier tribunals and we heard—it is important to note this—praise for their handling of cases. We seek to build on that good practice.
We currently have no plans to consult the Competition and Markets Authority on whether any action is necessary to ensure that our reforms in clause 8 do not have a distorting effect on the market. I say respectfully to the shadow Minister that I have seen no credible evidence of that and, to be candid, I think the CMA has far better things to do with its time. The tribunal’s decision reflects market conditions rather than distorting them, so we do not think it realistic that the tribunal could affect market prices. The tribunal is also likely to determine rents for an extremely small proportion of the total rental market. We will of course continue to monitor the impact of the reforms on the market in the normal way.
Finally, amendment 75 would require the Secretary of State to launch a consultation to seek views on whether tribunals that are responsible for the determination of rent currently have adequate resource, and whether they will require further resources due to the rent reforms in the Bill. Given the ongoing work I have outlined, we do not think that launching a consultation at this time is required, and making a commitment to do so on the face of the Bill would be wholly unnecessary. I therefore ask Members not to press their amendments to a vote.
Mr Amos
I rise to speak to amendment 75 which, as the Minister said, would require the Secretary of State to consult on the adequacy of the existing resources for the tribunal system and on any further need for resources to deal with rent reviews established in the Bill. It is the same for the courts: sufficient judges and resources to ensure that the justice system works and does not seize up are vital to the supply of landlords bringing properties on to the rental market.
The Liberal Democrats know that most landlords and tenants are not going to rush to the courts unreasonably, and we do not support the use of court funding as a reason to delay the ending of no-fault evictions and the introduction of the Bill, as happened in the previous Parliament. As I have made clear several times, it is urgent that no-fault evictions are brought to an end. However, that does not mean that the courts and tribunal system is not seriously underfunded; it clearly is. I know the Minister is concerned about this—he mentioned some ongoing review work, and also spoke about it on Second Reading in response to my intervention—but we really need to go further. We need to come up with something concrete that is clear that putting resources into the courts and tribunals system will be taken seriously and will happen.
The mutually-owned Nationwide building society, which funds much of the accommodation we are talking about, has made its support for the Bill conditional on increased funding for the courts and tribunals. It says:
“In these situations, good landlords need to be confident they are able to gain possession of the property”—
I appreciate this relates more to courts than tribunals—and that once
“the situation has reached a point where a court is involved it is reasonable to expect that this process should be as quick and efficient as possible. This is not the case with the current…system which needs additional funding and resources to operate effectively”.
David Simmonds
One of the benefits of having been in government is that I have had the opportunity to consider many of these issues from the inside. We on the Opposition Benches remain concerned that it will be challenging to deliver the necessary level of capacity to provide the efficient service that tribunals need, and are expected, to provide for the benefit of both tenants and landlords. However, recognising that it is a game of numbers, I am happy to withdraw amendment 47.
Matthew Pennycook
Briefly, on the capacity of the Courts and Tribunals Service to effectively implement the new system, at the risk of repeating my extensive comments on Second Reading, it is worth trying to provide Committee members with some reassurance. First, at the risk of injecting a somewhat partisan note into the Committee, I agree entirely that our courts are in a terrible state after 14 years—I say 14 years because I am afraid the coalition Government had a hand in it—and we absolutely believe that improvements to HMCTS are needed to ensure that the new systems function effectively.
As I said, we are working closely with colleagues in government to ensure that improvements are made, as well as the exploring options for, for example, improved alternative dispute resolution so that only those cases that need a judgment come to court. There are a number of improvements we might make to take some strain off the courts, and those are the ones we are exploring.
Mr Amos
Will the Minister let me put on the record the fact that during the coalition Government from 2010 to 2015, whole Government Departments, including the Education and Health Departments, were protected and ringfenced against cuts? That bears absolutely no relation to what happened after the cuts were let loose in 2015.
Matthew Pennycook
But not the Ministry of Justice, I say gently to the hon. Gentleman.
Nevertheless, I want to reassure colleagues on the substantive point. We have chosen to implement the new tenancy system in a single stage. The commencement date will be made clear in due course, but we will ensure that the Courts and Tribunals Service is prepared for the implementation of the new system. That is essential, and a huge amount of work is going on to ensure that that will be the case.
David Simmonds
I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Clause 8 ordered to stand part of the Bill.
Clause 9
Repayment of rent paid in advance
Question proposed, That the clause stand part of the Bill.
The Chair
With this it will be convenient to discuss new clause 6—Limit on rent to be requested in advance of tenancy—
“In the 1988 Act, after section 14ZB (inserted by section 8 of this Act) insert—
‘14ZBA Maximum rent to be paid in advance
No rent may be requested or received in advance of any period of the tenancy which exceeds the rent for one month of the tenancy.’”
This amendment would impose a limit of one month’s rent on the amount of rent which can be asked for or paid in advance of a tenancy.
Matthew Pennycook
I will be relatively brief because this clause serves a specific function, but I will focus on what it achieves. I am aware that the wider issue of rent in advance concerns a number of hon. Members—indeed, it featured in our discussions during the oral evidence sessions last week, on which I will say more shortly.
The clause will require landlords to refund a tenant for any rent they have paid in advance, where the tenancy has ended earlier than the period for which a tenant has paid. That serves a practical purpose—for example, if the tenant has paid for the month that they are in occupation and the tenancy is ended by the landlord two weeks into that month, the clause allows the tenant to reclaim the additional two weeks’ rent.
On the issue of rent in advance more broadly—which also pertains to new clause 6, to which I think the hon. Member for Taunton and Wellington will speak shortly—as I stated when I gave evidence to the Committee on Tuesday, Government Members have long recognised that demands for extortionate amounts of rent in advance put financial strain on tenants and can exclude certain groups from renting altogether. We are clear that the practice of landlords requesting large amounts of rent in advance must be prohibited.
Although it might be argued that the interaction of the new rent periods provided for by clause 1 and the existing provisions of the Tenant Fees Act 2019 relating to prohibited payments provide a measure of protection against requests for large amounts of advance rent, I accept that there is a strong case for putting the matter beyond doubt. As I made clear to the Committee, I am giving careful consideration as to how best that might be achieved.
Let me briefly address new clause 6, which seeks to limit the amount of rent in advance that can be paid prior to a tenancy period to no more than one month’s rent. Many of us will have heard anecdotal stories of the pressures placed on renters through demands for rent in advance, and it is for similar reasons that we have taken steps in the Bill to tackle rental bidding. I heard the evidence from last week, and we are looking at the matter carefully to ensure that we put the matter beyond doubt on the face of the Bill.
David Simmonds
I am grateful to the Minister for what he said about looking at this area in detail. We raised, and discussed in some detail, the issue of how those with a poor credit history, or people who wish to secure a property for a fixed period—for example, international students—would be dealt with under the measures. We know that there are already limitations on the level of deposit that can be requested, but, particularly for those with a poor credit history, the ability to offer a larger sum of rent in advance can be a means of accessing a home in the private rented sector when they would otherwise not be able to access a home at all.
I am grateful to the Government for considering that particular group of people, who are in many cases extremely vulnerable tenants and often fall outside eligibility for support from the local authority under homeless duties, particularly if they have a job and an income. We need to make sure that we do not create a situation in which, inadvertently, a particular group of prospective tenants is effectively pushed out of the market. I am glad that the Government are taking that issue on board and considering how best it can work.
The Chair
Does the hon. Member for Taunton and Wellington wish to comment on new clause 6?
Mr Amos
Briefly, Dame Caroline. I am still getting used to the intricacies of the order of the agenda.
The new clause would limit rent in advance to sums of one month’s rent. The argument was well made in the oral evidence session, when we heard about the importance of rent-in-advance bidding and the need to reduce the risk of bidding up the amount that needs to be deposited in advance. One month’s rent is quite often the norm as a reasonable amount of rent to be provided in advance. Many years ago, when I was a student and renting, one month in advance was a reasonable amount. Bidding up that amount has a detrimental effect on tenants; hence the rationale for new clause 6.
Question put and agreed to.
Clause 9 accordingly ordered to stand part of the Bill.
The Chair
That will come later, when we reach that point.
Clause 10
Right to request permission to keep a pet
Question proposed, That the clause stand part of the Bill.
The Chair
With this it will be convenient to discuss the following:
Clause stand part.
Amendment 55, in clause 11, page 16, line 13, at end insert—
“(4) The Secretary of State must consult with representatives of the insurance sector before this section comes into effect to ensure that appropriate insurance products are available for tenants whose landlords have required insurance as a condition for consenting to the keeping of a pet.”
Clause 11 stand part.
Matthew Pennycook
Many of the 11 million people living in the private rented sector would love to own a pet but have difficulty finding a property that allows them to do so. We want tenants in the private rented sector to enjoy the joys of pet ownership, just as homeowners do. We know the benefits of pet ownership for mental and physical wellbeing. I declare an interest: I have a dog named Clem, who I referenced in the debate on the previous Government’s Bill, and he is, as I know to be the case for many pets across the country, a valued member of the family.
We have heard the calls from animal groups for more protection for pets living in rented homes. In its written evidence to the Committee, the Royal Society for the Prevention of Cruelty to Animals highlighted the plight of renters forced to give up their pets because they cannot find a home that will allow pets. I am delighted that the RSPCA, as well as the Dogs Trust, Battersea, and Cats Protection, support the action the Bill takes in this area.
On how we support pet ownership in the private rented sector, clause 10 introduces a new implied term that allows tenants to make a request to keep a pet, which landlords cannot unreasonably refuse. That stops landlords utilising a blanket “no pets” approach and ensures that each request is considered on its merits. We understand that not all properties or situations will be appropriate for pets. Landlords will not have to accept their tenant’s request where it is unreasonable, such as where housemates have allergies and might be detrimentally affected by pet ownership.
The clause makes it clear that landlords will always be justified in refusing a request if their own superior tenancy agreement prohibits pets. That will ensure that the law is consistent and that landlords will not be put in a position where they are forced to breach the terms of their own superior lease. However, to ensure that the provisions have teeth, tenants will have the right to challenge refusals they think are unreasonable via the new private rented sector landlord ombudsman or in court. The ombudsman or court will be able to take an unbiased view on whether the landlord has reasonably refused a request.
Clause 10 also gives landlords an ample 28 days to respond to requests, with an additional seven-day window if the landlord requests more information from the tenant within the initial 28-day timeframe. I make that point because the previous Government’s Renters (Reform) Bill proposed a 42-day response window. The animal welfare charities I mentioned were concerned about that duration, especially as it would mean tenants finding it hard to adopt a pet or the charities needing to keep animals for a long time while landlords made a decision. I share those concerns and I am pleased to say that we have made an improvement by bringing down the timeframe in this Bill.
Finally, clause 10 provides reassurance to landlords by allowing them to require pet damage insurance, either by charging the tenant for it or by asking the tenant to take out an appropriate insurance policy. These measures encourage responsible pet ownership in the private rented sector while providing landlords with assurance.
Turning to clause 11, although it is right that tenants can make the house they rent their home by having a pet, I understand that some landlords will be concerned by potential damage caused by pets to their property. The Committee has discussed the joys of pet ownership, but we all know that many pets can be active and at times destructive. That is one of the joys of pet ownership, but also one of the realities, particularly when it comes to some types of animals.
Clause 11 builds on changes made by clause 10 and amends the Tenant Fees Act 2019 to permit landlords to require tenants to take out an insurance policy to cover any potential damage caused by a pet or to charge the tenant the cost of such a policy. When granting consent, the landlord will be able to decide which insurance option best meets their needs. That underscores our commitment to ensuring that the private rented sector provides secure and stable housing. We recognise that pet ownership plays a crucial role in achieving that mission.
I thank the hon. Member for Ruislip, Northwood and Pinner for amendment 55, which seeks to ensure that suitable insurance products are available before landlords are allowed to mandate that their tenants purchase them to cover pet damage. We know that one of the reasons landlords are hesitant to take on tenants with pets is a fear that those pets could cause damage to their properties, which the tenants’ deposits might not be sufficient to cover.
I recognise that not a lot of insurance companies currently offer products designed to cover damage from pets. It is understandable that in the current climate, in which landlords have discretion over whether to accept or refuse pets, there is no demand for insurance and therefore the market is limited. We believe, however, that by creating an enabling environment for the industry, the Bill will cause the insurance market to adapt. I am sure that, as firm believers in the free market, the hon. Members for Ruislip, Northwood and Pinner and for Broadland and Fakenham share that view.
I hope the hon. Member for Ruislip, Northwood and Pinner will also be reassured that my Department has already had discussions with the insurance industry regarding such products. The discussions have been promising and I am aware that there are products in development to meet his concerns.
Jerome Mayhew
The Minister is quite right; I am a believer in the free market and I am sure the market will respond. Does he have an indication from his discussions with the insurance industry of the kind of price and the surcharge that will be required to fit the need?
Matthew Pennycook
We have not considered extensively the range of prices in the Department’s discussions, but I am sure the market will respond. I do not see any particular concern that companies will charge excessive rates for pet insurance, but that is something we will monitor as we bring the relevant parts of the Bill into force.
In the light of those points, I hope the shadow Minister will consider not pressing amendment 55 to a vote.
David Simmonds
Clearly, there are a number of ways in which this issue may be addressed, and adding a third-party liability element to domestic insurance, contents insurance or building insurance would be one means of doing that. We know that the industry is likely to respond, as we have just heard from the Minister. I congratulate him on his choice of dog name; Clem sounds like the kind of animal that a future leader of the Labour party would like to have when profiled. Had the dog been called Jeremy or Karl, it might not have been quite as popular.
As we have just heard in some detail, the Government have been looking at this issue and engaging with the market to ensure that insurance providers understand the upcoming demand. I recognise the publicity that many pet and animal charities have brought to the issue, which I think will help to create a climate in which those businesses are more likely to bring forward these products. In the light of those points, and on the understanding that we are making serious progress on this matter, I am happy not to press amendment 55 to a vote.
Rebecca Smith (South West Devon) (Con)
I wonder—forgive me, because this is also my first Public Bill Committee—how this will work in a house in multiple occupation compared with a dwelling house, and who will have to have the insurance. If a HMO is operated on a joint-licence basis, who is responsible for the insurance and the indemnity that goes with it?
On another point, what safeguards are we putting in place to ensure that any noise issues arising from pet ownership can be tackled, and where does responsibility for that sit? I appreciate that, where someone owns their home or rents a home that allows them to have a pet, it is probably done through the local authority, but I am conscious, particularly in the HMO setting, of how we would mitigate against that and ensure that we do not end up in a situation where neighbours do not know who to approach to ensure that either the insurance or the antisocial behaviour is acted upon.
Matthew Pennycook
The hon. Lady rightly challenges us on some of the finer points of how the provisions will be implemented. If she is amenable, I will happily write to her with further detail on precisely how we see them working in particular circumstances. Her point on HMOs is well made, and I will take it away and come back to her as soon as I can.
Question put and agreed to.
Clause 10 accordingly ordered to stand part of the Bill.
Clause 11 ordered to stand part of the Bill.
Clause 12
Duty of landlord and contractor to give statement of terms etc
Matthew Pennycook
I beg to move amendment 10, in clause 12, page 17, line 7, leave out “subsection (5)” and insert “subsections (5) and (5A)”.
This amendment is consequential on Amendment 11.
The Chair
With this it will be convenient to discuss the following:
Government amendment 11.
Clause stand part.
Clauses 13 and 14 stand part.
Matthew Pennycook
We believe the rental market works better when all tenants are clear on their rights and obligations. That prevents misunderstandings and means that both parties know what to expect. Without clarity about their rights, tenants may be unable to take advantage of the new rights that the Bill will give them. That is why it is critical that tenants understand what they are signing up to from the outset. Landlords benefit from clarity too. By being clear on rights and responsibilities at the beginning of a tenancy, responsible landlords can more easily comply with the new rules and ensure that they are providing a good service to their tenants.
That is why clause 12 requires landlords to provide tenants with a written statement setting out the terms of the tenancy. This includes a requirement to state where the landlord might wish to recover possession on certain prior-notice grounds. We will set out in secondary legislation details of what must be included in the written statement, but we expect that it might include details such as the rent, contact details for the landlord, and basic rights and responsibilities that apply to both parties. It is worth pointing out that most landlords already do that, and this requirement will ensure that good practice is extended across the sector. In time, this will lead to fewer disputes and help ensure that both parties comply with the law.
Turning to clause 13, the Government will have zero tolerance for any attempts by unscrupulous landlords to evade the new tenancy system. While the majority of landlords are good and do right by their tenants, we know that there are some who will seek to evade the new laws. That is why we are strengthening the enforcement regime to identify and fine unscrupulous landlords, drive out bad actors from the sector, and protect tenants from back-door evictions. Driving out bad actors is to the benefit of good landlords and tenants alike.
All landlords must be aware of their legal obligations and operate accordingly. I know that landlords can fall into the practice of renting out a property through many different—sometimes sad—circumstances. That is, of course, where the term “accidental landlord” comes from. Many of those landlords are good people doing their best, but that cannot be an excuse for the tenant suffering, and it is not an excuse for landlords not to understand their legal obligations. If a tenant is renting a home, it should not make a difference who their landlord is. Everyone has the right to a safe, decent and secure home.
Let me be clear: the law is not accidental and must be followed. If it is not, then the Bill sets out a robust enforcement framework. With a new tenancy system coming into force, we must ensure that landlords always use the correct procedures when gaining possession and evicting a tenant. The prohibited behaviours outlined in clause 13—for example, purporting to bring a tenancy to an end by service of a notice to quit or orally, by phoning a tenant to tell them that they need to leave the property by a certain date—reflect this responsibility.
In opposition, I was clear that we had a number of reservations about the enforcement measures in the previous Government’s Renters (Reform) Bill. As a result, we have worked hard to close any potential loopholes that a small minority of unscrupulous landlords may seek to exploit. We have taken action in a number of areas. For example, we have increased the restriction on re-marketing or re-letting the property after the use of grounds 1 or 1A to 12 months. That is a significant increase, and is necessary to avoid the grounds being used to effect back-door eviction. It will make it unprofitable to evict a tenant simply to increase the rent, and will stop landlords using the grounds as a back-door section 21. It will allow tenants to enjoy protection from no-fault eviction, while ensuring that there are comprehensive possession grounds in place so that a landlord can get their property back.
Clause 14 clarifies that the duties of landlords set out in new sections 16D and 16E of the Housing Act 1988 can be fulfilled or contravened by someone acting on their behalf. Many landlords will use the services of a letting agent, for example, and that is a sensible means of meeting their obligations, such as to provide a written statement of terms. For most landlords, the clause will make compliance easier. For example, if someone acting on behalf of the landlord issued a written statement of terms to the tenant, that would meet the landlord’s duty to provide the statement. However, landlords should not be able to absolve themselves of legal responsibility for providing a safe and secure home simply by appointing an agent. The clause ensures that landlords retain overall responsibility for complying with the law.
Government amendments 10 and 11 are merely consequential provisions. They qualify the new duty to provide a written statement of terms where a demoted tenancy is transferred to a new landlord. In such circumstances, the new landlord will have 28 days from the date that they become the landlord to comply with the requirement to provide a written statement of terms, instead of having to do so before the tenancy was entered into, which they obviously would not be able to do. We do not expect that circumstance to arise often in practice, but the amendments ensure that the law will operate effectively if the situation occurs.
David Simmonds
The Opposition broadly welcome the work the Government are doing in this area. Bringing clarity to the process is very important. In our work as constituency Members of Parliament, we will all have seen many cases where a lack of clarity on whether a notice has been properly served, or on whether a tenant or landlord fully understands their responsibilities and duties, is at the heart of a dispute or difficult situation. I have a brief question for the Minister, but I wanted to be clear on the record that bringing this level of clarity is important.
The enforcement process that the Minister referred to rests on a number of different organisations. Principally, the Bill envisages local authorities as the agent of enforcement. The fire brigades are a significant part of determining the suitability and safety of properties, and they bring prosecutions in the magistrates court when they find properties that have been occupied and rented to tenants but are clearly not safe on grounds that give them the power to prosecute. What consultations has the Minister undertaken with fire brigades about those prosecutions and the evidence that emerges from them about the circumstances of tenants found in such conditions? Those tenants are often among the most vulnerable, and they may not even have a written tenancy agreement, never mind a good understanding of their rights or a landlord who understands their duties and responsibilities.
Matthew Pennycook
I thank the shadow Minister for that question. On the general point about local authority enforcement, he is absolutely right. Landlords who fail to issue a written statement of terms on or before the first day of a tenancy will face enforcement action. They risk a fine of up to £7,000 from the local authority, the proceeds of which will be ringfenced to further enforcement work in that authority.
The shadow Minister made a specific point about fire brigades. To be honest with him, I do not have the answer to hand. I am happy to engage with officials to see what conversations the Department has had with the fire service, so that I can address his points. I will come back to him in writing as soon as I possibly can.
Amendment 10 agreed to.
Amendment made: 11, in clause 12, page 17, line 16, at end insert—
“(5A) Where a tenancy becomes a tenancy to which this section applies by virtue of section 143C(3) of the Housing Act 1996 (demoted tenancies: change of landlord), the statement under subsection (2) must be given within the period of 28 days beginning with the date on which the new landlord becomes the landlord under the tenancy.”—(Matthew Pennycook.)
This creates an exception from the new duty, inserted by clause 12 of the Bill into the Housing Act 1988, for a landlord to provide a written statement of certain matters before entering into an assured tenancy, so that the landlord of a tenancy which becomes an assured tenancy following the transfer of a demoted tenancy under the Housing Act 1996 has 28 days from becoming the landlord of the tenancy to fulfil those duties.
Clause 12, as amended, ordered to stand part of the Bill.
Clauses 13 and 14 ordered to stand part of the Bill.
Clause 15
Landlords etc: financial penalties and offences
Question proposed, That the clause stand part of the Bill.
Matthew Pennycook
We pick up a point we have just debated, which is the enforcement framework that the Bill provides for. The reforms we are putting in place will be underpinned by an effective, consistent and proportionate enforcement framework. In the Government’s view, serious breaches of the law should entail serious consequences, and we are clear that we will take action where it is needed to prevent abuse of the new system. To that end, clause 15 extends councils’ powers to issue financial penalties against landlords who flout the rules. The clause allows councils to penalise initial or minor non-compliance with a fine of up to £7,000—for example, for failing to provide a written statement of terms, such as we have just discussed, or for purporting to bring a tenancy to an end orally.
Serious, persistent or repeat non-compliance will be met with a fine of up to £40,000, with the alternative being criminal prosecution. That includes knowingly or recklessly misusing a ground for eviction, and re-letting or re-marketing a property within 12 months of using the moving in or selling grounds. Local authorities will be able to take robust action against the landlord who decides they will routinely evict tenants under a false claim to be moving a family member into a property or planning to sell it. That will act as a powerful deterrent and—although this is not the original purpose of the sanction—fines will provide valuable funding for local authority enforcement activity.
Clause 16 sets out the process that local housing authorities must follow when issuing financial penalties. That includes the appeals process, recovery of unpaid penalties and how local authorities may use the proceeds of the financial penalties. It includes the stipulation that proceeds of the financial penalties should be used to fund future enforcement activity. The clause provides clarity to local housing authorities on the process they must follow when issuing financial penalties to unscrupulous landlords.
I reassure the Committee that this clause also protects good landlords. The process allows landlords to make representations to local housing authorities for consideration when issued with a notice of intent, as well as appealing a final notice to the first-tier tribunal.
Clause 17 provides definitions for terms used in sections 16D to 16L and schedule 2ZA—for example, “local housing authority” and “relevant person”. That is simple and straightforward, and it requires no further elaboration.
Clause 18 provides that criminal offences contained within section 16J do not bind the Crown, which means that the Crown cannot be found criminally liable for these offenses. However, should the Crown break the rules, it is possible for a council to issue a fine in the same way as with private landlords. The Government believe that this is a reasonable approach and one that maintains precedent established in previous legislation, such as the Tenant Fees Act 2019. However, those acting in the service of the Crown will not be exempt from criminal liability. It is only fair that they are subject to the same financial penalties and criminal offences that apply to other individuals. I commend clauses 15 to 18 to the Committee.
David Simmonds
In practice, the measures contained in this section of the Bill will probably be the most important for our constituents who are tenants. Their ability to secure enforcement, where there is a breach of the legislation, will be critical. The Minister will know that the Opposition have shared concerns about ensuring that the resource from the enforcement regime will be sufficient to be self-sustaining. It strikes me that the enforcement regime, as set out, is very similar to that which already exists for local authorities in respect of environmental crime, such as fly-tipping, where it is assumed that the proceeds from fines and costs will be sufficient. Most of us will recognise that, in reality, that is rarely the case—carrying out that enforcement action always represents a cost to the council tax payer. Although it is not a matter for legislation, it would be helpful to understand how the Government intend to engage with local authorities to understand the cost of these new burdens fully and use the new burdens doctrine to ensure that they are appropriately resourced.
As the Minister has said, there is a point at which enforcement action outside criminal prosecution is taken, and there is a stage at which criminal prosecution may be the only available option. With other types of enforcement, many local authorities find that the push towards criminal prosecution is necessary to bring an end to the antisocial behaviour that is causing the problem in the first place. The challenge is that the proceeds of any fine resulting from criminal prosecution go into the consolidated fund of central Government expenditure, rather than accruing to the local authority. Even if there is not an award of costs, the largest part of that resource, which in theory is available to sustain the system, in fact goes into a different Government pot for other uses. It would be helpful if the Minister indicated what process of engagement and consultation the Government envisage they will take with local authorities. That must be designed to ensure that the resources derived from enforcement find their way to the sharp end of it, so that in practice, in the real world, it makes the difference that we hope it will.
Matthew Pennycook
I completely agree with the shadow Minister that many of the provisions in the Bill will not work as intended without robust local authority enforcement. We have increased the fines from the levels in the previous Government’s Bill to £7,000 and £40,000. It is also worth noting that those fines can be issued repeatedly—they are not a one-off—if landlords continue to breach the relevant provisions.
More generally on local authority resourcing, I make two points. First, it is important to note that many of the provisions in the Bill will not need to be enforced immediately. They will come into play one or two years down the line, so not every measure in the Bill that needs enforcement will require it from the date of Royal Assent. We have made it clear in previous debates that although we think that fines are part of the answer—we want the “polluter pays” principle to be at the heart of the Bill—we recognise that in many cases, they alone will not be enough. That is why I have set out that in accordance with the new burdens doctrine, we will ensure that additional burdens on local authorities that result from our reforms are fully funded.
The shadow Minister made an interesting point, as he has done several times today, that challenges me to go away and think about the final destination of fines from criminal prosecutions. I will take that away and give it serious consideration. We are in agreement that we need to ensure that where local authorities enforce breaches of the provisions set out in this Bill, those funds should come to local authorities. I will come back to him on the point he raises about the consolidated fund, if he is amenable to me doing so.
David Simmonds
The Minister’s response prompts me to ask a further question. I am grateful to him for undertaking to write back on the consolidated fund. In other enforcement regimes modelled on this system that provide scope to issue significant fines, there is a common pattern of local authorities outsourcing the responsibility to third-party enforcement agencies. We see that with littering, environmental crime and all manner of areas of local authority duty. Essentially, business makes a pitch, and if they receive the delegated authority to act on behalf of the council in the performance of its duties, they will enter into a profit share agreement. In the case of parking regimes, historically, for each parking ticket that was issued, some money went to the company and some money to the local authority.
That creates a risk—this was mirrored in the earlier debate—of perverse incentives. At local authority level, the incentive could be to pursue the landlords who are easiest to deal with and most likely to yield financial restitution to contribute to the bottom line of the business undertaking the work. That could result in a scarcity of resources to deal with the more difficult and intractable cases, and the most vulnerable tenants.
Have the Government thought about how, in their engagement with local authorities, they will seek to ensure that the regime is enforced equally? Local authorities have an understandable desire to outsource. Particularly in built-up urban areas where there may be a high density of rogue landlords, how can we ensure that the process will not result in extremely vulnerable people falling outside the enforcement regime because it simply is not profitable to pursue it in other parts of the country?
Matthew Pennycook
I thank the shadow Minister for that thoughtful point. To be entirely open, it is not one that I have considered. I think it is a fair challenge, and I will go away and give some thought to how we can ensure that local authorities look at all breaches in the round and apply the same approach to each, rather than targeting the low-hanging fruit. To provide reassurance on the concern about good landlords being caught up in the process, I repeat that the process allows landlords to make representations to local housing authorities and the first-tier tribunal if they think that that has happened.
The other point, which we will debate in quite extensive detail, is that enforcement by local authorities is not the only means that the Bill provides of tackling rogue landlords and breaches. I draw the shadow Minister’s attention to the significant strengthening of rent repayment orders, which offers an alternative, tenant-led enforcement mechanism. As I think I said in my evidence to the Committee last week, across the country—in local authority terms, enforcement is a real postcode lottery—the most effective thing I have seen is where well-resourced and effective local authority enforcement is complemented by tenants taking action with rent repayment orders. When the two work in tandem, it can be of real benefit in driving bad landlords out of the sector. I will give further consideration to the shadow Minister’s specific, well-made point.
Rebecca Smith
I want to build on the point that my hon. Friend the Member for Ruislip, Northwood and Pinner has just made. It may not quite fit at this point in the consideration of the Bill, but it has come to mind while we have been talking about this. I am sure that we all have been contacted by a tenant and then found out that they are one of five or six tenants, all with the same rogue landlord. What can we do in the Bill to enable the trigger point for one tenancy to be used as an opportunity to explore other tenancies with the same landlord? I have dealt with such a case, where I encountered a landlord with five or six tenants across a city, managing properties with appalling conditions and treatment of tenants. We do not want to have to repeat the exercise six times.
Is there anything in the Bill that would enable the local authority to see whether there are any other tenants in the same situation, or is that a bit too Big Brother—would it be pursuing it too far? The whole Bill is aimed at tackling rogue landlords. Are we slowing down that process by taking each property individually? Is there a mechanism whereby we could collect them all together?
Matthew Pennycook
If I have understood the hon. Lady correctly, and if she is amenable to it, I will fold this point into the written response that I have already promised her, but multiple fines can be levied for breaches. If a landlord in a particular part of the country with multiple properties is in repeated breach over that portfolio of properties, local authorities will be able to levy fines on more than one occasion, so it is not a £7,000 limit in the first instance, or £40,000 for more serious cases, per landlord. Again, I will expand on it in a written response, but I think the database can do some work here in terms of landlords in a particular area registering all their properties. I think it will become apparent quite quickly—it depends on how we use the database—if particular landlords show a pattern of behaviour whereby they are not treating their tenants appropriately. Let me come back to the hon. Lady in more detail as part of the response that I have already committed to.
Question put and agreed to.
Clause 15 accordingly ordered to stand part of the Bill.
Clauses 16 to 18 ordered to stand part of the Bill.
Clause 19
Notices to quit by tenants under assured tenancies: timing
David Simmonds
I beg to move amendment 49, in clause 19, page 31, line 19, leave out from “substitute–” to end of line 34 and insert—
“‘(b) it satisfies—
(i) subsection (1ZA), if it is given by a tenant in relation to premises let under an assured tenancy, or
(ii) subsection (1ZC) in any other case; but in relation to landlords under assured tenancies see section 5(1) of the Housing Act 1988 (notice to quit by landlord is of no effect).’
(3) After subsection (1) insert—
‘(1ZA) A notice to quit satisfies this subsection if—
(a) it is given not less than—
(i) any length of time before the date on which the notice is to take effect, not exceeding two months, that the landlord has agreed to in writing, or
(ii) in the absence of agreement under sub-paragraph (i), two months before the date on which the notice is to take effect, and
(b) it is in relation to premises let under a repeat tenancy or, if it is in relation to premises let under any other assured tenancy, it is to take effect—
(i) no earlier than any time, within the period of six months beginning with the day on which the terms of the tenancy provide for the tenancy to begin, that the landlord has agreed to in writing, or
(ii) in the absence of agreement under sub-paragraph (i), on or after the last day of the period mentioned in that sub-paragraph.
(1ZB) In subsection (1ZA)(b) “repeat tenancy” means an assured tenancy under which the tenant becomes entitled to possession of the premises within the period of one month beginning with the day after the last day of a previous assured tenancy—
(a) under which the same premises were let, and
(b) which was between the same parties.
(1ZC) A notice to quit satisfies this subsection if it is given not less than four weeks before the date on which it is to take effect.’”
The Chair
With this it will be convenient to discuss the following:
Amendment 66, in clause 19, page 31, line 31, at end insert—
“(aa) where it is given by a tenant who meets the student test under Ground 4A, not less than ten months before the date on which the notice is to take effect;”.
Amendment 67, in clause 19, page 31, line 31, at end insert—
“(aa) where it is given by a tenant in relation to a premises in which they are the first tenants since its construction, not less than twenty-four months before the date on which the notice is to take effect;”.
Clause stand part.
Clause 20 stand part.
David Simmonds
One issue that we have debated—I think, once again, it falls to a small p political and philosophical difference—is ensuring the availability of appropriate options for levels of term, in pursuit of our aim of freedom of contract for those to whom these terms would most lawfully and best apply. The purpose of this amendment is to move us on towards achieving that, and I believe that it would.
Mr Amos
The intention behind amendment 66, which stands in my name, is to take landlords at their word that they value hugely the opportunity for fixed-term tenancies, which of course are being removed by this Bill. We support the move to longer tenancies—periodic tenancies—in the Bill. Our policy was to extend them to at least three years, and in effect this Bill extends periodic tenancies almost indefinitely. But for the student population, it is a big disadvantage that students can no longer really rent premises or rent accommodation for the 10 months for which they need it. They nearly always face being forced to rent for 12 months, and paying rent over the summer period when they do not want to do so.
We are taking landlords at their word that they really value fixed-term tenancies, and that fixed-term tenancies would unlock investment and support from the landlord sector. The amendment would offer landlords and student tenants the option to enter into a 10-month fixed-term tenancy, which would benefit students in not having to rent for 12 months. MoneySuperMarket.com—other websites are available—has said that according to a survey in 2023, average student rents are £535 a month. Saving each student two months’ rent would save them £1,000, which is well worth it from their point of view. From the landlord’s point of view, if, as we heard in oral evidence, landlords value fixed-term tenancies, the option to have such certainty would be of value to them.
Having looked at the amendment again in the cold light of day, I will be withdrawing it, because I am not sure that the wording—for which I take full and complete responsibility—delivers my proposal as an option; it seems to indicate a requirement for a rolling 10-month notice period. However, I encourage the Committee to consider the benefits to students of reducing their tenancies from 12 to 10 months.
Matthew Pennycook
Clause 19 amends section 5 of the Protection from Eviction Act 1977 to set out the rules about what period of notice a tenant must provide to end a tenancy, stipulating that they will not have to provide more than two months’ notice. This will help renters to end tenancies quickly if they have a change of circumstances, such as needing to change jobs or move to a new area. It will also prevent them from being trapped in substandard properties for long periods of time. Allowing tenants to move on from poor properties is fundamental to establishing fairness in the new system, and it will incentivise landlords to provide a good service.
This will also provide landlords with the certainty they need. We believe that two months is sufficient time for landlords to re-let the property, minimising the time and costs of void periods. Landlords will not be allowed to ask for more than two months’ notice in the tenancy agreement. That will prevent them from replicating fixed terms by locking tenants in for long periods of time. If the tenancy agreement does not mention the tenant’s notice period, clause 19 requires tenants to provide at least two months’ notice. They will be able to provide more notice if it suits their circumstances. We recognise that sometimes a shorter notice period will be preferable for both tenants and landlords. The landlord and tenant may therefore agree to a shorter notice period in writing.
Clause 20 prevents landlords from specifying the form of writing that a tenant’s notice to quit must take. Landlords will not be able to include terms in the tenancy agreement that insist the notice to quit is provided in a particular form, such as a letter. Any attempt to do so will be rendered void by this clause. Instead, tenants will be able to provide notice in any written format, such as text message, email or letter. That will remove unhelpful barriers to tenants’ ability to provide notice to quit.
Clause 20 also clarifies that a tenant’s notice to quit can be withdrawn before it comes into effect, if the landlord agrees in writing. That is a sensible clarification to ensure that both parties can agree to continue the tenancy if that suits their respective circumstances.
I have to be clear that we will not accept any change that would increase the length of notice that tenants are required to provide. Amendment 49, which was tabled by the shadow Minister, seeks to prevent tenants from ending a tenancy in the first six months by ensuring that only notices that expire after six months would be considered valid. We will not be reintroducing that measure, which even the previous Government felt was unnecessary until the very late stages of their own Renters (Reform) Bill.
Tenants will not routinely end tenancies just after moving in or use assured tenancies as an alternative to holiday lets. In our view, tenants have to go through far too much administration and provide too expensive a deposit for this to be a viable concern. If tenants do have to end a tenancy, I am confident that two months is a fair amount of time for both parties to adjust. Six months is a long time to live in a house with damp or mould that the landlord simply painted over when doing viewings, or perhaps simply advertised inappropriately online—just as it is too lengthy a period to remain living with a partner after, for example, a relationship breakdown. I note again that landlords could still regain possession in that six-month period if the tenant was at fault, using the clear grounds for possession set out in schedule 1. Why should a tenant’s right to leave, when a landlord is at fault, be any different?
I turn to amendments 66 and 67, tabled by the hon. Member for Taunton and Wellington. Amendment 66 would require tenants who meet the student test in possession ground 4A to give 10 months’ notice. That would mean that students would have to know 10 months in advance whether they wanted to remain in the property. Landlords who are concerned about making a property available for new student tenants can seek possession under ground 4A if they meet the requirements of that ground. Similarly, amendment 67 would require tenants who are the first residents in newly built properties to provide 24 months’ notice when ending an assured tenancy.
I am afraid that I do not accept that it is reasonable to penalise some tenants because of the circumstances or the property in which they live. Those tenants deserve the same flexibility that everyone else will enjoy under the single system of periodic tenancies. We do not believe that it would be fair or justifiable to lock them in for such long periods of time. Again, since most new buildings should be good quality, tenants will only leave if they really need to. In other words, they can stay for 24 months, or perhaps longer if they want to, under the periodic tenancies that the Bill provides for. For those reasons, I ask the shadow Minister and the hon. Member for Taunton and Wellington not to press their amendments to a vote.
David Simmonds
I would like to ask the Minister, not at this stage but in due course, to provide a little bit more detail. In his response to these amendments, he referred to what sounds like an asymmetric process in the expectations of how notices would be given. It would be a requirement for a landlord to put a notice of any kind to the tenant in writing, but the tenant would be able to give notice by means of a text message. It seems very clear that that situation could give rise to disputes about whether information or notices were properly served in both directions. I urge the Government to ensure that, as the Bill makes progress, there is sufficient symmetry. For example, when disputes arise that might go before the courts or the tribunal, there needs to be real clarity, by way of an audit trail of what has been said to each party.
Matthew Pennycook
I thank the shadow Minister for that. I will undertake to provide him with more detail on the specific point he has made, which is noted and understood, either at an appropriate point in our further consideration of the Bill or in writing.
David Simmonds
I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Clause 19 ordered to stand part of the Bill.
Clause 20 ordered to stand part of the Bill.
Clause 21
Limitation on obligation to pay removal expenses
Question proposed, That the clause stand part of the Bill.
Matthew Pennycook
Section 11 of the Housing Act 1988 currently requires landlords of assured tenancies, who have been awarded possession under the redevelopment ground 6 or suitable alternative accommodation ground 9, to pay the tenant reasonable moving expenses. These grounds are mostly used by social landlords, who use assured tenancies and do not have access to section 21 no-fault evictions. The grounds support social landlords to manage their stock, ensuring that social housing is good quality and remains available for those who need it.
Clause 21 amends section 11(1) of the 1988 Act to ensure that only private registered providers of social housing will be required to pay removal expenses for grounds 6 and 9, once all tenancies become assured tenancies. We think it is unlikely that private landlords will regularly use grounds 6 and 9. However, on the rare occasions that they need to use them, they will not be required to pay removal expenses, ensuring that they are able to manage their assets in a reasonable way. I commend the clause to the Committee.
Question put and agreed to.
Clause 21 accordingly ordered to stand part of the Bill.
Clause 22
Assured agricultural occupancies: grounds for possession
Question proposed, That the clause stand part of the Bill.
Matthew Pennycook
As Committee members may be aware, qualifying agricultural workers are automatically entitled to an assured agricultural occupancy, which offers enhanced security of tenure to those who qualify. Tenants under AAOs cannot be evicted using section 21 or if their employment by the landlord comes to an end. Clause 22 makes consequential changes to AAOs to reflect the new tenancy system. That includes preventing landlords from evicting AAO tenants under the employment ground, now 5C, as well as ground 5A and the new superior landlord grounds. Those grounds cover circumstances where tenants under AAOs cannot currently be evicted, but they are being amended or introduced by the Bill and may pose a risk to their security in the new system. The clause will maintain the status quo.
Clause 23 seeks to replicate the existing mechanism in the Housing Act 1988 that allows landlords of qualifying agricultural workers to opt out of providing assured agricultural occupancies. They can issue assured shorthold tenancies instead, as long as they inform the tenant from the outset. We understand that many landlords make use of the opt-out, as it provides more flexibility for the agricultural sector and helps to maintain the supply of rural housing for workers. The clause therefore replaces the existing opt-out in a way that will be compatible with the new tenancy regime once ASTs are abolished, giving landlords access to the full range of new possession grounds.
I hope that both clauses are uncontroversial, and I commend them to the Committee.
David Simmonds
I can assure the Minister that we do not want to push these clauses to a vote. I am grateful to him for his explanation. It is important to recognise that agricultural workers are one category of tenant who often have different sets of circumstances, as their access to a home is connected to their job. School caretakers are another common example; it is not unusual for there to be a property on the school site that the post holder has the right to occupy.
It has become increasingly common, rather than going down the route of creating a tenancy from the outset, for the employment contract to have a side agreement of a licence to occupy, so the home is made available to the individual not as part of a tenancy agreement, but as part of a licence to occupy connected to their role. I would like the Minister to illuminate the Committee with the Government’s thinking on that issue.
There is a second issue. As has been described to us by a number of representatives from rural businesses, it is quite common for landlords to ask a tenant to vacate a particular property because its location or its facilities are directly connected with a role that they formerly did, and to offer them another like or equivalent property on the same estate. Traditionally, that has been a way of ensuring that, for example, farm workers who retire from a role in the care of animals where they had to be on the site 24 hours a day, and therefore cease to carry out that function, can be moved to another property on the estate without having to go through an extremely complicated and bureaucratic process. That process may not be good for the landlord, who has an urgent need for a worker on site to look after the animals, or for the tenant, who may have expectations about how their new accommodation will be secured, particularly at the point of retirement.
I would be grateful if the Minister could illuminate the Committee with the Government’s thinking on how that issue could be effectively addressed, so that we can take the matter into full consideration for those rural communities where it is particularly important.
Matthew Pennycook
I thank the shadow Minister for his points. If I have understood him correctly, I fear that those matters are slightly outside the scope of these clauses. I reiterate that we understand that many agricultural landlords use the opt-out to provide ASTs to their tenants instead, and that opt-out is retained by clause 23. We do, however, think that AAOs are a crucial part of the tenancy system, and we do not want to reduce their security by abolishing them outright and bringing these tenants into the wider assured tenancy system. I will take on board the points the shadow Minister made and come back to him in writing, if he will allow me; they raise a number of matters pertaining to housing that may or may not be in the scope of the Bill and these clauses. I think it is probably better if I come back to him in writing, given how specific and somewhat technical they are.
Mr Amos
I wonder whether the Minister would help me with an issue that is somewhat related to agricultural tenancies. In fact, it is a different kind of tied tenancy that has been raised with me by constituents, where the notice period required to be given for Church of England ministers—
Matthew Pennycook
The hon. Member for Taunton and Wellington tests my knowledge. I keep a lot of things in my head, but the particular tenancy arrangements as they pertain to Church of England ministers is not there. I am more than happy to discuss some of these issues with the hon. Gentleman outside the Committee, Dame Caroline.
The Chair
That would certainly help with my job.
Question put and agreed to.
Clause 22 accordingly ordered to stand part of the Bill.
Clause 23 ordered to stand part of the Bill.
Clause 24
Accommodation for homeless people: duties of local authority
Question proposed, That the clause stand part of the Bill.
Matthew Pennycook
The Bill will remove fixed tenancies and section 21 evictions, as we have discussed at length. These changes mean that we also need to amend part 7 of the Housing Act 1996 to ensure that councils’ statutory homelessness duties align with the new system. Clause 24 makes three changes to homelessness legislation to ensure that is the case.
First, clause 24 makes changes to how local authorities discharge their main housing duty. One of the ways in which local authorities may currently bring their main housing duty, which is a duty to secure settled accommodation, to an end, is by making an offer to a tenant of a suitable private rented sector tenancy with a fixed term of at least 12 months. With the removal of fixed-term tenancies, section 193 of the Housing Act 1996 is amended to instead refer to an assured tenancy.
Secondly, the clause amends sections 193(1A) and 193C of the Housing Act 1996, which concern the consequences when a person owed either the prevention or relief duty deliberately and unreasonably fails to co-operate with the local housing authority. If the local housing authority is satisfied that the applicant is homeless, is eligible for assistance, has a priority need, and is not intentionally homeless, then the applicant is still owed a duty to be accommodated. This duty, however, is currently a lesser one than the main housing duty. The lesser duty is to offer a fixed-term tenancy of at least six months as opposed to the period of at least 12 months that is required under the main duty. With the repeal of fixed-term tenancies, the lesser offer is redundant, and is removed by the clause.
Thirdly, subsection (4) of clause 24 repeals section 195A of the Housing Act 1996, which is the duty in homelessness legislation to offer accommodation following re-application after a private sector offer, known more commonly as the re-application duty. The re-application duty was introduced, alongside the introduction of private rented sector offers, as a means to end the main homelessness duty. It was introduced to respond to concerns that due to the short-term nature of assured shorthold tenancies, applicants who accepted a private rented sector offer may become homeless again within two years, and no longer have priority need.
The increased security of tenure and removal of section 21 evictions means that the re-application duty will no longer be relevant. The change will streamline the management of re-approaches and ensure that all applications will be treated according to their current circumstances at the point of approaching. There will no differential treatment between those placed in either private rented or social housing accommodation. The clause makes necessary and reasonable changes to the homelessness legislation as a consequence of the tenancy reform that we are introducing. I commend it to the Committee.
David Simmonds
The Homelessness Reduction Act 2017 was the main vehicle for ensuring that the homelessness duty might be addressed through an offer in the private rented sector. That was a means of ensuring that people who are not able to immediately access the kind of accommodation they need through the local authority can instead secure it in the private sector, and it has, to an extent, been very successful.
I want to ask the Minister what consultations are being undertaken across the Government to ensure alignment between parts of Government that have different responsibilities and duties, particularly in respect of notices that might fall within the scope of this Bill. I am thinking, in particular, of young people leaving the care system, who may be accommodated under section 20 by the local authority because of their risk of homelessness. In addition, when asylum seekers are placed in accommodation by the Home Office, there is a move-on period; the Home Office-owned legislation may result in their needing to access accommodation, so they may fall within the scope of this Bill. What consultation is being undertaken to ensure that those notice periods are aligned? I have to acknowledge that that was an issue for the previous Government—particularly in respect of asylum seekers, for whom the homelessness duty set out a different period from the Home Office’s move-on period, so individuals found themselves falling between those periods and were therefore unable to access the support they needed to find accommodation through their local authority.
Matthew Pennycook
I thank the shadow Minister for that point. I hope he will be satisfied with the following answer: extensive engagement has taken place between Departments in developing this Bill as it pertains to areas that cross departmental responsibilities. Again, given the extremely technical nature of his question—particularly in relation to asylum accommodation, which is not within my area of responsibility—I will come back to him in writing.
Question put and agreed to.
Clause 24 accordingly ordered to stand part of the Bill.
Clause 25
Tenancy deposit requirements
Question proposed, That the clause stand part of the Bill.
Matthew Pennycook
Clause 25 will maintain important deposit protections so that tenants can be confident that their money is being handled safely. Landlords will be required to comply with deposit protection rules before a court can make an order for possession under section 8 of the Housing Act 1988. That will apply only if the landlord has failed to store the deposit in one of the prescribed schemes or comply with the applicable rules.
The clause also makes consequential amendments to the Housing Act 2004 to ensure that deposit protection rules continue to apply in the future once assured shorthold tenancies are abolished. Deposits taken for existing assured shorthold tenancies will still need to be protected after the new system has come into force. Deposits taken for assured tenancies created after commencement will also need to be protected. This is an extremely straightforward and simple clause, and I look forward to the extremely technical question that the shadow Minister will put to me on it.
David Simmonds
The Minister will be delighted to know that I do not have a detailed, technical question to ask him on this clause, but I am sure that if he gives me some time, I will be able to come up with one.
The Chair
Let us not do that.
Question put and agreed to.
Clause 25 accordingly ordered to stand part of the Bill.
Clause 26
Tenant fees
Question proposed, That the clause stand part of the Bill.
Matthew Pennycook
Clause 26 amends the Tenant Fees Act 2019 to ensure that its provisions remain applicable and relevant to the tenancy reforms in the Bill. In particular, it removes the provision that prevents a landlord from serving a section 21 notice where they are in receipt of a prohibited payment from a tenant. Removing that provision is necessary, given that section 21 notices will be abolished. There will remain strong enforcement mechanisms in the Tenant Fees Act, including offences for landlords who require payments from tenants that are prohibited under that Act. That will ensure that under the new system tenants will continue to be protected from unfair and prohibited payments that were previously outlawed.
Clause 27 amends council tax rules to clarify council tax liability once fixed-term assured tenancies are abolished. That will ensure that assured tenants remain liable for council tax until the end of their tenancy agreement. That will include where they have served notice to end the tenancy but leave the property before the notice period has ended. In that instance, the liability will not fall to the landlord until the tenancy has ended. I commend clauses 26 and 27 to the Committee.
David Simmonds
I would be grateful if the Minister shared the Government’s thinking on the interaction between this issue of liability for council tax and the legal duties on local authorities to collect it, where they have an obligation to ensure that, as part of the efficient delivery of public services, they maximise the level of council tax collected. I understand the purpose of what the Minister has just described. I would try to ensure that, in situations where there may be an end to the tenancy, we do not create a situation both where the liability is difficult to assign and there is potentially an issue of who needs to be pursued for that council tax. Clearly, it is important to ensure that local authorities with a separate set of legal obligations in that respect are fully sighted on what the impact of this may be, and on the performance of their duties.
Matthew Pennycook
To reassure the shadow Minister on the general matter, there has again been extensive engagement with local authorities on the development of this Bill. I think he referred to clause 27, and it is our view that tenants should obviously be responsible for council tax payments until the tenancy has formally ended. When a tenant serves notice, the tenancy does not end until the notice period has expired, even if the tenant leaves the property before then. This measure will not change anything for most tenants, but clarifies where they will be liable for council tax until the end of the notice period, including where they have served notice to end the tenancy but leave the property earlier. It simply ensures that council tax remains aligned with other household costs, such as rent and bills. I hope that reassures the shadow Minister, but if not, I am more than happy to pick it up at a future point or in writing.
David Simmonds
That goes a long way in providing the necessary assurance. It is necessary for there to be clarity, for example, where a contract includes not just the rent but council tax within a single payment to the landlord, who will then be paying the council tax on behalf of the tenant, as happens under some rental contracts. We do not want to create a situation where the local authority is pursuing a tenant for the council tax at that point, because the tenancy has ended and the tenant argues that they have already made that payment to the landlord and it has not been passed on. I simply wanted to ensure that, in the performance and function of the collection fund, which I know is high level and a very important part of the Department’s overall calculation of the level of local government finance, we are not at risk of creating any potential loopholes.
Matthew Pennycook
That has usefully clarified the point that the shadow Minister is driving at. Local authorities are well-experienced in the administration of council tax, including determining who is liable. For example, they have powers to require residents, owners or managing agents to provide information to help establish liability, and where that is not complied with, they can impose a penalty. We will work closely with the local authority sector when implementing the new system to ensure that the new rules are well-understood, but we think local authorities have sufficient powers to determine liability for council tax in any particular circumstance.
Question put and agreed to.
Clause 26 accordingly ordered to stand part of the Bill.
Clause 27 ordered to stand part of the Bill.
Clause 28
Other amendments
Question proposed, That the clause stand part of the Bill.
The Chair
With this it will be convenient to discuss the following:
Government amendments 12 to 21.
Schedule 2.
Clause 29 stand part.
Matthew Pennycook
The Renters’ Rights Bill makes some significant changes to legislation, such as abolishing section 21 notices, assured shorthold tenancies and fixed-term tenancies. This means that there are references that need to be removed and changes needed to ensure that the wider stature book remains in good order.
Clause 28 sets out that those consequential amendments to existing legislation are made in schedule 2 of this Bill. Schedule 2 makes consequential changes to a number of Acts of Parliament to reflect the abolition of assured shorthold tenancies, fixed-term assured tenancies and no-fault evictions. They ensure that existing legislation can continue to operate after our reforms to the tenancy system have taken place, and they are predominantly minor and technical in nature. For example, our amendments to the Housing Act 2004 in paragraph 45 are simply repeals of legislation that prevented landlords using section 21 to evict tenants from an unlicensed HMO. We have amended the Housing Act 1985 and the Localism Act 2011 to reflect the abolition of demoted tenancies, where social housing tenants can be “demoted” to less secure assured shorthold tenancies, as ASTs will no longer exist.
In paragraph 48 of schedule 2, we have also repealed provisions in the Deregulation Act 2015 that outlawed retaliatory evictions via section 21 as this legislation will cease to have that effect after the Renters’ Rights Bill is implemented. In paragraphs 1 to 7, we have made amendments to the Reserve and Auxiliary Forces (Protection of Civil Interests) Act 1951 to ensure that mobilised reservists’ tenancies continue to be protected. From those examples, the Committee will see that the changes that schedule 2 makes are technical and uncontroversial, ensuring the statute book continues to operate effectively and consistently after our reforms to the tenancy system.
David Simmonds
I commend the Government for the work they are doing to ensure that the statute book lines up across all the different pieces of legislation. Will the Minister inform the Committee how the changes to the homelessness prevention duty will impact on tenants who have no recourse to public funds in the UK?
Matthew Pennycook
I commend the shadow Minister for challenging me on those points. I do not have that answer to hand, so I will commit to come back to him in writing on that specific point.
Question put and agreed to.
Clause 28 accordingly ordered to stand part of the Bill.
Schedule 2
Amendments relating to Chapter 1 of Part 1
Amendments made: 12, in schedule 2, page 174, line 29 at end insert—
“Greater London Council (General Powers) Act 1973
7A In section 25 of the Greater London Council (General Powers) Act 1973 (provision of temporary sleeping accommodation to constitute material change of use), in subsection (2)—
(a) in paragraph (a), after ‘person’ insert ‘otherwise than under or by virtue of an assured tenancy’;
(b) after that paragraph insert—
‘(aa) “assured tenancy” means an assured tenancy within the meaning of Chapter 1 of Part 1 of the Housing Act 1988;’”.
This creates an exception to the restriction on the provision of temporary sleeping accommodation in residential premises in Greater London for less than 90 days, where occupation of such accommodation is under or by virtue of an assured tenancy agreement.
Amendment 13, in schedule 2, page 174, line 31, leave out paragraph 8 and insert—
“8 The Housing Act 1985 is amended as follows.
8A In section 81ZA (grant of secure tenancies in cases of domestic abuse), in subsection (4), in the definition of ‘qualifying tenancy’, in paragraph (b), omit sub-paragraph (i).
8B In section 81B (cases where old-style English secure tenancies may be granted), in subsection (2C), in the definition of ‘qualifying tenancy’, in paragraph (b), omit ‘which is not an assured shorthold tenancy and’
8C In section 82A (demotion because of anti-social behaviour)—
(a) in subsection (1), omit paragraphs (ba) and (c);
(b) in subsection (8), omit paragraph (b).
8D In section 171B (extent of preserved right), omit subsection (1A).
8E In Schedule 3 (grounds for withholding consent to assignment by way of exchange), in ground 2A, in the definition of ‘demotion order’, omit ‘or section 6A of the Housing Act 1988’.”.
This adds further amendments to the Housing Act 1985 to remove the power of private registered providers of social housing and registered social landlords to apply for demotion orders relating to secure tenancies (new paragraph 8C(a)) and otherwise in consequence of the changes made by Part 1 of the Bill.
Amendment 14, in schedule 2, page 176, line 2, at end insert—
“17A In section 15 (limited prohibition on assignment etc. without consent), in subsection (3), omit ‘a statutory periodic tenancy or’.
17B In section 17 (succession to assured tenancy)—
(a) in subsection (1)(a), omit ‘periodic’;
(b) in subsection (1A)(a), omit ‘periodic’;
(c) omit subsection (1B);
(d) omit subsection (1C);
(e) in subsection (1D), for ‘, (1A), (1B) or (1C)’ substitute ‘or (1A)’;
(f) in subsection (5), omit ‘or (1B)(c) above’;
(g) in subsection (6), omit ‘, (1C)’;
(h) omit subsection (7).”
This makes further amendments to the Housing Act 1988 to take account of changes made by Part 1 of the Bill.
Amendment 15, in schedule 2, page 176, line 17, leave out paragraph 21 and insert—
“21(1) Section 39 (statutory tenants: succession) is amended as follows.
(2) In subsection (5), in the words after paragraph (b), omit ‘periodic’.
(3) In subsection (6)—
(a) in the words before paragraph (a), omit ‘periodic’;
(b) in paragraph (d), after the second ‘tenancy’ insert ‘(but this is subject to section 4A)’;
(c) in paragraph (e), for ‘sections 13 to 15’ substitute ‘sections 13 to 16C’;
(d) omit paragraph (f).
(4) Omit subsection (7).
(5) In subsection (8)—
(a) omit ‘periodic’;
(b) after ‘above)’ insert ‘; and section 24A does not apply in relation to the assured tenancy to which the successor becomes entitled’.
(6) For subsection (9) substitute—
‘(9) Where, immediately before the predecessor’s death, the predecessor was a tenant under a fixed term tenancy (the “former tenancy”), the following provisions of this subsection apply in relation to the assured tenancy to which the successor becomes entitled on the predecessor’s death (the “new tenancy”)—
(a) not later than the first anniversary of the date of the predecessor’s death, the landlord may serve on the tenant, or the tenant may serve on the landlord, a notice in the prescribed form (a “notice of variation”)—
(i) proposing terms of the new tenancy, other than terms as to the amount of the rent, that are different from the terms which have effect by virtue of subsection (6)(e) (the “implied terms”), and
(ii) if the landlord or the tenant considers it appropriate, proposing an adjustment of the amount of the rent to take account of the proposed terms;
(b) where a notice of variation has been served under paragraph (a)—
(i) within the period of three months beginning on the date on which the notice was served on him, the landlord or the tenant, as the case may be, may, by an application in the prescribed form, refer the notice to the appropriate tribunal under paragraph (c), and
(ii) if the notice is not so referred, then, with effect from such date, not falling within the period referred to in sub-paragraph (i), as may be specified in the notice, the terms proposed in the notice shall become terms of the tenancy in substitution for any of the implied terms dealing with the same subject matter and the amount of the rent shall be varied in accordance with any adjustment so proposed;
(c) where a notice of variation is referred to the appropriate tribunal, the appropriate tribunal must consider the terms proposed in the notice and must determine whether those terms, or some other terms (dealing with the same subject matter as the proposed terms), are such as, in the appropriate tribunal’s opinion, might reasonably be expected to be found in an assured tenancy of the dwelling-house concerned, being a tenancy—
(i) which begins on the date of the predecessor’s death, and
(ii) which is granted by a willing landlord on terms which, except in so far as they relate to the subject matter of the proposed terms, are those of the new tenancy at the time of the appropriate tribunal’s consideration;
(d) whether or not a notice of variation proposes an adjustment of the amount of the rent under the former tenancy, where the appropriate tribunal determine any terms under paragraph (c), they must, if they consider it appropriate, specify such an adjustment to take account of the terms so determined;
(e) in making a determination under paragraph (c), or specifying an adjustment of an amount of rent under paragraph (d), there must be disregarded any effect on the terms or the amount of the rent attributable to the granting of a tenancy to a sitting tenant;
(f) where a notice of variation is referred to the appropriate tribunal, then, unless the landlord and the tenant otherwise agree, with effect from such date as the appropriate tribunal may direct—
(i) the terms determined by the appropriate tribunal become terms of the new tenancy in substitution for any of the implied terms dealing with the same subject matter, and
(ii) the amount of the rent under the statutory periodic tenancy is altered to accord with any adjustment specified by the appropriate tribunal;
but for the purposes of sub-paragraph (ii) the appropriate tribunal must not direct a date earlier than the date specified, in accordance with subsection (3)(b) above, in the notice of variation;
(g) nothing in this section requires the appropriate tribunal to continue with a determination under paragraph (c) if the landlord and tenant give notice in writing that they no longer require such a determination or if the tenancy has come to an end.’”.
This makes consequential amendments of section 39 of the Housing Act 1988.
Amendment 16, in schedule 2, page 176, line 37, at end insert—
“30A In section 124 (introductory tenancies), in subsection (2)(b), omit ‘, other than an assured shorthold tenancy,’.
30B In section 125 (duration of introductory tenancy)—
(a) in subsection (3), omit ‘, or a relevant assured shorthold tenancy,’;
(b) omit subsection (3A).”.
This adds further amendments to the Housing Act 1996 relating to introductory tenancies to take account of the changes made by Part 1 of the Bill.
Amendment 17, in schedule 2, page 177, line 2, at end insert—
“31A In section 143C (change of landlord), in subsection (3), omit ‘shorthold’.”
This adds further amendments to the Housing Act 1996 relating to demoted tenancies to take account of the changes made by Part 1 of the Bill.
Amendment 18, in schedule 2, page 178, line 23, at end insert—
“(c) in Schedule 1 (demoted tenancies), omit paragraph 2(3).”
This amends Schedule 1 to the Anti-social Behaviour Act 2003 in consequence of the amendment made to section 171B of the Housing Act 1985 by Amendment 13.
Amendment 19, in schedule 2, page 178, leave out lines 25 to 27 and insert—
“45 The Housing Act 2004 is amended as follows.
46 Omit section 75.
47 Omit section 98.
48 In section 116 (general effect of final management orders), in subsection (4)—
(a) in paragraph (a)(ii), omit ‘subject to paragraph (b))’;
(b) for paragraph (b) substitute—
‘(b) paragraph (a) does not apply to the creation of an interest in the nature of an assured tenancy within the meaning of Part 1 of the Housing Act 1988.’
49 In section 136 (making of final EDMOs), in subsection (5), before paragraph (a) insert—
‘(aa) paragraph 2 is to be read as requiring the notice under paragraph 1 to also set out the rights and powers of the authority under paragraph 10(3) of Schedule 7 in connection with a dwelling in relation to which a final EDMO is in force;’.
50 In Schedule 7 (general effect of final EDMOs), in paragraph 10(4)—
(a) in paragraph (a)(ii) omit ‘(subject to paragraph (b))’;
(b) for paragraph (b) substitute—
‘(b) paragraph (a) does not apply to the creation of an interest in the nature of an assured tenancy within the meaning of the Housing Act 1988.’”
This replaces the amendments to the Housing Act 2004 and adds new amendments to the provisions in that Act relating to management orders to take account of the changes made by Part 1 of the Bill.
Amendment 20, in schedule 2, page 179, line 4, at end insert—
“(ba) in section 158 (secure and assured tenancies: transfer of tenancy)—
(i) omit subsection (3)(b)(i) and the ‘and’ after it;
(ii) omit subsection (4)(b) and the ‘or’ before it;
(iii) in subsection (8)(b), omit the words ‘that is not an assured shorthold tenancy’;
(iv) in subsection (9)(b), omit the words ‘that is not an assured shorthold tenancy’;
(v) in subsection (10), omit ‘shorthold’;
(bb) in section 159 (further provisions about transfer of tenancy under section 158), in subsection (6)(c), for ‘and “assured shorthold tenancy” have’ substitute ‘has’;”.
This adds further amendments to the Localism Act 2011 in relation to the transfer of tenancies to take account of the changes made by Part 1 of the Bill.
Amendment 21, in schedule 2, page 179, line 8, at end insert—
“(ea) in section 184 (tenancy deposit schemes), omit subsections (10) to (13);”.—(Matthew Pennycook.)
This repeals section 184(10) to (13) of the Localism Act 2011. The repealed provision amends section 215 of the Housing Act 2004 (which is replaced by clause 25(5) of the Bill).
Schedule 2, as amended, agreed to.
Clause 29 ordered to stand part of the Bill.
Clause 30
Tenancies of more than seven years
Question proposed, That the clause stand part of the Bill.
Matthew Pennycook
With this clause, we turn to chapter 2 of part 1, which deals with tenancies that cannot be assured tenancies. The clause excludes from the assured tenancy regime fixed-term leases of more than seven years, which is particularly relevant for leasehold homeowners and those who purchased via shared ownership, who can sometimes be legally considered tenants under the assured regime despite having purchased their property. The clause will therefore exclude entirely such fixed-term leases and any others over seven years in length from the assured regime, thereby supporting the continued operation of shared ownership and providing additional security to shared ownership homeowners by exempting them from the grounds for eviction in the Housing Act 1988. It will also exclude leaseholders from the assured tenancy system, finally closing the so-called tenancy trap. It is unjustifiable, in the Government’s view, that leaseholders who have purchased their homes can face repossession for rent arrears through the assured tenancy regime. The exemption will therefore ensure they are protected.
I am grateful to stakeholders for raising concerns with me over the ways the clause could be undermined or abused. Let me be clear: we will not tolerate attempts to get around the abolition of section 21 by abusing this clause. I am therefore considering whether any action is needed to ensure that the system operates as intended, and that no abuse of the system can take place.
Clause 31 rectifies an omission to ensure that, as is the case for other specified sections where local authorities have an interim duty or discretion to provide temporary accommodation, a tenancy granted pursuant to section 199A of the Housing Act 1996 cannot become an assured tenancy. This will allow the private landlord to regain possession of their property once the local authority’s duty to provide it by way of interim accommodation ceases.
David Simmonds
From our constituency work, many of us will be aware that when an individual has a “no recourse to public funds” condition because of their immigration status, although they may be employed in the UK and potentially in the public sector, the local authority has no duty to house that individual. That, however, may be compromised if, for example, there are children in the household, where duties under the Children Act 1989 and the National Assistance Act 1948 are triggered and the local authority effectively has a responsibility by another route. Although the individual may occupy a private rented sector property that has been procured for them by the local authority under those duties, they do not have any rights to public funds to pay for it, and therefore fall into a slightly ambiguous position with respect to this Bill. Some clarity would be helpful, especially given that there is a significant market of landlords, many of them directly contracted with the Home Office, who specifically provide accommodation for people who find themselves in a NRPF situation.
Matthew Pennycook
I thank the shadow Minister for that point; it is well made and well understood. As I will write to him on the subject of no recourse to public funds, I will ensure that that point is also covered in our correspondence.
Rebecca Smith
I have a point on which I would appreciate clarification. Increasingly, local authorities are purchasing properties to act as temporary accommodation because of a shortage of private rented accommodation. I am interested in whether it is within the scope of the Bill to look at how we would ensure that local authorities are not inadvertently caught up in the new legislation if, for example, they have bought 10 flats in a block to act specifically as temporary accommodation. If they put residents in it temporarily, are they inadvertently caught by the new legislation? Or will they be able to find somewhere else for the people to live, enable them to finish that tenancy and provide it for somebody else who might need temporary accommodation? It is a pretty niche example, but it is happening in my constituency. I am interested to see whether we have accidentally tied ourselves in knots.
Matthew Pennycook
That is a niche point—one of many we have had on some of the more technical clauses. That is not a concern that has been expressed to the Government in relation to this clause or other aspects of the Bill, but I will commit to go away and deal with that set of issues relating to temporary accommodation and no recourse to public funds in the round. I will give Committee members a full and detailed answer on each of the points that have been raised.
Question put and agreed to.
Clause 30 accordingly ordered to stand part of the Bill.
Clause 31 ordered to stand part of the Bill.
Ordered, That further consideration be now adjourned. —(Gen Kitchen.)