Renters' Rights Bill (Seventh sitting)
Tuesday 5th November 2024
(2 weeks, 2 days ago)
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The Minister for Housing and Planning (Matthew Pennycook)
It is a pleasure to continue our proceedings with you in the Chair, Mr Betts. We now turn to clauses 84 to 86, which deal with access to the data collected on the database and the circumstances in which that may be shared.
Let me start by speaking to clause 84. One of the central objectives of the database is to provide tenants and prospective tenants with the data to allow them to make informed decisions about which landlords to rent from. For that reason, the clause gives the Government a regulation-making power to make certain information on the database visible to the public.
For the database to be a success, it is crucial that tenants have access to key information about a landlord and a rental property. The information that the Government plan to make available to the public will include details of the landlord, details of other parties involved in the management or ownership of the property, and information about the rental property. The Government also intend to use the database to make landlords’ unspent housing-related offences or penalties visible to the public. Tenants will be able to make a judgment about whether to rent from a landlord, and good landlords will be distinguished from the minority of landlords who commit offences.
Information about spent offences will continue to remain visible to local authorities until those offences must be removed from the database, as described under clause 87. That will help local authorities to devise their enforcement approaches. However, spent offences will not be visible to the public. The Government will make information from the database public only if that is necessary and proportionate to meeting the aims of the database. We are committed to providing tenants with the information they need to make sound decisions about renting, but we are determined to respect landlords’ rights to privacy and to follow data protection and human rights legislation.
The clause also gives authorities such as local housing authorities, which have an interest in enforcing property standards, unlimited access to the information on the database. That will ensure they have access to the data necessary for them to carry out their enforcement activities.
Clause 85 outlines circumstances in which restricted data may be shared. The database will contain information that could be useful to various third parties. Although it could be useful, it remains essential that the information is protected in such a way as to respect the privacy of landlords and to ensure that the data is disclosed only for the intended purpose. Under clause 84, access to information will already be possible for relevant enforcement authorities, and regulations made under clause 85 can be used to extend that access to restricted information to other important third parties. That could be another Department or other third parties, such as the police service and the fire service.
The Government remain committed to protecting the privacy of landlords, as I said, and will ensure that any data disclosed is disclosed only for the specific purposes outlined in clause 85 and in full compliance with data protection legislation. The clause contains limitations to ensure that restricted information is disclosed to third parties only when necessary—for example, to help to fulfil statutory requirements and functions, or to facilitate compliance with the rule of law.
The Government have yet to confirm which organisations will have access to that information. We believe that certain elements of the information contained in the database may be useful to other Departments and other external agencies, as I said. Should the database operator or other persons breach the restricted data disclosure restrictions imposed by clause 85, they could be guilty of an offence punishable by a fine.
Clause 86 outlines the circumstances in which data can be used by certain public bodies that are granted access. The clause restricts the use of database information by those bodies to housing-specific functions. I will list the agencies in turn, for the benefit of the Committee: local housing authorities may use information from the database only in relation to their functions concerning housing, residential landlords and residential tenancies; local weights and measures authorities will be able to use the information from the database only for purposes related to their enforcement of housing standards; the mayoral combined authorities and the Greater London Authority may use information only in connection to their housing-related functions; and, if the Government nominate a lead enforcement authority—we will discuss that in more detail in respect of a later clause—it will be allowed to use information from the database only in relation to its functions as a lead enforcement authority, and the provision of the landlord legislation for which it is responsible.
Clause 86 will mean that although those agencies will have access to the information collected by the database, they will be able to use the data only where necessary and connected to their work related to housing. That will provide for better intelligence gathering on the private rented sector, enhancing enforcement activities and driving up standards, while also ensuring the privacy of landlords. I commend the clauses to the Committee.
David Simmonds (Ruislip, Northwood and Pinner) (Con)
It is a pleasure to serve under your chairmanship, Mr Betts. We spent some time on the use of the database in the previous Committee sitting, and the Opposition are satisfied with the Government’s direction of travel.
I have a question for the Minister in respect of his comments about those who will have access to the data and the purposes for which it is used. He spoke specifically about local authorities having the ability to access the data only for the performance of their housing functions. Predictive analytics are in quite widespread use in local authorities, largely based on the gathering of data from a number of sources—for example, the Ofsted databases that contain indicators relating to children, which might include the potential for a household to be made homeless, which would then trigger a requirement for a local authority to intervene.
It would be helpful if the Minister could clarify, perhaps in writing subsequent to this morning’s sitting, how housing functions will be defined so as not to inhibit the entirely commendable use of predictive analytics to identify households where there might be a risk that would trigger the local authority to intervene. How would that interact where elements of the service were provided by, for example, children’s trusts as a third party to the local authority, in order to ensure that the good work that is already being done to prevent households with children or vulnerable people from becoming homeless, and then requiring the intervention of a local authority, continues, and so that earlier intervention can forestall the level of risk?
Matthew Pennycook
I thank the shadow Minister for that question. To reassure him, any access to restricted information that is not displayed publicly through the database must be shown to facilitate compliance with a legal requirement, a rule of law or, as I said, the performance of a specific statutory function. I understand and recognise his point—namely, what are the limits? What is the definition of what a housing function is? What are the limits of what that applies to where statutory services are—I hope I have taken the shadow Minister’s meaning correctly—not strictly housing related but shade into housing-related issues? I will happily provide him some specific detail on that point through correspondence.
Question put and agreed to.
Clause 84 accordingly ordered to stand part of the Bill.
Clauses 85 to 87 ordered to stand part of the Bill.
Clause 88
Restriction on gaining possession
Question proposed, That the clause stand part of the Bill.
Matthew Pennycook
Clauses 88, 89 and 90 introduce a restriction on repossession for unregistered properties and new offences and financial penalties in relation to the database.
Clause 88 prohibits landlords from gaining a possession order for a property unless they have registered themselves and their property on the database. A comprehensive record is essential for the database to be of use to tenants —in the way I described in relation to the previous clauses—and to local authorities and central Government. This approach will incentivise landlords to register on the database, thereby empowering renters to make informed choices about where they live. However, the Government recognise the importance of tackling antisocial behaviour. It will therefore be possible for a possession order to be granted under grounds 7A or 14 if the matter relates to antisocial behaviour, even if a landlord and their property are not registered on the database.
The Government can, through regulations, amend the person to whom or circumstances in which the restriction on granting a possession order applies. This will allow the legislation to evolve to match the changing needs of the database and ensure that the possession restriction targets the right landlords.
Clause 89 allows local authorities to levy financial penalties on individuals who fail to comply with the database provisions. A transformative database will equip local authorities and tenants with the intelligence needed to make informed choices in the private rented sector. A strong enforcement framework will be crucial in maintaining the database’s integrity and ensuring that it serves its intended purpose. The clause grants local authorities powers to tailor penalties for non-compliance, and outlines a transparent and proportionate system for increasing penalties in cases where initial measures fail to achieve such compliance.
Clause 89 also allows local authorities to impose fines of up to £7,000 on persons who breach the restrictions in clause 80 regarding the marketing, advertising or letting of properties. Repeat offenders who commit similar breaches within five years, or continue to engage in unlawful behaviour, may face fines of up to £40,000, under clause 90. To further safeguard the integrity of the database, local housing authorities will have the power to impose fines of up to £40,000 on anyone who knowingly or recklessly submits false or misleading information to the database operator. Those fine levels will act as a powerful deterrent for landlords and agents, thereby ensuring high levels of compliance with the database provisions. The Secretary of State can amend the level of fines to reflect inflation; this power will ensure the continued effectiveness and relevance of our enforcement measures.
We understand that the database is a new service for local authorities, and we are designing the service to be as streamlined as possible. Our research indicates that a dependable source of information on the private rented sector will improve the efficiency of local authority enforcement practices. The clause mandates local authorities to have regard to guidance on financial penalties issued by the Secretary of State. The power will enable the Government to assist local authorities to fulfil their new responsibilities.
The success of the private rented sector database hinges on landlords and property agents fulfilling their new duties. Clause 90 will establish new offences for continued or repeated breaches of the requirements relating to the restrictions on the marketing, advertising and letting of a property imposed by clause 80. Those who continually or repeatedly breach the requirements within a five-year period are liable to an unlimited fine, following a successful prosecution.
Furthermore, clause 90 will establish a new offence where a person knowingly or recklessly provides false or misleading information to the database operator. Again, those who breach that requirement will face an unlimited fine on conviction. To ensure accountability in the private rented sector, we have extended liability for the offences to include corporate bodies. That will deter non-compliance and promote responsible behaviour among corporate entities and their representatives.
To combat these illegal practices, the Government will make regulations under the Housing and Planning Act 2016 to categorise the new offences established under clause 90 as banning order offences, which must be recorded on the database. As a result, depending on the decision of the local housing authority, landlords, agents or others convicted of such offences may be subject to a banning order.
The stringent penalties outlined in the clause will serve as a powerful disincentive for those who do not comply with the requirements of the database. By ensuring greater compliance, we will equip local authorities and tenants with essential information, while also enabling reputable landlords to differentiate themselves from those who do not, or refuse to, meet the required standards.
David Simmonds
Again, the Opposition support the measures, and I welcome the Minister’s words in introducing them.
On the restrictions around gaining possession, I have a brief question concerning the potential interaction between the database and planning law—for example, where a landlord has been registered and is letting a property that has not been authorised in planning terms. That is quite common on caravan sites, where the land might be illegally occupied, with a complex set of transactions leading up to that situation. The most vulnerable individuals and households are often accommodated in that type of property, which is sometimes of very poor quality. A local authority, therefore, needs to go down the appropriate enforcement path, in planning terms, to end the potentially illegal or unlawful use of that land.
Because planning law permits unlawful use to be rendered lawful by the seeking of retrospective permission, there is a potential risk to a tenant occupying such a property, if the local authority undertakes different courses of enforcement action simultaneously against a banned bad landlord and against a landowner or developer who has created a property that is not fit for occupation but is part of a rented-out property portfolio. I would like confirmation that those circumstances have been considered. Constituents of mine have been in that situation. I do not want to find that the most vulnerable and marginal households cannot benefit from the rights that the legislation intends to create.
Matthew Pennycook
I thank the shadow Minister for that question. I will give him the opportunity to clarify, if he feels that would be helpful. If I have understood him correctly, he is asking what would happen where there is an unauthorised development and potential planning enforcement in place, but the landlord is required under the new system to register with the database. Would they essentially be allowed to register with the database and comply with the requirements in the Bill, were they subject to a form of planning enforcement?
Matthew Pennycook
I will take that away and write to the shadow Minister. It is a good, detailed, specific question. We need to consider how various elements of local authority enforcement action relate to the Bill and how the Bill interacts with other requirements.
Carla Denyer (Bristol Central) (Green)
It has just occurred to me that the same question might apply to houses in multiple occupation, in areas where section 4 is applied. When the Minister looks into it, will he include that as well?
Matthew Pennycook
I am more than happy to include that in my correspondence with the Committee.
David Simmonds
I am grateful to the Minister for his response. My hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake) held a Westminster Hall debate on the topic of unauthorised development, but there are also issues with authorised development in places where there may be conflicts in planning law. For example, somebody occupying a caravan or temporary structure on land where they are subject to planning enforcement, but where they have a legal contract with a landlord, is in an especially vulnerable position. We want to ensure that they are not at risk of having their rights taken away as a result of ambiguities in the legislation. I am grateful to the Minister for looking into that.
Matthew Pennycook
Let me, hopefully, bring the exchanges on this matter to a close. I have taken away from this a very valid point. Under the provisions in the clause, if landlords correct a matter of non-compliance, vis-à-vis the requirements in the Bill, the possession process will be allowed to continue. Hon. Members have asked a reasonable question about whether, in circumstances where planning enforcement is still a live issue, it impacts in any way, and that can also apply in respect of HMOs. I commit to coming back to the Committee with fulsome detail on the subject.
Question put and agreed to.
Clause 88 accordingly ordered to stand part of the Bill.
Clauses 89 and 90 ordered to stand part of the Bill.
Clause 91
Power to direct database operator and local housing authorities
Question proposed, That the clause stand part of the Bill.
Matthew Pennycook
Clauses 91 to 94 deal with the power to direct the database operator, amendments to the Housing and Planning Act 2016, provisions for joint landlords and the interpretation of chapter 3.
The Government are aware that in order to achieve the aims of the database—to raise standards in the sector—we may need to direct the database operator or local authorities in respect of how they carry out certain functions in relation to the database. Clause 91 allows the Government to give the database operator or local housing authority instructions on how they exercise their functions. This may include giving instructions to local housing authorities on how to investigate and enforce property standards. The power will provide an agile database that can respond to the changing needs of the sector.
To ensure that local authorities can build a complete picture of enforcement activities, it is essential that banning orders and banning offences are recorded in one location. Clause 92 will require local authorities to record banning orders and banning order offences in respect of landlords on the private rented sector database once it has come into force. The clause amends section 28 of the Housing and Planning Act 2016 to signpost people to the new PRS database established under the Bill.
The purpose of clause 93 is simply to ensure that we have the ability to streamline the process for joint landlords in order, where possible, to avoid the duplication of entries. We anticipate creating a single sign-up process for joint landlords, with one lead landlord registering on behalf of others.
To help the understanding and aid the interpretation of the proposed legislation concerning the database, clause 94 defines certain key terms used in the legislation, or signposts readers to definitions elsewhere. Those terms are “database”, “lead enforcement authority”, “the landlord legislation”, “relevant banning order”, “relevant banning order offence” and “unique identifier”. I hope the Committee will have no issue with these simple, straightforward clauses.
David Simmonds
Once again, we support the clauses, but I have a question for the Minister. A little later, we will debate the allocated enforcement authority—which local authority has the power to undertake the enforcement. It will be a challenge for areas of England with two-tier councils where the housing authority is the district council, because the county council also has certain responsibilities that it must fulfil. For example, under the Children Act 1989, the county council has a duty to house somebody who is at risk of homelessness even if they have no recourse to public funds, because of the risk to children of being made homeless. Were the council not able to access the database because it was not the enforcement authority for that area, it would not be able to undertake the same level of due diligence.
I want the Committee to be confident that when the allocation of powers and duties is undertaken, the process will be sufficiently comprehensive for all the parts of the local government system that could have duties triggered under various parts of this legislation to have equality of access to the database to enable them to discharge their functions properly.
Matthew Pennycook
I thank the shadow Minister for posing that question. I am confident that the provisions are comprehensive enough to deal with those sorts of eventualities. I think we will discuss the matter in a bit more detail when we come to the clauses that relate to the lead enforcement authority and who has particular responsibilities in certain scenarios envisioned in the Bill. If I have not answered the shadow Minister’s question, I will be happy to respond again at that point.
Question put and agreed to.
Clause 91 accordingly ordered to stand part of the Bill.
Clauses 92 to 94 ordered to stand part of the Bill.
Clause 95
Financial assistance by Secretary of State
Question proposed, That the clause stand part of the Bill.
Matthew Pennycook
The clauses cover financial assistance provided by the Secretary of State to the PRS ombudsman and database, rent repayment orders and the interpretation of part 2.
On clause 95, we intend the private rented sector database and ombudsman to be self-funded through landlords’ registration or membership fees. However, clause 95 gives the Secretary of State the ability to give financial assistance to a person carrying out functions related to the PRS ombudsman or database provisions. Assistance will be granted in the event of an emergency, unforeseen circumstances or to cover enforcement shortfalls in particular circumstances.
Clause 96 concerns rent repayment orders. As members of the Committee will know, an RRO is an order made in the first-tier tribunal requiring a landlord to repay a specified amount of rent, either to the tenant or to the local housing authority, for a range of specified offences. The amount owed under an RRO is enforceable as if it were a debt in the county court. To grant an RRO, it is not necessary for the landlord or agent to have been convicted, but a tribunal must be satisfied beyond reasonable doubt that one of the offences has been committed. Presently, an RRO can require the repayment of a maximum sum of 12 months’ rent.
Rent repayment orders were introduced by the Housing Act 2004 and extended through section 40 of the Housing and Planning Act 2016 to cover a wider range of offences. RROs are an accessible, informal and relatively straightforward means by which tenants can obtain redress in the form of financial compensation, without having to rely on another body in instances where a landlord or his or her agent has committed an offence. For that reason—as you know better than anyone, Mr Betts—they have proved an extremely effective means for tenants and local authorities to hold to account landlords who fail to meet their obligations. RROs empower tenants to take effective action against unscrupulous landlords, but they also act as a powerful deterrent to errant landlords.
The previous Government’s Renters (Reform) Bill brought a number of continuing or repeat breaches or offences within the purview of rent repayment orders. In our view, it did not go far enough. We made the case at the time—ultimately without success, it must be said —that RROs should be a more significant feature of the Bill. I am therefore pleased that our Renters’ Rights Bill significantly expands rent repayment orders.
At this point, it would be remiss of me not to pay tribute to the late Simon Mullings, who unexpectedly died recently while on holiday in Scotland. Spike, as he was known by many, was a real enlarger of life and a real force for good in the sector, helping a great many families in need. His work on RROs, not least in the Rakusen v. Jepsen case, which went to the UK Supreme Court, and the exchanges we had in relation to the Renters (Reform) Bill in the last Parliament heavily influenced our approach to the legislation before us. He is sorely missed, and I thought it was right for me to make special mention of him, given how he has influenced the clauses we are discussing.
Clause 96 makes a series of important measures that strengthen rent repayment orders. First, it expands rent repayment orders to new offences across the Bill, including those in relation to tenancy reform, the ombudsman and the database. That ensures robust tenant-led enforcement of the new measures and supports better compliance with the new system. Secondly, the clause ensures that for all the listed offences, the tribunal must issue the maximum rent repayment order amount where the landlord has been convicted of, or received a financial penalty for, that offence or has committed the same offence previously. The intention is that rent repayment orders will provide an even stronger deterrent against offending and reoffending. Finally, clause 96 makes it easier for tenants and local authorities to apply for rent repayment orders, by doubling the maximum period in which an application can be made from the current 12 months to two years.
Clause 97 explains what activities constitute marketing a property to let and what comprises letting agency work. Landlords, letting agents and other persons will be prohibited from marketing residential properties to let, unless the landlord has registered with the private rented sector database and ombudsman scheme. Renters will benefit from knowing that a landlord has registered with the database, and tenants should be able to seek redress for issues that occur during the pre-letting period. We will retain the flexibility to narrow the definition of letting agency work by regulations in the future, if that is needed.
I commend the clauses to the Committee.
Question put and agreed to.
Clause 95 accordingly ordered to stand part of the Bill.
Clauses 96 and 97 ordered to stand part of the Bill.
Clause 98
Decent homes standard
Mr Gideon Amos (Taunton and Wellington) (LD)
I beg to move amendment 72, in clause 98, page 117, line 20, at end insert—
“(ia) the availability of which is secured by the Secretary of State under paragraph 9 of Schedule 10 of the Immigration Act 2016, or sections 4 or 95 of the Immigration and Asylum Act 1999;
(ib) that is provided by the Ministry of Defence for use by service personnel; or”.
This amendment would extend the Decent Homes Standard to accommodation provided to people on immigration bail and to that provided by the Ministry of Defence to service personnel.
The Chair
With this it will be convenient to discuss the following:
Government amendments 24 and 25.
Clause stand part.
Government amendments 26 to 40.
Schedule 4.
Mr Amos
It is a pleasure to serve under your chairmanship, Mr Betts, particularly as I know your expertise in this policy area. Amendment 72 would apply the proposed decent homes standard both to accommodation for refugees and people seeking asylum, and to accommodation provided by the Ministry of Defence for serving personnel. As I stated on Second Reading, it would be perverse, now that we have a decent homes standard for social housing and this Bill proposes a decent homes standard for the private rented sector, to leave our serving military personnel as one of the only groups not benefiting from decent living accommodation.
In debate on the Renters (Reform) Bill, my hon. Friend the Member for Twickenham (Munira Wilson), speaking on behalf of our hon. Friend the Member for North Shropshire (Helen Morgan), spoke about RAF Shawbury and Tern Hill barracks in north Shropshire, where the service accommodation was plagued by black mould, rat infestations and chronic overcrowding, meaning that individuals who have put their lives on the line for our country are not necessarily guaranteed a warm and safe place to live in return. I agree with the words of my hon. Friend the Member for Twickenham:
“That is no way to treat people who have put their lives on the line to serve this country…they deserve better.”—[Official Report, 24 April 2024; Vol. 748, c. 1004.]
I am grateful to the Minister for advising the House on Second Reading of this Bill that
“the MOD is reviewing its target standards so that we can drive up the quality of that accommodation separately from the Bill.”—[Official Report, 9 October 2024; Vol. 754, c. 412.],
but this is a long-running issue, and no doubt any Government at any time on any day in any month would say that they were “reviewing” the situation. Frankly, that is not going far enough.
Next week, of course, we will be commemorating those who sacrificed everything for our country. It would be appropriate, would it not, for the Government to take the opportunity under this Bill to commit to giving service personnel a decent homes standard for the public buildings in which they live? I have to say that the Government’s current position is a bit disappointing. I hope that the Minister will update that position, the more so because it falls short of the position taken by the previous Conservative Government, which is something of a surprise from where I am on the Liberal Democrat Benches. I hope very much that the Minister will update the position.
As the hon. Member for Ruislip, Northwood and Pinner will no doubt remember, the former Minister and then Member for Redcar, Jacob Young, in response to the equivalent amendment proposed to the Renters (Reform) Bill by my hon. Friends, made the commitment on Report that the Conservative Government would
“ensure that service accommodation meets the decent homes standard”.
However, he also said:
“Service…accommodation has unique features…including a significant portion being located on secure military sites where there will be issues around security and access for inspections.”
Therefore, like the Minister today, he recognised the unique challenges. However, he said that with
“the appropriate monitoring and reporting arrangements”,
the Government
“intend to ensure that service accommodation meets the decent homes standard”.—[Official Report, 24 April 2024; Vol. 748, c. 1029.]
Can it really be the case that the new Government are backtracking on the commitment of the last Government when it comes to decent homes for our serving military personnel? I certainly hope not.
In earlier sittings, this Minister emphasised that the exact nature of the standard would be subject to consultation, and clause 98(4) makes provision for exactly that consultation. I do not suggest that private rented housing would necessarily have poorer standards than the decent homes standard that applies to social housing. However, it is clear in clause 98 that the Government intend to develop a distinct standard appropriate to the private rented sector. What greater opportunity is there for the clause to ensure that the Government also develop a distinct decent homes standard that would be appropriate for the MOD conditions described earlier?
Finally, there is no doubt that tenants taking refuge here from war or other disasters in their own countries, who are awaiting determination of their asylum applications and many of whom have served our military and British forces in theatres of war such as Afghanistan, should also be in decent homes. Incidentally, the Liberal Democrats believe that asylum seekers should be working for that accommodation, so that they can earn for themselves and pay for it, but that does not take away from the fact that those families should not be in poor accommodation and should have decent homes.
I strongly urge the Minister, and the Committee as a whole, to recognise that the Bill provides a legislative opportunity, one that may not come again in this Parliament, to do right by those who should have decent homes. I urge the Committee to support the amendment and finally bring a long-running campaign to a successful conclusion, such that military accommodation will meet the decent homes standard.
Matthew Pennycook
We now move to part 3 of the Bill, concerning the decent homes standard. As members of the Committee will be aware, the private rented sector has the worst conditions of any housing tenure. More than one in five privately rented homes fail to meet the current decent homes standard, which sets a minimum standard for social housing. That equates to around a million homes. We are determined to tackle the blight of poor-quality homes and to ensure that tenants have the safe and decent homes they deserve. To do that, we will apply a decent homes standard to privately rented homes for the first time.
Clause 98 allows regulations to be made setting out the decent homes standard requirements that private rented homes must meet. As the hon. Member for Taunton and Wellington just mentioned, the Government will be consulting on the content of that standard, and we will set out the details of our proposals in due course. We want as many private rented sector tenants as possible to benefit from the decent homes standard. It will therefore apply to the vast majority of privately rented dwellings and houses in multiple occupation that are let under tenancies, as well as privately rented supported housing occupied both under tenancies and licences.
It is our intention that as much privately rented temporary homelessness accommodation as possible is covered by the decent homes standard too, but we need to avoid reducing the supply of such housing. Clause 98 therefore allows, following a consultation, temporary accommodation to be brought within scope of the standard through regulations. We are committed to engaging with the sector to assess the potential impacts and to ensure that our approach strikes the right balance.
Schedule 4 establishes a robust but proportionate enforcement framework for the decent homes standard. Local councils already have a wide range of powers to take action when properties contain hazards. Schedule 4 will allow those enforcement powers also to be used where private rented homes fail to meet decent homes standard requirements. It also gives councils a new power to issue financial penalties of up to £7,000 where the most dangerous hazards are found, as well as taking other enforcement action. That will provide a strong incentive for landlords to ensure that their properties are safe.
In most instances, the landlord who lets out the property to the tenants will be responsible for ensuring that it meets the decent homes standard. To reflect that, the schedule provides that the landlord will be subject to enforcement by default. However, some circumstances are more complex, such as leasehold properties and where rent-to-rent arrangements are being used. The schedule gives councils the flexibility in such situations to take enforcement action against the appropriate person. The schedule also allows for the fact that there will be legitimate reasons why some properties will not be able to meet all elements of the standard—for example, if a property is a listed building and consent to make alterations has been refused. Local councils will be able to take a pragmatic approach to enforcement in such cases. We will publish statutory guidance to support them in dealing with such issues in a way that is fair for both tenants and landlords.
We have tabled a number of minor Government amendments to ensure that clause 98 and schedule 4 work as intended. It is important that local authorities can take enforcement action against the person responsible for failures to meet quality standards. The amendments will ensure that the appropriate person can always be subject to enforcement action in respect of health and safety hazards in temporary homelessness accommodation.
David Simmonds
I share the Minister’s view of the amendment. We note the evidence that the vast majority of the MOD estate already meets the decent homes standard. The previous Government acted to apply the decent homes standard to the MOD estate in 2016 and, as far as I am aware, the commitment given by the previous Minister, Jacob Young, remains the Government’s position unless we hear otherwise. However, the amendment highlights a significant issue across Government: the NHS has a significant residential estate for the accommodation of nurses and doctors on hospital sites, and the Home Office also has a significant estate.
As the Minister outlined, because it broadly falls within the private rented sector, the vast majority of asylum accommodation is likely to come within the purview of the Bill by one means or another—and the decent homes standard applies to it anyway. There are a couple of issues that arise in respect of that. One is the way in which that standard will interact with unregulated children’s homes. As part of the care leaving pathway under the Care Act 2014, local authorities have a duty to secure accommodation, which is designed to provide an element of support for a young person preparing to move towards adulthood.
In many cases, because of the need for that support, but also due to that young person’s age, the home falls outside the regulation of Ofsted, which normally conducts inspections of regulated children’s homes. We have known for some time that the Department for Education is looking at issues that have arisen from time to time with the standard and quality of that accommodation. It would be helpful to understand how the decent homes standard may be applied, or whether there is separate action within the remit of the Department for Education—which has made announcements about this—that is designed to address the issue.
Finally, I welcome what the Minister said about temporary accommodation—that there is a degree of discretion, but that the aim is to bring the temporary accommodation estate within the remit of the decent homes standard. One of the challenges is around the homelessness duty introduced by the Homelessness Reduction Act 2017. Many local authorities will have a conversation with a homeless household about that household or individual securing for themselves private rented accommodation. Sometimes the quality of that accommodation is not good, particularly in areas with high demand for it.
With that, I return to the subject of temporary structures, such as caravans, chalets and things like that, which are sometimes on authorised sites with planning consent, but sometimes not. We simply want an assurance that, where individuals access accommodation through that route—where the local authority is paying or subsiding the rent to prevent homelessness—but the structure is unlikely to meet the decent homes standard from the outset, there will be an appropriate enforcement mechanism or at least clarity, so that, in a sector with the highest satisfaction rate but also the most egregious outliers, the most vulnerable and marginalised people can enforce their rights.
Carla Denyer
I rise to support amendment 72, tabled by the hon. Member for Taunton and Wellington, who made a compelling case for the need to provide adequate housing for those who serve us in the armed forces. I want to pick up on the reassurance that the Minister attempted to offer us on the existing regulatory regime for asylum accommodation, which he believes is sufficient. There is a two-word answer to whether it is sufficient: Bibby Stockholm. Would the Bibby Stockholm meet the decent homes standard? No, it clearly would not, and the Bill is an opportunity to fix that.
Matthew Pennycook
I will respond briefly, partly because a number of the issues raised are outside my ministerial responsibility. I commit to replying in writing to the points raised in relation to the responsibilities of the Home Office and the Department for Education, to give the Committee more clarity. Some of those details will come out when we consult. Everyone is assuming that we are talking about the decent homes standard as if it exists—it does not exist. We need to consult on what those specific standards will be and introduce the regulations.
The powers we have given ourselves in the measures will ensure that the standard can be extended to temporary accommodation, and to other types of housing provision where needed. I will happily come back on the point that the hon. Member for Bristol Central raised about the provision of asylum accommodation.
Mr Amos
The hon. Member for Ruislip, Northwood and Pinner believes that the commitment from the last Government that the decent homes standard will be applied to Ministry of Defence housing still stands, but the Minister says that the decent homes standard will not apply to MOD homes and instead that the MOD has it under review.
David Simmonds
The Minister and the previous Government were clear that the decent homes standard has applied to MOD accommodation since 2016, so it is in effect already. That is the evidence the Committee has heard. This debate is therefore not about whether to apply it; it already applies, and has done for some time.
Mr Amos
That is not consistent with what Jacob Young said in 2023, as recorded in Hansard, namely that the intention was to extend the decent homes standard to cover Ministry of Defence accommodation. That is the intention of the amendment. That is why I tabled it and why my hon. Friend the Member for North Shropshire tabled it in the last parliamentary Session. We are hearing that someone in the MOD has it under review. At the moment, that is not a huge reassurance. The whole subject of MOD housing and the need for serving personnel to benefit from it has been omitted.
The Minister mentioned the difficulty of enforcing the decent homes standard because MOD accommodation is behind the wire, but according to him we know that 96% of MOD accommodation would meet the standard. That work has been done, surveys have been carried out and the information is being freely exchanged, so clearly it is not that difficult to inspect the accommodation and understand what standard it meets. All accommodation on MOD bases can be easily accessed with the permission of the officer commanding the base. All sorts of inspections are carried out on MOD bases.
I accept that the Government are supportive of the principle of improving the standard of asylum seeker accommodation, but as with MOD housing, the fact that it is under review is not much of an assurance. I therefore will not withdraw the amendment.
Matthew Pennycook
Unless the hon. Gentleman is pressing his amendment simply to make a political point, I ask him gently: what outcomes are we seeking? He wants to bring MOD accommodation up to the decent homes standard. I have made it very clear to him that the MOD has been benchmarking minimum housing standards to the decent homes standard since 2016, and the shadow Minister has made the same point. The MOD inspects its properties. It knows what that standard is. It reports that 96% of its accommodation meets that standard.
The MOD also has a higher standard, the MOD-developed decent homes-plus standard, to which it benchmarks its accommodation. It found that 84.4% of its accommodation meets that standard. So we know that the MOD is already inspecting and monitoring its standards. The MOD has made it very clear under the present Government that it is reviewing how it takes forward those standards and—this is important to the point about outcomes—that in driving up standards in its accommodation, it is seeking an equivalent standard that we will introduce for the private sector through the Bill.
I gently say to the hon. Gentleman that we share the same objective; it is about how that is achieved. I have tried to give him the reassurance that the MOD is not just brushing off the review; it is absolutely committed to driving up standards through its particular route, given some of the challenges it faces. I have a barracks in my constituency, and it is not that easy for local authority enforcement officers to just make an appointment to visit it and inspect. It is for the MOD to take this forward, and it is absolutely committed to doing so. If the hon. Gentleman’s point is simply about how we achieve the same objective, I am very confident that the MOD should be the one to do it through the specific route it has outlined, rather than by bringing military accommodation into the Bill, which could have all manner of unintended consequences.
David Simmonds
The Minister said earlier that there is a requirement for a consultation on the decent homes standard. It is important to recognise that a decent homes standard already exists, and in fact has existed since the previous Labour Government, which introduced it for social housing. The MOD is benchmarking its accommodation to that existing social housing decent homes standard, which includes things such as the state of repair of the property and its thermal insulation—the property needs to be sufficiently warm for safe occupation. Those criteria already exist and are already in use. Where there is an element of doubt is on the specific decent homes standard that the new Government would apply to the private rented sector. But there is already a decent homes standard, which is in use in the Ministry of Defence now.
Matthew Pennycook
I give way to the hon. Member for Taunton and Wellington.
Matthew Pennycook
We have been in office for a little over 120 days, so the hon. Gentleman will forgive us for not publishing information about every action that we are taking. I will make him this offer: I will take his point away to MOD Ministers who we are in conversation with, and if I cannot give him further assurances through written correspondence about the process that the MOD intends to take forward, including in response to his specific point about timelines, he is more than welcome to push the amendment at a later stage. However, at this stage I urge him to accept that we think there are good reasons why this is not the legislative vehicle to take the amendment forward. The objective is shared; from our point of view, this is about the means by which it is most appropriately achieved.
Mr Amos
Given the assurance that the Minister has generously given, I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Amendments made: 24, in clause 98, page 118, line 27, at end insert—
“(ba) a building or part of a building constructed or adapted for use as a house in multiple occupation if—
(i) it is for the time being only occupied by persons who form a single household, and
(ii) the accommodation which those persons occupy is let under a relevant tenancy or is supported exempt accommodation,
except where the accommodation which those persons occupy is social housing and the landlord under the tenancy, or the provider of the supported exempt accommodation, is a registered provider of social housing,”.
This expands the definition of “qualifying residential premises”—and therefore expands the scope of the power in new section 2A inserted by this clause—so as to catch HMO accommodation which is occupied by only one household (and therefore does not count as an HMO because it is not actually in multiple occupation).
Amendment 25, in clause 98, page 118, line 34, after “(b)” insert “, (ba)”.—(Matthew Pennycook.)
This is consequential on Amendment 24.
Clause 98, as amended, ordered to stand part of the Bill.
Schedule 4
Decent homes standard
Amendments made: 26, in schedule 4, page 186, line 4, leave out sub-paragraph (3) and insert—
“(3) After subsection (8) insert—
‘9) But unoccupied HMO accommodation is “qualifying residential premises” for the purposes of this Part only to the extent provided for by section 2B(1)(ba).’”
This is consequential on Amendment 24.
Amendment 27, in schedule 4, page 202, line 5, leave out from second “premises” to “, and” in line 6 and insert “other than—
(i) homelessness accommodation (see paragraph B1), or
(ii) common parts (see paragraph 4)”.
This excludes homelessness accommodation from the scope of the new paragraph A1. Instead it is dealt with by the new paragraph B1 inserted by Amendment 29. (Common parts are already excluded from new paragraph A1.)
Amendment 28, in schedule 4, page 202, line 11, leave out from beginning to second “the” in line 13 and insert—
“(1A) Sub-paragraph (2) applies in relation to the premises if they are—
(a) a dwelling or HMO let under a relevant tenancy,
(b) an HMO where at least one unit of accommodation which forms part of the HMO is let under a relevant tenancy, or
(c) a building or a part of a building constructed or adapted for use as a house in multiple occupation if—
(i) it is for the time being only occupied by persons who form a single household, and
(ii) the accommodation which those persons occupy is let under a relevant tenancy.”
This is consequential on Amendment 24.
Amendment 29, in schedule 4, page 202, line 31, leave out paragraph (b) and insert—
“(4) In this paragraph—
“common parts” means common parts that are qualifying residential premises by virtue of section 2B(1)(d);
“homelessness accommodation” means accommodation in England—
(a) the availability of which is secured under Part 7 of the Housing Act 1996 (homelessness), and
(b) which is residential premises, whether by virtue of paragraph (e) or another paragraph of section 1(4).
Service of improvement notices: homelessness accommodation (whether or not it is qualifying residential premises)
(1) This paragraph applies where the specified premises in the case of an improvement notice are homelessness accommodation (which has the same meaning here as in paragraph A1).
(2) The notice must be served on any person—
(a) who has an estate or interest in the premises, and
(b) who, in the opinion of the local housing authority, ought to take the action specified in the notice.
(3) This paragraph applies instead of paragraph 1, 2 or 3 (in a case where that paragraph would otherwise apply to the improvement notice).”
The definitions are consequential on Amendment 27. The new paragraph B1 provides for the service of all improvement notices relating to homelessness accommodation (and replaces the current provision which only catches notices about requirements under regulations under section 2A).
Amendment 30, in schedule 4, page 203, line 5, leave out “let under a relevant tenancy, or” and insert “a dwelling or HMO let under a relevant tenancy,”.
This is consequential on Amendment 24.
Amendment 31, in schedule 4, page 203, line 8, at end insert “or
(c) are a building or a part of a building constructed or adapted for use as a house in multiple occupation—
(i) that is for the time being only occupied by persons who form a single household, and
(ii) where the accommodation which those persons occupy is let under a relevant tenancy,”.
This is consequential on Amendment 24.
Amendment 32, in schedule 4, page 203, line 12, after “tenancy.” insert—
“(2B) Where—
(a) sub-paragraph (2A) does not apply in relation to the specified premises,
(b) the specified premises consist of or include the whole or any part of a building containing homelessness accommodation, and
(c) the person providing the homelessness accommodation—
(i) is a tenant of that accommodation under a tenancy which has an unexpired term of 3 years or less (the “short tenancy”), and
(ii) accordingly is not an owner in relation to the homelessness accommodation (see section 262(7)(b)),
the authority must also serve copies of the order on any person who, to their knowledge, is a tenant under the short tenancy, a landlord under the short tenancy, or a superior landlord in relation to the short tenancy, and who is not otherwise required to be served with a copy of the notice under this paragraph.
(2C) In sub-paragraph (2B) “homelessness accommodation” means accommodation in England—
(a) the availability of which is secured under Part 7 of the Housing Act 1996 (homelessness), and
(b) which is residential premises, whether by virtue of paragraph (e) or another paragraph of section 1(4).”
This requires copies of a prohibition notice to be given where homelessness accommodation is provided by a person who is a tenant of the accommodation under a lease with an unexpired term of 3 years or less.
Amendment 33, in schedule 4, page 203, line 13, leave out “after “(2)” insert “or (2A)”” and insert “for “sub-paragraph (2)” substitute “this paragraph””.
This is consequential on Amendment 32.
Amendment 34, in schedule 4, page 203, line 28, leave out “let under a relevant tenancy, or” and insert “a dwelling or HMO let under a relevant tenancy,”.
This is consequential on Amendment 24.
Amendment 35, in schedule 4, page 203, line 31, at end insert “or
(c) are a building or a part of a building constructed or adapted for use as a house in multiple occupation—
(i) that is for the time being only occupied by persons who form a single household, and
(ii) where the accommodation which those persons occupy is let under a relevant tenancy,”.
This is consequential on Amendment 24.
Amendment 36, in schedule 4, page 203, line 35, after “tenancy.” insert—
“(2B) Where—
(a) sub-paragraph (2A) does not apply in relation to the specified premises,
(b) the specified premises consist of or include the whole or any part of a building containing homelessness accommodation, and
(c) the person providing the homelessness accommodation—
(i) is a tenant of that accommodation under a tenancy which has an unexpired term of 3 years or less (the “short tenancy”), and
(ii) accordingly is not an owner in relation to the homelessness accommodation (see section 262(7)(b)),
the authority must also serve copies of the order on any person who, to their knowledge, is a tenant under the short tenancy, a landlord under the short tenancy, or a superior landlord in relation to the short tenancy, and who is not otherwise required to be served with a copy of the notice under this paragraph.
(2C) In sub-paragraph (2B) “homelessness accommodation” means accommodation in England—
(a) the availability of which is secured under Part 7 of the Housing Act 1996 (homelessness), and
(b) which is residential premises, whether by virtue of paragraph (e) or another paragraph of section 1(4).”
This requires copies of a prohibition notice to be given where homelessness accommodation is provided by a person who is a tenant of the accommodation under a lease with an unexpired term of 3 years or less.
Amendment 37, in schedule 4, page 203, line 36, leave out “or (2A)” and insert “, (2A) or (2B)”.
This is consequential on Amendment 36.
Amendment 38, in schedule 4, page 203, line 37, leave out “after “(2)” insert “, (2A)”” and insert “for “sub-paragraph (2) or (3)” substitute “this paragraph””.
This is consequential on Amendment 36.
Amendment 39, in schedule 4, page 204, line 4, leave out “let under a relevant tenancy, or” and insert “a dwelling or HMO let under a relevant tenancy,”.
This is consequential on Amendment 24.
Amendment 40, in schedule 4, page 204, line 7, at end insert “or
(iii) are a building or a part of a building constructed or adapted for use as a house in multiple occupation that is for the time being only occupied by persons who form a single household and where the accommodation which those persons occupy is let under a relevant tenancy,”.—(Matthew Pennycook.)
This is consequential on Amendment 24.
Schedule 4, as amended, agreed to.
Clause 99
Financial penalties
Question proposed, That the clause stand part of the Bill.
Matthew Pennycook
These provisions deal with financial penalties. Schedule 5 sets out the process for a local housing authority to impose a financial penalty on a person and applies to clauses 39, 56, 64 and 89. Foremost, schedule 5 stipulates that, before imposing a financial penalty, a local housing authority must issue a notice of intent setting out its reasons for issuing the fine. Landlords then have 28 days to make written representations to the local authority—I have discussed this point outside of Committee with the hon. Member for Broadland and Fakenham. Following that period of representations, the local authority must decide whether to impose a penalty. If it decides to issue a penalty, the local housing authority must then issue a final notice detailing the fine to be paid by the landlords, who will be able to appeal a decision to impose a penalty or the amount of the penalty by bringing an appeal to the first-tier tribunal within 28 days. The process in the schedule follows the precedent of the Tenant Fees Act 2019 and is similar to the process in the Housing and Planning Act 2016.
Clause 99 applies the schedule 5 procedures and rules for imposing, appealing, recovering or applying the proceeds of a financial penalty related to the anti-discrimination provisions, rental bidding, landlord redress schemes and the private rented sector database. I commend the provisions to the Committee.
Question put and agreed to.
Clause 99 accordingly ordered to stand part of the Bill.
Schedule 5 agreed to.
Clause 100
Rent repayment orders: liability of landlords and superior landlords
Carla Denyer
I beg to move amendment 41, in clause 100, page 120, line 9, leave out from “order)” to the end of line 12 and insert—
“—
(a) in subsection (1), omit “, beyond reasonable doubt,”;
(b) at the end of subsection (3), insert—
“(d) section 46A (where an order is made against more than one landlord or there has been a previous order”;
(c) after subsection (3), insert—
“(4) Where the application for a rent repayment order relates to an offence under sections 1(2), (3) or 3(A) of the Protection from Eviction Act 1977, the First-tier Tribunal must be satisfied, on the balance of probabilities, that the offence has been committed.
(5) Where the application for a rent repayment order relates to any other offence to which this Chapter applies, the First-tier Tribunal must be satisfied, beyond reasonable doubt, that the offence has been committed.”””
This amendment would apply the civil standard of proof for Rent Repayment Orders pursued on the basis of a Protection from Eviction Act 1977 offence.
The Chair
With this it will be convenient to discuss the following:
Clause stand part.
Clause 101 stand part.
Carla Denyer
The amendment is related to amendment 44, which I spoke to a few days ago, and to the serious issue of illegal evictions. Amendment 41 would apply the civil standard of proof for rent repayment orders, known as RROs, which are pursued on the basis of the Protection from Eviction Act 1977 offence, known as PFEA—I apologise; there will be acronyms. RROs are extremely difficult for renters to bring under the PFEA offence, due to the criminal standard of proof. As the Minister himself pointed out in our discussions on illegal discrimination, it is notoriously difficult for tenants to prove landlords’ culpability to a criminal standard of proof.
As I understand it, RROs for PFEA offences require a landlord who has committed an offence listed in the 1977 legislation to repay rent that has been paid in respect of a tenancy or licence. RROs are brought in the first-tier property tribunal, often as compensation by self-represented applicants who seek to reclaim rent they have paid to their landlord. Importantly, legal aid is not available for RRO claims, so tenants are almost always on their own. Currently, RRO claims require a criminal standard of proof. That is inappropriate because an RRO is not a criminal prosecution. It does not follow criminal procedural rules, or result in a criminal sentence or a criminal record if the defendant is convicted. As things stand, PFEA RROs are an anomaly. A civil claim in a civil court for illegal eviction or harassment applies the civil standard, despite the fact that civil claims typically attract much higher penalties in the form of civil damages. It is therefore logical and consistent to apply the civil standard of proof to PFEA RROs, in line with the rest of civil law.
What is more, RROs are intended to be accessible to lay applicants, but although that may be so for licensing offences, it is far from the case for PFEA offences. Lay applicants—I would include myself in that category, because I would also make the following mistake—might understandably focus on proving one aspect of the offence, for example the locks being changed, rather than a separate part of the offence, for example by proving the intention of the landlord. To a non-lawyer, that might seem an insignificant distinction, but intention carries substantial legal weight.
Often, these offences are not just difficult but impossible to prove to a criminal standard. Often, if a landlord changes the locks, they do it when the tenant is not at home. Illegal eviction and harassment occur in the privacy of renters’ homes, often without witnesses or evidence. The criminal burden for PFEA RROs places an extra and often insurmountable burden on lay applicants to prove their case at tribunal. It has a chilling effect because it prevents many claims from being brought in the first place, as the evidence to meet that standard is simply not available. Under the current standard, therefore, renters cannot apply for RROs as they cannot prove their case beyond reasonable doubt, even when it is clear that an offence has occurred and that only the landlord would be motivated to commit it. That error weakens enforcement and access to justice, and it undermines the purpose of RRO legislation.
The incredibly low number of RROs and PFEA eviction offences demonstrates that the system is not working. Safer Renting—also known as Cambridge House—and the University of York have conducted research estimating that, over the two-year period from January 2021 to December 2022, there were at least 16,089 illegal evictions, and that number is almost certainly an undercount. Meanwhile, data gathered from the organisation Marks Out of Tenancy—founded in my constituency, as it happens—shows that in the same period, from 2021 to 2022, there were just 31 RROs in which a PFEA ground was successful. That is 31 out of more than 16,000. The system simply is not working.
I appreciate that the statistics that I have referred to might be explained by several things, but the standard of proof is certainly part of the problem and could be part of the solution. In fact, given that we are getting rid of section 21 evictions, I fear that failing to apply the civil standard of proof will risk creating the unintended consequence that illegal evictions will soar, as landlords find a way around the protections introduced by the Bill. I hope that, on that basis, the Minister will consider my amendment.
Matthew Pennycook
I will begin by addressing clauses 100 and 101, and I will then turn to amendment 41, which was tabled by the hon. Member for Bristol Central.
Clauses 100 and 101 make provision about the application of rent repayment orders to superior landlords and to company directors. To be most effective, tenants and local authorities need to be able to seek a rent repayment order against any landlord in the chain who has committed an offence. We are seeing a rise in so called rent-to-rent arrangements, which are often used by criminal landlords to mask illegal and exploitative practices and escape enforcement action. Clause 100 provides that superior landlords in such arrangements can be subject to rent repayment orders; that is currently not possible. With this important clause, we are ensuring that superior landlords cannot avoid their responsibilities. Rent repayment orders need to act as a sufficient deterrent to criminal landlords. Some criminal landlords see financial penalties simply as a cost of doing business. Clause 100 therefore doubles the maximum amount payable under a rent repayment order from 12 months to two years, making the deterrent effect significantly stronger.
Clause 101 will enable rent repayment orders to be made against directors and other similar officers of landlord bodies corporate that have committed a listed offence. Currently, if a tenant pursues a rent repayment order against a sham rent-to-rent or landlord company, the company can escape the penalty by virtue of having few or no assets or by simply dissolving. The clause will prevent this practice, for example by ensuring that, where certain conditions are met, individual directors of such companies can have a rent repayment order made against them. The clause ensures that rent repayment orders can be used effectively to tackle unscrupulous landlord companies and sham rent-to-rent companies.
Amendment 41 concerns an issue that the Government have previously considered and that I continue to keep under close review, namely what might be done to address the fact that proving illegal eviction and harassment to a criminal standard is, without doubt, extremely challenging and the prevalence of rent repayment orders in this area relative to other offences is low as a result.
As I have said before during our proceedings, the Government are clear that illegal eviction and harassment are serious criminal offences that cause significant harm and distress. Perpetrators must be robustly punished. It is right that the Housing and Planning Act 2016 extended repayment orders to cover these offences and that this Bill takes steps in other areas, including expanded civil penalties, to bear down on them.
Amendment 41, for which the hon. Member for Bristol Central made the case eloquently, would reduce from criminal to civil the standard of proof that needs to be met for rent repayment orders to be awarded in relation to unlawful eviction and harassment. To be candid with the hon. Lady and to explain my thought process, my concern about her amendment is primarily about the implications that it could have for the integrity of the rent repayment order regime as a whole. RROs are a mechanism designed to provide redress and act as a deterrent in relation specifically to criminal offences. As such, I fear that lowering the standard of proof for individual offences, as proposed in her amendment, runs the risk of weakening the link between the culpability of the landlord and the making of a rent repayment order. If the tribunal does not need to prove beyond reasonable doubt that the landlord committed an offence, we could see a weakening of that link.
I am absolutely committed to ensuring that rent repayment orders are effective across all the listed offences. I feel that that has to be balanced against the need to maintain the coherence, efficacy and fairness of a regime that is, as I hope she will acknowledge, in most instances working extremely well and that we want to strengthen. As we introduce the strengthened rent repayment orders in the Bill, I am mindful that we do not want to inadvertently damage the functioning of that regime, which we need to build upon.
Although I am more than happy to continue a dialogue with the hon. Member for Bristol Central on the matter, I kindly ask her to withdraw her amendment. We would have to resist it if she pushed it to a vote, and I would like that not to happen. We keep this area under review, and I would like to keep the conversation going.
Carla Denyer
I have a follow-up question. If the Minister desires to keep the criminal standard of proof for RROs, will he consider speaking to his colleagues about amending legal aid, so that it is at least available to tenants who would otherwise need to represent themselves in criminal courts?
Matthew Pennycook
I hope that the hon. Lady will appreciate that I cannot, as a Ministry of Housing, Communities and Local Government Minister, give her that commitment in Committee today, but we are having conversations across all Departments. This is an issue that the Government have considered, and I keep it under review. I recognise the challenge that the hon. Lady rightly poses, and which we have considered, which is that rent repayment order prevalence in this area is far too low.
As I have said, I worry about the unintended consequences of making what would amount to quite a significant change to the RRO regime. We want to strengthen it, because it is working and has worked incredibly well—particularly since the changes made in the 2016 Act—in providing effective tenant redress and acting as a deterrent. I am mindful about accepting significant changes in Committee, but I keep the matter under review. I will have those conversations, and my Department’s officials have had conversations across Government on this and many other areas.
Carla Denyer
On the basis of the Minister’s kind agreement to keep the conversation open—I will follow up on that—I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Clause 100 ordered to stand part of the Bill.
Clause 101 ordered to stand part of the Bill.
Clause 102
Unlicensed HMOs and houses: offences
Question proposed, That the clause stand part of the Bill.
Matthew Pennycook
I will be fairly brief on these two clauses. Licensing requirements are a fundamental part of ensuring that HMOs and other rented properties are safe and well managed. Clause 102 ensures that superior landlords can be liable for the offences of failing to ensure that a property is properly licensed.
In a situation in which a correct licence is not in place for a property, local authorities and tenants need the ability to take enforcement action against the person, or persons, responsible for failing to obtain a licence. The measure ensures that superior landlords can be held to account where they are responsible. Building on our discussion of a previous clause, that is critical to tackling sham rent-to-rent arrangements. It is important that superior landlords who could not have known that the property was being let as an HMO—for example, freeholders of a large block of flats with long leases—are protected. Clause 102 provides additional defences to make sure that that is the case.
Clause 103 seeks to ensure that both landlords and superior landlords can, where appropriate, be served with improvement notices requiring the removal of hazards. The provisions in the Housing Act 2004 do not allow improvement notices to be served on landlords or superior landlords in rent-to-rent arrangements in all circumstances. Clause 103 addresses that anomaly by giving local councils the ability to serve improvement notices on landlords and superior landlords, based on who should take the remedial action required. It will also ensure that tenants can pursue rent repayment orders against such landlords if they fail to comply with improvement notices. I commend the clauses to the Committee.
Question put and agreed to.
Clause 102 accordingly ordered to stand part of the Bill.
Clause 103 ordered to stand part of the Bill.
Clause 104
Enforcement by local housing authorities: general duty
Question proposed, That the clause stand part of the Bill.
Matthew Pennycook
We expect that the vast majority of landlords will do the right thing and meet their new legal responsibilities, but there will be a minority who fail to do so. That is why, for this package of reforms to be effective and achieve its aims, consistent and effective enforcement by local authorities is absolutely necessary.
Clause 104 places a duty on every local housing authority in England to enforce the new measures in their areas. We expect local authorities to take a proactive approach to enforcing these reforms and give this area the priority that it deserves. Equally, we want councils to have flexibility and take action in a way that best addresses local problems and priorities. The duty is broadly framed to allow that to happen.
We recognise that different types of enforcement will be more suited to different cases. When considering enforcement, local authorities will be able to issue a civil penalty as an alternative to criminal prosecution for an offence, allowing them to decide the most effective method of enforcement in each case. Clause 104 also empowers county councils that are not local housing authorities to take enforcement action, and it enables local authorities to take enforcement action outside their own local authority areas.
Clauses 105 and 106 set out the notification requirements where local authorities take enforcement action outside their own boundaries, or where a county council that is not a local housing authority takes enforcement action.
Clause 107 places a duty on local authorities to supply information to the Secretary of State, as required, on the exercise of their functions under the measures created or amended by the Bill. Regular and robust data from local authorities will be vital to understanding the impact of our reforms and the action taken by local authorities. We will work with local authorities to agree a data reporting framework that is rational, proportionate and helpful to both local and central Government, and in line with similar data collections.
Clause 108 allows the Secretary of State to appoint a lead enforcement authority for the purposes of any provisions in the landlord legislation, which include many of the provisions in the Bill.
Clauses 109 and 110 outline the functions of the lead enforcement authority, which include: overseeing the operation of the provisions in the legislation for which it is responsible; providing guidance, advice and information to local authorities; and, where necessary, enforcing the provisions. We are carefully considering whether having a lead enforcement authority for any of the provisions in the landlord legislation will be beneficial, and we will continue to engage with local authorities and other stakeholders to shape our plans. I commend the clauses to the Committee.
David Simmonds
Although the Opposition are supportive of the clauses, it is important to clarify a few things. First, the aim of clause 104 is clearly to ensure that a very high standard is met in the private rented sector. Many local authorities will take action themselves to ensure that the standard is met in a property—particularly in respect of social housing—if the landlord fails to do so. The powers under this legislation do not go as far as that; they extend to imposing a financial penalty or instituting proceedings against a person for that offence. Renters may expect that the local authority will effectively take possession of a property to remedy a problem giving rise to a breach—for example, a breach of the decent homes standard at the property—and it is important to recognise their expectations.
I will ask the Minister a question about clause 110. Local authorities will generally find it more efficient to enforce the decent homes standard as a single function, rather than having separate private rented sector and social housing functions, both of which effectively do the same work. The financing of the social housing element would normally come through the housing revenue account, which, like a number of other local authority revenue accounts, is ringfenced—something I know you are familiar with, Mr Betts—meaning that resources raised through that account cannot be applied to another purpose. Clearly, we would not wish to allow a degree of inefficiency to creep in by creating duplication.
It would be helpful if the Minister could say whether the guidance provided to local authorities will clarify that there is no objection, in respect of the private rented sector, to a sharing of services that are funded partially through the housing revenue account and partially through the regime introduced by the legislation. I know that this issue has been significant in different types of funding provided to local authorities for particular functions.
Matthew Pennycook
I will be fairly brief, because I am more than happy to go away and check whether this is an error on my part rather than that of the shadow Minister, but we have to be very clear which provisions in the Bill these enforcement powers relate to. Clause 104 sets out that every local housing authority has a duty to enforce the landlord legislation in its area, which covers chapters 3 and 6 of part 1 of the Bill, part 2 of the Bill, sections 1 and 1A of the Protection from Eviction Act 1977, and chapter 1 of part 1 of the Housing Act 1988.
We will consult on it, so further detail will come forward, but, to put it simply, enforcement of the decent homes standard will come via a different track. Nothing in the enforcement provisions will interfere in the housing health and safety rating system, or the enforcement of Awaab’s law or the decent homes standard to come.
I am more than happy to go away and check, and I will write to the shadow Minister if I have misunderstood his question. To reassure him, though, I think we are talking about enforcement against specific parts of landlord legislation under the Bill.
Question put and agreed to.
Clause 104 accordingly ordered to stand part of the Bill.
Clauses 105 to 110 ordered to stand part of the Bill.
Clause 111
Power of local housing authority to require information from relevant person
Question proposed, That the clause stand part of the Bill.
Matthew Pennycook
The Committee will forgive me for talking at some length to ensure that we fully set out the rationale for this large group of clauses. The group of clauses provides new investigatory powers to local housing authorities to tackle non-compliant landlords. The measures aim to enhance compliance and accountability among landlords.
Clause 111 gives local housing authorities the power to require information from landlords, licensors, agents and marketers. The information will be for the purpose of exercising the local housing authority’s functions under specific new provisions introduced by the Bill or in other specified legislations. Clause 111 also contains provisions that enable housing authorities to more effectively enforce financial penalties. It also provides safeguards to ensure that the powers are not misused.
Clauses 112, 113 and 114 provide the power to require information from persons other than the landlord or agent. That includes information from banks, accountants and client money protection schemes. This information will support prosecution and help in setting appropriate levels of civil penalties, which should take rental income and the landlord’s financial position into account. To ensure that the power is used proportionately, local housing authorities can only use it when they reasonably suspect that a relevant breach or offence has occurred.
Clauses 115 to 122 and clause 130 give local housing authorities the power to enter the business premises of landlords. There is a power to enter business premises without a warrant and a power of entry under warrant. Local housing authorities will be able to use the powers to enter business premises if they require the production of documents or to seize and detain documents for the purpose of ascertaining whether there has been compliance with the rented accommodation legislation and whether documents are required as evidence in proceedings. A local housing authority officer will need to reasonably suspect a breach of, or an offence under, rented accommodation legislation before they can exercise the power to require the production of documents or to seize and detain them.
In many instances, the evidence will likely be on a landlord’s business premises. That evidence includes tenancy agreements, bank statements, letters and communications. Following entry, local housing authorities will be able to require a relevant person on the premises to produce documentation. An officer of a local housing authority may seize and detain such documentation if they consider that it may be needed as evidence in proceedings for breaches of, or offences under, rented accommodation legislation.
This set of clauses contains safeguards to prevent them from being misused. For example, unless certain circumstances apply, local housing authorities must give at least 24 hours’ written notice prior to entry into business premises without a warrant. They will not be able to use that power where the premises are used wholly or mainly as residential accommodation. The clauses allow for relevant persons who have had their documents seized and detained to request access under supervision when appropriate, and all such documents will only be detained for as long as required.
Clauses 123 to 127 will give local housing authorities the power to enter residential premises without a warrant if they have a reasonable suspicion that the premises contain evidence that a relevant breach or offence has taken place. For entry into residential premises, with and without a warrant, the powers will apply only for the limited purposes of investigating specific breaches or offences relating to the private rented sector database or illegal evictions. Those breaches or offences are associated with serious potential harm and circumstances where physical evidence may be found on the premises.
The power of entry without a warrant will be available only where a specially authorised officer considers it necessary to enter the property to investigate whether there has been a relevant breach or offence. The power of entry with a warrant will be exercised only where a justice of the peace is satisfied that it is necessary for an officer to inspect the premises to investigate whether there has been a relevant breach or offence. The enforcement of the private rented sector database will sometimes require local authorities to enter the premises to establish whether the property needs to be registered. This will enable them to gather evidence to demonstrate that it is a residential tenancy, such as photographs of locks on bedroom doors or tenancy agreements.
Local housing authorities will also be able to use the powers to enter residential premises to investigate suspected illegal evictions, for example by checking whether locks have been changed or whether areas in the property have been blocked off. For the power of entry without a warrant, a written notice period of at least 24 hours is required unless the right to notice has been waived. The power can be used only where a specially authorised officer reasonably suspects that the premises are subject to a residential tenancy and entry is necessary to investigate whether a relevant breach or offence has occurred. These safeguards are in place to ensure that the power is used only where necessary.
Clause 128 will create new offences in relation to the new investigatory powers in part 4, including new offences in relation to requiring information from a relevant person, or any person, and the powers of entry into business and residential premises. The clause introduces a set of offences of obstructing an officer, failing to comply with requests, failing to provide other information or assistance if reasonably required by the officer for the purposes of exercising the powers, and providing false or misleading information.
The clause also introduces an offence with an unlimited fine for anyone falsely purporting to be a housing officer acting under the investigatory powers chapter. This is to protect landlords and tenants from anyone falsely trying to gain access to their property or obtain private information. It also makes it clear that a person is not committing an offence if they refuse to answer any question or give any information that might incriminate them.
Jerome Mayhew (Broadland and Fakenham) (Con)
I apologise for being rather slow on the uptake, but may I take the Minister back to clause 124, “Duties where occupiers are on residential premises entered without warrant”? Subsection (1) states:
“If an officer of a local housing authority enters premises under section 123(1) and finds one or more occupiers on the premises”—
in other words, if there are people there—
“the officer must produce evidence of the officer’s identity and special authorisation to that occupier or (if there is more than one) to at least one of them.”
That is very sensible—it means that the person must demonstrate who they are to the people in the premises—but subsection (2) states:
“An officer need not comply with subsection (1) if it is not reasonably practicable to do so.”
If we have already identified that an officer is entering premises that are occupied, what are the circumstances in which it would not be reasonably practicable for him to identify himself?
Matthew Pennycook
That is a very reasonable question. If the hon. Member will allow me, I will come back to him via written correspondence. In drafting the clause— I am raking my memory for our discussions about it—we thought that there would be certain circumstances in which the reasonability test might not need to be met. Some of the clauses have been developed following exchanges with local authorities. I will come back to the hon. Member on the specific point about whether we have met the test for it being necessary to include the subsection in the Bill.
Jerome Mayhew
The difficulty is that the Minister is asking us to support the wording of the Bill now, not subsequently to a letter being received. It is hard to support a clause that suggests on the face of it that an officer could come in and decide that it is not reasonably practicable to show their authority to somebody who is in occupation of their own residence. This is not an office building; it is where people live. I invite the Minister, who has his officials with him, to provide a more substantive answer in his next comments, because it is difficult for someone like me to support the clause as drafted.
Matthew Pennycook
I will happily try to do so: I will take away the point and try to get the hon. Member some reassurance in short order. I reassure him that we have drafted the clauses carefully, following extensive dialogue with local authorities and local authority stakeholders. We do not take the power lightly. If I understand him correctly, he is putting to me the reasonable point that such a power would never be necessary. If, in the course of our ongoing exchanges, I can give him an example in which it might be necessary, perhaps he will be reassured.
Question put and agreed to.
Clause 111 accordingly ordered to stand part of the Bill.
Clauses 112 to 133 ordered to stand part of the Bill.
Clause 134
Interpretation
Question proposed, That the clause stand part of the Bill.
Matthew Pennycook
I turn to part 5, on general provisions.
Clause 134 sets out the meaning of three terms used in the Bill: “lease”, “local housing authority” and “the 1988 Act”. Clause 135 sets out the Bill’s application to the Crown. Clause 136 sets out its application to Parliament.
Clause 137 clarifies various aspects of powers to make secondary legislation under the Bill. In particular, it contains a power to make consequential, supplementary, incidental, transitional or saving provision. It also clarifies which powers in the Bill will be subject to the affirmative or the negative procedure where exercised.
Clause 138 contains a power that will allow the Welsh Ministers to make consequential amendments arising from part 1 of the Bill. Clause 139 contains a power that will allow the Scottish Ministers to make consequential amendments arising as a result of chapter 5 of part 1 of the Bill, which makes provision to address rental discrimination in Scotland.
Clause 140 will give the Secretary of State the power to make consequential amendments arising from the Bill, such as by removing now defunct terms from other legislation. This is necessary to ensure that existing legislation continues to function as intended once the Bill has passed into law.
Clause 141 provides that the Bill’s extent, for the most part, is England and Wales. Housing is within the devolved legislative competence of the legislature in Wales, and in practice the application of the majority of the clauses will be to England only. A small number of changes will apply in England and Wales to address remaining aspects of the tenancy system in Wales that are still dependent on English law. Chapter 4 of part 1 applies the rental discrimination measure in Wales. Similarly, chapter 5 of part 1 extends only to Scotland and applies the rental discrimination measure in Scotland. I commend the clauses to the Committee.
Question put and agreed to.
Clause 134 accordingly ordered to stand part of the Bill.
Clauses 135 to 141 ordered to stand part of the Bill.
Clause 142
Commencement
David Simmonds
I beg to move amendment 45, in clause 142, page 150, line 26, leave out from “subject to” to end of line 27 and insert—
“—
(a) the publication of an economic impact assessment in relation to the bill, which must include the impact of abolishing fixed term assured tenancies on the student housing market; and
(b) subsections (2) to (6).”
The Chair
With this it will be convenient to discuss the following:
Amendment 64, in clause 142, page 150, line 26, leave out from “subject to” to end of line 27 and insert
“—
(a) the publication of an economic impact assessment of the bill, including abolishing fixed-term tenancies on student accommodation;
(b) the publication of an assessment under section [Assessment of operation of possession process]; and
(c) subsections (2) to (6).”
Clause stand part.
Clause 143 stand part.
Schedule 6.
Clauses 144 to 146 stand part.
David Simmonds
Amendments 45 and 64 would require the Government to give broader consideration to the economic assessment required to understand the full implications of the Bill. A lot of the evidence that we have heard on the Bill, and on the Renters (Reform) Bill in the last Parliament, concerns impact on supply, especially on the supply of accommodation for particular categories of tenant. Those categories include people in the student housing market, to which both amendments refer.
We are all aware that for local authorities and other public bodies such as transport authorities, the ability to predict and plan the need for student accommodation in particular locations is very significant. Transport for London and other transport authorities in major cities plan bus routes and other public transport based on the need for students to get to and from the places where they receive their education. The same is true in respect of retirement homes and so on.
This is a matter not merely of general political interest, but of practical interest for the public bodies whose responsibilities will be affected by the Bill. Although we recognise that a substantial amount of the Bill was already envisaged under the previous Government and has been through a significant process of scrutiny, we do not fully understand what the impact will be on supply, particularly on the supply of homes required by students. We have heard a great deal of evidence about the economic significance of students for our towns and cities, as well as for our university sector. The Opposition regard that as very important. I am interested to hear what the Minister has to say about our amendments and the clauses to which they relate.
Matthew Pennycook
I will speak briefly to the clauses in the group and then discuss the shadow Minister’s two amendments.
Clause 142 provides how and when the provisions in the Bill will be brought into force. This Government have made it clear on multiple occasions that we are determined to end the scourge of section 21 evictions as soon as possible. I think it has now been more than five years since the previous Government promised private renters across the country that section 21 evictions would be abolished. Renters have waited far too long for a Government to take action. We are determined to act for them to end the insecurity that they face, including the risk of homelessness, and—this is a point I have tried to stress throughout our discussions—to give good landlords certainty about what change means.
The clause provides the mechanism for ending section 21 once and for all for private tenancies. The new tenancy system for the private rented sector that is set out in chapter 1 of part 1 will come into force in a single stage for all assured tenancies. On that date, the new tenancy system will apply to all private tenancies. Existing tenancies will convert to the new system; any new tenancies signed on or after that date will also be governed by the new rules. This will give all private tenants the same security immediately: that will be the effect of clause 142(8). I reassure the Committee that we will work closely with all parts of the sector to ensure a smooth transition to the new system and that we are committed to providing sufficient notice ahead of implementation.
Beyond tenancy reform, the clause sets out how and when other provisions in the Bill will be brought into force. Some provisions, such as the investigatory powers in part 4, will come into force automatically two months after Royal Assent.
Clause 143 provides that the commencement of chapter 1 of part 1 will not have an impact on the continuation of existing tenancies. The Bill will apply to those tenancies, but they will not be treated as new tenancies. For example, although the landlord will not be able to use a section 21 notice in relation to such tenancies, the protected period during which the moving and selling grounds cannot be used will count from when the tenancy first began.
Schedule 6 will ensure a smooth conversion for existing tenancies to the new tenancy system by making specific provision to avoid unnecessary cliff edges, for example by maintaining the validity of rent increases and notices served prior to implementation. This will ensure that landlords and tenants are clear about which legal framework applies before and after the transition.
Clause 144 provides clarity about what happens when a fixed-term assured tenancy expires and becomes a statutory periodic tenancy. This will ensure that the periodic tenancy will be treated as continuous, meaning that any provisions in the Bill that apply from when the tenancy began will count from the beginning of the original tenancy rather than from when the statutory periodic tenancy arose.
Clause 145 will give the Secretary of State the power to make regulations that have transitional or saving provision in connection with the coming into force of any provision of the Bill. It will give powers to Welsh and Scottish Ministers to make transitional or saving provision in connection with the coming into force of chapters 4 and 5 respectively of part 1, which apply the rental discrimination measures in Wales and Scotland. The clause will also give the Secretary of State power to make provision concerning pre-application instruments that the Secretary of State considers will not operate effectively as a result of the Bill. It is standard and appropriate for the Secretary of State to have the power to make transitional or saving provisions; this is important to facilitate an orderly implementation of the new regime and to ensure that agreements and private legal instruments that were entered into prior to the Bill continue to operate as intended under the new regime.
Clause 146, as I think is self-evident, provides that the short title of the Act will be the Renters’ Rights Act 2024.
I turn to the shadow Minister’s amendments 45 and 64. Amendment 45, as he made clear, would require the publication of an economic impact assessment for the Bill, including an assessment of the impact of abolishing fixed-term assured tenancies on the student housing market, before its provisions are commenced. Amendment 64 would do the same, but would also make the publication of any assessment by the Lord Chancellor of the operation of possession proceedings for rented properties a prerequisite for commencing the provisions of the Bill.
I say gently to the shadow Minister that I have tried this trick before in a previous role, and I do not for one second condemn him for doing so, but we are committed to robustly monitoring and evaluating the private rented sector reform programme and the implications of the Bill. Our approach builds on the Department’s existing long-term housing sector monitoring work, and we will conduct our processes, impact and value-for-money evaluation in line with the Department’s published evaluation strategy. We will publish the evaluation findings in a timely manner that is consistent with our policy for the publication of research. Further data on the operation of possession proceedings for rented properties, to which amendment 64 refers, is already published and will continue to be published quarterly by the Ministry of Justice.
We are committed to ending the scourge of section 21. The sector and particularly tenants have waited too long for these changes to come into effect. We are therefore not minded to tie implementation to any additional requirements of the type that the shadow Minister mentions. I do not begrudge his trying, but I ask him to withdraw his amendment.
David Simmonds
I will have to accept the Minister’s gentle rebuff, but we have heard from the housing sector and from student organisations that these are very important issues. We recently debated rough sleeping in Westminster Hall; one challenge that emerged is that we did not count the number of rough sleepers until 2010, so it is very hard fully to understand what was going on. That is a lesson in the importance of doing the research and having impact assessments: they are a key part of the evidence that the Committee needs to consider to understand the direction of travel and whether it will do the job intended. However, I take the Minister’s point.
Matthew Pennycook
May I briefly intervene? I do not want to deprive the hon. Member for Broadland and Fakenham of an answer to his question about clause 124. I am told that the power is in place for very limited exceptions, in particular where an agent might face aggression from an occupier of a property and is therefore unable to show identification. The powers mirror the provisions in the Consumer Rights Act 2015 that apply to trading standards officers. It is a very limited exception for those circumstances. I hope that that provides some clarification and reassurance.
David Simmonds
I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Clause 142 ordered to stand part of the Bill.
Clause 143 ordered to stand part of the Bill.
Schedule 6 agreed to.
Clauses 144 to 146 ordered to stand part of the Bill.
Ordered, That further consideration be now adjourned. —(Gen Kitchen.)
Renters' Rights Bill (Eighth sitting)
Tuesday 5th November 2024
(2 weeks, 2 days 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 5 November 2024 - (5 Nov 2024)
The Chair
Good afternoon. Before we proceed, I should say that I am fully aware that a number of Members on both sides of the Committee have not served on Committees before. If you have any problems or questions, do not be frightened—just ask. I may know the answer, but if I do not, the Clerk certainly will.
New Clause 1
Impact of orders for possession on credit ratings
“(1) The Financial Conduct Authority must develop guidance for credit rating agencies on the impact of orders for possession on the credit ratings of tenants.
(2) Guidance prepared under this section must—
(a) outline that being subject to an order for possession under Grounds 1 to 8 must not negatively impact an individual’s credit rating;
(b) be published within three months of the passing of this Act.”—(Carla Denyer.)
Brought up, and read the First time.
Carla Denyer (Bristol Central) (Green)
I beg to move, That the clause be read a Second time.
I rise to move the new clause tabled in the name of the hon. Member for Walthamstow (Ms Creasy). The purpose of this probing new clause is to explore how we can ensure that renters’ credit scores are better protected against the negative consequences of having to move. I do not seek a vote on the new clause, and the detail of the wording may not be exactly right, but its purpose is to let us discuss what we can do to fix an injustice.
When tenants move repeatedly, it can affect their credit scores, making it harder for them to secure mortgages and get reasonable credit on credit cards and so on. It is not the actual act of moving home that affects someone’s credit report, but the admin that goes with it. Lenders like to see stability in personal details, so if someone moves house often, it will show up on their personal records as part of their credit report and could be a red flag. Opening more than one account with a utility provider in a six-month period would likely cause a person’s score to drop until they can prove they can pay their bills responsibly and on schedule, at which point it would start to build back up again.
It is important that we protect renters who are forced to move because their landlord seeks possession of a property for a reason that is not connected to their behaviour or ability to pay their rent. It is an injustice that renters’ credit scores suffer as a result of such actions. Fortunately, the Financial Conduct Authority is undertaking a review of credit referencing. I raise this issue in Committee because it is relevant to the work we do, but rather than looking for a vote, I am looking for a commitment from the Minister to write to the Financial Conduct Authority to ask for renters’ credit scores to be included as part of its current work.
David Simmonds (Ruislip, Northwood and Pinner) (Con)
It is a pleasure to serve under your chairmanship, Sir Roger. We aired the issue of credit worthiness and its impact on prospective tenants’ ability to secure a property during earlier deliberations on the Bill, and the Minister has given detailed responses about how the Government are treating this issue. I welcome the fact that the new clause is a probing one. In my view, it is a sensible question to pose, as is the question about the availability of rental insurance to those who may have a poor credit history when they seek to secure a property and undergo checks as part of the affordability process. I hope the Minister will give us an indication of how the issue will be dealt with, but I am confident that the Government have it in their sights and an appropriate solution is in the offing.
Mr Gideon Amos (Taunton and Wellington) (LD)
It is a pleasure to serve under your chairmanship, Sir Roger. I add the support of the Liberal Democrats for the intent of the new clause. Clearly, tenants should not be penalised for having to move frequently, and we are interested in the Minister’s response on the subject.
The Minister for Housing and Planning (Matthew Pennycook)
It is a pleasure to serve with you in the Chair, Sir Roger. I thank the hon. Member for Bristol Central for moving the new clause tabled by my hon. Friend the Member for Walthamstow (Ms Creasy), and I thank the shadow Minister and the hon. Member for Taunton and Wellington for their contributions.
The Government absolutely agree that unwanted private rental moves are not only stressful but extremely expensive in terms of both the unrecoverable costs associated with moving home and the significant up-front costs of moving into a new property, including tenancy deposits. That is why one of the Bill’s main objectives is to remove the threat of arbitrary evictions and increase tenant security.
Under the new tenancy system a small proportion of tenants will still find themselves evicted through no fault of their own in circumstances where the landlord has good reason to regain possession of the property—for example, if the landlord or a close family member wishes to live in it as their only or principal home. I therefore recognise the worthy intentions behind the new clause—namely, to ensure that tenants’ credit scores are not adversely affected by unwanted moves resulting from the use of such possession grounds.
However, I am not convinced that the new clause, which would require the FCA to issue guidance on how possession orders specifically should be reflected in an individual’s credit score, is necessary, because tenants’ credit scores are not adversely affected by evictions under ground 8 possessions. Credit reference agencies do not receive information about possession orders from the courts, and as a result possession orders are not recorded on people’s credit reports and do not negatively affect their credit scores.
I acknowledge that there is a distinct, but related, issue in respect of the impact on credit scores of changes of address in general, on which it is worth noting two things. First, the methodology that underpins credit scores is not uniform across different credit reference agencies. Experian, TransUnion and Equifax, for example, each have their own distinctive approaches to credit scores, including in how they reflect changes of address. Secondly, almost all lenders review a person’s credit report when assessing an application for credit, and a change of address would still be recorded on those reports.
Whether it is feasible and sensible to seek to have the FCA attempt to ensure that credit reference agencies treat moves resulting from the use of certain possession grounds set out in schedule 1 differently from changes of address more generally is an entirely valid question, albeit one somewhat distinct from that posed by the specific wording of the new clause. As things stand, I am not entirely convinced that it would be, but I will happily seek to ensure that Treasury Ministers engage directly with the FCA on this matter, including on the review cited by the hon. Member for Bristol Central. However, for the reasons I have stated, I will not be able to accept the new clause and ask the hon. Lady to withdraw it.
Carla Denyer
I and thank the Minister for his consideration and beg to ask leave to withdraw the motion.
Clause, by leave, withdrawn.
New Clause 2
Review of the impact of the Act on the housing market
“(1) The Secretary of State must publish an annual report outlining the impact of the provisions of this Act on the housing market in the UK.
(2) A report under this section must include the impact of this Act on—
(a) the availability of homes in the private rental sector;
(b) rents charged under tenancies;
(c) house prices; and
(d) requests for social housing.
(3) A report under this section must be laid before Parliament.”—(David Simmonds.)
Brought up, and read the First time.
The Chair
With this it will be convenient to discuss the following:
New clause 3—Report on certain matters relating to tenancy reform—
“(1) The Secretary of State must make arrangements for an independent person to prepare a report on—
(a) the impact of sections 1 and 2 on the provision of relevant tenancies;
(b) the extent to which the grounds in Schedule 2 to the 1988 Act as amended by this Act—
(i) operate effectively;
(ii) are comprehensive;
(iii) are fair.
(2) The Secretary of State must, within the period of 18 months beginning with the relevant date, lay before both Houses of Parliament—
(a) a copy of the report, and
(b) a statement setting out the Secretary of State’s response to the report.
(3) Nothing in subsection (1) prevents the Secretary of State from arranging for the independent person to include in the report matters additional to those mentioned in that subsection.
(4) In this section—
‘relevant date’ means a date 18 months after the coming into force of sections 1 and 2 of this Act;
‘relevant tenancy’ means an assured tenancy within the meaning of the 1988 Act other than a tenancy of social housing within the meaning of Part 2 of the Housing and Regeneration Act 2008.”
New clause 7—Impact of Act on provision of short-term lets—
“The Secretary of State must, within two years of the passing of this Act, publish a review of the impact of sections 1 to 3 on the number of landlords offering properties on short-term lets rather than in the private rented sector.”
This amendment would require the Secretary of State to review whether the prohibition on fixed term contracts had increased the number of landlords choosing to offer short-term lets instead of letting in the private rented sector.
David Simmonds
I suspect that we rehearsed this debate earlier, when the Minister gently rebuffed the point and commended me for trying to secure a degree of impact assessment in advance of the implementation of the measures in the Bill. These new clauses are designed to increase the degree of scrutiny on the Government, in respect of both the Bill’s potential impact in advance, where we are able to consult on that, and its impact on the housing market, on which new clause 2 would require an annual report. A lot of the debates in the Committee’s evidence sessions revolved around the impact on supply of various of the Bill’s measures. We know that those are valid and legitimate concerns, and I would be interested to hear what the Minister has to say in response to the new clauses.
The Chair
If the hon. Gentleman wishes to intervene, and he is quite entitled to, he must get to his feet before I call the Minister. The procedure is that the Minister is called last after he has heard what everybody else has to say.
Mr Amos
I will bob more enthusiastically in future, Sir Roger.
I rise to speak to new clause 7, which is in my name and concerns the proliferation of short-term lets, holiday lets, Airbnbs and the like. In June 2023 there were 432,000 short-term rental properties in the UK, a steady increase from the pre-pandemic levels. Growth is particularly significant in regions such as mine. The south-west has the highest volume of listings, with 81,000 properties, while the east midlands saw a 49% rise. The increase is concentrated in holiday locations—the south-west, Cornwall and the Lake district. In Cornwall, more than one in 10 addresses are used as holiday homes, according to the Office for National Statistics.
The Liberal Democrat policy would be to license the system. We would like to see holiday lets controlled in a similar way to other rental properties. A licensing system that aligns short-term lets with the requirements of longer-term properties would address disparities in regulation. The danger that we face today is in regulating the private rented sector but not moving forward on the regulation of short-term lets. That would create disparity and could lead to the leeching of more homes into the Airbnb, short-term let sector.
We also want to see the creation of a new planning use class for short-term and holiday lets. I am aware that most recently, in February, although it has repeatedly come up, the then Government stated that planning permission would be required for short-term lets—that is lets of more than 90 nights per year—and that a mandatory national register would be created. We are waiting for that, and we are interested to know what the new Government will do in that policy area.
Landlord groups such as the National Residential Landlords Association and Dexters letting agency have argued that the Bill risks pushing landlords out of the sector and into short-term holiday lets. The NRLA estimates a 1% to 2% drop in rental stock. There is agreement on the topic across the sector, and there is a plausible worry that without any additional controls there will be a leeching of stock into more short-term holiday lets. For locations that particularly suffer from that phenomenon, the consequences could be the closure of businesses and services locally. New clause 7 would put into the Bill a requirement for a review of the legislation’s impact on the provision of short-term lets, so that the issue can be controlled.
The Chair
Just so that the Committee understands the procedure, because the new clauses are grouped, new clause 7 will not be moved now, but if the hon. Member for Taunton and Wellington wishes to move it when we come to it, then he may do so without further debate.
Matthew Pennycook
I am afraid I will have to resist all three new clauses. Although I will try to limit it, I fear that I may be somewhat repetitive in doing so, because the Government’s logic in each instance is similar.
As the hon. Member for Ruislip, Northwood and Pinner has made clear, new clause 2 would introduce a legal requirement for the Government to publish an annual review of the impact of the Bill’s reforms on the availability of homes. In particular, it would require an assessment to be made on the availability of homes in the private rental sector, rents charged under tenancies, house prices and requests for social housing. As per our previous discussion, I recognise that the underlying rationale for the measure is an interest in the practical difference the legislation will make over the coming years. I reassure the Committee that this is an interest I share, which is why we are committed to robustly monitoring and evaluating the private rented sector reform programme introduced by the Bill.
I will not detail the Government’s general approach to monitoring and evaluation, but suffice it to say that we believe that setting an arbitrary deadline for the work in law—as the new clause would require—would be an unnecessary step, and there is a risk that it would detract from evaluation and prevent us from conducting as robust an assessment as possible. However, given the interest in the Bill’s impact, I wish to reassure the Committee that we do not expect the Bill to have a destabilising effect on the rental market. This Government value the contribution made by responsible landlords who provide quality homes to their tenants. We will continue to work with good landlords and their representative associations throughout implementation.
New clause 3 would introduce a legal requirement for the Government to appoint an independent person to prepare a report on the impact of the reforms to the tenancy system and the grounds for possession. We are committed to robustly monitoring and evaluating the impact of our reform programme in line with the Department’s evaluation strategy; however, setting an arbitrary deadline in law for that work is unnecessary and, again, may detract from the quality of evaluation and prevent us from conducting as robust an assessment as possible.
New clause 7, tabled by the hon. Member for Taunton and Wellington, would introduce a legal requirement for the Government to publish a review of the extent to which the abolition of fixed terms and assured shorthold tenancies and the changes to leasehold covenants lead to landlords leaving the private rented sector to provide short-term lets within two years of the Bill passing. It is important to state that this Government value the contribution made by responsible landlords who provide quality homes to their tenants, and believe they must enjoy robust grounds for possession where there is good reason to take their property back. As such, good landlords have nothing to fear from our reforms and should be in no rush to change legitimate business models, as I have said repeatedly.
The private rented sector has doubled in size since the early 2000s. There is no evidence of an exodus since reform was put on the table by the previous Government. Our proposals will ensure that landlords have the confidence and support they need to continue to invest and operate in the sector.
Matthew Pennycook
I will come to the specific proposals under consideration for short-term lets and holiday lets. The use class was consulted on as one of a number of measures that the previous Government introduced. I will touch on that specific point shortly.
I will preface this with a point that I think all Committee members appreciate. The Government are very alive to the fact that there are many parts of the country—coastal, rural and some urban constituencies—where excessive concentrations of short-term lets and holiday homes are having detrimental impacts, not least on the ability of local people to buy their own homes or, in many cases now, rent their own homes. I have stated this on many occasions in the House since being appointed, but I will say it again: that is the reason why we will progress with abolishing the furnished holiday lets tax regime, and with the introduction of a registration scheme for short-term lets. That will give local authorities access to valuable data on them.
Those measures were committed to by the previous Government, and we will take them forward. However, as I said a number of times in the previous Parliament, we do not think they go far enough and we are considering what additional powers we might give to local authorities to enable them to better respond to the pressures they face as a result of the excessive concentrations of short-term lets and holiday homes. I hope to say more on that in due course.
In respect of this Bill, we are committed to robustly monitoring and evaluating the impact of our reform programme in line with the Government’s evaluation strategy. However, setting an arbitrary deadline in law for this work is unnecessary and may detract from our efforts in that regard. On that basis, I encourage Members not to press their new clauses.
David Simmonds
Given the Minister’s response, I beg to ask leave to withdraw the clause.
Clause, by leave, withdrawn.
New Clause 4
Assessment of operation of possession process
“(1) The Lord Chancellor must prepare an assessment of the operation of the process by which—
(a) on applications made by landlords, the county court is able to make orders for the possession of dwellings in England that are let under assured and regulated tenancies, and
(b) such orders are enforced.
(2) The Lord Chancellor must publish the assessment at such time, and in such manner, as the Lord Chancellor thinks appropriate.
(3) In this section—
‘assured tenancy’ means an assured tenancy within the meaning of the 1988 Act;
‘dwelling’ means a building or part of a building which is occupied or intended to be occupied as a separate dwelling;
‘regulated tenancy’ means a regulated tenancy within the meaning of the Rent Act 1977.”—(David Simmonds.)
Brought up, and read the First time.
David Simmonds
I beg to move, That the clause be read a Second time.
At risk of rehearsing the debate we have already had, the new clause seeks to address the assessment of the possessions process. In evidence to the Committee a degree of concern was expressed on the part of landlords that the backlog in the courts may make it difficult to secure possession when that is necessary. Governments of all parties, including the previous Government, have put in place measures seeking to address that. We know that they are beginning to bear fruit, but it is important in maintaining the confidence of landlords both to come to the market and to remain in the market that they know it is possible to secure a court hearing, should one be necessary to gain access to the property. The new clause seeks to ensure that an assessment of that process is carried out.
Matthew Pennycook
New clause 4 would require the Lord Chancellor to prepare an assessment of the operation of the process by which the county court is able to make possession orders for rented properties and by which such orders are enforced. The assessment would be published at such time and in such a manner as the Lord Chancellor saw fit.
Hon. Members who followed the debates in the last Parliament will recall that the previous Government introduced a similar clause to their own Renters (Reform) Bill in the late stages of that Bill’s progress, via a Government amendment, together with a clause that prevented the Secretary of State from laying regulations to bring tenancy reforms into force for existing tenancies until after the Lord Chancellor’s amendment had been published. This Government have been clear that we will not follow a similar approach. We do not consider it reasonable that the implementation of our reforms should be constrained by such an assessment, not least an assessment of the kind proposed in the new clause, which is extremely broad and undefined.
The hon. Member for Ruislip, Northwood and Pinner tabled amendment 64, which would delay commencement until the Lord Chancellor has carried out and published the proposed assessment. I reaffirm that we have no intention of delaying these urgent and necessary reforms while awaiting an unnecessary assessment of the possession process against what is an unspecific metric. We will instead move ahead with tenancy reform as quickly as possible, but in conjunction with an extensive parallel workstream with colleagues from the Ministry of Justice and His Majesty’s Courts and Tribunals Service to ensure that the courts are ready at the point of implementation.
In any case, the assessment required by new clause 4 is entirely unnecessary and unhelpful, because data on the operation of possession proceedings for rented properties is already published by the Ministry of Justice on a quarterly basis, and will continue to be. Court rules specify that possession claims requiring a hearing should be listed between four weeks and eight weeks of receipt.
The Committee may be interested to know that figures for April to June 2024 show that claim to order median timeliness is 8.1 weeks, suggesting that—I am not necessarily attributing this to the shadow Minister—some of the more alarmist statements about the readiness of the county court system may have more to do with fundamental opposition to the abolition of section 21 and the current tenancy regime than they are an impartial assessment of court performance.
The proposed assessment would provide no obvious additional insight or benefit to any interested parties, in our view, and would merely detract from the vital work of the courts and tribunals by subjecting them to a nugatory additional process. All our focus is on ensuring that HMCTS is ready to stand up the new system at the point of commencement, and that should be our focus in the coming weeks and months. On that basis, I kindly ask the hon. Gentleman to withdraw his new clause.
David Simmonds
It is pleasing to hear from the Minister that the performance of the courts in this respect was so good under the previous Government. I am aware that one of the challenges has been the construction of a new IT platform to enable the new measures envisaged in the Bill to operate efficiently. This might be a legitimate concern for landlords to express, especially given that although the overall performance was good, there have been regional variations that have given rise to concern. However, bearing in mind what the Minister has said and the fact that there would be a degree of transparency about the data, I beg to ask leave to withdraw the clause.
Clause, by leave, withdrawn.
New Clause 5
Repeal of requirement for selective licensing
“Part 3 of the Housing Act 2004 (Selective licensing of other residential accommodation) is repealed.”—(David Simmonds.)
This new clause would remove the ability of local housing authorities to designate areas as subject to selective licensing.
Brought up, and read the First time.
The Chair
With this it will be convenient to discuss new clause 9—Changes to discretionary licensing—
“(1) The Housing Act 2004 is amended as follows.
(2) In section 60(2), omit ‘five’ and insert ‘ten’.
(3) In section 84(2), omit ‘five’ and insert ‘ten’.
(4) In section 90(1), at the end of the subsection insert ‘or its condition and contents’.”
This new clause would increase the maximum duration of discretionary licensing schemes from five to ten years and would enable local authorities operating selective licensing schemes to use licence conditions to improve housing conditions.
David Simmonds
The measures for selective licensing have been in place for some time, and we certainly see lot of learning from the local authorities that have operated them. On the whole, those have tended to be in high-density urban areas. Clearly, a concern for the Opposition is how that interacts with the new measures introduced in the Bill, whereby there will be a nationally procured database with a set of accountability measures operated by the Secretary of State. That could interact unhelpfully with local databases. I hope that the Government are determined to learn the lessons from those existing selective licensing arrangements. The Opposition’s view is that given the measures introduced by the Bill, selective licensing in the way that it is currently undertaken would no longer be necessary nor appropriate.
Carla Denyer
New clause 9 would head in the opposite direction from new clause 5. It is about removing unnecessary barriers to the use of licensing schemes to improve housing standards. The new clause would do two things. First, it would increase the maximum duration of discretionary licensing schemes from five years to 10. Secondly, it would enable local authorities operating selective licensing schemes to use licensing conditions to improve housing conditions.
Licensing can be an effective way to improve housing standards for at least three reasons. First, it is proactive. It provides a means for local authorities to inspect privately rented housing using enforceable conditions and to identify and resolve problems without the need for tenants to have complained, and it provides that proactive regulation in a locally tailored form. It makes major contributions to area-based issues such as crime, antisocial behaviour and waste management, and it brings together a range of bodies to focus additional support services—for example, for landlords and tenants, improving public health and reducing burdens on the NHS. There are a huge number of wins, and I have experienced that at first hand with licensing schemes in my local authority.
Secondly, licensing is self-funding. It means that the market pays for its own regulation, which is a good principle, rather than relying on the taxpayer. It provides a sustainable and predictable source of income that enables local authorities to maintain staffing levels and support the training of new officers.
Thirdly, licensing is targeted. It enables local authorities to target regulation where that is most needed, so that the worst landlords and the most vulnerable tenants get the most attention and landlord costs can be minimised in other areas.
The problem, however, is that local authorities have to implement licensing schemes with their hands tied behind their backs, because previous Governments have made various decisions that have placed unnecessary and irrational barriers in their way. Given that licensing schemes are expensive and time-consuming for local authorities to initially introduce, it does not make sense to restrict the period over which they can act to only five years.
New clause 9 would amend sections 60 and 84 of the Housing Act 2004 to increase the maximum duration of discretionary licensing schemes, which includes both selective licensing schemes and additional—sorry, jargon again—for HMOs from five to 10 years. That would allow local authorities to advertise for longer-term posts for officers and to include training of new staff in those schemes. It would also provide more time for local partnerships formed through such schemes to become embedded and effective.
The new clause also addresses another issue, which was highlighted by the Chartered Institute of Environmental Health during oral evidence. That respected body pointed out that it does not make any sense to have the current peculiar disconnect in the 2004 Act, whereby local authorities can introduce selective licensing schemes to address poor housing conditions, but they cannot include a directly enforceable requirement relating to the housing condition as a condition of the licence—so they do not have the tools to do what they are set up to do. The new clause would therefore amend section 90 of the 2004 Act to enable local authorities to use licence conditions to improve housing conditions directly.
I stress that the new clause does not cover all that needs to be done to remove barriers to licensing. For example, I also urge the Minister to commit the Government to removing the Secretary of State’s ability to veto selective licensing schemes covering more than 20% of the local authority area.
Carla Denyer
I can see that the Minister is nodding in recognition of that, and I thank him. It does not make sense for local authorities introducing selective licensing schemes to have to spend a lot of money on preparing the paperwork for the scheme without knowing whether it will ultimately go ahead. I have seen at first hand the unnecessary impact on officer time and the cost to local authorities.
Similarly, I urge the Minister to commit the Government to removing the requirement for local authorities establishing selective licensing schemes to ensure that the private rented sector forms a high proportion of properties in the area. If there are acute issues in the private rented sector that can be addressed through a selective licensing scheme, it seems arbitrary for local authorities to be unable to establish such a scheme just because that sector does not form a large proportion of the whole housing stock. The reason why those measures are not included in the new clause is that they do not require primary legislation, as far as I understand it, but I raise them because they are directly connected to the content of the new clause.
In conclusion, the changes that I am suggesting are small, but they could make a big difference to housing standards on the ground and to the ability of local authorities to do their work. I will not push the new clause to a vote, but I sincerely hope that the Minister will actively consider it. I know that the Chartered Institute of Environmental Health would be happy to meet him to discuss any further details.
Matthew Pennycook
As we have heard, new clause 5 seeks to abolish selective licensing. This would remove the ability of local authorities to set up a selective licensing scheme of any size in their area. In contrast, new clause 9 seeks to extend selective and additional licensing of houses in multiple occupation by allowing local authorities to increase the maximum duration of schemes from five to 10 years. It also seeks to allow local authorities to use licence conditions under selective licensing to improve housing conditions, as the hon. Member for Bristol Central made clear.
This Government support selective licensing. It allows local authorities to proactively and more intensively target specific issues in private rented properties, where it is needed most. That includes tackling poor housing conditions and antisocial behaviour. If we abolish selective licensing, local authorities will lose a crucial tool in taking effective enforcement action against landlords who flout the rules. However, I take the shadow Minister’s point, and I reiterate that it is important that the selective licensing system, and the system introduced by the Bill, operate effectively alongside each other. That is very much our intention.
However, we recognise that licensing imposes a burden on landlords. Correspondingly, we think a maximum duration of five years for discretionary licence schemes strikes the right balance for the following reasons. It gives local authorities time to realise improvements while ensuring that landlords are not by default subject to increased regulation for prolonged periods. Of course, licensing in any given area may be part of a longer-term strategy. That is why, where a scheme has expired and there is still a case for licensing, local authorities may simply introduce a new scheme to drive further improvements. The duration that the hon. Member for Bristol Central is seeking selective licensing schemes to cover can be achieved in any given local authority area, if the local authority simply extends matters through a new scheme. We think that a five-year timeframe gives an opportunity to review the effectiveness of individual discretionary licensing schemes and ensure that they are proportionate in achieving their aims.
The broad intention of the hon. Lady’s new clause is to improve housing conditions. Let me be clear again that every private renter, not just those in licensed properties, has the right to a good-quality home. That is why, through the Bill, we are introducing a decent homes standard and applying Awaab’s law to the sector to tackle the blight of poor-quality homes.
Our reforms will establish a level playing field across the sector, ensuring that all renters and local authorities, not just those in areas with licensing schemes, can challenge and enforce against dangerous conditions. I will not address the hon. Lady’s specific point on the Secretary of State’s veto, because it is somewhat outside the scope of the Bill, but I take that on board. On the chartered institute, I will say nothing more at this stage other than that we will continue to review the use of selective licensing as we develop the database and other measures in the Bill. On that basis, I ask the hon. Members not to press their new clauses.
David Simmonds
We remain a little concerned that where selective licensing schemes are in operation alongside the measures introduced by the legislation, a degree of ambiguity and potential confusion is created, especially for some landlords who may seek to evade responsibility. Two schemes of a similar nature will be in place, with potentially different fees and standards in operation. However, I accept the numbers on the Committee, so I beg to ask leave to withdraw the clause.
Clause, by leave, withdrawn.
The Chair
New clause 6 has been debated and there is no requirement to call it for a decision, unless a Committee member wishes to move it—Mr Amos?
The Chair
Technically, the hon. Gentleman cannot withdraw the clause because it has not been moved, but his words are a matter of record.
New Clause 8
Guarantor to have no further liability following death of tenant
“(1) Subject to subsection (3), a guarantee agreement relating to a relevant tenancy ceases to have effect upon the death of a relevant tenant.
(2) Upon the death of a relevant tenant the guarantor in respect of a relevant tenancy shall incur no further liability in relation to matters arising under the tenancy.
(3) Nothing in this section shall affect the liability of a guarantor in relation to matters which arose before the date of the death of the relevant tenant.
(4) In assessing any liability under subsection (3), account shall be taken of any tenancy deposit paid in respect of the tenancy.
(5) Where there is more than one relevant tenant, this section shall apply only upon the death of both or all of the tenants.
(6) In this section—
a ‘guarantor’ is a person who enters into a guarantee agreement in relation to a relevant tenancy;
a ‘guarantee agreement’ is a contractual promise (whether incorporated in or separate from the tenancy agreement) to indemnify or compensate a relevant person in respect of an obligation under the tenancy if the tenant fails to perform or comply with the obligation;
a ‘relevant tenancy’ has the same meaning as in section 36, and ‘relevant tenant’ is to be interpreted accordingly; and
‘tenancy deposit’ has the same meaning as in section 212(8) of the Housing Act 2004.”—(Claire Hazelgrove.)
Brought up, and read the First time.
Claire Hazelgrove (Filton and Bradley Stoke) (Lab)
I beg to move, That the clause be read a Second time.
The Chair
With this it will be convenient to consider new clause 14—Restrictions on the requirement for tenants to provide a guarantor—
“(1) A relevant person must not, in any of the circumstances set out in subsection (3), require a person, as a condition of the grant of a relevant tenancy, to provide a guarantor in relation to the observance or performance of the tenant’s obligations under the tenancy.
(2) For the purposes of this Act, requiring a person to provide a guarantor includes accepting an offer by that person to provide a guarantor.
(3) The circumstances are—
(a) that the person has paid a tenancy deposit or has been assisted under a deposit scheme;
(b) that the person is required to pay rent in advance equivalent to one month’s rent or more;
(c) that on a reasonable assessment of their means the person’s income (including state benefits received and any other lawful source of income) is sufficient to enable them to pay the full rent due under the tenancy;
(d) that arrangements will be made for housing benefit or the housing element of universal credit to be paid directly in respect of rent to the relevant person;
(e) that the relevant person has entered into a contract of insurance under which they are insured against non-payment of rent; or
(f) such other circumstances as may be prescribed in regulations made by the Secretary of State.
(4) In any other case where a relevant person lawfully requires a person, as a condition of the grant of a relevant tenancy, to provide a guarantor, the sum for which the guarantor may become liable under the relevant guarantee shall not exceed a sum equal to six months’ rent.
(5) In any case where a relevant person requires a tenant, as a condition of the grant of a relevant joint tenancy, to provide a guarantor, the sum claimed under the guarantee shall not exceed such proportion of the loss as is attributable to the act or default of the individual tenant on whose behalf the guarantee was given; and if such proportion cannot be proved, shall not exceed the sum obtained by dividing the total loss by the number of tenants.
(6) In this section—
‘guarantor’ is a person who enters into a guarantee in relation to a relevant tenancy;
‘guarantee’ is a contractual promise to be responsible for the performance of an obligation owed by the tenant to a relevant person under the tenancy if the tenant fails to perform the obligation;
‘deposit scheme’ includes a scheme whereby a sum payable by way of depositor a bond or guarantee is provided by a local authority, registered charity or voluntary organisation for the purpose of providing security to a landlord for the performance of a tenant’s obligations under a tenancy;
‘tenancy deposit’ has the same meaning as in section 212(8) of the Housing Act 2004.”
This new clause would restrict the circumstances in which a landlord can request a guarantor.
Claire Hazelgrove
I rise to speak in support of new clause 8, tabled by my hon. Friend the Member for Dulwich and West Norwood (Helen Hayes), who is not a Committee member. The new clause would provide protection for bereaved guarantors by prohibiting the application of a guarantor agreement in the event of the death of a tenant. My hon. Friend was motivated to table the new clause following the tragic case of her constituents who lost their son to suicide.
The young man was a first-year university student who had signed a private tenancy for his second-year accommodation. Very sadly, he died by suicide months before the new tenancy was due to start. His parents had signed a guarantor agreement that applied in the event of the tenant’s death, and while they were grieving the loss of their son, the letting agent pursued them for the rent on the property in which he would never live. That type of clause is not common to all guarantor agreements, and it is entirely unnecessary, because the loss of rental income due to the death of a tenant is an insurable risk for landlords.
New clause 8 would prevent guarantor agreements from applying in the event of the death of a tenant. It has been tightly drafted with the assistance of lawyers from Shelter. My hon. Friend is extremely grateful to the Minister for his positive engagement on the issue, both prior to the general election and subsequently. Although I do not seek to press the new clause to a vote, I hope the Minister will be able to give assurances either that the Government will accept the new clause or introduce an amendment to the Bill to the same effect.
I hope we can all agree that no one who is grieving the loss of a person for whom they have acted as a guarantor should be pursued for that person’s rent. That small change in the law would prevent the distress that was caused to my hon. Friend’s constituents from happening to anyone else.
Carla Denyer
I support new clause 8, and I would also like to speak in favour of new clause 14, tabled in the name of the hon. Member for Leeds Central and Headingley (Alex Sobel). New clause 14 seeks to address an injustice around guarantors for students. In this speech, I cite heavily evidence provided by the National Union of Students and individual student union officers in my home city of Bristol, all of whom are very concerned about this injustice.
The widespread landlord practice of demanding that tenants provide a guarantor is discriminatory, especially in this situation. Tenants are asked to put someone forward, normally a parent or relative, who owns a house in the UK and/or earns an income typically above the national average. The guarantor is asked to guarantee to pay the rent should the tenant default, and to pay for any damage to the property should the tenant be unable to do so.
Although for some, this is just an inconvenience, for tenants who are from deprived socioeconomic backgrounds, who are estranged from their families, who have a background in care or who are coming to the UK, such as international students from abroad, it can be a huge barrier to securing a home. The practice can push those unable to find a suitable guarantor into unsustainable debt, because they are forced to pay either months of rent up front or for costly guarantor schemes run by private companies. Others are forced into hostels or sofa surfing, and can even be made homeless.
The stats are stark: 13% of students experience homelessness during their studies, and that figure rises to 29% for international students. This issue has a detrimental impact on the lives of student renters and their ability to focus on their studies. It is imperative that we address the issue to ensure fair and equitable access to housing for all tenants, including students, allowing them to flourish in their education.
Landlords have several other means available to protect themselves against potential losses, including tenant referencing, rent guarantee insurance and deposit protection schemes, all of which make guarantor schemes unnecessary. I am not pushing for a vote today, but I ask the Minister to have a dialogue—if he is not doing so already—with the hon. Member for Leeds Central and Headingley, who tabled the new clause, and the NUS, with a view to including the changes in the next version of the Bill. Finally, I should mention that I have joined the all-party parliamentary group for students.
Matthew Pennycook
I thank my hon. Friend the Member for Filton and Bradley Stoke for speaking to the new clause tabled by my hon. Friend the Member for Dulwich and West Norwood (Helen Hayes), whom I commend for her work in this area, not just in this Parliament but in the previous one. She has been prodigious in pursuing this issue on behalf of her constituents, and I have reflected further on the points that she made on Second Reading.
The Government agree that it is unacceptable for bereaved guarantors to be held liable for unpaid rent where the only reason for it is the sad death of a tenant. Guarantor arrangements are not usually intended to protect landlords against the risk of financial loss caused by the death of their tenant; rather, they are used by landlords to reduce the financial risk of letting to a tenant who, for example, may have no previous residency in the UK and consequently no references from former landlords, or who might not successfully pass credit checks.
Although we understand that few landlords would use guarantor agreements to pursue debts that occur after a tenant’s death, we do know that sadly some do. This is an unacceptable practice that compounds the grief that families face after unexpected bereavements. I hope my hon. Friend the Member for Filton and Bradley Stoke will be reassured to hear that the Government have been considering this issue closely and in detail. We take it very seriously, and I am extremely sympathetic to the issues raised. I hope to be able to say more on Report about the matter and about the new clause tabled by my hon. Friend the Member for Dulwich and West Norwood.
I thank the hon. Member for Bristol Central for speaking to new clause 14, tabled in the name of my hon. Friend the Member for Leeds Central and Headingley (Alex Sobel). I am grateful to my hon. Friend for his work on this issue, and for his engagement with me and on the Bill more generally. The Government understand that obtaining a guarantor may be difficult for some prospective tenants, and I absolutely sympathise with those who are in that situation. For some tenants, the requirement can, as the hon. Member for Bristol Central made clear, effectively block access to the private rented sector.
The Government are clear that landlords should consider a tenant’s individual circumstances when negotiating rental contracts. I have been concerned to hear anecdotally about some landlords insisting that all tenants provide a guarantor, regardless of individual circumstances. That said, and ever mindful of the unintended consequences of weighing in without thought, I am aware that the use of guarantors can give landlords confidence to provide tenancies to individuals who otherwise may struggle to gain accommodation. That might include those with a history of rent arrears or with no previous rental history, those who are moving out of home for the first time and foreign students. As such, I am concerned that the wording of the new clause may inadvertently make it harder for those tenants to find a place to live, despite the honourable intentions behind it.
I recognise the importance of getting the balance right between barriers and enablers to accessing the private rented sector. I will continue to engage with hon. Members more broadly and with wider stakeholders, but in particular with my hon. Friend the Member for Leeds Central and Headingley, who has diligently pursued the matter. For the reasons I have given, however, I respectfully ask my hon. Friend the Member for Filton and Bradley Stoke to withdraw the new clause.
Claire Hazelgrove
I beg to ask leave to withdraw the new clause.
Clause, by leave, withdrawn.
New Clause 10
Home Adaptations
“(1) The Housing Act 1988 is amended as follows.
(2) After section 16 insert—
‘16A Home adaptations
(1) It is an implied term of every assured tenancy to which this section applies that a landlord shall give permission for adaptations where a local council has carried out a Home Assessment and recommends adaptations which constitute reasonable adjustments under the Equality Act 2010. Tenants have the right to appeal a landlord’s refusal to adapt a property.
(2) This section applies to every assured tenancy other than a tenancy of social housing, within the meaning of Part 2 of the Housing and Regeneration Act 2008.’” —(Carla Denyer.)
This new clause would ensure that landlords give permission for home adaptations where a Home Assessment has been carried out.
Brought up, and read the First time.
Carla Denyer
I beg to move, That the clause be read a Second time. The new clause would ensure that landlords give permission for home adaptations where a home assessment has been carried out. There are 16 million disabled people in the UK—that is more than a fifth of the population—and 19% of them live in the private rented sector. The Equality and Human Rights Commission estimates that a shocking one in three disabled people live in private rented properties that are unsuitable for them. Research by the National Residential Landlords Association found that only 49% of landlords—less than half—were willing to let to a tenant who required adaptations for accessibility needs. That number does go up when landlords are made aware of the funding that is available, but it still falls far short of where it needs to be.
Disabled renters need the landlord’s consent to make any adaptations to their homes. The Equality Act 2010 already imposes a duty on landlords to allow and make reasonable adjustments on request from their disabled tenants. Common home adaptations include changes to make the premises safe, facilitating access to things including use of the bathroom, washing facilities, cooking facilities, light controls and so on—things that it is perhaps easy for us to take for granted.
Disabled renters who are unable to self-fund may request that their local authority pays for smaller adaptations. That includes things such as grab rails to make it easier to get in and out of the bath. Through the disabled facilities grant, which is in a separate bucket, local authorities provide up to £30,000 to pay for major works that cost more than £1,000.
I tabled the new clause to prompt a discussion about the concern raised by Disability Rights UK, which points out that, unfortunately, the disabled facilities grant is a postcode lottery system that is failing and is not fit for purpose in its current form. An investigation by journalist Vicky Gayle found that in nine council areas in England and Wales, people had to wait on average more than a year to see an occupational therapist and complete the pre-application steps. On top of that, 80% of local authorities in England and Wales are using discretionary powers to top up funding, and that extra money varies wildly from council to council. There are many common barriers, including the fact that private landlords often refuse to make adaptations and many are unaware of their legal obligations to do so.
Matthew Pennycook
I very much sympathise with the intent behind the new clause, but I am afraid I will have to disappoint the hon. Lady by saying that I do not think it is necessary, and I will set out why. The Government strongly agree that landlords should not unreasonably refuse disability adaptations. As she rightly says, there is already a requirement in law that they do not. The Equality Act 2010 provides that landlords cannot unreasonably refuse a request for reasonable adjustments to be made for the purposes of a disabled person using their home. Where consent has been sought and is refused, the burden is on the landlord to show why their refusal or any conditions are reasonable.
The hon. Lady said that the Bill does nothing to target the problem that she outlines, but I think it takes a series of steps that will support disabled renters to challenge unreasonable refusals without fear of retaliatory eviction—I am talking about the general overhaul of the tenancy system, which should provide them with more confidence in that area. In addition, when the new PRS landlord ombudsman is established, tenants may be able to make a complaint to it if they think that the landlord should have given permission for disability adaptations but has unreasonably refused to do so. That is another means of redress that will be introduced through the Bill.
Notwithstanding the hon. Lady’s point about a postcode lottery—we could rehearse for many hours the pressures on local authorities’ budgets—where a tenant has applied for a disabled facilities grant, local councils have the power to override the requirement for tenants to have the landlord’s permission to make adaptations, and to award the grant without permission if they believe that permission was withheld unreasonably. For those reasons, although I will reflect on the point that she made and although I sympathise with the intent, the new clause is unnecessary and I kindly ask her to withdraw it.
Carla Denyer
I will be honest: I am not convinced that the new clause is unnecessary, but I can do the maths so will not seek to divide the Committee. I beg to ask leave to withdraw the new clause.
Clause, by leave, withdrawn.
New Clause 11
Rent controls
“(1) The Secretary of State must establish a body to be known as the Independent Living Rent Body within 12 months of the date of Royal Assent to this Act.
(2) The ‘proposed rent’ referred to in section 55(2) must be no more than an amount set by the Independent Living Rent Body.
(3) The amount referred to in subsection (2) must be calculated as a function of property size, quality, local incomes, location, and such other criteria as the Independent Living Rent Body sees fit.”—(Carla Denyer.)
Brought up, and read the First time.
Carla Denyer
I beg to move, That the clause be read a Second time.
Thank you for your forbearance, Sir Roger, as I have proposed quite a few new clauses this afternoon, but this is the last one from me. New clause 11 proposes setting a control on the amount that a stated or advertised rent can be. A control would be set by an independent living rent body, taking account of the property’s size and quality, as well as local incomes, location and other criteria that the body sees fit to include. Local flexibility will be vital.
We have a generation of people who will never be able to earn enough to have a mortgage, and who cannot even afford their rents now. New clause 11 recognises that and aims to bring some urgently needed fairness and balance to a private rented landscape that has become grossly distorted. Giving an independent body the power to set a ceiling for new rents is similar to models of new rent regulation in Germany and Spain.
I have tabled new clause 11 to probe the Minister, and I want to be clear from the outset that I am acutely aware that this is a complex policy area and that there is no silver bullet for the terrible problem of sky-high rents in the private rented sector. I know that I will be challenged in this debate, and I welcome that; there is a vital discussion to be had to ensure that unintended consequences are avoided, and I do not dismiss the importance of that. At the same time, I hope that we recognise the significance of the debate over what we do about the affordability of rents.
I put it to the Committee that we need to consider rent controls both within and between tenancies, because unaffordable private rents are hurting people and hurting our economy. Key workers are forced out of cities and out of the communities that they have made their home. Average rents in inner London, as those of us who are newly elected MPs and getting flats in inner London are very aware, are rather high. In fact, they are 106% of a teaching assistant’s salary.
The average rent in my constituency of Bristol Central has hit nearly £1,800 a month. If a 21-year-old living in Bristol rents a single room today at the average rate, they will have put £80,000 into their landlord’s bank account by the time they reach their 30th birthday. Rising rents in Bristol forced renter Anny, her key worker partner Alex and their four-month-old baby to move city completely, and to move away from their support network when they needed it most.
Private renters spend a disproportionate amount of their income—an average of 33%—on housing costs, compared with just 10% for mortgage holders, and a shocking one in five renters spends more than half of their income on rent. That has a knock-on effect on the economy. Renters are giving more and more of their wages to landlords. Many cannot make ends meet and are ending up homeless, and those who can just about afford not to become homeless are certainly not able to save anything like the eye-watering sums needed to get on the housing ladder.
Private renters have less disposable income, and therefore less buying power, in the local economy, too. Research by the Women’s Budget Group and Positive Money UK found that high private rents disproportionately impact the spending power of women and black, Asian and minority ethnic households. The knock-on costs to the taxpayer are high, too, through spending on housing benefit and temporary accommodation.
I know that the Minister has already made it clear that he will not accept the solution proposed in new clause 11, but I hope that he will at least accept that private rents are much too high relative to incomes and tell us how the Government plan to address that crisis in the here and now.
For two reasons, I am concerned that changes to the tribunal do not go far enough to address high rents, as the Bill stands. First, as discussed previously, most tenants will not use the tribunal system, because they do not have the time and energy to navigate it. Secondly, even if every tenant did so, it would not result in rents coming down overall, in relation to incomes. The tribunal panel judges only whether a rent rise is fair based on the price of new rentals of a similar size in the area, and the prices of new rentals have outstripped inflation consistently. Rental index data from the Deposit Protection Service backs that up. It found that rents outstripped inflation by a third last year, and Rightmove reports show that asking rents outside of London have risen 60% since 2020, far outstripping inflation or wage growth.
During our evidence sessions and previous discussions in Committee, we heard the important point that rent controls are not simply one thing; they are a category of policies. In an earlier sitting, we discussed in-tenancy rent controls, to stop rogue landlords hiking rents in order to kick people out, in lieu of using section 21. That is one thing, but the new clause goes further by aiming to address the unaffordable level that private rents have reached and rent hikes between tenancies.
I expect that the Minister will mention social housing. I agree that increasing the social housing supply is critical; however, the private rented sector is in an affordability crisis now, and it will take huge amounts of effort and time to increase the social housing supply at the scale and pace needed to have any impact on private rents. Models from Generation Rent and other economists predict that building 1.5 million homes over this Parliament will decrease the rent burden by just over 1%. More social rented homes are essential, but the cost of private renting is so distorted—the market is failing so badly—that we need Ministers to step in and treat rent affordability as the acute housing emergency that it is.
I am sure the Minister will also use the example in Scotland as a reason not to have rent controls here. I would strongly caution against that, though, because the data on whether rents have increased overall in Scotland are shaky, as we heard in the evidence sessions, and, if there have been increases, the data on whether they are anything to do with rent controls are even more so—if necessary, I am happy to go into that in more detail in the debate.
I imagine that the Minister will also highlight the potential unintended consequences on the supply side and the possibility that landlords will leave the sector. However, it is not enough simply to assert that any form of rent control—remember that this is a whole category of options—will break the private rented sector or cause lots of landlords to leave. That needs to be interrogated, with proper consideration given to the contrary case that rent caps would provide a clear and stable regime for rent rises for landlords, so that they know how much they can raise the rent by and plan for the future.
I encourage the Government and the Committee to look to European countries where rent caps co-exist with large private rented sectors, such as in Germany, where more than half the population rents privately and where they also have in-tenancy rent caps. In particular, I draw the Committee’s attention to comments by the chief executive officer of Greystar, one of the world’s biggest landlords, who said recently that rent controls need not stop big investors from funding new homes:
“You do not have to have the windfall of a year of 14 per cent rent increases in order to have a viable investment product…We operate in a lot of markets around the world where rent control does exist.”
The argument against rent controls is that they will break the private rented sector, but it is already broken, with immediate and severe consequences right now, for all the reasons we heard about in the evidence sessions. However, we need to talk about the risks attached to any policy of in-tenancy and between-tenancy rent controls. Any system to introduce them needs to be carefully designed and built—I acknowledge that, and I know that point will be made to me in a moment. Some robust work already exists on the kind of principles we should consider in designing a workable system, and my new clause 11 is just one suggestion.
Rachel Blake (Cities of London and Westminster) (Lab/Co-op)
The hon. Lady might be coming on to the impact of the criteria in the new clause, but I am concerned that the market could respond to them by drawing investors into just one location that was already a serious hotspot. It would be helpful to understand more about why they might help.
Carla Denyer
Will the hon. Member clarify what she means by “drawing into” in that context?
Rachel Blake
I was referring to the suggestion that the proposed independent living rent body would start setting rents under subsection (2) based on the property size, quality, local incomes and location. Given the constrained market that would establish, surely it might reduce availability even further.
Carla Denyer
The hon. Member is correct that I was coming to that, but I thank her for asking anyway—I do welcome a debate. There is some robust work on what rent controls can look like and, without wishing to give any spoilers about the organisations that provided us with evidence, I understand that more is coming. I draw the Committee’s attention to work done in 2019 by the New Economics Foundation, which looked at how we might arrive at a rent control system in London. It set out six key building blocks all about how to transition carefully and gradually from the current market free-for-all to a controlled system, and there are some lessons to be learned there about how we address supply issues.
Matthew Pennycook
The hon. Lady’s new clause, which she has set out clearly, seeks to require the Government to establish an independent body to set the maximum rent at which a landlord could advertise a property in writing, under clause 55, which I remind Committee members requires a landlord or a person acting on their behalf to state a specific and proposed rental amount in a written advertisement or offer for a proposed letting. Although I very much recognise the concerns in relation to rising rents generally and extortionate within-tenancy rent increases in particular—I do not think anyone on the Committee dismisses those concerns, particularly in parts of the country with hot rental markets, as referenced by my hon. Friend the Member for Cities of London and Westminster—I do not believe the approach proposed in the new clause is necessary or proportionate.
I understand from the hon. Member for Bristol Central that her new clause is intended to provoke debate, and I am more than happy to debate it. However, I must confess that when I was considering the new clause’s specific wording, I struggled somewhat to ascertain how the new independent body would operate. I think she has given us a bit more clarity on her thinking, but I am still a little unsure. I will therefore put the two options in my mind that it might reasonably take.
It could mean that every landlord and letting agent in England would need to engage with the body proposed by the hon. Lady to set a maximum starting rent for every property they seek to advertise on every occasion that they require a new tenant. I think that is what she was driving at when she said that it would have to take into account specific factors relating to each property. We are debating the specific measure rather than a general point but if that is the case, the costs of administrating such an arrangement, which would have to apply to the approximately 950,000 new lets that occur each year, would be likely to be enormous. In my view, it would almost certainly have an impact on the time that landlords and tenants take to agree a rental price.
If, as the hon. Member for Bristol Central touched on later in her remarks, the body would simply be required to set maximum rents on the basis of broad principles and therefore not account fully for variation in the market, it would in effect be overseeing a form of rent control. The Government believe that would impact negatively on tenants as well as landlords, as a result of reduced supply, discouraged investment and declining property sales, as I have set out in detail previously.
I gently push back on the hon. Lady’s assertion that I am just asserting such a point; I have given the Committee extensive references to some of the negative impacts of various forms of rent control in other countries. There are academic studies on countries such as Sweden and Germany, and from cities such as San Francisco and Ontario, which show that rent regulation can have those precise effects. I was in Rome at the G7 yesterday, discussing this very matter with the German Housing Minister, who acknowledged that while there are benefits to the system in Germany, it has had an impact on supply in places. It could have a detrimental impact on tenants if we introduce it into our system here.
I am more than happy to debate. I think we will debate the issue throughout the Bill’s remaining stages in this place, and I am sure it will be a source of debate in the other place and again when it returns to us. I do not want to test your patience or the Committee’s, Sir Roger, by repeating the long discussion we have already had about rent control. I simply reiterate that the Government are confident that the Bill strikes the right balance when it comes to addressing, in particular, unreasonable within-tenancy rent increases. We do not believe the establishment of a body along the lines that the hon. Lady proposes would be beneficial to tenants or landlords.
I have made the point, and will do again, that the legislation is not the Government’s only answer to affordability pressures in the private rented sector. The hon. Lady referenced the Government’s intention to deliver the biggest increase in social and affordable housing in a generation. I appreciate the urgency with which that needs to take place. She is more than welcome to clarify the point, but I hope she commends the additional £500 million of funding in the recent Budget, the top up to the affordable homes programme this year and the action we are taking on right-to-buys, giving local councils 100% retention of discounts from sales. There will be more to come, not least when we set out further Government investment in the spending review next year.
On the basis of all the points I have made, I ask the hon. Lady to withdraw new clause 11. I do not think it will be the last time we debate the matter as part of the Bill or more widely across the Parliament.
Carla Denyer
I certainly welcome additional funding for social housing, and I know that many local authorities do too, although I suspect that most if not all would also say that they need more than that. In terms of what exact model of rent controls we are talking about and how the independent living rent body works it out, I am deliberately not attached to exactly how to do that.
As I mentioned, there are 17 European countries that have some form of rent controls; they are all tailored to specific circumstances and some have worked better than others. My point is that we should not rule out an entire category of available tools on the basis of looking at a few examples that have not worked. I would rather we look at how we could make it work or, if not, at what the Government are going to do instead to tackle affordability in the private rented sector, given that the positive measures on social housing are unlikely to bring down rents in that sector by anything like the necessary amount.
As it is clear that the Minister will not support new clause 11, I suggest he should at least consider the merits of setting up a living rent commission to undertake work to inform evidence-based decision making about what we can do on the issue. When I was a Bristol city councillor, I was the co-proposer with a Labour councillor of commissioning a local version of that work to look at how rent controls could theoretically work in Bristol if the Government gave the council the necessary powers. We took that route specifically because we were aware that several options were available, so we first needed research on how it might work and how to avoid unintended consequences. I would love the Government to commission an equivalent study at a national level so that we can make informed decisions in future.
Matthew Pennycook
I am afraid I cannot give the hon. Lady that commitment. She somewhat downplays the amount of thinking that has gone into this legislation by my officials, me and my colleagues as to the appropriate and necessary measures. We think the measures strike the right balance. This legislation is not the only intervention we are making on affordability pressures in the private rented sector. As I have said, I am more than happy to continue the debate with the hon. Lady in the remaining stages of the Bill.
Carla Denyer
I beg to ask leave to withdraw the motion.
Clause, by leave, withdrawn.
Question proposed, That the Chair do report the Bill, as amended, to the House.
Matthew Pennycook
May I take this opportunity, Sir Roger, to put on the record my thanks to you and to the other Chairs of the Bill Committee? Several Committee members are new to the process, and you and the other Chairs have done an incredibly effective job, with patience and generosity, of helping everyone to navigate the process.
I thank our exemplary Clerks, the Hansard Reporters, and the Doorkeepers for overseeing our proceedings. I also thank my officials and private office team, who have supported me and worked tirelessly over a short time to bring forward the Bill that we have debated in recent weeks.
Finally, I thank all hon. Members, including the shadow Minister, the hon. Member for Taunton and Wellington and the hon. Member for Bristol Central for the spirited and constructive dialogue we have had. I value all the contributions and the challenges that have been made. I know that we are united in wanting to deliver the best legislation that we can for all our constituents.
As we end this stage of scrutiny and prepare for Report stage, I hope we can all agree that these important reforms will finally provide certainty for the sector and deliver meaningful change to millions of renters and landlords. I look forward to further engagement with all hon. Members as the Bill progresses through its remaining stages.
David Simmonds
I share the Minister’s sentiments. I will pay him the highest compliment that I can: at times, he could have been a Conservative in the way he addressed the issues that I raised. I add my thanks to the officials, as I know that the Minister’s swift responses would not have been possible without their diligent work behind the scenes; I am enormously grateful that issues have been dealt with in such detail. I also add my thanks to Committee members for their sensible and sound contributions. I am sure the debate will continue, but we have carried out an efficient piece of work.
The Chair
All that is strictly out of order, but I am sure that the comments will be appreciated. I add my thanks to the Committee and to the Officers of the House, without whom our work would simply not be possible.
Question put and agreed to.
Bill, as amended, accordingly to be reported.