Housing and Planning Bill
Debate between Baroness Evans of Bowes Park and Baroness Grender(8 years, 7 months ago)
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Baroness Evans of Bowes Park (Con)
My Lords, it is not often that I get to say this, and indeed I am stealing my noble friend’s thunder, but I am delighted to confirm that the Government welcome and support Amendments 39 and 41 to 50, moved by the noble Baroness, Lady Grender, and the noble Lord, Lord Kennedy. As the noble Baroness said, these amendments require a landlord who has received a deposit for the tenancy paid by someone other than the tenant to serve the written warning notices under Clause 57 on that person, as well as the tenant and any named occupier. This is an important change as it enables the deposit payer to respond to the warning notices to advise the landlord that the property has not been abandoned, and by doing so that will end the process. As the noble Baroness said, this is particularly relevant where the tenant is a vulnerable person. The noble Baroness has championed the interests of vulnerable tenants during Committee, and her helpful amendment, supported by the noble Lord, Lord Kennedy, will go a long way in mitigating any potential adverse impacts on them. I thank her for working with us.
Often, a vulnerable tenant would have received assistance and financial support, including through payment of a tenancy deposit, from the local authority or a charitable organisation to secure accommodation in the private rented sector. Through these amendments the deposit payer will be able to respond, instead of the vulnerable tenant, to the landlord to confirm that the property is not abandoned or make a payment to stop the process from continuing, pending, perhaps, further enquiries as to the whereabouts of the tenant. There is a real stake in a local authority, or for that matter any other deposit payer, acting quickly to confirm that the property is not abandoned or in making a payment pending further enquiries as to the whereabouts of the tenant, since they will lose all or most of the deposit if the unpaid rent condition is met. It is also likely, therefore, that a deposit payer—indeed, any deposit payer—will want to be absolutely satisfied that the unpaid rent condition is met, the property has been abandoned and the landlord has followed the correct procedure.
The requirement to send the notices to the deposit payer improves the provisions further and builds on changes we made in the other place to ensure that payment of any rent would halt the abandonment process; that is, the requirement that the written notices be sent also to the address of any guarantor and that a third notice be affixed to the property so that the procedure is not open to abuse and vulnerable tenants are adequately protected.
Amendment 40, tabled by the noble Lords, Lord Kennedy and Lord Beecham, would require the landlord to seek confirmation from the local authority that it suspects that the property has been abandoned. This would apply in all cases and not be limited to those where the local authority had paid a deposit. However, on the face of it, there is no obligation on the local authority to respond to that inquiry, but the landlord cannot end the tenancy until such a response is received. Unlike where the authority is the deposit payer, there is no direct incentive or reason for it to respond to the request quickly, so the amendment would simply cause further delay in recovering the abandoned property as the arrears continued to accrue. I hope that noble Lords can appreciate that. Although the amendment would not require the authority to respond to the notice, the landlord would have a legitimate expectation that it did so and within a reasonable timeframe. That could leave local authorities exposed to legal challenges where they incorrectly responded or failed to respond promptly.
In response to the drafting points raised by the noble Lord, Lord McKenzie, I will write to him, but I can confirm that we will bring forward clear guidance setting out the procedure and timescale.
So while we support Amendment 39 and Amendments 41 to 50, we do not think that Amendment 40 would achieve the same assurance that the deposit payer would respond at pace, if at all. Subsequently, it would place undue burdens and risks on local authorities. I therefore ask the noble Lords, Lord Kennedy and Lord Beecham, not to press that amendment.
Housing and Planning Bill
Debate between Baroness Evans of Bowes Park and Baroness Grender
Baroness Evans of Bowes Park
My Lords, I thank all noble Lords who have contributed to this debate on Part 3 of the Bill. The noble Lord, Lord Kerslake, said that numbers may be small, but these provisions are nevertheless important to good and reputable landlords whose properties are abandoned by tenants who have stopped paying rent. As we have tried to make clear, we want to find a balance between protecting good landlords and good tenants. Presently, when abandonment happens a landlord can go in and change the locks. However, that involves taking a huge risk, since if the tenant has not abandoned the property the landlord could be liable to prosecution for unlawful eviction and be subject to claims for damages in the civil courts. As a result, many landlords do not take the risk and instead take possession proceedings in the county court.
However, before they are able to commence court action they must bring the tenancy to an end by serving a Section 21 notice giving the tenant two months’ notice, and when they have made the application it can be two or three further months before they get a court order enabling them to repossess the property. In the mean time they receive no rental income for a property which is standing empty, and often will still need to meet their mortgage payments. The landlord will also incur costs in taking court proceedings. As I have said, abandonment may not be a widespread problem but it is estimated that it costs landlords around £5 million a year in legal fees, missed rent and time.
When a person surrenders a property they contact their landlord and hand in their keys, but in this instance we are talking about when a person abandons a property and disappears and stops paying rent. It is a different situation. That is why we think the provisions in Part 3 provide for a simpler and cheaper method for recovering property where the former tenant has permanently left owing arrears of rent that have continued to accrue since the first warning notice was given.
I also make clear that any landlord who abuses this process by not giving tenants proper warning and takes repossession of the property knowing that it has not been abandoned will be liable to be prosecuted for unlawful eviction under the Protection from Eviction Act 1977. As we have also tried to make clear, this is not intended as a route to remove a tenant in arrears. This is about abandoned properties. A tenant will also be able to bring a claim for damages through the civil courts where the landlord has not followed the procedure as set out in legislation. The provisions are not a charter for landlords—
Baroness Grender
Have the Government made an estimate of the cost to a tenant? Since there is a cost of £5 million to the landlords—which is the Government’s estimate—what is the cost to tenants for pursuing this through the courts?
Baroness Evans of Bowes Park
As I have said, we have heard the strength of feeling in the House on this issue and have agreed that we will meet and have a further opportunity to discuss issues. I will attempt also to ensure we have information on hand in that meeting. I reaffirm that these provisions are not a charter for landlords to carry out a do-it-yourself eviction. That is and will remain unlawful. On the basis of the strength of feeling in the House, we welcome the opportunity to discuss further details with noble Lords. On that basis, I ask that these clauses stand part of the Bill.