28 Baroness Grender debates involving the Wales Office

Tue 21st May 2019
Tue 15th Jan 2019
Tenant Fees Bill
Lords Chamber

3rd reading (Hansard): House of Lords
Thu 20th Dec 2018
Tue 11th Dec 2018
Tenant Fees Bill
Lords Chamber

Report stage (Hansard): House of Lords

Homes for Social Rent

Baroness Grender Excerpts
Tuesday 2nd July 2019

(5 years, 4 months ago)

Lords Chamber
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
Baroness Grender Portrait Baroness Grender (LD)
- Hansard - -

My Lords, does the Minister accept that the £2 billion put into the not very affordable housing programme falls woefully short of the £14.6 billion per year of capital grant recommended last week by the National Housing Federation and others? Without it, we will continue to see the nearly 40-year legacy of chronic failure to build social, not affordable, housing—a policy that has now driven our most vulnerable into the arms of the most unscrupulous parts of the private sector.

Lord Bourne of Aberystwyth Portrait Lord Bourne of Aberystwyth
- Hansard - - - Excerpts

My Lords, I accept that we need to deliver more social housing. That has been the case for some time, including through the coalition years. However, I point out to the noble Baroness that last year we had the best year of housing delivery overall for 31 years in all but one year, and that is good news for all of us.

Homelessness

Baroness Grender Excerpts
Tuesday 21st May 2019

(5 years, 5 months ago)

Lords Chamber
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
Lord Bourne of Aberystwyth Portrait Lord Bourne of Aberystwyth
- Hansard - - - Excerpts

My Lords, the figure that I have to hand for the number of people who are homeless—as opposed to rough sleeping—is 58,660. That is the first count under the particular way we calculate figures. New figures are out this Friday, which no doubt the noble Lord will want to look at. Spending on homelessness is a key feature of tackling it, but it is not the only thing, as I think that he would acknowledge. The issue is much more complex than that. As I indicated, we are spending £1.2 billion on this. We are also spending money specifically on rough sleeping, as there is a particular issue there. However, many other things are involved, such as family breakdown, addiction issues, coming out of prison or coming out of the armed services; it is a much more complex picture than he perhaps indicated.

Baroness Grender Portrait Baroness Grender (LD)
- Hansard - -

My Lords, given that the Minister sees the private rented sector as part of the solution, does he accept that the shortfall between the local housing allowance and rent has more than doubled since the benefit freeze was introduced in 2016? Does he also accept that, as a result, and because they are in debt by more than £100 a month, people are now having to choose between food and rent? Surely simply not extending the benefit freeze is not enough, and it should be ended as soon as possible.

Lord Bourne of Aberystwyth Portrait Lord Bourne of Aberystwyth
- Hansard - - - Excerpts

My Lords, the noble Baroness is right about the interface between benefits and housing provision; there is obviously a link between the two. We spend around £23 billion a year to help with housing costs, which is a significant amount. Perhaps I can just mention one project. She highlights the importance of private sector accommodation, which I absolutely acknowledge. As of recently, we are spending £37.8 million of government funds on a system for the 13 London boroughs that have signed up to a collaboration project called Capital Letters. The scheme gets people into private accommodation, which helps significantly.

Housing: No-fault Evictions

Baroness Grender Excerpts
Wednesday 15th May 2019

(5 years, 5 months ago)

Lords Chamber
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
Lord Bourne of Aberystwyth Portrait Lord Bourne of Aberystwyth
- Hansard - - - Excerpts

My Lords, I had not anticipated a dimension for short-term tenancies—unwisely, perhaps—but the whole range of activity will be considered in the consultation to make sure that it is fair to everybody.

Baroness Grender Portrait Baroness Grender (LD)
- Hansard - -

My Lords, is the Minister aware that since Scotland scrapped no-fault evictions over a year ago, ONS data suggests that rental inflation has remained lower, the private rented sector has remained stable, and the change has not had an adverse impact on homeless people? There was a time when a Conservative Government thought it was perfectly normal to implement a change in Scotland, see how it went and then do it in England. Why cannot we do that now for the tenants who so desperately need this?

Lord Bourne of Aberystwyth Portrait Lord Bourne of Aberystwyth
- Hansard - - - Excerpts

My Lords, I thought the noble Baroness would be very grateful that, once the coalition Government had ended, we were able to do these things, looking at what was happening in Scotland and implementing it as effectively as we have. In all seriousness, it is often very helpful—as I and many know—to look at devolved experience and learn lessons from it. We have indeed looked at what is happening in Scotland. While we are not replicating it, there are certainly lessons to be learned.

Property Guardians

Baroness Grender Excerpts
Tuesday 26th March 2019

(5 years, 7 months ago)

Lords Chamber
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
Asked by
Baroness Grender Portrait Baroness Grender
- Hansard - -

To ask Her Majesty’s Government what steps they are taking to ensure that property guardians are legally protected.

Lord Bourne of Aberystwyth Portrait The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government and Wales Office (Lord Bourne of Aberystwyth) (Con)
- Hansard - - - Excerpts

My Lords, property guardians have some legal protections and we are working to ensure that local authorities enforce their rights. However, depending on the arrangements in place, these protections are often fewer than those of tenants. Therefore, we are improving our guidance for property guardians so that they fully understand their rights and the difference between a licence and a tenancy. We are planning a programme of research better to understand the sector and to inform further work.

Baroness Grender Portrait Baroness Grender (LD)
- Hansard - -

I thank the Minister for a meeting with him about this last week. Will he use this opportunity to reassure the growing number of property guardians that the full force of the current law will be applied and new regulations considered? Will he also make clear that the clauses that these people sign, which include no talking to the media or local authorities, mean nothing if they live with mould, rats, electrical hazards, fire doors screwed shut and more? They can and should report it, even when, as is often the case, the property is owned by a local authority.

Lord Bourne of Aberystwyth Portrait Lord Bourne of Aberystwyth
- Hansard - - - Excerpts

I thank the noble Baroness for her interest in this. As far as we can tell, there are 5,000 to 7,000 property guardians—the figure is in that area. It is the case that some protections apply. Under the housing health and safety rating system, certain key rights apply, as do rights relating to electrical safety, gas safety and so on. I agree with the noble Baroness that those rights cannot be overridden by non-disclosure agreements. As I said, we are keen to ensure that existing rights are enforced and are planning work to look at the current position and inform possible further action.

Short-term Lettings

Baroness Grender Excerpts
Tuesday 26th February 2019

(5 years, 8 months ago)

Lords Chamber
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
Lord Bourne of Aberystwyth Portrait Lord Bourne of Aberystwyth
- Hansard - - - Excerpts

My Lords, I agree with the noble Lord on that. It is nevertheless important, as he acknowledged, that they satisfy certain conditions. Those that join the Short Term Accommodation Association sign up to a code of conduct. That has been circulated to all houses in Westminster, with which it has a particularly close association. It is the aim of the Short Term Accommodation Association to roll that out nationally.

Baroness Grender Portrait Baroness Grender (LD)
- Hansard - -

Did the Minister see BBC London’s documentary last night, in which undercover work revealed that three private sector companies were helping private landlords find their way round the 90-day limit in London? Does he agree with Generation Rent that the data should now definitely be released to local authorities, because otherwise it is almost impossible for local authorities to enforce?

Lord Bourne of Aberystwyth Portrait Lord Bourne of Aberystwyth
- Hansard - - - Excerpts

My Lords, I did not have the privilege of seeing that programme last night, as I had duties in the House, but I have had reports of it. Those businesses to which the noble Baroness was referring are not members of the Short Term Accommodation Association, although we would certainly encourage them to join it; the association is seeking to ensure that they do.

Housing: Private Rented Sector

Baroness Grender Excerpts
Tuesday 19th February 2019

(5 years, 8 months ago)

Lords Chamber
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
Asked by
Baroness Grender Portrait Baroness Grender
- Hansard - -

To ask Her Majesty’s Government what assessment they have made of the number of older people living in the private rented sector.

Lord Bourne of Aberystwyth Portrait The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government and Wales Office (Lord Bourne of Aberystwyth) (Con)
- Hansard - - - Excerpts

My Lords, the Government’s primary assessment of the private rented sector is through the annual English Housing Survey. This allows us to make a robust statistical estimate of the age of households in the private rented sector. Taking older people to mean those aged 65 or above, the latest survey estimates that there are 380,000 households where the household reference person is 65 years or older.

Baroness Grender Portrait Baroness Grender (LD)
- Hansard - -

My Lords, higher costs for older private tenants—40% of income compared to just 14% for owner-occupiers—insecurity, with evictions now the main reason for older renters leaving, and projections that by 2040 one-third of people over 60 will be privately renting are a toxic combination. Does the Minister agree that ending the current Section 21 and having a permanent right to stay, as in Scotland, should be an urgent priority before this becomes a crisis?

Lord Bourne of Aberystwyth Portrait Lord Bourne of Aberystwyth
- Hansard - - - Excerpts

My Lords, it is important to keep this in perspective. That 380,000 represents 6% of the private rented sector. That figure has undeniably gone up, although it has gone down from last year, so I hasten to add that the pattern is not uniform. Many people choose to rent; it is not wise to assume that all these people renting do not want to do so. There are challenges, some of which are met by the Prevention of Eviction Act, as the noble Baroness will know, and others by the Fitness for Habitation Act which we recently passed. So I do not share her analysis.

Tenant Fees Bill

Baroness Grender Excerpts
Lord Bourne of Aberystwyth Portrait The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government and Wales Office (Lord Bourne of Aberystwyth) (Con)
- Hansard - - - Excerpts

My Lords, I will speak briefly to Amendments 1 and 2 in my name. They are minor and technical, and consequential to an amendment we agreed on Report that would require landlords and agents to be up front about why they are retaining a holding deposit. Amendments 1 and 2 to Clause 11(3)(c) specify the day on which interest is to be payable where reasons for retaining the holding deposit have not been provided within the required period, and the holding deposit needs to be repaid. This date is the day after the end of the relevant period. I beg to move.

Baroness Grender Portrait Baroness Grender (LD)
- Hansard - -

My Lords, on these Benches we accept this amendment. I take this opportunity to thank the Minister and his team for all their hard work. The last time I thanked them, they were a little busy trying to sort out a little local difficulty regarding definitions of damages. I am pleased to learn from Citizens Advice that it is now reassured that sufficient clarity will be given in guidance. If there is a latest draft of the guidance, having suggested some of the amendments, I would be happy to take a look at it. I am sure that my noble friend will do the fulsome thanks in the next bit but I just wanted to thank the ministerial team and the Minister very much for progressing the Bill. I look forward to its further rapid progress and would like to hear from the Minister when he thinks it will be enacted.

Lord Sentamu Portrait The Archbishop of York
- Hansard - - - Excerpts

My Lords, I too thank the Minister for listening. He has been very attentive in listening to the suggestions, comments and evidence from tenants and all those people involved with this part of the Bill. I have been in correspondence with the Minister, starting in the Moses Room. He has been very attentive to people’s concerns and cares. The Bill is what it is because of that attention.

Homelessness

Baroness Grender Excerpts
Thursday 20th December 2018

(5 years, 10 months ago)

Lords Chamber
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
Lord Bourne of Aberystwyth Portrait Lord Bourne of Aberystwyth
- Hansard - - - Excerpts

My Lords, I thank the noble Baroness for that contribution and, as she has done, I offer sincere condolences on behalf of the Government and the House to the family of Gyula Remes and his friends—I think he had many in this country as well as in his native Hungary. In answer to the noble Baroness, I do speak to homeless people, and not just in Westminster. She is right that it is a tragedy, but it is a tragedy everywhere—not just here but up and down the country—that this is happening.

However, we have to acknowledge that this is perhaps much more complex than the noble Baroness suggested. For example, from the figures that she has no doubt seen today—the first set of such figures; we never previously had ONS figures on this issue and we should welcome that we now have this analysis—we know they indicate that over a third of the deaths have drugs as an element. That is not to minimise the issue but to show that there are many aspects we need to grapple with. It is not just a question of providing funding without knowing where it is going. Many of the deaths are also related to suicide or alcohol; I think more than half involve those three elements. So while, yes, it is about ensuring that we get the figures down, it is, as I say, much more complex than she suggests.

I also pay tribute, particularly at this time of year, to the many third sector bodies and charities which help. St Mungo’s springs to mind, but many others are helping and we should knowledge the great role they play, as well as local authorities. I will highlight one thing in the Statement. In the other place the Secretary of State highlighted the £5 million fund for cold weather, which was announced in October. A lot of that funding is still not committed and local authorities can bid in for it. The Secretary of State will issue that message to them again today, but I encourage them to bid because there is money available, as well as the money we have announced in relation to the early adopters of the rough sleeping initiative.

Perhaps I could accentuate one other thing in answer to the noble Baroness, Lady Thornton, and for the benefit of the House. These figures do not relate just to rough sleeping; they are homelessness figures. It is where homelessness is featured on the death certificate, and some of those deaths will be people who have not been sleeping rough but have been in emergency accommodation, for example. So, again, it is perhaps a bit more complex than a first sight indicates.

Baroness Grender Portrait Baroness Grender (LD)
- Hansard - -

My Lords, will the Minister join me in encouraging everyone to download and support the excellent app StreetLink on their phone? The app is backed by St Mungo’s and Homeless Link, and it enables people to report to an outreach team immediately if they see someone sleeping rough. I really recommend it to all colleagues and anyone else listening as it is excellent—but please donate when you use it.

The Minister talks of £5 million. Can he tell us how it is possible for Cabinet members to sign off on an additional £2 billion for a no-deal Brexit when it is entirely in their power to rule that out? Would that money not be better spent on this urgent problem to ensure that there are no more deaths on our streets of people sleeping rough? Where the money has been spent by local authorities, the numbers are coming down—but overall in England, the numbers are still going up and it is a disgrace.

Lord Bourne of Aberystwyth Portrait Lord Bourne of Aberystwyth
- Hansard - - - Excerpts

My Lords, first, I thank the noble Baroness for the reference to downloading the StreetLink app backed by Homeless Link. That is very valuable advice and I encourage people to do that. On her second point, as I indicated, this is not just about money. Of course the money is important, and we have committed money to it. We announced money just this week in relation to 11 more hubs and we have the rough sleeping initiative areas that were announced previously: much money is committed there. We have to make sure the money is properly spent, so, yes, it is about the money, but it is not just about that, and nor is this problem unique to England. Sadly it is, broadly speaking, a pan-European problem. There have been some successes in Finland and we had a representative of Finland on the rough sleeping advisory board. Our noble Lord, Lord Bird, is on it, as are the mayor of Manchester, Andy Burnham, Andy Street and others. It meets regularly and it is taking action and taking the initiative. Once again, I encourage local authorities to look at whether they can bid in for some of the money relating to cold weather. The point is that it is not just about money, important though that is.

Housebuilding: Target

Baroness Grender Excerpts
Thursday 20th December 2018

(5 years, 10 months ago)

Lords Chamber
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
Baroness Grender Portrait Baroness Grender (LD)
- Hansard - -

My Lords, does the Minister accept that there is a direct connection between the lack of affordable housing or social housing and homelessness, as described by Crisis recently? Twelve months ago, in Oral Questions on 19 December, the Minister described the resource that was being allocated, but we have now seen 12 months of an increase in homelessness, in contrast with Scotland, for example. What does the Minister hope to tell us in 12 months’ time and why is it going wrong at the moment?

Lord Bourne of Aberystwyth Portrait Lord Bourne of Aberystwyth
- Hansard - - - Excerpts

My Lords, before referencing the noble Baroness’s question, I thank the noble Lord, Lord Best, for the work that he did on the Bill, which I omitted to do yesterday because I was out of time. I thank him and, indeed, the honourable Member for Westminster North for their considerable work on the Homes (Fitness for Human Habitation) Bill. In answer to the noble Baroness, what I hope to be able to say in a year’s time is that we are making progress, that the 222,000 that we have just seen was not a blip and that we are continuing to make progress against considerable challenges. We look to see what is happening elsewhere, as the noble Baroness knows, particularly in Scotland, Wales and Northern Ireland, but also on the continent of Europe.

Tenant Fees Bill

Baroness Grender Excerpts
Report stage (Hansard): House of Lords
Tuesday 11th December 2018

(5 years, 10 months ago)

Lords Chamber
Read Full debate Tenant Fees Act 2019 View all Tenant Fees Act 2019 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: HL Bill 129-R-I Marshalled list for Report (PDF) - (7 Dec 2018)
Earl of Lytton Portrait The Earl of Lytton
- Hansard - - - Excerpts

My Lords, I beg to differ slightly from the conclusions of the noble Lord, Lord Shipley, although I well understand that this involves a cash-flow issue for tenants. I pay tribute to the noble Baroness, Lady Gardner, for bringing us back to this set of amendments. The Minister himself defended the Government’s long-standing line that a six-week deposit was fair. However, as the noble Lord, Lord Flight, said, we seem to have moved away from that without apparent pause for breath.

I declare a non-interest here, as I do not charge deposits for tenants and have not done for a number of years due to special personal circumstances. The industry standard has been six weeks for a considerable time. In my part of Sussex, six weeks’ rent represents a figure between £1,200 and £1,800 in general terms. That does not go a long way if, in addition to non-payment of rent—bear in mind that defaults tend to have many heads—the tenant also leaves the property in a damaged condition, including damage to carpeting, kitchen units and electrical wiring.

Given that situation, can the Minister explain why it is now five weeks? If you strip out non-payment of the last month’s rent, under this proposal you are left with a single week’s rent to cover any other form of loss. Does that represent a fair balance? I am not sure that it does.

Baroness Grender Portrait Baroness Grender (LD)
- Hansard - -

Perhaps I may ask for clarification: are we now talking about five weeks, or about default?

Lord Bourne of Aberystwyth Portrait Lord Bourne of Aberystwyth
- Hansard - - - Excerpts

My Lords, it might be helpful to the House if I deal with the rental issue first. If anyone wants to speak on that, I suggest they do so now. I apologise that we glossed over it earlier.

If there are no other points on the rental, I shall deal with the issues raised by my noble friends Lady Gardner of Parkes and Lord Flight, the noble Lord, Lord Shipley, and the noble Earl, Lord Lytton.

On the point that we have moved significantly from six weeks to five weeks, yes, it is a movement, but it is scarcely, as the noble Lord suggests, a fundamental shift. It is not as if we are moving from 10 weeks to one week. Perhaps I may provide some reassurance. All the evidence is that most people currently take deposits of between four or five weeks. It is not therefore massively inconsistent with current practice.

At the top end of the market we are retaining the six-week limit for the most expensive properties where the fittings and fixtures may be more costly. It will remain at six weeks where the annual rental is more than £50,000. I hope that provides some reassurance to those noble Lords who have raised the concern.

These are not issues of principle so much as matters of judgment. It is the judgment of Solomon and there will always be some people who disagree with where we are. However, as I say, we have looked at current practice, listened to what outside organisations have said and on that basis we have fixed it at five weeks for most people, but at the top end of the market we have retained the six weeks.

Lord Kennedy of Southwark Portrait Lord Kennedy of Southwark
- Hansard - - - Excerpts

My Lords, we have jumped around these groups of amendments today. There appears to be an issue with the printing of the Whip’s sheet.

I wish to address my remarks largely to Amendments 50 to 58. Generally, I am happy with what I have heard from the Government today on most amendments, particularly those in this group. The exception is Amendment 57, to which I will address most of my remarks.

Members of this House discuss amendments to Bills all the time, but most are never voted on: they are probing and have been tabled to get answers from the Government. We go backwards and forwards as we seek to improve the legislation. My Amendment 58 is very much in that vein. The Government have put down Amendment 57, which I fully accept deals with damages and makes it clear that if there are any issues, the terms can be clarified in the future. Somehow, damages are being turned into prohibited payments, and I do not want to do that either, so I am with the Government on this issue.

However, on looking at Amendment 57, we were concerned about the heading, “Payment of damages”. We went to the Public Bill Office and talked to colleagues. We are concerned that, as written, it could be deduced—obviously, it is open to argument—that the reasonableness and fairness of such a payment cannot be questioned. It is not so much about going to court, but what happens when people are drawing up agreements and so on. We should remember that we are dealing with tenants and landlords, and the relationship between the two is not always one of equals.

For that reason, I have proposed, as an amendment to Amendment 57, my Amendment 58, which would simply remove the three words of the heading: “Payment of damages”. The provision would be retained but the heading would go. Removing the heading would, in effect, add the provision to the previous group, where a protection is provided: actions have to be reasonable, and reference is made to “evidence”. That is all my amendment is intended to do. I do not know if this is the right way to do it, but it has certainly enabled us to have this discussion today.

I tried to get an assurance from the Government that they would come back at Third Reading and discuss this issue further. It may be that people cleverer than me can come back with a better amendment. All I am trying to do is ensure that tenants are treated fairly and properly. I was happy to come back to this issue at Third Reading, and gave an assurance that we would not vote on it. I have the text message to prove it on my phone; I do not know what else I can say. To then be told that I did not give such an assurance—that is just not the case. I am really upset about this.

All I want to do is get this right. I do not want the Bill to become law and in a year’s time, we find the Government saying, “Oh, we made a mistake. We will change it when parliamentary time allows. We should have this on the rogue landlords’ database. We did not listen to you last time, Lord Kennedy, but of course you are right. When parliamentary time allows, of course we will put it right”. My intention is to get this right today. I have given that commitment and I have the text message, so I cannot see what the problem is in coming back at Third Reading in a few weeks’ time and getting it right. We are not going to vote on it, but I think the position should be clarified.

Baroness Grender Portrait Baroness Grender
- Hansard - -

My Lords, I will come on to damages in a moment, but first perhaps I may take us back to the celebratory moment on this group of amendments: the fact that there has been a significant change on default. This has been welcomed loudly and clearly by those who lobby most for tenants. This is an extremely significant change which this House has introduced through a government amendment to which I have added my name. It specifies what a default fee is: it is now going to be for a key or a security device or for late payment on interest for rent.

I know that we are trying to sort out the damages issue, but I want to thank the Minister and in particular his Bill team. I am sure that they will read this tomorrow in the Official Report. I also thank Rhea Newman and Poppy Terry at Shelter, Hannah Slater and Dan Wilson Craw at Generation Rent and Caroline Aliwell at Citizens Advice. We have all been working extremely hard behind the scenes with many meetings, for which I thank the Minister and the Bill team, to get to a very good place with regard to default. Our original intention was to get it out of the Bill altogether, but the fact that the wording has been greatly tightened and is now so specific is a very big leap forward. It goes back to the original intention that many of us had when we wanted to propose this Bill in the first place.

Before we go back to the controversial issue of whether a loophole has now been introduced as regards damages, I would like to take a moment to remind us of what has now gone and was going to be charged by landlords, some of whose tenants are on an extremely low income or even no income. One of my favourites is £45 for the procurement of a dustpan and brush. Another is £500 for a reference and credit check, £200 to remove a new set of saucepans that had been left for the next tenant—a lovely example—and £100 for cobweb removal. Those are some examples of things that will no longer be a threat as a result of a loophole, thanks to the extremely welcome change of default.

--- Later in debate ---
Moved by
59: Schedule 1, page 25, line 13, at end insert—
“( ) If, in relation to a change of tenant in a shared tenancy, the current tenant or tenants find a suitable replacement tenant, then a payment under this paragraph in excess of £50 is a prohibited payment.”
Baroness Grender Portrait Baroness Grender
- Hansard - -

My Lords, there is an expression about having your cake and eating it, and this is my attempt to get a little extra icing on the top. It is a modest amendment which would ensure a £50 cap when there is a change of tenancy and the sharers recruit the new tenant. I wrote to the Minister yesterday to explain my rationale for this. In Committee, we attempted to change a bit more with regard to this cap, which is a floor rather than a ceiling at the moment; we would like it to be a ceiling rather than a floor. But I have now pared it down to have one single purpose.

In a home of multiple occupation—HMO—where people are sharing, when one of the tenants drops out and a new person comes in, they will be charged a sum. Let me give you an example from Generation Rent:

“Each tenant swap included a massive fee for a new tenant of £250”.


To us that may sound modest, but when young people are sharing and counting the pennies, it is a heck of a lot. The case study continues,

“hence making it difficult for us to find people to move in. We had to do everything, advertise and do 9 interviews”.

Students were not accepted,

“as they did not fulfil agent’s criteria to move in unless they have a UK based guarantor”.

The fee of £250,

“did not even include a reference check of £90”,

or £180 with a guarantor. The case study concludes the fees were,

“£430 in total for a new sharer”.

The sharers do the vast majority of the work—people do not want to share with someone they know nothing about, without checking them out, and checking they can pay the rent—and then have to pay for the pleasure of it. This is a tiny, modest amendment, but it recognises that when people share a place and they do the donkey work, there should be a £50 cap on the charge for the change in sharer.

Earl of Lytton Portrait The Earl of Lytton
- Hansard - - - Excerpts

My Lords, the noble Baroness, Lady Grender, may be pleasantly surprised by the fact that I agree with the vast majority of what she says. She does not need to express too much surprise. However, she will need to define the term “suitable” further. To give her a clue, in commercial landlord and tenant agreements, there is very often an assignment, or something similar, and there is usually a formula of words about an incoming tenant or the assignee being of no lesser standing legally than the outgoing tenant. There will need to be some formula of words there.

The noble Baroness is absolutely right about this issue. I support her on the principle of this because I have children who have rented accommodation in London and I know exactly what goes on, so I can relate to it. But we need a formula that can be defined in law and determined in some way. It should be determined pretty promptly; it is no good if this goes into some sort of arbitration situation for weeks on end. These things need to be sorted out quickly in the interests of everybody.

That is the only reservation I have: the term “suitable” needs better clarification and definition. The question of suitability to whom and in whose eyes needs to be capable of some sort of resolution.

--- Later in debate ---
Lord Young of Cookham Portrait Lord Young of Cookham (Con)
- Hansard - - - Excerpts

My Lords, the co-pilot is in charge of this last amendment, which relates to the charges that can be imposed for variation, assignment or novation of a tenancy. I am grateful to the noble Baroness, Lady Grender, for focusing the amendment, which we discussed in Committee, on capping fees on a narrower range of circumstances than originally proposed, namely where the outgoing tenant finds a replacement. I agree that this should reduce the costs for the landlord and therefore the amount he can charge, because, as the noble Baroness said, the tenant would have done all the donkey work.

However, we have previously agreed that it is not fair to ask landlords and agents to pay fees arising from the action or request of a tenant that varies the original contract they both signed. The Bill provides that a landlord or agent can charge a tenant for a change of sharer, but such fees are capped at £50 or reasonably incurred costs if higher. We do not want to impose a hard cap on the amount.

Landlords and agents should feel able to agree reasonable requests to vary a tenancy. While we do not expect this charge to exceed £50, it is only fair that where it does so landlords and agents can recover their reasonably incurred costs. Further, we do not want to create a situation—I am sure the noble Baroness does not either—where landlords are reluctant to agree to a change of sharer because they think that they will not be able to recover their reasonable costs. This would not help the tenants, who would be required to break their contract if they wanted to leave.

I understand and support the principle of the noble Baroness’s amendment, but I do not think it is necessary. Landlords and agents will need to be able to demonstrate when challenged that their costs are reasonable—for example, if they have incurred a loss in rent from agreeing to a change of sharer. If, therefore, a tenant found a suitable replacement who took over the tenancy and the landlord or agent suffered no loss it would not be reasonable to charge for this and any amount charged in those circumstances would be prohibited by the Bill. A landlord or agent could not double-charge rent.

However, to focus specifically on the noble Baroness’s amendment, there could be circumstances where, even though the tenant found a suitable replacement—I take the point from the noble Earl, Lord Lytton, that it is suitable for the tenant but not necessarily for the landlord—the costs incurred by the landlord or agent could exceed £50. This could occur, for example, if more significant referencing were needed with the replacement tenant or there were disagreements respecting the return of the tenancy deposit that required additional time and renegotiation. Although we envisage such a scenario to be rare, it would not be fair to penalise the agent or landlord in those circumstances. We also would not want the landlord to refuse the replacement tenant found on the basis that referencing and other pre-tenancy checks were likely to be more complicated.

The landlord or agent is not permitted to charge more than is reasonable, so would have to be able to evidence any such additional costs. Our guidance makes the position under the Bill and existing law clear to tenants, landlords and agents. With these assurances, although I understand the disappointment clearly etched on her face, I hope the noble Baroness feels able to withdraw her amendment against the assurances I have given.

Baroness Grender Portrait Baroness Grender
- Hansard - -

I thank the Minister for his reassurances. I will stick there, since I have the noble Earl, Lord Lytton, backing something I have suggested. With all the amendments we now have in the Bill, which are extremely welcome, we need it to go through as quickly as possible. With that in mind, I beg leave to withdraw the amendment.

Amendment 59 withdrawn.