Tenant Fees Bill

Debate between Baroness Grender and Baroness Gardner of Parkes

Monday 5th November 2018 Grand Committee

[Baroness Gardner of Parkes (Con)]

My Lords, I declare an interest as a landlord. I think one’s week rent is fairly good and clear as a deposit. For some years I have found that some tenants deliberately withhold their final rent so that you do not have a fair amount money at hand to cover whatever damage they have done to the property. Often, the work that has to be done takes every bit of the deposit and more, although sometimes of course it does not—some tenants keep the place beautifully, pay their rent properly and are the tenants everyone wants. However, until tenants are in occupation, you just do not know whether they are good or bad, and I do not think that this provision in the Bill should cut the period to three days. That will leave landlords in a real quandary when people do not pay their last month’s rent—they usually pay monthly rent. It would be a worry if people did not make the last payment. I agree with everything else that other people have said.

[Baroness Grender]

I believe that the noble Baroness is talking about the use of deposits at the end of a tenancy, whereas the focus now is on holding deposits at the beginning of the tenancy. Can I just clarify that that is what she is talking about?

[Baroness Gardner of Parkes]

I accept what the noble Baroness says but I think she will find that a deposit is usually paid by the tenant as a deposit for their agreement. If the landlord or agent has to make other checks as well, even a deposit of one week’s rent might not be enough to cover them. It depends on how much people charge for checking proof of identity and how much the deposit is. I hope that clarifies the matter.

Housing and Planning Act 2016 (Database of Rogue Landlords and Property Agents) Regulations 2018

Debate between Baroness Grender and Baroness Gardner of Parkes

Tuesday 17th April 2018 Lords Chamber

[Baroness Gardner of Parkes (Con)]

My Lords, I support the principle behind this Motion, but the issue is wider than this. The Government are extraordinarily reluctant to have dealings with local authorities. I declare my interest in the register as a landlord of two flats in a block which is absolutely under threat from holiday lets, and the local authority can do nothing because powers have been taken away from it. There is some reluctance to give power back to local authorities. They need it; they are the people who are closest on the ground. They were able to charge a fee for registration, and, under that, they were able then to check whether your property was correctly detailed as regards the certificates referred to by the noble Lord, Lord Shipley—the gas and electricity certificates and others that are required. For some reason, the Government just do not want to do this. I do not know why, when it is having such a disastrous effect on so many parts of the country.

No one wants to see things going wrong for people who are good landlords. But, when I was helping in the case of a homeless person earlier this year, I am sure that I told your Lordships’ House at the time how people were willing to offer her accommodation in houses of multiple occupation, provided she never told anyone she was there—because they were illegal and were not registered. Indeed, she was evicted because she had had the police in because her things were being stolen, and immediately the landlord had threatened her physically and she had to get out in a hurry—the police said, “You’re at risk there”.

She was then homeless and had to go wherever she could. She went to hostels, where sometimes at night she would be in such a bad way that the doctor would say, “All those marks you’ve got on you are from bed bugs. You mustn’t go back there again”. It really is a most disastrous situation for so many people. When local authorities were able to charge a fee for you to register, it just about covered their expenses in carrying out any necessary checks. Philip Hammond has announced that he wants people to pay tax on these illegal rents—and of course they should, because it is totally disproportionate for someone to collect in some cases a heap of money for an ill-used and unprepared place.

The whole principle has to be much wider. Although I welcome what the noble Lord, Lord Kennedy, said, I would not support him at this stage because I hope for much more. It is time the Government woke up to the fact that they have wonderful people available in local authorities. Some local authorities also work together, which again could cover the point made by the noble Lord, Lord Shipley, about the adjoining or some other local authority. So the structure is there; it is just that the Government are for some reason reluctant to adopt it. I support the principle behind the Motion.

[Baroness Grender (LD)]

My Lords, I thank the noble Lord, Lord Kennedy, for bringing forward this regret Motion. We share his deep frustration that this legislation is not already in place—if indeed legislation is necessary. In every possible debate on this issue, during the passage of what became the Housing and Planning Act 2016, during the passage of my Private Member’s Bill on tenants’ rights in 2016, and in numerous other debates, the case was clearly made. Tenants should have the right to know if their landlord, or possible future landlord, is on the database of rogue landlords and property agents. But every time the argument from the Government was against, primarily on the grounds of data issues. On some of these occasions it was about economics and once, as the noble Lord, Lord Kennedy, pointed out, it was a human rights issue.

If any of the amendments on this issue in the Housing and Planning Act 2016 had been accepted by the Government, as they should have been at the time, or if they had been accepted in my Private Member’s Bill, we would not be having this debate now. So when the Minister explained in his letter dated 6 April 2018 that the Ministry of Housing, Communities and Local Government is now exploring options when there were so many chances before, it seems extraordinary.

While I welcome this change of heart, I fear that this will be another lengthy process—and, frankly, tenants have waited long enough. I have two other examples of where tenants have been waiting for too long. First, there is the lettings fee ban, which I was delighted came in in the Autumn Statement after my Private Member’s Bill—but that was in autumn 2016. The pace is so slow that it is predicted that it will not reach the statute book until the spring of 2019. The electrical safety working group finished its work in 2016 and reached the conclusion that mandatory checks should be introduced. That is another example of where tenants are having to wait so long for any results. Today’s report from the Resolution Foundation makes it clear that whether they are young or old, or with or without children, the number of people who rent and will be renting for the whole of their life is increasing. Indeed, it says that one in three millennials will never own at all.

So the time is now to treat tenants as valued consumers in society. A vast majority—nearly 80%—pay their rent in full and on time. However, as we know from the efforts being made by the noble Lord, Lord Bird, in his Private Member’s Bill on creditworthiness, they continue to be treated almost as second-class citizens in the UK. Even when it comes to a simple thing such as buying something on credit, they are given a much higher interest rate.