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

Debate between Lord Best and Lord Palmer of Childs Hill

Tuesday 17th April 2018 Lords Chamber

[Lord Palmer of Childs Hill (LD)]

My Lords, from these Benches I support the Motion and see it as an extension of the legislation on client money protection agreed by this House, which I and others worked on with the noble Lord, Lord Bourne, to get it through by means of an enabling amendment. The noble Lord, Lord Thurlow, talked about someone just putting on a suit and opening a shop on the high street, but the client money protection regulations, which are just being published, mean that they cannot hold a client’s money. So things have moved on and improved. We in this House managed to improve the situation around client money protection: why can we not do that for the issue before the House now?

The argument is straightforward: how are tenants’ rights to be protected if they do not know whether an agent or landlord is dodgy? How will they be protected? The word that has not been used in the debate so far is “enforcement”. Enforcement by local authorities is very weak. If every local authority was proactive on enforcement, and if they were allowed to be so by the law, perhaps this might not be such a big issue today. But in the real world, local authorities—strapped for cash, as mentioned by other noble Lords—have and will continue to have enforcement very low in their priorities. It is interesting to note that this could be done very easily. I do not know how many properties it has nowadays, but the GLA, which has already been mentioned, has started an open list that anyone can access.

Other noble Lords have talked about separate lists in different local authorities. Because they are separate, there will be many loopholes for the rogues. The good guys will be fine, but the rogues know how to get around this. When you leave it to local authorities, without the support of national legislation, they will be nervous about taking action against a rogue landlord because, as has been mentioned: what is a “rogue landlord”? As the noble Lord, Lord Beecham, said, there are many ways of describing a rogue landlord.

People worry about what will happen to the companies and individuals that end up on the list due to a mistake made by themselves or by staff. If they are on the list, they will have to demonstrate that they have addressed the issue and then they can come off the list.

The ability of a tenant to carry out an online search of a register to see whether their prospective landlord or agent is on the list is a must before they part with a month’s rent and a deposit, only to be scammed. The query is that only some local authorities will participate unless we make this national legislation, and therefore rogues will go under the radar. My question to the Minister is this. We managed to do this by co-operation for client money protection—I must admit I co-chaired a committee that lasted for six months—and the regulations have now been published. Why can we not do this now for this simple measure to protect tenants?

[Lord Best (CB)]

My Lords, I declare my interests as listed on the register. I am full of regret about this statutory instrument but I want to preface my remarks by giving some credit where it is due. We have seen the exponential growth of private renting: the PRS has gone from 9% at the beginning of the 1990s to about 20% of the stock of this country now. As mentioned by the noble Baroness, Lady Grender, the report published today by the Resolution Foundation shows that an awful lot of people will rent all their lives, even those on relatively decent incomes.

Private renting has become very important and government has woken up to this fact. We have had a plethora of measures coming down the pipeline, and I welcome each of them. Enumerating them all would take some time, but they include the letting fees ban, which has already been mentioned, and compulsory client money protection, which will make a big difference to the world of letting and managing agents. We have also had the banning orders themselves, which are very important, never mind the publicity around them. There is the promise of a tenants’ ombudsman handling complaints from tenants about their landlords. That is coming down the pipeline. Physical things such as smoke alarms are becoming compulsory on every floor and some carbon monoxide alarms are becoming compulsory. This Government have introduced a lot of important new legislative measures. When it comes to licensing, which is absolutely where we should be, local authorities should be empowered to license the landlords in their areas and collect some funds to pay for the enforcement that needs to follow.

I went on a dawn raid with Newham Council to see the things that such raids reveal—horrendous conditions. However, a licensing system could find out which properties were let in appalling conditions and who was not paying any council tax or anything to HMRC, whose representatives came on the dawn raids as well and whose teeth are sharper than anyone else’s. We now have measures in place. The Government have allowed Newham to renew its licence for almost the whole of the borough and the Government are on the right track, so I preface any remarks by saying that the Government are bringing forward a whole number of measures. We may have reached the point where a consolidating Bill to bring all these things together would be rather a good idea.

However, we depend on the local authorities enforcing all these measures. I speak as the guilty person who piloted through your Lordships’ House the Homelessness Reduction Bill, now an Act, and I know that that brings tremendous new burdens on local authorities in relation to the private rented sector. Local authorities have a lot on their plates, and adding more to that needs to be accompanied by the resources to really make things happen. Local authorities can rightly complain if the Government do not come up with the money to follow each of these new measures.

We have the banning orders, which are great, but we are unable to get a register of those who are banned publicised far and wide. I do not like to mention the Housing and Planning Act because it brings back some horrendous memories, but three questions are answered at the back of the guidance for local authorities, Banning Order Offences:

“Should local housing authorities make public banning orders for individual landlords? We would encourage local housing authorities to make successful banning orders for individual landlords public”.


The guidance continues:

“Can a local authority make public a banning order for a business? Yes. Any business (managing or lettings agency) which has been subject to a banning order can be named publicly … Should local housing authorities make information on banned landlords available on request by a tenant? Yes. We would encourage local housing authorities to make information on banned landlords available on request by a tenant”.


That all sounds good but then we get this feeble statutory instrument, which seems to negate that and make it rather difficult for local authorities, which get legal advice to be cautious about publicising these banning orders that are so important. I think the culprit, which I have dug out today, is Publicising Sentencing Outcomes from the criminal justice system, which is guidance for public authorities on publicising information about individual sentencing outcomes. I suspect that the Minister is as frustrated as the rest of us that more cannot be done to achieve the publicity that this demands. I hope he will join the rest of us in voting in favour of this Motion of Regret.