(4 days, 16 hours ago)
Lords ChamberMy Lords, I very much support Amendments 43 and 45, tabled by the noble Baroness, Lady Scott, and supported by the noble Lord, Lord Jamieson. I can give a practical example of this. A very nice couple from Chile wanted to rent one of our flats. They had no credit record at all here in England so there was no way to check that. There was no efficient way to check the previous landlord, which is the other step that a landlord normally takes to ascertain whether these are suitable tenants to go into the property. They had the money. Both of them were coming to work in London for a year for an academic purpose. Enabling them to pay some money in advance—I have forgotten whether it was six months or more—was therefore a sensible compromise. They turned out to be delightful tenants and highly reliable, and we were delighted to have them in our house.
I also want to speak to Amendment 46. It is to protect landlords when a tenant has signed up to take the property on a certain date but has failed to pay either the first month’s rent in advance or the deposit. I suggest that it would be entirely wrong, because the tenancy agreement had been signed and so forth, if the landlord were then obliged to take that tenant into the property. Remember that a landlord cannot chase unpaid rent for three months, and then there is the delay in getting a hearing in the county court, so that would be onerous for the landlord to deal with. Moreover, if the tenant has not paid either the first month’s rent or the deposit in advance, he probably does not have the money available, and the high probability is that the landlord will have to suffer that tenant in his property for three or four months without any payment at all.
I therefore thought it would be sensible to make it quite plain—my amendment starts:
“For the avoidance of doubt”—
that the landlord does not have to give the tenant keys to the property or allow them to get into it when the tenant has not paid. I added a further bit to the amendment to enable the landlord, if the tenant fails to pay the first month’s rent or the deposit for a further 28 days, to take the next step of having the lease annulled. That is to make it plain in the Bill what the position of the landlord is after having entered into an agreement with a tenant who then does not pay either the first month’s rent or the deposit.
I support the indefatigable and noble Lord, Lord Hacking, in his Amendment 46. I find it plainly obvious that rent needs to be paid before occupation. I can find preciously few examples of anyone paying for goods and services after they are contracted or consumed. An obvious example is a railway ticket or an air ticket. No one goes to the cinema and pays after the performance or takes a litre of milk at Tesco and then pays after drinking it: it is just not acceptable.
Participating in the private rented sector, as either landlord or tenant, is a serious business. The landlord has made a major investment and may have a mortgage to service, among other costs. A tenant is looking for a safe and secure tenancy which incorporates decent home standards: he is well aware of the financial obligation. Without this amendment, the landlord would be laid open to the possibility of four months with no rent and a longer eviction process under Section 8, possibly taking seven months or so. The position of a landlord is a commercial business, not a public service. I urge the Minister to accept this rather obvious amendment.