Immigration Bill

Lord Howard of Rising Excerpts

Tuesday 15th March 2016 Lords Chamber

[Lord Rosser (Lab)]

We have an amendment in this group which would prevent the new offences that could be committed by landlords and their agents coming into effect until an evaluation of the Immigration Act right-to-rent provisions has been made and laid before Parliament. As has been said, the Bill creates new criminal offences for landlords and letting agents who do not comply with the right-to-rent scheme, under which they are required to check immigration status documents to avoid unlawful letting or landlords and letting agents who fail to evict tenants who do not have the right to rent, with a maximum sentence of five years.

The Government have put down an amendment that provides a defence for a landlord accused of renting to a disqualified person—that they did not know or have “reasonable cause to believe” that the person was disqualified. That is a defence that is available if the landlord, on discovering or coming to have reasonable cause to believe this, has taken “reasonable steps” to end the tenancy “within a reasonable period”. While we welcome the government amendment, it does not of course address the problem that the new offences are likely to create—that they will probably result in at least some landlords taking a risk-averse approach by letting primarily to white British persons with passports. Could the Minister indicate, as regards the government amendment, what kind of guidance, covering what questions or considerations, will be issued by the Secretary of State under proposed new subsection (5B), in government Amendment 62?

The Home Office has carried out an evaluation of the proposed national scheme, which was first introduced in the West Midlands. It was published last October. The Joint Council for the Welfare of Immigrants carried out an independent evaluation, which was published in September last year and showed that some 42% of landlords said that the right-to-rent provisions made them less likely to consider accommodating someone who did not have a British passport. The Home Office evaluation of the West Midlands pilot was limited in its scope; just 68 tenants were interviewed, nearly all of whom were students. It still found that a higher proportion of BME mystery shoppers were asked to provide more information during rental inquiries than other mystery shoppers. Polling last year has already shown that among landlords making decisions on who to let to, around half say that the Immigration Act right-to-rent checks will make them less likely to consider letting to people who do not hold British passports or who “appear to be migrants”. There is a real danger that families who have every right to rent will be passed over by landlords because they lack passports or other obvious documentation of their immigration status.

The right-to-rent scheme was extended across the UK from the West Midlands from the beginning of last month. Is it really too much to ask, in view of the possible adverse consequences of these new criminal offences, under the right-to-rent scheme, that the introduction of the new criminal offences should be delayed until a full evaluation of the impact of the right-to-rent scheme nationally has been carried out?

The reality is that without such an evaluation the Government can give no meaningful or evidence- based assurances that the concerns that have been and are being voiced about the potential adverse impact on many of the one in four families in England who now rent privately of the introduction of the new criminal offences under the right-to-rent scheme will not materialise if more landlords adopt a risk-averse approach to letting. I hope that the Minister will be able to give a sympathetic response to this issue when he replies.

[Lord Howard of Rising (Con)]

My Lords, I rise to speak to my Amendment 65 in this group, and I declare an interest as the owner of rented accommodation. I made the point in Committee that it can be difficult for the owners of rented property to continually monitor what is happening in their property. It is fine to carry out checks when letting a property, but for a landlord to know on a continual basis who is living in that property can, depending on the circumstances, be very difficult, if not impossible. If it were that easy, there would not be a problem in the first place; the authorities would have prevented the illegal immigration.

The Minister said in Committee that new Section 33A(3) of the Immigration Bill 2014 provides adequate protection to landlords. The Explanatory Notes state that the offences in the provision apply,

“where any adult is occupying the premises, regardless of whether the adult is a tenant under or is named in the agreement”.

I do not quite have the noble Lord’s confidence that there is adequate protection for the landlord. The Minister said in Committee that this legislation is,

“not intended to be used against reputable landlords who may have made a genuine mistake”.—[Official Report, 20/1/16; col. 892.]

As time goes by, it is the legislation that governs actions, not the intentions behind the legislation. The good intentions to which the Minister referred may have been long forgotten and therefore may not prevent the overzealous pursuing the small reputable landlord, against whom the legislation is not intended to be directed.

Can the Minister explain a bit further how the protection about which he spoke in Committee would work? After all, 58% of the rented property in this country is let by people with fewer than five properties—the small property owners—and I do not believe that those smaller landlords should be exposed to a disproportionate or unreasonable risk.