Housing and Planning Bill

Debate between Lord McKenzie of Luton and Baroness Grender

Wednesday 13th April 2016 Lords Chamber

[Baroness Grender]

I thank the noble Baroness for that mini-filibuster to help me. I raised concerns about vulnerable tenants in the context of this policy change in Committee. The amendments would ensure that, in addition to contacting the tenant, where there was a person, a charity or a housing authority that had paid or contributed to the deposit, they would be contacted, too. So the amendments are aimed in particular at those tenants who are vulnerable and already known to charities or local authorities. This is critical because, as we all know—especially those of us who have debated the Bill for several hours—the end of a private tenancy is now the most common cause of statutory homelessness, accounting for 31% of all households accepted as homeless in England and 42% in London.

In the majority of cases where the landlord requires a deposit from the tenant, they will have paid the deposit themselves—but that will not always be the case. Sometimes the deposit will have been paid by a relative or an employer, but in many cases, in order to ensure that vulnerable people have access to the private rented sector, local housing authorities and charities will pay the deposit on behalf of the tenant. These amendments would ensure that, where the deposit had been paid by a third party and the landlord had commenced the abandonment proceedings, when they sent written notices to the tenant they would also have to notify the deposit payer. The deposit payer could therefore stop the process by confirming in writing to the landlord that the property had not been abandoned or by making a contribution towards the rent, which could be a nominal sum.

The amendments would provide additional protection to a vulnerable tenant who, for any reason, was unable to respond directly to the landlord. An example, which we discussed in Committee, is someone with mental health issues who is known to a charity, which has paid or contributed to that tenant’s deposit. The charity would be able to get involved at an early stage and, if necessary, put a stop to the abandonment process. In effect, if the local authority, charity or any other person who had paid the deposit confirmed that the property had not been abandoned, that would bring the abandonment process to an end.

The amendments were tabled as a result of an extremely helpful meeting with the Minister and I thank her for that. She showed clear understanding of and compassion for the vulnerable tenants I have described and an understanding of the need to ensure that a third party is involved in the process. I also thank the Minister’s officials for engaging in discussions about the best way to deal with abandonment while protecting the most vulnerable.

We on these Benches are not able to support Amendment 40 in this group because we believe that it would add a layer of bureaucracy without swiftly ending the abandonment procedure, which a third party could do under all the other amendments in this group.

Shelter and Citizens Advice originally highlighted the potential problems for vulnerable tenants in this part of the legislation. While they continue to have one or two misgivings about the clause, they are both very happy with this change. I beg to move.

[Lord McKenzie of Luton (Lab)]

My Lords, I shall speak briefly in support of the amendments but will also take the opportunity to raise a drafting point which I do not think has been addressed in the Bill following Committee; nor indeed is it addressed by this amendment. In short, I am unconvinced that the legislation as it stands always supports the warning notice timetable set out by the Government. I, like the noble Baroness, Lady Grender, thank the Minister for the opportunity to discuss this matter with officials and for her follow-up letter of 4 April with the attached flow chart, but I fear that my concern has been inadequately expressed and continues to fall on stony ground.

The issue is in fact very straightforward and relates to when the unpaid rent condition is met—particularly, say, where rent is payable monthly in advance. For the purposes of the Bill, when no rent at all has been paid since the end of, say, month three, is the unpaid rent condition met on day two of month five or only at the end of that month? If the latter, I have no issue with the Government’s analysis. However, I took from our meeting with officials that the former was the case, and in those circumstances the second warning notice could be given in a little over 31 days from the start of month four in this example, and the first warning notice from day five of that month, which would enable the notice bringing the tenancy to an end to be served at just after eight weeks rather than the suggested 12 weeks.

I am not seeking to be difficult on this matter but, if it is agreed that there is a lack of clarity, it would seem to make sense to put matters beyond doubt either by a simple amendment from the Government at Third Reading or at least in some guidance.