Lord Stoneham of Droxford
Main Page: Lord Stoneham of Droxford (Liberal Democrat - Life peer)Department Debates - View all Lord Stoneham of Droxford's debates with the Cabinet Office
(9 years, 6 months ago)
Lords ChamberMy Lords, I should declare that I am a landlord in the private rented sector, which is larger than the social rented sector and is still growing. I am firmly against any landlords who engage in retaliatory evictions. I have never had to resort to issuing or have even come close to issuing a Section 21 notice, so this is all slightly unfamiliar territory to me. But it seems that what we are dealing with in this group of amendments is the bottom of the barrel as far as landlords are concerned and, indeed, the bottom of the barrel as far as some tenants are concerned.
There are two improvements in these government amendments over the others which have been tabled and over the amendment moved by the noble Baroness, Lady Hayter, to the Consumer Rights Bill. The first is that the tenant must make a complaint to the landlord in writing and give the landlord time to rectify the problem before involving the local authority. It seems obvious, but it was not in the other amendment, so it is welcome. The second improvement is that regulations will require landlords to provide tenants with the details of their rights and responsibilities, which is also welcome.
I would now like to talk to the amendments tabled by my noble friend Lord Howard. I agree that 14 days is not long enough for the landlord to respond. If the Minister is unable to accept the period of 28 days suggested by my noble friend, perhaps 21 days would be a happy compromise. My noble friend’s Amendment 46BA addresses the case where a tenant has failed to pay rent for two or more consecutive due dates. Let us suppose that a tenant does not pay the January rent, but says to the landlord that he will deal with it. The February due date for rent then comes along, and he does not pay that either. On the morning when the February rent is due, the tenant writes a letter to the landlord with some sort of excuse and saying that something needs to be repaired. In the afternoon of the same day he writes to the local authority saying, “I have written to the landlord. He has done absolutely nothing about it, so can you come and serve your notice on him?”. If the local authority does that, the landlord has missed out on the January and February rent and will then miss the next six months as well. That cannot be right.
The bad tenant, the one at the bottom of the barrel, may not have actually sent the letter to the landlord even though he has a copy in his file. The poor landlord, who may not live close by because he is in another county, does not know that any of this is going on, yet the tenant has not paid the rent and will not be paying the rent for eight months. My point is this. Should there not be a duty in the Bill on the local authority to contact and/or write to the landlord saying that the tenant has made a complaint and asking what the landlord intends to do about it? As I have made clear in my example, this may be the first occasion that the landlord becomes aware that there is a problem.
I shall move on to the government amendments. There is a significant omission because the Bill makes no provision for what happens where a landlord responds adequately to a complaint from a tenant within the time allowed. The Bill does not provide for any kind of moratorium to prevent the local authority taking action. The local authority can still serve a statutory notice on the landlord even though he is dealing with the complaint in a responsible manner. This has two consequences for the landlord. The first is that this is potentially serious for a landlord who does not serve a Section 21 notice at the time and who has no intention of retaliating. However, if the landlord is served with a notice by the local authority, he is then automatically precluded from relying on Section 21 for six months. Even if the landlord does not serve a Section 21 notice following a complaint, should he have cause to do so within the next six months following the service of the local authority’s notice, he would not be able to serve it even though a perfectly good but unconnected reason for eviction may subsequently have arisen. It may be because the tenant has gone into rent arrears or has otherwise broken the terms of the tenancy, perhaps through anti-social behaviour.
The second problem arises because a notice served under Section 21 after the written complaint is invalidated. Again, no distinction is made between the bad landlord who is acting in retaliation and the responsible landlord who has a good reason unconnected to the complaint made by the tenant to evict him. The landlord may wish to obtain possession under Section 21 for good reasons and not in retaliation for the complaint. For example, the landlord may have received complaints about serious anti-social behaviour or there may be significant rent arrears. The local authority may want the landlord to evict the tenant because of the anti-social behaviour, but the amendment would mean that the authority could not do anything about it. The solution is to add a provision to the Bill stating that as long as the landlord replies in time and in an adequate way, the local authority should be precluded from serving a statutory notice unless the landlord fails to carry out the work on time. Likewise, in a case where the landlord has responded in time, has addressed the complaint and ensured that the work has been satisfactorily completed, the moratorium on serving a Section 21 notice should be lifted.
I have another point here. Can the Minister clarify what happens if by the time the local authority inspects the property, the original complaint has been dealt with satisfactorily but, on inspection, the local authority finds some other, second problem or complaint meriting the service of a relevant notice? Would the local authority be said to be acting “in response to the complaint”? It could be said that the complaint occasioned a visit which gave rise to the issue of the relevant notice even though it was for good reason. Clarity on this point is requested. It would seem to me that if the original complaint had been satisfactorily dealt with, but a second problem had been found, then a further 14 days should be available for the landlord to provide an adequate response within a reasonable timescale to this second problem, so that the local authority should not issue a statutory notice.
I may have raised one or two issues that the Minister is not able to respond to today. If so, perhaps he could do so in writing.
My Lords, I was not going to speak in this debate, because I think there is a need for us to move on, but in the light of a couple of speeches on this side of the House, the Minister needs to make it absolutely clear that there is no intention in these amendments to interfere with landlords’ rights in the situation of arrears. Most disrepair issues are sorted out between the tenant and the landlord, but where the relationship has broken down, and tenants need to get legal advice or local authority action, it is not surprising that some landlords may seek to regain possession.
There is an abuse of power here that we need to correct. These amendments are about getting that balance right. That is the purpose of the legislation and I give due credit to Sarah Teather and indeed the Department for Communities and Local Government, for actually allowing us to put these amendments through and for putting down an amendment that tries to make an acceptable reform in this area. The vast majority of landlords will not be affected by these amendments. They already ensure that they comply with the required health and safety standards and they will retain the freedom to issue Section 21 notices. However, the amendments will inhibit rogue landlords flouting their legal responsibilities. That is why this reform is needed.
My Lords, I declare my interests. I was an estate agent and am a consultant to an estate agency. I also piloted the 1988 Act through the House. The Act was introduced by my late noble friend Lord Ridley of Liddesdale when he was Nick Ridley and Secretary of State, and I am delighted that it has been so successful. It was controversial and was criticised quite heavily at the time, but it has achieved what it set out to do, which was to improve the private sector rented market and to give more people a choice of tenancies.
I have two concerns of principle with these amendments. One is the timing. This is Report stage, and this is a technical issue. I understand very well that the Liberal Party has put a great deal of emotion and faith into these amendments, and I do not blame them at all: technical points have been raised which need to be discussed. However, we can speak only once, and there is no way that this amendment is going to be discussed in any detail in another place. We are the only Chamber of Parliament that can actually get into this, but we are now limited to Report and Third Reading. The noble Lord, Lord Best, whose opinion we all respect, said that there could be some tweaks, but he did not tell us what the tweaks were. Those are the sorts of things that we ought to be looking at but which, under the procedure, we cannot. I mildly chastise my noble friends on the Liberal Benches for not introducing this in Committee. I understand why they did not: because there was a Private Member’s Bill in another place. But that did not stop them, and we could have had a much better discussion than we are having now. I would have hoped that my noble friend on the Front Bench might have taken this back into Committee, particularly for this purpose.