Private Landlords and Letting and Managing Agents (Regulation) Bill
Debate between Alan Meale and Philip Davies(11 years, 2 months ago)
Commons ChamberRead Full debate Read Hansard Text
Sir Alan Meale (Mansfield) (Lab)
I beg to move, That the Bill be now read a Second time.
It is a pleasure and an honour to present the Bill. Members may ask why I have presented this particular Bill. It is because of my concern about the need to reform the private rented sector so that it works for all, not just the few who are currently abusing the system. That is sorely needed for the following reasons.
In England, there are now more than 9 million people, including more than 1 million families with children, renting privately. Those are two truly amazing figures. I say at the outset that I believe the private rented sector has an important role to play in meeting housing need. Indeed, it is an essential ingredient in doing so. Yet today in Britain, as a result of the biggest housing crisis in a generation, more and more people are being locked out of home ownership because of rising costs and are instead looking to find their home in the private rented sector. They do that at a time when, as Members will know, the housing crisis continues to worsen considerably. The situation is caused by a number of factors, not least our growing population. So far during this Parliament, home completions are at their lowest level since the 1920s when Stanley Baldwin was in No. 10 Downing street and King George V was sitting on the throne.
We are now approaching winter. Homelessness and rough sleeping are on the up, and have risen by a third since the 2010 general election. I pay tribute to many organisations such as Shelter, Framework, which is in my area, and others who work tirelessly to ease the plight of people caught in that situation. Needless to say, such organisations should be supported in their important works, which cover a range of issues.
As the housing situation worsens, people continue to struggle deeply to own their own properties, with average house prices now eight times wage levels. It takes more than 20 years for low and middle-income families with children to save enough for a deposit. Last but not least, rents are ever rising in the private rented sector, and are now moving to unaffordable levels, with many young people not even earning enough to pay their rent.
Philip Davies (Shipley) (Con)
I agree with the hon. Gentleman about rents being high, but does he accept that if landlords were forced to pay to be on a register, as he envisages in the Bill, the only possible consequence of that would be for rents to go up even faster?
Sir Alan Meale
I will deal with that point later.
On people’s inability to pay rent, last weekend The Observer revealed that rents are at an all-time high, with the average private sector tenant now paying £757 a month. I outline that because the situation is likely to worsen considerably. According to the Office for National Statistics, property prices up to August 2013 rose on average by 3.8%, with the average UK home now costing £247,000. For young people with families who need a 5% deposit, that equates to around £12,350—more than some of them earn.
As we know, most people dream of owning their own home, and like Members across the Chamber, I want people to realise that dream. Today, however, more people are finding themselves in the private rented sector for longer than in years gone by. I want a strong and thriving private sector, but evidence shows that too many tenants are being ripped off by unscrupulous letting agents, and hit by extra rip-off fees that they did not know they would face and cannot afford. People are plagued by rogue landlords and poor standards.
My Bill proposes, first, to tackle those problems head on by establishing a mandatory national register of private landlords. Secondly, it would liberalise selective licensing schemes so that local councils do not have to go through so much red tape if they see the need for such a scheme in their area. Thirdly, it would introduce greater regulation of private sector letting and management agents, and fourthly it would require all tenancy agreements entered into with private landlords to take the form of a written agreement.
My Bill seeks those things because at the moment the private rented sector is not the market it should be or needs to be. What is wrong with the current lettings market? Evidence shows that too many tenants are being ripped off by unscrupulous letting agents who fail to protect them, while also charging exorbitant and opaque fees. As evidence from the House of Commons Library shows, and as the Government have admitted, there is currently no overarching statutory regulation of private sector letting or management agencies in England, or any legal requirement for them to belong to a trade association.
Philip Davies
It does not surprise me that the hon. Gentleman has drawn that conclusion, but I, as a Conservative, have drawn the opposite conclusion, and I hope to explain why at some point in my speech.
I must apologise to you, Mr. Speaker, to the hon. Member for Mansfield (Sir Alan Meale), and to the Minister, the shadow Minister, and all other Members who will participate in the debate. I am afraid that I may have to leave early. I have no idea how long the debate will last, and I may well be here for its entirety, but it is equally possible that I shall not. I am hosting a lunch in one of the Dining Rooms. If I do have to leave before the end of the debate, no discourtesy is intended.
I congratulate the hon. Member for Mansfield on presenting the Bill. As he knows, I am a great admirer of his: in fact, I might even be so bold as to consider him a friend of mine. He may not see it in those terms, but I certainly do. He is a good man, and he has a long track record of bringing important issues to the House and representing his constituents in Mansfield to great effect. I have absolutely no doubt about the sincerity of his case, and I commend him for that. We tend to agree on matters relating to horse racing, and perhaps we would have been better off sticking to that subject today—we could have secured cross-party agreement—but the hon. Gentleman knows as well as I do that when we leave the subject of horse racing our views tend to diverge, quite widely on occasion, and this, I am afraid, is one of those occasions. He will also know, however, that my opposition to the Bill is not directed at him personally, and that my admiration for him has not been diminished by the fact that I happen to disagree with him on this issue.
One problem has, I think, affected us all. I know that the Procedure Committee is considering making changes to the private Member’s Bill system—most of which are not desirable in my book—but, as far as I am aware, this Bill was printed only yesterday. It has been very difficult for some of us to understand all its complexities, given that we have been allowed such a short period before being invited to analyse and scrutinise it, although I am sure that if I have misunderstood any aspects of it, the hon. Member for Mansfield will pull me up. Moreover, I am not aware of the existence of any explanatory notes. The hon. Gentleman may say that none are needed because the Bill is self-explanatory, but I feel that some explanation of the Estate Agents Act 1979, and other related legislation covered by the Bill, might have helped. It might be handy in future for Bills to be accompanied by some form of briefing for Members to read beforehand. That would enable us to know exactly where we stood.
Sir Alan Meale
The delay in the printing of the Bill was due to the fact that negotiations had been proceeding for some months with a variety of organisations and individuals to establish how we could best persuade the Government of the need for such a Bill. I have already mentioned a range of those organisations and individuals. Indeed, we approached the Department for Communities and Local Government itself to establish whether it felt able to accept any of the proposals in the Bill. As the hon. Gentleman knows, a Bill should be printed up to two days before a debate on it takes place, but there was never any thought of our trying to keep this Bill secret from Members. The delay was caused by the fact that we were trying to negotiate at the last minute.
Philip Davies
I am sure that the whole House is grateful to the hon. Gentleman for that helpful clarification. I intended no criticism of him; I was simply making the point that if I had misunderstood any aspects of the Bill, I would perhaps be forgiven because we had been given such a short time in which to look at the detail beforehand. I know the hon. Gentleman well, and I knew that there would be a good reason for the delay. I certainly knew that he would not want to hide his light under a bushel. He has never done that in the past, and I had no reason to believe that he was trying to do it on this occasion.
There seems to be some kind of dispute among us about the amount of legislation and regulation that currently applies to the private rented sector. The hon. Gentleman used the word “unregulated”, and I thought I even heard him use the term “wild west”. However, what concerns me is not a wild-west-style lack of regulation in the sector, but the possibility that there is too much regulation. According to industry experts, there may well be more than 100 pieces of legislation and more than 400 regulations governing the private rented sector. I think that would sound like an awful lot of legislation to most people, and it certainly does to me. If all that does not satisfy those who want to control and regulate everything, I am not entirely sure that this extra piece of legislation is likely to satisfy them either.
The problem is that the left in politics always want to regulate something. They always want to interfere in something. They cannot help themselves: it is their natural state of being. They will not be happy until everything is regulated, or, in some cases, strangled to death, if they do not much like the industry concerned. I wonder why on earth, in 2013, we suddenly need a national register of landlords and the regulation of letting agents. This sector has been going strong for years, and we do not seem to have encountered massive problems. I understand the points that the hon. Member for Mansfield has made, but the Bill seems to me to be a sledgehammer to crack a nut. The hon. Gentleman himself said at the end of his speech that he wanted to tackle only the small minority of people who were causing a problem. It strikes me as bizarre to assume that the best way of tackling a very small number of people who, in the hon. Gentleman’s view, are causing a problem is to impose mass regulation on everyone, regardless of whether—even in his view—they are good landlords.
Sir Alan Meale
As the hon. Gentleman knows, I am not a great one for red tape, and regulation is not really my scene. The term “wild west” was actually used by the Royal Institution of Chartered Surveyors, and the Association of Residential Letting Agents also supports the Bill. Last but not least, I refer the hon. Gentleman to the numbers involved. In England alone, there are 4,000 unregistered letting agents, and a huge number of people have expressed dissatisfaction with the treatment that they have received. The hon. Gentleman should note all the comments that have been made by organisations such as Which? and Shelter. We may be talking about a minority, but it is a significant, indeed a large, minority. I want to regulate it, and to professionalise the market so that it operates better for the people whom we serve.
Philip Davies
I understand that the bodies concerned have that view, and there may be a reason why they hold that view, but if Opposition Members think 100 pieces of statutory legislation and 400 regulations amount to a wild-west situation, I shudder to think what they have in mind for proper regulation of the sector, because it seems to me to be excessive as it is.
In a report for the Residential Landlords Association, Professor Ball noted:
“Housing in general and landlord-tenant relations specifically are subject to a wide-variety of housing, health and safety, planning, social policy, and environmental legislation. This has all developed in a haphazard, uncoordinated manner over many decades. Once in place, repeal is rare. Moreover, the cost-effectiveness of many requirements was never assessed when the measures were implemented nor have recent ones been reassessed after several years in place.”
That goes to the heart of the subject. The sector’s wide-ranging set of rules, regulations and legislation, which has developed in a piecemeal and haphazard fashion, is difficult for landlords to deal with, and a much more simplified set of regulations may well be better.
The Communities and Local Government Committee did a report on the private rented sector recently and its very first recommendation was entitled “Simplifying Regulation”. It said:
“We recommend that the Government conduct a wide-ranging review to consolidate legislation…with the aim of producing a much simpler and more straightforward set of regulations that landlords and tenants can easily understand.”
That seems to me to be a sensible suggestion. What it recommends flies in the face of what the hon. Member for Mansfield is seeking to do, which is make things more onerous, more complicated and add yet another layer of regulations on landlords.
Philip Davies
I am grateful for the hon. Gentleman’s advice, but I am not entirely sure when he became such an expert on the Shipley constituency. Perhaps he is spending more time there than in his own constituency because he seems to know what the issues are in my constituency better than I do, and I will have a chat with him in the Tea Room later to seek his advice about what the people of Shipley, Bingley, Baildon and other nearby villages have been telling him.
Sir Alan Meale
I well appreciate the avenue the hon. Gentleman is going down, but he must accept that there are rogue landlords out there. Just a short while ago, he and I—he in particular—helped to raise considerable funds after people died in a fire in Malton in North Yorkshire. They died in that property because the landlord was a terrible landlord. There was no escape route and we raised the money to rebuild that property and make sure all the fire escapes and everything else were built into it. These rogue landlords do exist. Some 73% of people are dissatisfied with letting agents, and so on. The Bill seeks not to burden us with bureaucracy, but to shed a light on this area and ensure that the basic, decent things are done so that people can have a good home.
Philip Davies
I am glad that the hon. Gentleman has highlighted another area where we have worked together: raising money for the part of North Yorkshire where that sad event took place. The point I was making was not a matter of opinion, however; it was a matter of fact. The vast majority of complaints I get in my constituency about landlords are about social housing providers, not private sector providers. I was offering that up not as an opinion but as a fact. We should perhaps focus on what social housing providers are doing incorrectly.
There is one respect in which I have a lot of sympathy with the hon. Member for Mansfield, and that is on his point about antisocial behaviour; he is on to something there. Again, this is from personal experience—from speaking to people in my constituency, including those who come to see me at my surgery. Getting antisocial behaviour dealt with by a social housing provider may well be a far-too-long—incredibly long—and tortuous process, but I have evidence to suggest that social housing providers take the issue seriously, as do the local police. In my constituency, there has been some terrible antisocial behaviour by tenants in the private rented sector, but the problem is that as long as a tenant pays the rent and keeps the house in a decent manner, the landlord, who may live in another part of the country, or a different country, is not really that bothered about the tenant’s antisocial behaviour in the local community. There is an issue about landlords’ responsibility for dealing with their tenants’ antisocial behaviour, and for helping the local community by being inclined to help have tenants evicted, if there is evidence to suggest that they are causing a menace.
Philip Davies
The hon. Gentleman is entitled to his opinion, but he has not yet come up with an argument that I have been persuaded by. It seems that I have not come up with one that he is persuaded by, and neither of us is surprised by that state of affairs. We can move on knowing that the status quo has been maintained. I agree with very little that he ever says, and he agrees with little that I ever say. That is because he is a socialist and I am not. That is the essence of democracy. I hope the people of Shipley will continue to resist the advances of socialism that the hon. Gentleman wishes to inflict upon us, even though he seems to know more about the Shipley constituency than I do.
With reference to the interest taken by the hon. Member for Mansfield in the subject, I looked at the database of early-day motions on the Parliament website, which I commend to everybody as a great resource. I do not know whether the hon. Gentleman is aware that he signed 1,787 early-day motions during the 2010-12 Session. That goes to show what an assiduous Member he is, as we who know him well are aware.
Sir Alan Meale
The hon. Gentleman no doubt realises that some of those early-day motions were tabled by him. What is wrong with signing an early-day motion? It is a notice board, a window of opinion, which other Members use as he does. That shows activity in this place.
Philip Davies
My hon. Friend is right. He pre-empts what I was going to say; I was going to make that very point. This is absolutely a tax on private landlords. The hon. Gentleman said that there would be no cost to the taxpayer, but that will not necessarily be the case. If a landlord is expected to pay a fee—in many cases, my cynicism leads me to suspect, perhaps an ever-increasing fee—the likely scenario is that that fee would be passed on to the tenant through higher rents. That will be how the landlord recoups the money to pay for it.
Obviously, many rents are paid by the taxpayer through housing benefit. I have no doubt that the hon. Gentleman intends that there will be no cost to the taxpayer as a result of this Bill, but he cannot guarantee that, and I would argue the exact opposite. The likely scenario is that this will lead to an increase in costs to the taxpayer through higher housing benefit payments.
Sir Alan Meale
Does the hon. Gentleman accept that, after the consultation process, the Secretary of State will determine what such a register should hold and what the fee should be, so he will have a handle on this and be able to control it? There is no question that it will cost the taxpayer money in any way, shape or form.
Philip Davies
I hear what the hon. Gentleman says, but I am simply not persuaded. There will be a cost to somebody, and it seems inevitable that some of that will be passed on to the tenant—and the taxpayer pays for an awful lot of tenancies. I have no doubt that were the hon. Gentleman the relevant Housing Minister at the time, the fee would be small, but heaven knows what the fee might end up being if the hon. Member for Islington North got his hands on the levers of power. I have every faith in the hon. Member for Mansfield as an individual, but he cannot guarantee who will be holding the post in the future and what the consequence of that may be.
Philip Davies
As ever on these occasions my hon. Friend makes an excellent point. Therefore, we can determine quite clearly that whatever is envisaged there will be a cost one way or the other to the Exchequer.
Who will monitor the register? How will it be monitored? How will it be determined when someone becomes a new private landlord and who will ensure that that particular landlord signs up? I am not entirely sure that I can envisage how that will happen in practice. How will existing landlords be made aware that they have to sign up? How will the process of registration of all these private landlords be carried out? What about private landlords who are foreign nationals, and who own a property in the UK but do not live here? How will we go about getting them on the register? How will they be made aware that they have got to be registered? How will they be made to sign up and pay their registration fee? I simply do not understand how having a register will help the landlord. I do not understand how it will help the private sector tenant either. What incentive will there be for landlords to sign up? If we have a mass refusal of landlords to sign up, what will be done to get them to sign up? We can argue whether the concept is desirable, but it seems filled with practical issues.
If we are to go down this route, surely the hon. Gentleman would accept that there has to some kind of incentive for the landlord to sign up. There has to be some benefit for them in signing up, and the best way to ensure that is to make signing up a free choice, not to mandate people to do it. The only effect it will have on landlords is to ensure that they have the additional task of renewing their registration every year and that they pay for it out of their own pockets. As my hon. Friend so wisely suggested, this is no more than a tax. It is a tax for letting out one’s house for others to live in. I am not sure whether that qualifies it to be called a bedroom tax, but given that most people who live in these houses will be occupying a bedroom, and given that the cost is likely to be passed on to them, we can safely say that this is the Labour party’s attempt to impose a bedroom tax on the public. It introduced the spare room subsidy when it was in government, and it now seems to be trying to introduce a new tax on people.
The Bill will drive up not only rents but property prices, which are extortionate everywhere, but particularly in London. As rents go up to compensate for the cost of the register, property prices will be driven up even further.
Sir Alan Meale
Will the Bill not also reduce rents? What about the £350 a week for a shed in Newham? What about the 11 models who were asked to pay £400 each to share a small terraced house? What about a recent report of people having been rented out a walk-in freezer? These are all situations where people pay large amounts of money and the Bill would mean a reduction for them rather than an increase.
Philip Davies
I do not doubt the hon. Gentleman’s intention; I just do not see how the Bill would work like that. The problem with the Labour party generally is that it thinks people live their lives in a particular way and that no matter what it throws at them, they will continue to live in exactly the same way and just pay the levies and taxes and burdens that it imposes on them. The real world does not work like that. There is no doubt that if the renting out of property becomes too onerous and too expensive, a considerable number of people will leave the market. They just will not bother being involved in the private rented sector. I can say with some considerable certainty that that will lead not to a reduction in rents in places such as London, but to an increase in rents, because there will be fewer rental properties to go round. That is the great flaw in this socialist ideal of imposing extra regulation and charges on people. People will not stand there and take them. They will change their circumstances so as not to be bogged down by them all. There is absolutely no doubt that if the scenario envisaged by the hon. Gentleman in his Bill were to be put in place, it would lead only to a reduction in the number of private sector landlords. That can only drive up rents, and will probably drive up property prices as well, as those who are involved feel that they can get a better return on their investment. That would be not only what I would call an unintended consequence of what the hon. Gentleman seeks to achieve, but a certainty.
Another point to bear in mind is that landlords come in many guises. Often they own only one property or a small number of them. Sometimes they are accidental landlords, as I am, who either inherited properties or were trying to do something worth while by investing in property for future pension provision. They are not all big commercial landlords making vast amounts of money from renting out their properties.
If we look at efforts to keep the private housing market under control from an historical point of view, we find measures such as the Increase of Rent and Mortgage Interest (War Restrictions) Act 1915, which introduced rent controls that restricted rents to their August 1914 levels to prevent landlords from profiteering during the war years, when demand for housing exceeded supply. Although that was intended as a temporary measure, rent control in general continued to be applied to rental agreements until 1989.
The private rented sector made up nine tenths of the housing stock in 1915, but it had declined to one tenth by 1991. It is important to reflect on the reasons for that decline in the intervening years. I suggest that rent control was one of the factors, because it reduced possible rent returns. My point is that if we introduce a system that delivers a worse return for landlords, they will just not bother letting out their properties and we will end up with less housing provision.
Philip Davies
My hon. Friend is absolutely right. It is obvious that the larger the sector, the more complaints will be generated. I argue that the increase in the sector is a good thing. That might be one point on which we and Opposition Members have a difference of opinion; I see the increase in the private rented sector as a force for good, not bad.
A 2010 survey that looked at the number and type of people who are private landlords found that 89% were private individual landlords, 5% were company landlords and 6% were other organisation landlords. Those landlords were responsible for 71%, 15% and 14% respectively of all dwellings in the private rented sector. More than three quarters—78%—of all landlords owned only a single dwelling for rent, comprising 40% of the total private rented housing stock. It found that 22% of those landlords had let properties for three years or less, and two thirds—69%—had let properties for less than 10 years. Almost four fifths of all landlords in the sector earned less than a quarter of their income from letting properties in the private rented sector, and only 8% were full-time landlords.
Those statistics are important, because this kind of Bill seems to be of the opinion that the landlords we are talking about are all massive corporations that are effectively building massive profits by being bad landlords. That does not fit the facts. People in the sector may have ended up renting out property for accidental reasons; they are trying to do their best and do not expect to be bogged down with pages and pages of regulation. As we have heard, most—almost four fifths—have full-time jobs as well. A number of them may well not be making any money from renting out their property anyway.
There is a misconception behind the Bill and all the similar Bills that we have seen this year from Labour Members. It is that there are huge numbers of people making vast profits at the expense of their tenants. That does not fit the facts.
Sir Alan Meale
The hon. Gentleman will have heard me talk specifically about amateur landlords as he describes them. The organisations that some amateur landlords are involved in greatly support the Bill because it would give them the opportunity to learn more. They are not in it for the short-term grab of a large profit; they want the long-term return. Like him, they may have ended up being landlords through inheritance or whatever. They are not inherently bad people, but very good people. The Bill is to protect them and the long-term return on their capital. Regulation is not bad, but good—it brings properties up to the mark and stops rogue landlords giving the others a bad name.
Philip Davies
I am pleased that we agree on the main thrust—that the vast majority in the sector are good people trying to do the right thing, with no intention of being bad to their tenants. That is where I am coming from, and I am delighted that it is where the hon. Gentleman is coming from as well. We differ on the best way to help those people do what they are doing. I do not think that piling on extra regulation and cost is the way. He does. That is our genuine disagreement.
The consequences of such regulation would be terrible for some of those landlords. The good people, to whom the hon. Gentleman referred, might well have to sell their properties because they cannot afford the extra costs and regulation—perhaps to one of the unscrupulous landlords whom he is trying to stamp out. That would be another terrible unintended consequence of what he is trying to do. The good people are probably, by definition, not making as big a return as those who are not so good. Such a transfer of property would not be to the hon. Gentleman’s or the tenant’s advantage.
In February this year, the Office of Fair Trading concluded that the demand for rental properties was increasing. In 2010-11, the lettings market accounted for 16.5% of all housing in England, which equates to 3.6 million households. As my hon. Friend the Member for Bury North mentioned, that represents an increase from 2 million in 1999.
Government figures suggest that the number of households in England will grow by an average of 232,000 a year until 2033. There is also a general trend of increasing rental in Scotland, Wales and Northern Ireland. Meanwhile, mortgage lending has decreased following the financial crisis, so demand for properties to let may be outstripping supply. That is why it is essential that we do nothing that could lead to a reduction in the supply of private rented accommodation—all that will do is stop people having their own homes to live in.
The results of a National Landlords Association tenants survey of September last year showed that just under 37% of respondents stated that they intended to remain in private rented housing as their long-term housing solution; it seems that they are perfectly happy with their situations. Some 42% responded that they had lived in their current private rented property for more than four years, compared with only 20% who said that they had lived there for less than one year. Again, that is evidence that people are satisfied.
Philip Davies
My hon. Friend is absolutely right. She knows a great deal more than me about the problems facing people in her constituency and the rest of London. As ever, she is a great champion of their needs. She clearly recognises that the last thing we want to do is choke off the private rented sector, which is what the Bill would do.
Last year, the Department for Communities and Local Government published a guide for local authorities called “Dealing with Rogue Landlords”. It illustrated many of the remedies already available to deal with what the hon. Member for Mansfield accepted was the small number of problem landlords. The document set out a wide range of powers to tackle the problems associated with criminal landlords. Those powers were enhanced by the Localism Act 2011.
There is other relevant legislation. The Housing Act 2004 allows for a housing health and safety rating system, an evidence-based system used to assess housing conditions in all residential property. That set a minimum standard for all residential properties, ensuring that they are safe and habitable. It comprises an assessment of the presence and severity of 29 hazards, including excess cold.
As a result of the 2004 Act, local authorities have a duty to take enforcement action to secure necessary improvements where those serious hazards are present. They also have the discretionary power to intervene where less serious category 2 hazards are present. To determine the most appropriate form of action, local authorities can consider the extent of the vulnerability of the persons in the accommodation.
The local authority can carry out an assessment of the home and look at the likelihood of an incident arising from the condition of the property and what the harmful outcomes may be. That seems an incredibly useful tool for what the hon. Gentleman refers to as “dealing with rogue landlords.” There is mandatory licensing of houses in multiple occupation. There is already a statutory duty on local authorities to license larger, higher-risk houses in multiple occupation of three or more storeys housing five or more unrelated persons.
Private landlords must be deemed fit and proper persons if they are to be granted a licence by the local authority. Breach of a licence condition is already an offence, subject to a fine of up to £5,000. Letting or managing a property without a licence is a criminal offence subject to a maximum fine of £20,000. There is also the additional licensing of houses in multiple occupation. Poor conditions and bad management practices can be dealt with by local authorities, which can introduce schemes subject to local consultation. There is also selective licensing—a discretionary power to license all privately rented properties in a designated area deemed to suffer from low housing demand and/or significant and persistent antisocial behaviour.
Furthermore, local authorities are required to provide a robust evidence base for introducing a scheme, and once they have introduced it they have substantial powers. There are special interim management orders to take over the management of individual privately rented properties that give rise to significant problems if landlords do not take action themselves. Local authorities can require approval from a residential property tribunal to do that, but the power is there if there are terrible landlords. There are planning contravention notices for when there may have been a breach of planning control. There are temporary stop notices, enforcement notices, stop notices, breach of conditions notices and injunctions that can be obtained from the High Court to restrain any breach. There are also powers of entry and article 4 directions. The Proceeds of Crime Act 2002 can be utilised if landlords have been using proceeds of crime in relation to local housing, and it allows specific financial investigation powers for the public sector. Lots of assets have been recovered from people using that tool.
We already have lots of legislation and regulation on the statute book that can help to deal with what the hon. Gentleman would call rogue landlords and the kinds of activities they undertake. In fact, the Department should be commended for its document, which gave people a very clear guide as to exactly what powers local authorities have. Perhaps local authorities have been unaware of what powers they have to deal with rogue landlords in the private sector. A better starting point than more legislation might be to ensure that local authorities are using the powers they already have in existing legislation to deal with the issues that he is trying to deal with.
On the register and the registrar, I do not know whether the hon. Gentleman has any idea of how much registration would cost and how much the registrar who is administering all this would be paid. Would it be a full-time or part-time role? How would the person be selected for the post? Would the role be advertised to the general public? Would it be a Government appointment? Would the landlords themselves, who were paying into this scheme, be able to appoint the person they wanted to run it? It cannot be a political post; it would need to be independent. How long would the role last for? All sorts of questions about the nitty-gritty of some of the things in the Bill need to be considered.
Sir Alan Meale
Does the hon. Gentleman realise that if we approve this measure, that matter would be for the Department? The Government would go out to consultation and talk to landlords and their organisations about such a thing.
Philip Davies
I am pleased with that clarification of how it would work. The hon. Gentleman clearly has far more trust in the Government than I do in believing they would come up with a scheme that would be acceptable. I would not wish to give them that kind of unlimited power and have no control over how they then used it.
There are already existing bodies in place, including the National Landlords Association and the Residential Landlords Association. The NLA advocates landlords accreditation as an alternative to licensing. It says:
“Accreditation is a practical solution to improving the private rented sector. Landlords provide a service to tenants and should be evaluated about what they know about the sector.”
The association requires all landlords to complete a certain level of development and to keep their knowledge of the sector up to date to remain accredited. Accreditation is backed up by a complaints process that tenants can use if they feel that their landlord is not abiding by the law. That offers a clear distinction whereby a landlord understands his or obligations. It already works with 32 local authorities as exclusive accreditation partners, and all bar three authorities in England and Wales recognise its scheme. In 2012, there were 28 complaints about members of the NLA, but no complaints about its accredited members. If the hon. Gentleman wants to go down this route, perhaps he could look at what is already in place and build on the existing work that is being done by the NLA, which seems to be working well.