Private Rented Sector Debate

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Baroness Primarolo

Main Page: Baroness Primarolo (Labour - Life peer)

Private Rented Sector

Baroness Primarolo Excerpts
Tuesday 4th March 2014

(10 years, 8 months ago)

Commons Chamber
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Clive Betts Portrait Mr Betts
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The Committee called for more flexibility in licensing—perhaps that covers my hon. Friend’s point.

The Committee recognises the need for more powers and action in one or two other areas to improve standards. We call for the possibility of fixed penalty notices, so that local authorities can deal with less serious offences at relatively low cost. The Government are consulting on the range of measures that should be available. We also say that, when a landlord lets a property in an unfit condition and is prosecuted, it should be possible to claw back any housing benefit paid or any rent paid by an individual. We are pleased that the Government are consulting on that proposal.

One additional matter that the Committee did not get into—we might have a look at it in the autumn—is what happens when landlords are taken to court. That goes back to the fact that authorities are strapped for cash, as many are, and have limited resources. If a landlord is found guilty, the court should award the authority the full cost of the action. Sheffield, my local authority, advised me the other day that it has brought five successful prosecutions of landlords in recent months. On each occasion, it has not been given its costs back—it got back roughly 50% of its costs in total. That is not acceptable. We ought to put pressure on the courts—perhaps the Minister’s colleagues in the Ministry of Justice could do this—to recognise that, when effective action costs money and the landlord is found to be responsible for and guilty of an offence, the costs should be returned to the authorities.

Finally, there are two other points. On letting agents—

Baroness Primarolo Portrait Madam Deputy Speaker (Dawn Primarolo)
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Order. I am sorry to stop the hon. Gentleman mid-flow, but he has been speaking for quite a long time, and lots of other hon. Members want to speak. I hope his two points are brief ones.

Clive Betts Portrait Mr Betts
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Yes. On letting agents, the Committee is pleased to see a lot of demand for regulation. We are pleased that the Government are introducing a redress scheme, but are disappointed that the code of practice backing it up will not be mandatory. There ought to be more Government action on the lack of transparency in relation to fees charged by letting agents. They should not leave it to the current legislation, which needs tightening.

Finally, on rents—this point has already been made—the Committee are not in favour of rent control. We believe that introducing rent controls is a blunt instrument that is more likely to curtail investment in the sector. Things should probably be done on local housing allowances, which could sometimes artificially inflate rents. There was evidence from Blackpool on that.

To summarise, the Committee is pleased with many of the Government’s responses. We have concerns on the points I have made and are looking forward to Government action. The Committee will monitor that and look to the Government’s proposals to stimulate extra building in the private rented sector and other sectors to deal with the real problem in housing: the shortage of supply.

--- Later in debate ---
Jake Berry Portrait Jake Berry
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On a point of order, Madam Deputy Speaker. In my previous intervention I failed to draw the House’s attention to my declaration of interest, so I just want to set the record straight.

Baroness Primarolo Portrait Madam Deputy Speaker (Dawn Primarolo)
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Thank you, Mr Berry. That is clearly now on the record and is therefore in order.

We now come to Mr Mike Kane’s maiden speech, to which the normal conventions of the House apply.