(10 years, 7 months ago)
Commons Chamber(10 years, 8 months ago)
Commons ChamberOrder. Of course I am in colleagues’ hands, but I simply point out that anyone who speaks for longer than three minutes will knowingly be stopping another colleague contributing. I just put that in my usual gentle fashion.
I want to speak to new clause 22 about letting agents’ charges. When the Communities and Local Government Committee did a report on the private rented sector last year, we had more evidence and more complaints about letting agents’ charges than almost anything else. That was reflected by the OFT, which said that complaints to Consumer Direct about letting agents were almost all about fees and charges. It is not just that there is one fee up front for a tenancy agreement; there are also the charges for inventories and for credit checks, and people enter into a viewing not knowing what the ultimate charge will be. It is a charge they have to find up front as a prospective tenant, at the same time as they are trying to find the deposit, and often these are people on very low incomes.
The process gets repeated to a degree every time people renew their tenancy after six months or 12 months, and that militates against having longer term contracts. Agents see this as an incentive not to let longer term contracts because short-term contracts mean renewals and more fees for them. I have described letting agents as being a bit like football agents as they make their money out of transfers and renewals of contracts. We ought to be extremely wary of that.
Shelter said the average size of a fee to a tenant was £355. The Foxtons website gives its fees as £420 to a tenant to create a contract, £96 to renew it and £150 for an inventory check. Such charges are replicated by most letting agents.
The Committee responded that there should be absolute transparency of fees up front when a property is advertised and it must be clear what the totality of charges to tenants will be and there should be no double charging. If there is transparency, it will be harder for a letting agent to charge a tenant and a landlord for the same thing, which happens at present.
We want these changes to be put in a mandatory code of practice, but the Government have not agreed to do that. On transparency, all that has happened is the Advertising Standards Authority has given a ruling saying the fees that are compulsory should be shown up front as part of the price quoted. However, when we go on websites like that of Foxtons, we see those fees are in very small print, so, in practice, letting agents are going through the motions when it comes to the ASA ruling, but they are not sticking to the spirit of it.
We did not recommend a complete abolition of fees to tenants. What we said was that it has been done in Scotland and that we should review the Scottish experience. The Committee will come back in the autumn and look at the Scottish experience and consider whether banning charges to tenants means higher rents. If so, there is a question as to whether tenants favour paying a bit more in rent rather than having a massive fee up front. The Committee will also look at the fact that the contract is with the landlord, not the tenant. We will take further evidence on those matters in the autumn.
Order. I point out to the Chair of the Select Committee that the question relates exclusively to Stretford and Urmston, from which Sheffield South East is a little distant. The hon. Gentleman is an experienced Member and I am sure that he will tailor his question accordingly.
I am sure that the Minister will be aware that his proposals on council tax benefits potentially affect Stretford and Urmston and other constituencies up and down the country. The Minister is aware that Capita wrote to local authorities on 12 January, saying it had real concerns about its ability to deliver IT systems in time to meet the changes proposed for April next year. Is the Minister not aware that authorities could end up with a real risk of system failure, affecting tens of thousands of low-income families? Is not the real answer to delay these measures for at least 12 months?
(14 years, 4 months ago)
Commons ChamberOrder. It is helpful if the Deputy Prime Minister indicates clearly to whom he is giving way.
(14 years, 5 months ago)
Commons ChamberI was as disturbed as the hon. Gentleman by this very unfortunate incident and breach of security. The Speaker’s Committee on IPSA is now the appropriate forum through which concerns about matters of operation or policy can be transmitted to IPSA. I have regular meetings with representatives of IPSA. It will not be my normal practice to talk in this House about the detail of those exchanges, but the hon. Gentleman has raised a very serious point, and I am aware of other Members who have expressed similar concerns. Those concerns will be transmitted, and I will be happy to play my proper role in helping to transmit them.
On a point of order, Mr Speaker. You have made it clear in the past that if a right hon. or hon. Member makes a statement in this House that is subsequently proved to be inaccurate, they should—at the earliest opportunity—make a correction to the House. On 22 June, we learned in Prime Minister’s questions that the Deputy Prime Minister had made a statement about the directors of Sheffield Forgemasters not being prepared to dilute their shareholding. Subsequently, he wrote to the chief executive saying that he recognised the inaccuracy of those comments, that he withdrew them and that he apologised. However, despite repeated opportunities at Prime Minister’s questions today—I listened as carefully as I could—the Deputy Prime Minister did not apologise, accept that he had been wrong or withdraw or correct his comments. Do you, or the House in general, have any powers to ensure that the record of the House can be corrected in this instance?
I have several points to make in response to that point of order. First, I ruled on the matter yesterday and it would be unwise to add to or pick at an earlier ruling about the appropriateness of correcting in the House factually incorrect statements made in the House. Secondly, I know that the hon. Gentleman will not take umbrage if I suggest that he is as persistent a woodpecker in the House as there is to be found. He has raised this matter before and he knows perfectly well that it was raised at some considerable length with the Deputy Prime Minister at Prime Minister’s questions. I have a slight anxiety that the hon. Gentleman is now seeking to continue the debate, and that would not be right. Thirdly, the hon. Gentleman need be patient for only a few hours because, unless I am mistaken, he has an Adjournment debate on the matter in which these and other points will probably be developed eloquently and at appropriate length.
(14 years, 6 months ago)
Commons ChamberRegarding today’s written statement, does the Minister not accept that local authorities have been at the forefront of making efficiency savings—2% year on year—so to ask for a further 1% part way through the year, on top of the 2% to which they are already committed, will effectively mean cuts in local authority spending part way through the year of about 4% to 5%? Rather than being about efficiency savings, this is surely the first round of the savage cuts for local authorities that Ministers promised us.
The whole issue of IPSA and concerns about it have already been significantly aired this morning, and the hon. Gentleman was in his place for business questions and can testify to that himself. He will also have heard the Leader of the House indicate his readiness to play his part, as appropriate, with others in ensuring that there is a good, smooth and fair new system. It would, frankly, be superfluous for me to say anything more on the subject today, but the hon. Gentleman has given another object lesson to new Members in how to ensure that he gets his point on the record.
On a point of order, Mr Speaker. With regard to your particular comments about security, which is certainly a very important issue, the Leader of the House announced earlier that we will be coming back for a two-week period in September. If I remember correctly, on a previous occasion when that happened, we had security issues because of the amount of maintenance on the parliamentary estate, and I think that that is when the pro-hunt protesters broke into the Chamber. Will you provide some reassurance, Mr Speaker, that you will take this matter on board and ensure that the appropriate authorities are looking at issues of both maintenance and security on the parliamentary estate, given that we are returning for that two-week period?
The hon. Gentleman makes a perfectly reasonable point. All these matters have been, and will continue to be, taken on board. Although what the hon. Gentleman says about the past is, of course, entirely right, he will be well aware that we have entered a brave new world. That is the situation.