Private Rented Sector

Helen Hayes Excerpts

Thursday 29th November 2018 Westminster Hall

[Mr Betts]

We made a number of recommendations in our report and—my hon. Friend is right—that was one of them. We recognised that the Government had made some changes to the rules on selective licensing, in line with the recommendation on widening the criteria used to bring about selective licensing schemes in the Committee’s previous report back in 2013. They are also changing the legislation about the definition of properties included in licensing for housing in multiple occupation, which we welcome.

Nevertheless, in essence, our recommendation is that licensing ought to be a local matter, depending on local circumstances. It should be a local decision, subject to the Secretary of State’s intervention only when councils have not followed the proper procedures. As I understand it, the Government are now reviewing selective licensing. One of my questions will be about the state of that review and when it is likely to report.

In our report, we tried to focus on those landlords who are not doing the job that we would expect them to do. To divide landlords up, there are the bad ones, who are not good at getting around to doing things in a timely way—they are inefficient, or incompetent to some extent, and are sometimes accidental landlords. There are then the so-called rogue landlords, who have more systematic failings, leaving a large number of properties in an unacceptable condition. Then there are the really hardcore landlords—we ought to call them criminals, because that is what they are. The criminal landlords run a business to exploit vulnerable tenants in unsafe and unhealthy conditions. They are robbing not merely the tenants but the taxpayer, because they are getting money in and yet not providing homes that are fit to live in. We tried to concentrate on how to deal with those landlords, but our report also recognised actions the Government have taken in a number of respects. Quite reasonably, we highlighted actions that they have taken in response to our previous report on the private rented sector. We are pleased with that as a Committee.

Right at the beginning of the report, we refer to the imbalance of power between tenants and landlords, and to how that needs addressing. However, I will not go through all our recommendations. Instead, I will focus on where the Government have said they will do something—whether that is to consult, review or consider in some way—and ask the Minister where that has got to and what we can expect.

On the Deregulation Act 2015, we call for a review of the retaliatory eviction legislation and guidance on how it has worked. The Government did not seem totally enthusiastic about that at first, but they have now said that they will review the Act, looking at its effectiveness in terms of retaliatory eviction and perhaps at bringing in more formal requirements to have longer-term tenancies. The Government have gone a bit quiet on that since their announcement, so where is that review up to, and when can we expect some announcement?

[Helen Hayes (Dulwich and West Norwood) (Lab)]

I thank my hon. Friend for securing the debate. I put on record my apologies because I am unable to stay for the duration of the debate—I am hosting an event elsewhere in this place about a related matter, which is housing rent arrears arising from universal credit.

On retaliatory evictions, the Committee recommended reform of section 21 of the Housing Act 1988. There is a growing body of evidence that section 21 should be not only reformed but abolished. In response to our report, the Government stated that, on the one hand, they recognised

“the concerns of the Committee around retaliatory eviction”,

but, on the other hand, that they did not accept our recommendation that section 21 needs to be reformed. They said:

“We believe the current legislation strikes the right balance between the interests of landlords and tenants and we have no plans to change the legislation in this way.”

Does my hon. Friend agree that, without meaningful action on section 21, those are simply empty words from the Government?

[Mr Betts]

I hope that the Minister will come back on that, because we made a clear recommendation, and it would be helpful to have her response to it. The two things go together. Our report called not for the abolition of section 21, but merely for it to be looked at again. The same is true of retaliatory evictions. The Government are looking at one thing, so will they indicate that they might be prepared to look at the other as well, as part of a joint review?

We also called for a specialist housing court. We are pleased that the Government have now announced a call for evidence on the setting up of such a court. Will the Minister explain what will be covered and the likely terms of a housing court’s jurisdiction? Will it cover section 21 notices or retaliatory eviction? Will it cover tenancy fees, which we have recently had legislation on? Will it cover the issues arising from the Homes (Fitness for Human Habitation) Bill from my hon. Friend the Member for Westminster North (Ms Buck)? Will it go so far as to look at the whole matter of leasehold, which we are discussing in another inquiry? Will the Minister explain precisely what it will cover, or whether the Government have ruled on what it will not cover? It would be helpful to have such information.

The first of two other issues we asked to be looked at was that of five-year electrical safety checks. We are pleased that the Government have announced support for that in principle, but when will we get a clear announcement and action on it? In terms of having carbon monoxide alarms not only in every room with a coal fire but every room with a gas fire, I understand that a working group inside the Department is looking at that. Where has that got to? Every day of delay might lead people to lose their life because of carbon monoxide poisoning, which is easy to stop with a very simple measure. Will the Minister give us information about that as well?

We looked at enforcement and local authority powers. That is clearly important, and we questioned the housing health and safety rating system, as we have done before.

--- Later in debate ---

[Mr Betts]

That came up in the Tenant Fees Bill, and the Committee recommended a compromise of five weeks. The Government did not accept it, but we support that recommendation, so as Chair of the Committee I cannot completely agree with my hon. Friend. If I remember correctly, the Government have held a consultation on alternatives to deposits, which is a helpful response to one of our recommendations.

We all agree that we must be as tough as we can be, and tougher still, on bad landlords. I hope the Minister will revisit our recommendation. The really bad, criminal landlords may be banned and have management orders against them, but in the end some of them will find ways around that because it is really profitable for them to do so. They have broken the law once, so they will carry on by ignoring banning orders if they can. Why do we not take the properties off them? Why have the Government resisted that recommendation? The proceeds of crime operate in other spheres. Let us get tough on the bad landlords.

[Helen Hayes]

Will my hon. Friend give way?

[Mr Betts]

My peroration was just about finished, but I will let it be interrupted.

[Helen Hayes]

I thank my hon. Friend. Allow me to add a small example to the point he makes so powerfully. My constituents were evicted from their private rented property after they complained because the bathroom ceiling collapsed over the bath 10 minutes after they had finished bathing their children. I hope the Minister agrees that, in those circumstances, it is not too much of a sanction to confiscate the property from such criminals.