Supported Housing (Regulatory Oversight) Bill

Ian Byrne Excerpts

Committee stage
Wednesday 11th January 2023 Public Bill Committees

[Bob Blackman]

Clauses 4 to 7 are the heart of the Bill, because clause 4 sets out the licensing regime that we wish to introduce. The measure is permissive and will allow local authorities to introduce the licensing scheme if they so choose. There is a great deal of detail in the clause, which leads on to the further provision in clause 5 and the provision in clause 6 about the need to consult, as the Minister has set out. Consultation is mightily important, because this is where all the good providers need to give the Government feedback on how they are operating and what needs to happen.

I should explain the amendments that I have tabled in respect of consultation. In the draft Bill, we put the Local Government Association down as a statutory consultee. Following that, the LGA came back to us and said, “We don’t want to be a statutory consultee, but we generally want local authorities to be.” The LGA does not want to act on behalf of all local authorities because this is a permissive measure and not all local authorities will want to introduce a licensing scheme. Therefore, the amendments are sensible tidying-up amendments. I think our explanation yesterday may have caused Ministers and officials some confusion, but I hope that the amendments can be made to ensure that the legislation is appropriate.

The key is making the licensing scheme, if it is introduced, common across local authorities. One of the things that has been brought home to me loud and clear by a number of organisations that operate across a number of local authorities is that they do not want a licensing scheme to be different from one authority to another, so as far as possible it needs to be a common practice across local authorities. It also needs to be compulsory. Birmingham Members know that Birmingham tried to introduce a voluntary scheme; all the good providers signed up, but funnily enough the rogue landlords said, “Well, we don’t have to, so we won’t.”

In debates on previous clauses, we talked about the standards to be provided and the requirements on local authorities and the Secretary of State, but the heart of the Bill is a licensing scheme that is fit for purpose and ensures that fit and proper persons operate in these areas and provide accommodation. We must ensure that not-for-profit originations are not completely inconvenienced and that the fees are not so high that organisations are impoverished and driven out of providing accommodation in the first place.

Exempt accommodation can be provided only through a not-for-profit organisation. The scandal at the moment is that unscrupulous landlords buy a property, expand it to the maximum possible under permitted development, provide a small living area and a small bathroom, stack the house with as many people as they physically can, and then claim housing benefit on an enhanced basis for vulnerable people. Members might say, “Well, hang on. That’s a private landlord operating that way,” but what the private landlord does is set up a not-for-profit organisation alongside that, to which they lease the property. The not-for-profit organisation runs the service and provides the rent to the landlord, but the landlord is also running the not-for-profit organisation.

That scam has to be dealt with, which is one of the reasons why a licensing regime needs to be introduced so that we have a fit-and-proper person test and ensure all the aspects of what needs to be provided. We must ensure that accommodation is decent and that the services for vulnerable people are provided in the way they should be. We cannot have a situation in which vulnerable people are exploited and almost retained as prisoners within their own accommodation. That is extremely important.

[Ian Byrne (Liverpool, West Derby) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Efford. I wholeheartedly agree with this Bill. We have seen on the Levelling Up, Housing and Communities Committee some of what the hon. Gentleman has outlined and some of the scandalous places people are forced to live. The leverage that rogue landlords have over them is absolutely appalling and at times life-threatening. Is he talking about landlord licensing only for exempt accommodation, or right across the board? Should private landlords be part of the landlord licensing scheme? A pilot was successful in Liverpool, but it has ended.

[Bob Blackman]

Generally speaking, licensing schemes for private sector housing are outside the scope of this Bill. We are looking particularly at supported housing and exempt accommodation. We have had some discussions about extending the scope of the Bill to all supported housing. I think the hon. Gentleman is referring to a very different licensing regime, which of course can be introduced, but we are concentrating on vulnerable individuals who are provided with accommodation.

The problem is that exempt accommodation is just that: it is exempt from all the regulations relating to houses in multiple occupation and all other aspects, and enhanced housing benefit can be claimed as a result. There have been some financial scandals. As the hon. Member for Liverpool, West Derby knows, during the Select Committee inquiry we uncovered a number of scams; whether we can fix them all in this Bill is another matter. What we can do—what we are doing—is lay out a whole series of things. When the Bill was first drafted this section was a great deal longer. We were convinced—I cannot remember by which Minister, but one of the three—that we should remove a large section and put it in regulation, because it is then easier to change and amend as the market changes.