Tenant Fees Bill

Debate between Jo Stevens and James Brokenshire

2nd reading: House of Commons
Monday 21st May 2018 Commons Chamber

[James Brokenshire]

The Bill seeks to address the application of unfair fees by, in essence, banning all of them unless they are then reapplied back by the terms of the Bill itself. This is an important step to provide reassurance and to deal with the rogue practices that the hon. Gentleman highlights. In that context it is important to stress some of the other steps that have already been taken in relation to rogue landlords and the abuses in the sector that need to be tackled. This is a further measure to address them.

Turning to the key provisions of the Bill, which apply to assured shorthold tenancies, tenancies of student accommodation, and licences to occupy, these will ban landlords and their agents from requiring tenants and licensees of privately rented housing in England, and persons acting on their behalf or guaranteeing their rent, to make any payments in connection with a tenancy, with some key exceptions: the rent; a refundable tenancy deposit capped at six weeks’ rent; a refundable holding deposit to reserve a property, capped at one week’s rent; a capped payment for changing a tenancy agreement when requested by the tenant; payments associated with early termination of the tenancy, when requested by the tenant; payments in respect of utilities and council tax; and payments in the event of a default by the tenant, such as replacing a lost key or late rent payment fine, capped at the level of the landlord’s loss.

In the Bill, the term “in connection” with a tenancy refers to any payments required by the landlord or agent throughout a tenancy. This is an important point, as we want to ensure that landlords and agents do not just transfer their fees to another stage of the tenancy, such as exit. The proposed legislation will also prevent tenants from being required to contract the services of a third party.

[Jo Stevens (Cardiff Central) (Lab)]

There are a lot of references in the Bill to upper limits and caps. Does the Secretary of State recognise that the temptation, and I suspect the practice, will be that agents and landlords will put deposits at the top end of the cap? They will not put them further down—they will be right at the top end.

[James Brokenshire]

We intend to provide guidance on those issues. I do not accept that that would automatically be the situation. It is why we have taken the steps that we have in considering what the right action should be in setting a number of these issues. It is important to recognise that the Bill proposes a number of enforcement measures that offer a strong deterrent to irresponsible agents and landlords, and in doing so protects tenants.

Asylum Support Contracts

Debate between Jo Stevens and James Brokenshire

Wednesday 10th February 2016 Westminster Hall

[The Minister for Immigration (James Brokenshire)]

It is a pleasure to serve under your chairmanship, Mr Stringer. I congratulate the hon. Member for Cardiff South and Penarth (Stephen Doughty) on securing the debate, and on his approach to it. I want to give credit to the charities and organisations that he referred to, which provide support to refugees and asylum seekers in his constituency and across the country.

This country has a proud history of many years of offering sanctuary to those genuinely fleeing persecution. We can look at our record with pride. That was underlined in the speech of the hon. Member for Middlesbrough (Andy McDonald), who also described the welcome that asylum seekers and refugees fleeing conflict receive in his area. It is important to recognise that clear message, and the Government remain committed to providing an asylum system that protects and respects the fundamental rights of individuals who arrive on our shores seeking refuge from persecution. I have made it clear in previous speeches in the House that I expect those who arrive and receive support to be treated with dignity and respect. I have also underlined the fact that actions that stigmatise, isolate or publicly identify asylum seekers should not be taken. Obviously, several cases that have been mentioned this morning highlight such a picture. Such actions are completely inappropriate, and I welcome what has been done to remedy the situation.

I will come on to the inspection regime and reflect on some of the results of the audit of properties in Middlesbrough. During this financial year, about 50% of properties in Middlesbrough have been visited as part of the most recent audit, in addition to ongoing work. The focus of the team of inspectors is on inspecting about one third of all the properties in the overall portfolio.

The Government provide support through the COMPASS contracts with three contractors—Serco, G4S and Clearsprings Ready Homes. Those contracts provide asylum seekers who claim to be destitute with full-board accommodation in so-called initial accommodation while their means are assessed and, following that, in dispersed accommodation in dispersal areas throughout the country. Since 2012, following a rigorous governance and approval process, UK Visas and Immigration has delivered asylum support services via the COMPASS contracts with the three external providers: Serco in the north-west, Scotland and Northern Ireland; G4S in north-east Yorkshire, Humber and the midlands; and Clearsprings Ready Homes, in London and the south and Wales. The COMPASS suppliers are contractually required to provide safe, habitable, fit for purpose accommodation to comply with the Housing Act 2004 and the decent homes standard. The Home Office has governance and approval processes for all services that we procure externally, including consultation with other Departments as appropriate. All Home Office service contracts include performance standards, which are defined in the contract and managed using key performance indicators.

I want to talk about the issue raised in the National Audit Office report, and some of the assessments that have been made since. As the report highlighted and as hon. Members have said in their speeches, it was clear that the transfer to the COMPASS contracts in the initial period was difficult and bumpy. There were issues, and that was reflected in the fact that the service credits that we impose where key performance indicators are not met stood at £5.6 million in 2012-13 under the COMPASS contracts.

Since the NAO report we have worked closely with COMPASS suppliers to improve standards, using the NAO’s recommendations. That has included conducting joint accommodation inspections and training to ensure consistency in monitoring activities. It has also involved suppliers improving the policies and processes that they use to deliver their maintenance service, investing in existing stock, and replacing properties that did not meet quality standards. In the early years quality standards were not good enough. The situation has improved since then, and in the financial year 2014-15 the service credits that were levied had fallen to £158,000.

[Jo Stevens]

Is there anything in that contract—because, of course, we cannot see it—that provides for the Government to terminate it if there is persistent failure against the KPIs?

[James Brokenshire]

The contracts, with commercial details redacted, are available through the gov.uk website. Obviously I can point the hon. Lady to the relevant details. However, I want to underline the change in the KPI position and the fact that sums levied under service credits have markedly reduced. That is not to say that I am satisfied with the issues that hon. Members from across the House have presented to me today, particularly about the complaints process and the complaints that are being raised.

One issue that has come from the Middlesbrough audit, which I hope to publish later today, relates to inspection. I mentioned that a third of properties were being inspected, and I believe the focus is primarily on the accommodation itself—whether the decent homes standard is being met and what steps are being taken to remedy defects that are identified. The audit has not indicated complaints coming through about the red doors issue, for example, or indeed wristbands. Therefore, as one of the actions coming out of the audit, I have asked my officials to review the issue of complaints and how they are escalated, as well as the questions that inspectors ask the people who use the accommodation, to see that any concerns related to the performance indicator on complaints can more readily come to our attention.