Housing and Planning Bill

Debate between Lindsay Hoyle and Marcus Jones

Tuesday 5th January 2016 Commons Chamber

[The Parliamentary Under-Secretary of State for Communities and Local Government (Mr Marcus Jones)]

I beg to move, That the clause be read a Second time.

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

With this it will be convenient to discuss Government new schedule 1—Reducing social housing regulation.

Government amendments 4, 6 and 5.

Government new clause 7—Recovery of social housing assistance: successors in title.

Government new clause 8—Housing administration order: providers of social housing in England.

Government new clause 9—Objective of housing administration.

Government new clause 10—Applications for housing administration orders.

Government new clause 11—Powers of court.

Government new clause 12—Housing administrators.

Government new clause 13—Conduct of administration etc.

Government new clause 14—Winding-up orders.

Government new clause 15—Voluntary winding up.

Government new clause 16—Making of ordinary administration orders.

Government new clause 17—Administrator appointments by creditors.

Government new clause 18—Enforcement of security.

Government new clause 19—Grants and loans where housing administration order is made.

Government new clause 20—Indemnities where housing administration order is made.

Government new clause 21—Indemnities: repayment by registered provider etc.

Government new clause 22—Guarantees where housing administration order is made.

Government new clause 23—Guarantees: repayment by registered provider etc.

Government new clause 24—Modification of this Chapter under the Enterprise Act 2002.

Government new clause 25—Registered societies: ordinary administration procedure etc.

Government new clause 26—Amendment to housing moratorium and consequential amendment.

Government new clause 27—Interpretation of Chapter.

Government new clause 28—Application of Part to Northern Ireland.

Government new schedule 2—Conduct of housing administration: companies.

Government new schedule 3—Amendments to housing moratorium and consequential amendments.

Government amendment 7.

Government new clause 37.

New clause 5—Provision of tenure information when collecting council tax information—

‘(1) The Local Government Finance Act 1992 (LGFA 1992) is amended as follows—

(2) After Section 27 [Information about properties] of the LGFA 1992 insert—

“27A Information about tenure

(1) Whenever a billing authority requests council tax information from the resident, owner or managing agent of any dwelling, the authority must request the provision by that person of tenure information in respect of the dwelling unless—

(a) that person has already given that information to the authority, or

(b) the authority already holds that information.

(2) “Tenure information” means current information regarding—

(a) the category into which the dwelling falls; and

(b) if the dwelling is privately rented (but not otherwise), the name and address of the owner of the dwelling or, if this is not known, the name and address of—

(i) the managing agent, if any, or

(ii) recipient of the rent payable.

(3) A person who is subject to a request under subsection (1) must provide the information to the billing authority in such manner as the authority may request as soon as is practicable and in any event within 21 days of the making of the request, but only insofar as the information is in his possession or under his control.

(4) A request to a person to provide tenure information may be made by the billing authority by such means as the authority considers appropriate including a verbal request made by or on behalf of the authority.

(5) The billing authority must retain any tenure information which they hold in relation to any dwelling, however it was obtained, but the authority may destroy or delete that information after the expiry of 12 months from the date when that information is known to have ceased to be current.

(6) A request under subsection (1) must be accompanied by a warning that failure to comply may result in the imposition of a financial penalty.

(7) A request for the provision of tenure information may be made, and must be complied with, even though the authority requests the provision of that information for other purposes, including but not limited to housing purposes.

(8) A local authority may use tenure information supplied under this Act for any reasonable and lawful purpose within its duties and responsibilities.

(9) A person may be requested by a billing authority to supply information under any provision included in regulations under paragraphs 2, 3, 9 or 10(2) of Schedule 2 even though such a request is made for housing purposes.

(10) The LGFA 1992 is further amended as follows—

(a) in paragraph 1(1) of Schedule 3 [penalties], after the words “any provisions”, insert the words “in section 27A or”;

(b) in paragraph 1(2) of Schedule 3 [penalties], after the words “any provisions”, insert the words “in section 27A or”; and

(c) in paragraph 1(1) of Schedule 4 [enforcement], after the words “any provision”, insert the words “in section 27A or”.

(11) The Housing Act 2004 is amended as follows, in paragraph (a) of section 237(1), after the word “premises”, insert the words “or for any other function which is exercisable by a housing authority”.

(12) No duty of confidentiality, contractual obligation, nor any provision of the Data Protection Act 1998 shall prevent the supply of tenure information under this section.””

This new Clause would require existing powers to collect information to be deployed consistently thus enabling local authorities to enforce regulations relating to the private rented sector more effectively to tackle a rogue minority of private landlords. It would also enable the size and shape of the private rented sector and property ownership to be assessed accurately for the first time for housing policy-making purposes.

New clause 55—Accreditation and licensing for private landlords—

Local authorities shall be required to operate an accreditation and licensing scheme for private landlords.”

This new Clause would require local authorities in England and Wales to put in place a scheme to license and provide for the accreditation of private sector landlords in their area.

New clause 56—Extension of the Housing Ombudsman to cover the Private Rented Sector—

‘(1) The Secretary of State shall by regulations introduce a scheme to extend the Housing Ombudsman Scheme, as set out in section 5 of and Schedule 2 to the Housing Act 1996, to cover disputes between tenants and to private landlords in the Greater London Authority.

(2) The scheme under subsection (1) shall—

(a) last at least one year and no longer than two years; and

(b) come into effect within 6 months of this Act receiving Royal Assent.

(3) The Secretary of State shall lay before each House of Parliament a report of the scheme under subsection (1) alongside any statement he thinks appropriate, within 3 months of the closing date of the scheme.

(4) The Secretary of State may by regulations extend the powers of the Housing Ombudsman Scheme as set out in section 5 of and Schedule 2 to the Housing Act 1996, to cover disputes between tenants and private landlords nationwide.”

The new clause would give the Secretary of State the power to introduce a pilot scheme which would see the Housing Ombudsman extend its cover in London to private sector housing and disputes between tenants and private landlords, to require that the Secretary of State reports on the pilot scheme, and to give the Secretary of State power through regulations to extend the Housing Ombudsman to cover private sector housing and disputes between tenants and private landlords nationwide.

Government amendments 12 to 26.

Amendment 49, in clause 54, page 25, line 10, at end insert—

“(e) the local housing authority responds to a request by the landlord confirming that they suspect the property to be abandoned.”

The amendment would require the local housing authority to confirm that they also suspect that the property is abandoned before a landlord can recover the abandoned premises.

Amendment 47, in clause 56, page 25, line 37, at end insert—

‘( ) the date specified under subsection (4)(b) must be after the end of the period of 12 weeks beginning with the day on which the first warning notice is given to the tenant.”

The amendment would extend the time periods between the two letters needed to evict a tenant suspected of abandoning the premises and to extend the minimum amount of time before the eviction.

Amendment 48, page 26, line 1, leave out subsection (6) and insert—

‘(6) The second warning notice must be given at least 4 weeks, and no more than 8 weeks, after the first warning notice.”

The amendment would extend the time periods between the two letters needed to evict a tenant suspected of abandoning the premises and to extend the minimum amount of time before the eviction.

[Mr Jones]

I am proud to bring forward a package of amendments to deregulate the housing association sector. In doing so, we are addressing concerns raised by the Office for National Statistics while maintaining a robust regulatory system that protects tenants and lenders alike. New clause 6 and new schedule 1 meet our commitment to help moving housing associations back into the private sector. They remove the social housing regulator’s disposals and constitutional consents regimes and clarify when we can appoint officers and managers to housing associations. Housing associations will no longer need permission from the regulator to sell or change the ownership of their stock or charge their stock for security, nor will they need permission from the regulator before they merge, change their status, restructure and wind up. These changes will free housing associations to efficiently manage their stock and how their businesses are structured.

Despite the new freedoms for the sector, the regulator still has to be on top of what it is regulating. Therefore, housing associations will still need to notify the regulator of any changes made. However, the regulator will no longer be able to prevent stock transfer deals. The amendments tighten the powers of the regulator to make it clear that the appointments of officers and managers to housing associations can be made only where they significantly breach legal requirements. As now, in exercising these powers the regulator has to do so within its statutory and legal framework. Under the Housing and Regeneration Act 2008, it already has a duty to act in a way that minimises interference. As a public body, the regulator also has to act rationally, and any action has to be proportionate as its decisions are open to challenge through judicial review.

The amendments also give housing associations greater freedom as to how they manage their finances by abolishing the disposal proceeds fund. In future, the historical grant in a property that is sold will be required to be recycled to ensure that grant continues to be spent as it was intended. Housing associations will be able to use this money in the most efficient way possible and reinvest in building more houses and helping more of their tenants into home ownership. I believe that the amendments address the concerns highlighted by the ONS while protecting tenants and maintaining associations’ ability to access private finance at low rates so that they continue to build new homes. As a result, amendment 4 removes clause 78, as it is no longer needed.

New clauses 8 to 28 and new schedules 2 and 3 introduce a special administration regime for the social housing sector and the option to extend ordinary administration to housing associations. In introducing these changes, we are responding to concerns that the existing moratorium provisions are not suitable for modern, large, developing and complex housing associations. The provisions could be used in the unlikely event of a housing association becoming insolvent, thus retaining confidence in the sector’s lenders.