Lord Beecham
Main Page: Lord Beecham (Labour - Life peer)Housing and Planning Bill
Lord Beecham Excerpts
Baroness Bakewell of Hardington Mandeville (LD)
My Lords, I support Amendments 20 and 22 and do so with a slightly sinking feeling because it should not be necessary.
We have in the recent past discussed issues around landlords not keeping their properties in a decent state of repair. I was pleased to speak to the retaliatory evictions amendments during the passage of the Deregulation Bill. These make it an offence for tenants to be served with a notice of eviction if they bring a fault with their home to the attention of the landlord. They quite rightly expect him or her to rectify the problem. It would appear that either tenants are unaware of their rights under this legislation or that the legislation is being flouted by landlords. At all events, many tenants are still paying rent and living in properties that are far from what you and I would call fit for human habitation.
We have heard a great deal of rhetoric today and, because I consider this such a serious issue, I am afraid that I will repeat some of it now. This morning I received a useful brief from a partner at Anthony Gold Solicitors who specialises in landlord and tenant law. Outside of the retaliatory evictions, the law on tenants’ complaints is currently enforced by local authorities, as other Members have said. Karen Buck MP from the other place commissioned a report, published last December, on the challenge of tackling unsafe and unhealthy housing. Local authorities were contacted across the country and asked a number of questions about complaints from private tenants.
The number of complaints received in 2011-12 was 52,820; in 2012-13 it had gone up to 62,818; and in 2013-14 it had gone down but only to 51,916. The numbers of inspections carried out by local authorities over the same three-year period were 25,867, 31,634 and 29,768 respectively. Only about half of the properties about which tenants had made complaints were inspected.
As my noble friend Lady Grender has said, the categories of hazards and faults identified were damp and mould, excess cold, crowding and space, falling hazards and fire. The number of improvement notices served in 2011-12 were 1,519; in 2012-13, 1,645; and in 2013-14, 1,958. If local authorities had the resources to inspect the properties of all the complaints then no doubt the number of improvement notices could have been doubled. However, the number of prosecutions undertaken was less than 100 in each of the three years.
Some people are living in really dreadful conditions, as my noble friend Lady Grender has said. Under the current out-of-date legislation, tenants can take action themselves only if their rent is less than £80 a year in London and £52 a year elsewhere. I would be very hard pressed to find a property with a rent of £52 a week in my area, never mind a year. Perhaps I might get a bedroom in an HMO with a kitchen and bathroom shared, but that would be about it.
We know from other sources that 11 million people live in private rented accommodation in England. Of these, one in four are in families. Local authority budgets are overstretched. They are doing the best they can with shrinking resources but it is time that more is done to raise awareness about tenants’ rights and the law strengthened to give them the power to do this for themselves. If we remove the rent limit, we free up people to take responsibility for themselves.
I turn to Amendment 22, which we have heard about so eloquently from the noble Lord, Lord Campbell-Savours. The 11 million people in the private rented sector are spending 47% of their income on rent—they have the highest rents—compared with 23% of the income of people with a mortgage and 32% of the income for those in the social rented sector. However, 30% of private rented properties in England would fail the Government’s decent homes standard compared with 15% in the social rented sector.
Landlords are required to carry out annual checks on gas installations, as we have heard, and mercifully there are very few incidents involving gas, whereas 350,000 people are injured through electrical incidents. In 2013-14, 49 people were killed as a result of electrical fires in the home. The amendment is asking not for annual inspections, as is the case with gas, but for an electrical safety inspection every five years. This would not be overly onerous. Surely the Minister will agree that saving lives is important.
I live in a rented property in London that has both gas and electricity supplied by the same company. Before Christmas I received a postcard saying that an engineer had cause to inspect the gas and electricity meters, and asking me to make an appointment for that to be done. I contacted the supplying company and fixed a date for when the House returned in January. I waited in and an engineer duly called and inspected both meters, making a couple of comments. He was required to do this quite separately from those who came to read the meters. He was satisfied with the state of the meters and showed me how to switch the gas off should I need to do so, which I was quite pleased about because I did not know how to do it before. However, he did not inspect the electrical cabling, nor did I expect him to. I am satisfied that the meters are safe and working properly, and that I am not paying more than I should for the energy I consume. What I do not know is the state of the wiring once it leaves the meter and goes into the rest of the flat.
Many people have fears about certain aspects of everyday life. For some it will be the fear of water and drowning, for others it will be being trapped in a dark and confined space, and for some it will be being caught in a fire. Whatever their fears, they are valid, and wherever possible we must do all that we can to ensure that such fears do not become reality. This is a simple and straightforward amendment that could save people’s lives and bring reassurance to thousands. I fully support both amendments.
Lord Beecham (Lab)
My Lords, I warmly endorse the first two amendments in this group. I find it inconceivable that the Government should stick to their position of declining to accept these basic amendments about the obvious need for properties to be fit for human habitation and electrically safe. It is not asking too much of landlords to ensure this; as we have just heard from the noble Baroness, a five-yearly inspection would hardly be costly, and in any event would no doubt be reflected in the rents charged over that period. At £150 or something like that, that would be only £30 a year. It is ridiculous to suggest that that would be too much of a burden for landlords to accept. And how anyone could resist a requirement for properties to be fit for human habitation escapes me.
However, I want to address the third amendment in this group, which is about property guardianship, and particularly about the condition of the properties that are dealt with in that fashion. I have to confess that I was entirely unfamiliar with the concept of property guardianship, or indeed the existence of property guardians, until I read an article in a newspaper—appropriately, the Guardian—in December. It seems that empty buildings, often large ones, are let out at low rents, but the renters have no security, with some companies—it tends to be companies which operate these properties—offering just two-week notice periods. Normal standards of safety and the condition of the property do not appear to apply or to be achieved.
The Parliamentary Under-Secretary of State, Department for Communities and Local Government (Baroness Williams of Trafford) (Con)
My Lords, I thank all noble Lords who have spoken to the amendments, which have one aim: to support and protect those living in the private rented sector.
Amendment 20 would place a duty on landlords to ensure that their properties are fit for human habitation when let and that they remain fit during the tenancy. The amendment would also give legal rights to tenants to take action directly against their landlord through the courts when properties are in an unfit condition.
Clearly, all homes should be of a reasonable standard, and all tenants should have a safe place to live, regardless of tenure, particularly when they are vulnerable and living in unacceptable conditions. As noble Lords have already stated, an existing framework allows local authorities strong powers to require landlords to make necessary improvements to a property. Indeed, the last Labour Administration introduced the framework in 2004 as a replacement for the old fitness standard. The housing health and safety rating system assesses the health and safety risk in all residential properties, and under the Housing Act 2004, following a HHSRS inspection local authorities can issue an improvement notice or a hazard awareness notice. In extreme circumstances, the local authority may decide to make the repairs itself, or to prohibit that property from being rented out.
Local authorities have strong and effective powers to deal with poor-quality, unsafe accommodation, and we expect them to use these powers. However, this Government have gone further, to enable local authorities to take targeted action. Where rented housing in a particular area is characterised by poor property conditions, the local authority can now introduce a selective licensing scheme which enables it to target enforcement action. Last month we also announced a further £5 million funding for 48 local authorities to tackle rogue landlords, on top of the £6.7 million made available in the last Parliament. We have also consulted on extending mandatory licensing of houses in multiple occupation, again focusing regulation where it is needed. Finally, we are strengthening measures that local authorities already have by taking forward proposals through this Bill to enable local authorities to take further enforcement against rogue landlords, including through the database that we have talked about, the civil penalty notices and the extended rent repayment orders.
I support the aim of this amendment—raising standards for tenants—but it would lead to additional costs for good landlords, who are the ones that will pay for inspections and certificates to prove the condition of their property. I also have concerns that the amendment would give legal rights to tenants to take action themselves through the courts for the following reasons. We have issued guidance to make tenants aware of their rights, and to make landlords responsible, through the How to Rent and Renting a Safe Home guides, both of which are available on the gov.uk website. I have already mentioned that there is a system whereby tenants can raise concerns with their local authority and it will carry out an inspection, with strong powers and a duty to act if it finds a serious hazard. Civil penalties of up to £30,000 and rent repayment orders will give local authorities significantly more resources to ramp up inspection and enforcement. Noble Lords may consider that local authorities have limited resources to carry out inspections, but through the civil penalties measures outlined in the Bill they would be able to keep those penalties for housing-related activities.
I question whether a vulnerable tenant would prefer to go through a lengthy court process rather than to be in a position to get their landlord to carry out repairs or to seek redress. My concern is that such a measure would lead only to rogues avoiding their responsibilities and the sanctions that could lead to them being banned. In addition, the amendment provides, among other things, for the court to have regard to whether there is a category 1 hazard in the property. In order to establish whether there is a category 1 hazard, the local authority would need to have carried out an inspection using the HHSRS methodology. In such cases, therefore, the tenant would need to involve the local authority in the proceedings.
As has been made clear in the other place, there is an appetite to ensure that landlords have a legal duty to carry out electrical safety checks on behalf of their tenants. Amendment 22, tabled by the noble Baroness, Lady Hayter, and spoken to very eloquently by the noble Lord, Lord Campbell-Savours, seeks to introduce this requirement for landlords to organise regular electrical safety tests in their rental properties. I understand the concerns that noble Lords have raised and the issue of safeguarding tenants. I hope to come back to the House in due course with further details on our next step but, as noble Lords have mentioned, research is being carried out with my officials to try to strike the balance between protecting tenants, and not overregulating and causing unnecessary burdens for landlords.
Lord Beecham
Does the Minister not acknowledge that it is more important to protect tenants’ safety than to protect against the modest financial cost that landlords might incur, which in any event would probably be translated into rent?
Baroness Williams of Trafford
My Lords, I hope I have made it clear that tenants’ safety is of the utmost importance. In fact, amendments tabled in the other place led to that agreement by the Government to carry out research into whether legislative changes were needed regarding electrical safety. I will ensure that noble Lords are updated on the progress of this because I totally recognise that tenants’ safety is of the utmost importance.
Lord Beecham
On that point, if the Minister will forgive me, will we have that information by the time we reach Report? If it is after the Bill goes through, there will not be much point to it.
Baroness Williams of Trafford
I am not getting any indications from the Box. However, I do not feel very switched-on at this hour of the night. Perhaps I could let the noble Lord know, because it would obviously be ideal if we could have it for Report. If we had it further in the future, perhaps secondary legislation could be introduced in due course.
Finally, Amendment 30 would require that the requirements concerning fitness for human habitation and repairing obligations set out in Sections 8 to 17 of the Landlord and Tenant Act are applied to contracts for guardianship schemes. I must at this point declare an interest because my son is a property guardian. I may ring him when I get out of here to make sure that he is still alive, given all the things that I have heard. These schemes are private arrangements between a building owner and one or more individuals. The Government do not support the schemes, as the guardians can be asked to live in conditions which do not meet the standards expected in residential properties. We do not therefore believe that it would be appropriate to require that Sections 8 to 17 of the Landlord and Tenant Act should apply to guardianship agreements. I hope that my responses provide reassurances—
Lord Beecham
The Minister is saying that she has every sympathy but that the Government are not going to do anything about conditions which, as she acknowledges, can be very unsatisfactory. I do not understand why the Government are reluctant to intervene here.
Baroness Williams of Trafford
My Lords, if the noble Lord is talking about the property guardianship schemes, it is because they are arrangements between a building owner and one or more individuals, and the arrangement is temporary. They are not intended to provide stable alternative accommodation.
Lord Beecham
That may be the case but surely, as the Minister’s remarks implied, they need to be fit for people to stay there. There must be some basic standards to protect people from being exploited in these conditions. It is not a formal tenancy but if nothing is done, people will be exposed to risks to their health and possibly their safety. The Government must surely acknowledge that this matter is at least worth considering before we get to Report, rather than rejecting it.
Baroness Williams of Trafford
My Lords, because of the nature of the arrangement—as the noble Lord said, there is no tenancy agreement in place—it is not a formal tenancy in that sense and we do not think that the Landlord and Tenant Act actually applies to it.
Lord Beecham
But provisions could be applied if the Government legislated to protect people in this position. Are the Government saying that they cannot find a way to protect people from the kind of circumstances which I have described, and which the Guardian report so clearly brought to light? It may not be a question of amending the Landlord and Tenant Act but surely it is possible to bring forward proposals which could be incorporated into this Bill.
Lord Beecham
My Lords, I understand where the noble Baroness, Lady Meacher, is coming from in moving her amendment. It seems to me that the issue is not so much one of rent arrears as one of rent levels, which of course very often lead to rent arrears. It may well be the case that families go short, but they do so partly because they are fearful of eviction and will pay the rent first and look after other family needs second. It might have been better to think again—perhaps we will when we get to Report—about the terminology here. It is not just rent arrears that will cause problems but a combination of the income in the house and what other expenditure there may be, including for example, the impact of the bedroom tax on households. The noble Baroness is absolutely right, however, that whatever components one looks at, it is necessary to have regard to the impact on the health and well-being of people, particularly those in rented property, given the huge increase in rents in recent years.
I can give an example from my own family’s indirect experience. My son had a raised ground-floor flat in Islington comprising 286 square feet, which would fit relatively comfortably in the third of the ground-floor reception rooms in my house in Newcastle. The purchaser of the flat put it on the market at a rent, as far as I recall, of over £1,000 a month—roughly £4 a square foot. It is a tiny flat and only really suitable for one person, which I suspect is not untypical of housing in many parts of London these days. I would guess that is a huge proportion of the income of many people—certainly those who are not in well-paid jobs.
That may well exemplify the kind of problem that is all too often faced in the light of these absurdly high rent levels. It has to be recognised that they have gone up very markedly in the last few years, particularly, but not exclusively, in the capital. The amendment moved by the noble Baroness is very apposite to developing conditions, which may well have an impact on people’s health and well-being, as she suggests, and which therefore should be taken into account, with a view to doing something about these rent levels. That is the problem. I concede it is most acute where that leads to eviction, but it is there before you get to that point, very often for long periods.
My Amendment 32 calls, in perhaps not the most elegant drafting, for an examination of the different types of house tenure to see how this has affected the market and the levels of rent, and indeed the condition of properties. It is designed particularly to draw attention to the situation that can arise in the context of short-term lettings, such as those through Airbnb, which for other reasons has often been raised in your Lordships’ House, most notably by the noble Baroness, Lady Gardner of Parkes, who is not now in her place. There must be concern about how these properties are managed and their impact in other ways upon the local community. Particularly on an individual basis, there is no apparent way at the moment in which these short-term lettings can be monitored in terms of the condition of the property, its safety and the like.
I hope the Minister will not repeat what she said before about the other types of property that we were discussing. Logically, I suppose, she might be driven to that extreme, but I hope she will recognise that perhaps we need to look at whether it might be timely to consider applying some criteria by which the condition of properties let—maybe for a night or two, or maybe for a slightly longer period—can be monitored. Such criteria would need to be of a standard that ensured that basic conditions were maintained.
One reads of dreadful things going on in some places. There was a court case recently—in London, I think—involving a flat that had been let for what turned out to be a wild party and was significantly damaged. That would not necessarily be covered by legislation but it may be that, beginning with looking at a requirement for such lettings to be in properties that are at least fit for human habitation and safe in terms of their electrics and the rest of it, one might ultimately revisit the issue of whether planning permission might not be needed. I know that now it is not required in London anyway but that is a separate issue—or a further issue—from the condition of these places and what individuals going there for short periods might be exposed to. It is not just a question of Airbnb for one or two nights; there is also the issue of holiday lets up and down the country, which at the moment, as I understand it, are not really governed by any requirements as to the fitness of the accommodation. If we are looking at housing across the piece, it would be desirable, to put it mildly, to look at the condition of those properties as well as at the basic stock that is on the rental market.
I hope that, with our commitment this evening, the Minister will agree to look at this before Report with a view to possibly extending some of the protections that exist for regular tenancies to these short-term lets of either kind. I beg to move.
Baroness Evans of Bowes Park
Does the noble Lord, Lord Kennedy, wish to mention waterways before I respond?
Baroness Evans of Bowes Park
Yes, I am happy to commit to do that. I can also reassure the noble Baroness that the DCLG and the DWP will communicate on the cross-departmental issues that she raised.
The other document I mentioned, Measuring National Well-being: Life in the UK, 2015, reports on well-being in relation to where people live and how they cope financially. As well as those two reports, the European Commission produces Quality of Life in Europe: Subjective Well-being. In that report, housing security is measured by the question,
“How likely or unlikely do you think it is that you will need to leave your accommodation within the next 6 months because you can no longer afford it?”
As a result of our debate today, we have asked the department whether it might be possible to pose a similar question in the English housing survey.
With regard to Amendment 32, proposed by the noble Lords, Lord Kennedy and Lord Beecham, I agree it should be easier for local authorities to identify the type of housing in their area, in order to exercise their housing functions better. However, we believe local authorities already have appropriate powers in existing and proposed legislation to seek information on housing tenure, and they can analyse that data to inform their local requirements. We believe that requiring the Government to commission and follow up a central collection and collation of this data would impose an unreasonable cost, in both time and resource, on taxpayers. We are taking the more effective approach of making tenancy deposit data available to local authorities through this Bill, for them to make use of as they see fit.
It also not clear what would be gained by collecting this information at national level. Local authorities, by definition, have localised issues, and housing statistics will only be relevant and meaningful in local areas. Schedule 2 to the Local Government Finance Act 1992 contains provisions for the Secretary of State to make legislation relating to the collection and administration of council tax, and regulations are already in place that give authorities the power to collect information which may include data on tenure in their area. The department has contacted local authorities to remind them of their existing powers. I would also add that the 2011 census provides a full tenure split at local authority level, and some local authorities have updated this record.
In connection with Amendment 33, my noble friend Lady Williams of Trafford and I would be happy to meet the organisations concerned. Perhaps we could have a further conversation following this debate, just to ensure that we invite the right people. With all that in mind, I hope that the noble Baroness will withdraw her amendment.
Lord Beecham
Before the noble Baroness sits down, I draw her attention to the precise wording of Amendment 32. Subsection (3)(b) of the proposed new clause goes beyond the general information to which she referred and talks specifically about,
“an assessment of the number of properties being let as short-term holiday lettings and the extent to which legislation relating to the condition of rented properties applies to short-term holiday lettings”.
That is not a local matter but a national matter with local implications. I invite the two noble Baronesses at least to say today that they will look at that issue and consider it before we get to Report. It is a discrete issue in a way.
Baroness Evans of Bowes Park
I will take it back. I would reiterate that it is a private matter, but we will have further conversations.