Immigration Act 2014 (Commencement No. 6) Order 2016

Lord Best Excerpts

Wednesday 24th February 2016 Lords Chamber

[Lord Best (CB)]

My Lords, I declare my interest as joint chair of the right-to-rent private landlords consultative panel at the Home Office. I jointly chair this panel with the Minister for Immigration, James Brokenshire. We have been meeting to discuss the right-to-rent measure every month or two since September 2014, with sub-groups meeting between the main panel meetings.

I was very critical of the right-to-rent proposals in your Lordships’ House before they became part of the Immigration Act 2014. I tabled nine amendments, all relating to the practicalities of requiring landlords to check the immigration status of their tenants. The House received a number of reassurances from the then Minister, the noble Lord, Lord Taylor of Holbeach, for which I was grateful, including arrangements for a pilot scheme in the West Midlands.

The panel, which continues to meet, includes representatives of landlords, tenants, property agents, all the relevant local authorities, three government departments and the Equalities and Human Rights Commission. From this perspective, I hope, therefore, that I can provide some answers to the questions arising on this issue.

First, has the Home Office taken the whole process seriously? I can say definitively that this exercise has been taken very seriously by the Minister and the army of civil servants working on its implementation. I cannot claim technical knowledge of research methodologies, but I have been impressed by the Home Office team responsible for the evaluation of the West Midlands pilot, led by Andrew Zurawan. As far as I can tell, the different techniques deployed by the in-house and external researchers—surveys, focus groups, mystery shopping, comparisons with a control area where the right to rent was not in force—have all been conscientiously carried out. I fully recognise the limitations of any pilot evaluation process: it may take years, not months, for effects to work through; larger-scale surveys or surveys at different times of the year could produce fuller results; and so on. However, within the obvious constraints of this exercise, I think the team did a pretty good job.

Secondly, what has been the outcome of these efforts to date? It was never to be expected that the critics of this measure would reverse their opinions and accept the right to rent as a good idea. Nevertheless, I detected that the arrangements, even in the pilot, were not proving massively onerous for landlords or property agents. With the subsequent improvements to the approach—revision to the guidance, clarification and simplification of requirements for documents—the position for the rollout from 1 February certainly seems to be generally, if somewhat grudgingly, accepted. I am simply not convinced that the right to rent is causing huge anxieties for landlords; I have talked to landlords and agents who are far more concerned about tax changes and other regulatory measures affecting them.

No respectable landlord would wish to be letting to someone who is here illegally, not least since that tenant might be apprehended and removed and leave suddenly with unpaid rent, so already, of course, there are referencing procedures for those applying for a tenancy. Now that it is possible to view the pictures of the required documents for those who do not have a passport, their legal status should actually be easier to check.

I raised the question at the panel with those representing managing and letting agents: would it be best to use a professional specialist company to handle this aspect of the vetting of your potential tenants? The response was that this would be a waste of money and quite unnecessary as the whole exercise was now straightforward enough. I wonder how many landlords do not seek proper references or carry out checks on the identity of people to whom they grant tenancies. I strongly suspect that the landlords who will be affected by this measure know very well the illegal status of the tenants and are taking advantage of them in extracting exorbitant rents for abysmal conditions. The great benefit of the Home Office’s interest in enforcing the right to rent in the West Midlands was shown to be in bolstering the efforts of local authorities to weed out some pretty unpleasant elements in the private rented sector. I make no secret of the fact that my own interest in this matter is based on the increased opportunities for prosecuting those who exploit people in overcrowded slum conditions.

Thirdly, what about the continuing anxieties that innocent landlords may unwittingly, through ignorance rather than malicious intent, still fail to identify an illegal migrant before allocating a tenancy to them, and, as a result, end up with a hefty fine? The panel has received a very clear message on the ongoing role of the Home Office in advising and supporting landlords and agents. Mostly people will go online and should now find the necessary information relatively easy to access. However, sometimes landlords or agents could encounter a lack of any documentation or have queries about the documents they do see. They will want a definitive decision from the Home Office itself. It is important to note that when Home Office officials are asked to check the identity of a potential tenant, they must respond within 48 hours. If the landlord or agent is not told that the individual has no right to rent within this period, the letting can go ahead. Based on experience from the pilot, the Home Office has geared up its staffing to meet its extended commitments. In addition to this checking service, everyday inquiries about the whole arrangement can be discussed with trained operators on an expert helpline.

Ministers have constantly reiterated the point that any prosecution requires a high standard of proof, demonstrating that a landlord actually knows, or has good reason to believe, that they are indeed letting to an illegal immigrant. Ministers have underlined the point that no one will be prosecuted for failing to identify a cleverly forged document or false passport, let alone be held liable if an illegal migrant moves in with a legitimate tenant unbeknown to the landlord. The Home Office will ensure that the CPS is fully aware of the policy intent. The object is to target the real rogues, the criminal landlords who knowingly and repeatedly flout the law. Nevertheless, if the Minister wishes to offer additional reassurances tonight to this effect, I am sure that would be appreciated.

Fourthly, is the Home Office investing enough in communications to ensure that landlords and tenants are alerted to the new requirement on them? The panel has received very regular reports on the many efforts being made to get the message across and I am confident that there can be no managing and letting agents who are still in the dark. Whether every one of the 1.8 million landlords in the UK is yet aware of the arrangement, I would not be so sure. However, I fear that some of these landlords are ignorant of a good many other responsibilities they should understand. This problem may be more to do with the way we organise rented housing in this country, with such huge numbers of “amateur landlords” who may have no expertise in property matters, rather than a problem with the Home Office. Of more concern is the issue of communicating with tenants who sub-let or owners who take in lodgers. These may well be harder to reach, despite the Home Office’s efforts, and it may take time for word to get around that checks are needed. In the early stages of the right to rent, tolerance will be needed if mistakes are made, and I note that the fine for a first offence, if it goes all the way to being prosecuted, is set at £80.

I fully accept that once the communications efforts have succeeded and most people are aware of the right- to-rent arrangements, there is the danger of discrimination against those who are in this country perfectly legitimately but might be thought to be illegal immigrants. Sadly, discrimination on grounds of race and ethnicity has not been stamped out in the private rented sector. It was discerned as much among landlords in the control area, where right to rent was not an issue, as in the pilot area. Whether the problem will get worse or whether the raising in the right-to-rent procedures of the profile of discrimination as an issue will counterbalance it, I cannot tell. Right to rent could get the blame for suspected discrimination when in reality the problem lies elsewhere.

Today I hosted the launch by Crisis of an excellent report on the obstacles to renting privately for people who are on low incomes or have been homeless. We heard how few landlords now accept anyone in receipt of housing benefit. Indeed, 82% of landlords said they were not willing to house those who are homeless or about to become homeless. Many people face enormous difficulties in getting a rented home, quite outside the considerations of right to rent. Ministers have promised to continue to monitor the position in relation to discrimination in particular.

Bearing in mind that the right to rent was introduced in 2014 and that, after evaluating a pilot that did not demonstrate any insuperable problems, negative impacts from this measure have been addressed by Home Office Ministers and officials as conscientiously as could be hoped for, I cannot conclude that the rollout of the right to rent should be the subject of that most draconian of measures possible in your Lordships’ House, a fatal Motion of annulment.

[Baroness Lister of Burtersett (Lab)]

My Lords, I have opposed these provisions from the outset, primarily because of the potential to increase discrimination in the housing market, but what is at issue now is whether full rollout of the scheme at this stage is consistent with the commitments made in both your Lordships’ House and the other place during the passage of the Immigration Act 2014. Like many other noble Lords who have spoken, I believe it is not.

The noble Lord, Lord Taylor of Holbeach, said then that the Government’s intention was that the provision would be,

“subject to a phased implementation on a geographical basis. This will allow a proper evaluation of the scheme to ensure that it delivers its objectives without unintended consequences such as discrimination”.—[Official Report, 10/3/14; col. 1648.]

Later, he promised a “carefully phased” approach to the implementation. I am sure I am not the only Member of your Lordships’ House who understood that to mean that there would be a series of pilots in different geographical areas and of different kinds to get a representative picture of its effects—not that it would forge ahead, after a single phase in a single geographical area, involving a quick and not completely representative pilot, with no proper public debate about what we have learned from it and just some changes to the code of practice, which ILPA argues,

“do not appear to constitute a substantive response to the concerns identified in the evaluation”.

I believe that sufficient concerns were raised to cause us to pause rather than steam ahead regardless, as urged also by the Residential Landlords Association on the basis of research that it has carried out. The only reason that we are having this debate is because of the Motions in front of us.

I have the greatest respect for the noble Lord, Lord Best, so what I am about to say is in no way casting aspersions on his role. I am sure that he will have brought the greatest integrity and expertise to overseeing the pilot scheme, but forgive me if I am cynical. A number of noble Lords have referred to this already but when the Prime Minister declared in May, five months before publication of the conclusions of all the hard work that went into the pilot,

“now we’ve got a majority, we will roll it out nationwide”,

surely it rather gave the game away. It suggested that the pilot would turn into something of a charade. It was as if all that important and serious work did not matter because a decision had already been made that it should be rolled out. All right, there have been some improvements to the code of practice but they do not amount to an awful lot.