Housing and Planning Bill Debate

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Lord Kennedy of Southwark

Main Page: Lord Kennedy of Southwark (Labour - Life peer)

Housing and Planning Bill

Lord Kennedy of Southwark Excerpts
Tuesday 9th February 2016

(8 years, 10 months ago)

Lords Chamber
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Moved by
19: After Clause 54, insert the following new Clause—
“Description of Houses in Multiple Occupation (HMOs)
Article 3 of the Licensing of Houses in Multiple Occupation (Prescribed Descriptions) (England) Order 2006 is amended as follows—(a) omit paragraph (2)(a); and(b) omit paragraph (3).”
Lord Kennedy of Southwark Portrait Lord Kennedy of Southwark (Lab)
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My Lords, Part 2 of the Housing Act 2004 repealed Part XI of the Housing Act 1985 and introduced a new definition of a house in multiple occupation and, in April 2006, a new scheme for controlling and licensing such houses that were deemed a high risk. Houses in multiple occupation include bed-sits, shared houses and hostels but not self-contained flats. They share one or more of the basic amenities, such as the toilet and the washing or cooking facilities. Those properties which met certain conditions had to be licensed. These conditions included the building being three storeys or more high and occupied by five or more tenants, in at least two households. The regulations have worked well but more needs to be done. The private rented sector is increasing, as we have all heard, and so are houses in multiple occupation. We need to provide protections to this growing group of tenants, who are particularly at risk.

The purpose of Amendment 19 is to go further and bring more properties into scope. To be part of the mandatory licensing scheme under my amendment, the only two conditions which would need to be met are that the property has to have five or more people living in it and in at least two households. As I have said, houses in multiple occupation pose the greatest risk to the tenants living there. It has been established by research undertaken that people living in bed-sits are six times more likely to die as a result of fire than people living in an ordinary house. A number of factors can be at play here, from a vulnerable person living in the accommodation to the quality of the construction or conversion of the property. The time has come to extend these provisions and I hope that we get a favourable response. I beg to move.

Lord Shipley Portrait Lord Shipley (LD)
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I do not wish to detain the Committee but I simply want to say that this is an extremely interesting proposal, which I hope the Ministers will look at very carefully. We have a lot of experience in recent years of HMOs and the legislation about having three storeys. We need to look carefully at this because the proposal as outlined by the noble Lord, Lord Kennedy of Southwark, seems to be one meriting some further close attention.

Baroness Evans of Bowes Park Portrait Baroness Evans of Bowes Park (Con)
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My Lords, this amendment would insert a new clause into the Bill that seeks to remove the requirement that a house in multiple occupation is required to be licensed only if the building is of three or more storeys. While mandatory licensing applies to such HMOs if they are occupied by five or more persons in two or more households, local authorities have the power to introduce additional licensing schemes to cover smaller HMOs.

It is of course appreciated that not all local authorities have made additional licensing schemes but, as the noble Lord, Lord Kennedy, said, it is also well known that some of the worst management standards, living conditions, disrepair and overcrowding in the private rented sector are found in smaller HMOs. This is why the Government issued a technical discussion paper late last year, seeking views on whether mandatory licensing should be extended to smaller HMOs. Officials are currently analysing the results and the Government hope to publish a response to the discussion paper in the spring. I can assure your Lordships that the Government are determined to tackle abuses in the HMO market, as they are in any other part of the private rented sector. Extended mandatory licensing is an option to achieve this, through secondary legislation. We are considering that option but we want to fully consider all responses received before announcing how we will proceed.

I hope that on this assurance, and because I have been able to say that the Government are looking at this and committed to stamping out abuse in HMOs, the noble Lord will agree to withdraw his amendment.

Lord Kennedy of Southwark Portrait Lord Kennedy of Southwark
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My Lords, I thank all noble Lords who have spoken in this debate, including the noble Lord, Lord Shipley, and the noble Baroness, Lady Maddock. I knew about the consultation and I am delighted that we will get a response back in the spring. I hope that it is a favourable one, and with that I beg leave to withdraw the amendment.

Amendment 19 withdrawn.
Moved by
20: Insert the following new Clause—
“Implied term of fitness for human habitation in residential lettings
(1) Section 8 of the Landlord and Tenant Act 1985 (implied terms as to fitness for human habitation) is amended as follows.(2) For subsection (3) substitute—“(3) Subject to subsection (7), this section applies to any tenancy or licence under which a dwelling house is let wholly or mainly for human habitation.”(3) After subsection (3) insert—“(3ZA) Subsection (1) does not apply where the condition of the dwelling-house or common parts is due to—(a) a breach by the tenant of the duty to use the dwelling -house in a tenant-like manner, or other express term of the tenancy to the same effect; or(b) damage by fire, flood, tempest or other natural cause or inevitable accident.(3ZB) Subsection (1) shall not require the landlord or licensor of the dwelling house to carry out works—(a) which would contravene any statutory obligation or restriction; or(b) which require the consent of a superior landlord, provided that such consent has been refused and the landlord or licensor has no right of action on the basis that such refusal of consent is unreasonable.(3ZC) Any provision of or relating to a tenancy or licence is void insofar as it purports—(a) to exclude or limit the obligations of the landlord or licensor under this section; or(b) to permit any forfeiture or impose on the tenant or licensee any penalty or disadvantage in the event of his seeking to enforce the obligation under subsection (1).(3ZD) Regulations may make provision for the exclusion of certain classes of letting from subsection (1).(3ZE) In this section “house” has the same meaning as “dwelling house” and includes—(a) a part of a house, and(b) any yard, garden, outhouses and appurtenances belonging to the house or usually enjoyed with it.”(4) Omit subsections (4) to (6). (5) In section 10 of the Landlord and Tenant Act 1985 (fitness for human habitation), after “waste water” insert “any other matter or thing that may amount, singly or cumulatively, to a Category 1 hazard within the meaning of section 2 of the Housing Act 2004.”(6) Regulations may make provision for guidance as to the operation of the matters set out in section 10 of the Landlord and Tenant Act 1985 which are relevant to the assessment of fitness for human habitation.(7) This section shall come into force—(a) in England at the end of the period of three months from the date on which this Act is passed and shall apply to all tenancies licences and agreements for letting made on or after that date; and(b) in Wales on a date to be appointed by the Welsh Ministers.”
Lord Kennedy of Southwark Portrait Lord Kennedy of Southwark
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My Lords, it was with much surprise that I heard that the Government had not agreed to an amendment in the other place which would have ensured that residential letting must be fit for human habitation. However, I am hopeful that your Lordships will be able to persuade the Government of the error of their ways as we progress through Committee and Report. Even at this early stage, I can say that we feel so strongly about this that we will divide the House at the appropriate time if the Government do not move from their present position.

The move to pass such an amendment in the other place was defeated, as I said earlier. The Communities Minister in the other place, Mr Marcus Jones MP, said that the Government believed that homes should be fit for human habitation but did not want to pass a new law that would explicitly require that. That is just nonsense. Unhealthy and unsafe housing needs to be tackled. The private rented sector is growing rapidly and tenants need protection to ensure that their home is fit to live in. Damp, mould, excessive cold, overcrowding and lack of proper space, fire hazards and other hazards regarding electrical and other safety can all have major consequences for people, even death.

Local authorities clearly have a role in protecting tenants in the private rented sector when landlords fail to maintain or provide properties that are safe and healthy to live in. However, local authorities are under considerable financial constraints, and this is never going to be enough. My amendment therefore seeks to provide tenants with the means to take action themselves, and would place a specific duty on landlords to ensure that the property they let is fit for human habitation and will remain so during the course of the tenancy. For me, that is a perfectly reasonable duty to place on landlords.

Amendment 22, in the names of my noble friends Lady Hayter of Kentish Town, the noble Lord, Lord Tope, and in my name, would introduce mandatory electrical safety checks into the private rented sector. Again, Members in the other place were unable to persuade the Government on this issue, but we hope again to have more success in your Lordships’ House. In fact, your Lordships’ House may be surprised that such checks, unlike those for gas safety, are not already mandatory, given the danger of electrocution as well as fires caused by faulty electrical installations. Indeed, according to the charity Electrical Safety First, which works to prevent electrical accidents, around 70 deaths per year involve electricity, compared to 18 from gas. That is over one a week. Yet, regrettably, the opportunity afforded by the Bill has not so far been used to protect tenants from electrical hazards.

Safety standards in the private sector depend on the age of the property, its location and, importantly, the competence—or willingness—of the landlord to undertake checks and repairs on electrical installations. We welcomed the measures introduced by the Government last year on carbon monoxide and smoke detectors. However, it is hard to explain why no consideration has been given to electrical safety which, sadly, is the cause of more deaths and injuries. Gas, carbon monoxide and smoke detectors all help make rented properties safe, but as my noble friend Lord Hunt of Kings Heath said in this House on 7 September 2015, electricity must be included if we are to provide private tenants with proper protection.

The Government’s rather unsatisfactory response then was that there is a legal duty on landlords to keep tenants’ electrical installations safe. This simply will not do—it is not enough. Not only does it mean that electrics in a rented property go unchecked for many years but it only guarantees prosecutions of landlords after the event, whereas we want to prevent electrocution or fires in the first place. Regrettably, while landlords in England must ensure that electrical installations are kept in safe working order, there is no legal requirement on them to check the installations regularly. Furthermore, there is no requirement to demonstrate to tenants that the electrics are safe. This is not acceptable, and is contrary to the Government’s autumn Statement on safety in the private rented sector and to their supposed desire to see a “bigger, better and safer” sector.

Furthermore, it is against what the public want. Of those responding to the DCLG’s own consultation, 84% believed that mandatory electrical checks in the private rented sector were needed. However, there has not been any action from the Government so far. The Local Government Association supports mandatory checks to reduce the risk of electrical fires. Electrical Safety First’s call for mandatory checks is also supported by the Chief Fire Officers Association, Shelter, Crisis, the London Fire Brigade, and British Gas, to say nothing of tenants.

A third of private-sector tenants stay in their home for less than a year, with eight out of 10 being in their current home for less than five years, so not only do an increasing proportion of our citizens live in the private rented sector, but it is a sector with a high turnover and an average tenancy of only about three years. Therefore, checks by landlords for electrical safety are essential. We know that privately rented homes are at a higher risk of fire. There has been no reduction in private rented sector fires since 2010 of those investigated by the London Fire Brigade. Indeed, of these 748 had an electrical source of ignition in the past five years, while only 97 fires had a gas source of ignition.

Why are the Government not taking this more seriously if they want a safer private rented sector? It seems that there is no strategy or response. I concur with Electrical Safety First that tenants would be better protected with mandatory five-yearly checks of electrical installations and supplied appliances. We know that annual gas checks work. Now is the time to implement mandatory electrical checks to discover faults before they cause accidents or fires. Our amendment would improve standards and not be burdensome to landlords.

Electrical Safety First estimates this would cost landlords about £3 per month over a five-year period. Of course, the amendment is about saving lives and damage to tenants’ property, but it also would protect the landlords’ assets. Checks could spot problems before they pose a serious risk through electrocution or fires.

We are pleased that the department has been undertaking research into the merits of introducing these checks, but it is now time for action. I hope the Minister will undertake to bring forward proposals while we have the Bill in front of us.

The final amendment in this group is Amendment 30, which seeks to ensure that people living in properties under a guardianship contract have some rights and protections. It is fair to say that these guardianship schemes are increasing in popularity. The guardian pays a licence fee to occupy a part of a building, secure it and prevent damage. Most of the buildings are not housing, and the guardian is not a tenant, which means he has few legal rights. My amendment seeks to redress the balance, which I think is only fair and reasonable. I beg to move.

Baroness Grender Portrait Baroness Grender (LD)
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My Lords, we are also supporting Amendment 20, and I would like to speak in support of Amendment 22 and electrical checks on behalf of my noble friend Lord Tope.

At Second Reading, the Minister said, in response to this very point:

“Local authorities already have strong and effective powers to deal with poor-quality unsafe accommodation, and we expect them to use them”.—[Official Report, 26/1/16; col. 1270.]

In the Committee stage in the Commons, the Minister of State, Brandon Lewis, said:

“Local authorities already have strong and effective powers to deal with poor-quality unsafe accommodation, and we expect them to use those powers”.—[Official Report, Commons, 10/12/15; col. 707.]

I would like to stress to the Minister and to the Government that this is slightly the wrong end of the stick of the point that this amendment is trying to make. The amendment is trying to beef up existing legislation to ensure that tenants have greater rights. It is less about local authority involvement and much more about liberating the consumer—the tenant—to take action and get repairs delivered. It is not even about the issue of compensation afterwards. It is about where they live right now and having the legal weight behind them to take action and get the repair in the place where they are a tenant. I cannot stress that enough. Therefore, I simply suggest that, if the Minister comes back and says that local authorities have enough power, that does not answer the question I am trying to raise.

This is not new legislation. It is not extra red tape. It is simply about enabling tenants, as I made clear at Second Reading. It revives an outdated law. It is about rights for consumers—something I suggest that this Government should be eager to embrace. Overstretched local authorities could encourage tenants to challenge conditions themselves and free their resources to focus on the very worst conditions. It would therefore act as a deterrent to landlords letting out properties in poor conditions.

The key point is that the clause does not impose new requirements on landlords; it is not a further regulatory burden. The standards set out are effectively the same as those in the Housing Act 2004 via the housing health and safety rating system, the HHSRS. There were 51,916 complaints about housing conditions to the relevant councils in 2013-14 but only 14,000 inspections of PRS properties. In other words, yes, the local authorities have the power, but they do not have the resources, so when complaints are made to them, very few inspections are made as a result, and there is even less enforcement. The prosecutions resulting from that in that one figure average one per council per year. With 4.4 million households in the private rented sector, surely we can provide some better basis for them to go to court and get their landlord to make repairs.

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Baroness Williams of Trafford Portrait Baroness Williams of Trafford
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I see the point, and as I say, my son is living in such accommodation, but the reason owners do it is to protect against squatting as opposed to provide for permanent accommodation. There is no tenancy agreement in place. However, I will go back and think further about this. It is a slightly anomalous situation in the general housing market, given that many of the properties are not housing. With those words, I hope that the noble Lord will feel able to withdraw the amendment.

Lord Kennedy of Southwark Portrait Lord Kennedy of Southwark
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My Lords, I thank all noble Lords who have spoken in this debate: the noble Baroness, Lady Grender, my noble friends Lord Beecham and Lord Campbell-Savours, the noble Lord, Lord Tope, and the noble Baroness, Lady Bakewell of Hardington Mandeville. I very much agree with the noble Baroness, Lady Grender, who said that, yes, local authorities have powers, but it is a cumbersome process, and a lack of budgets at present means they will not be effective. With this amendment we would empower only the tenants to seek redress themselves, which is a good thing, although I know that the noble Baroness, Lady Williams of Trafford, does not necessarily agree with me on that.

The electrical safety amendment should not cause the Government any problems whatever. I am pleased that the Government are looking at this area of additional safety. My noble friend Lord Campbell-Savours made a powerful contribution to the reason why the Government should agree to these electrical safety tests in the private rented sector. We believe that these two amendments raise issues of paramount importance, and we will divide the House on both issues if we do not get the necessary movement from the Government on Report —we are very upfront about that straightaway.

I end with the hope that the noble Baroness, Lady Williams of Trafford, will hold discussions with noble Lords before we get to Report so that that will not be necessary and an agreement can be reached on both issues. We are very much willing to have those discussions. However, we think these are serious matters, which need looking at. With that, I beg leave to withdraw the amendment.

Amendment 20 withdrawn.
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Baroness Evans of Bowes Park Portrait Baroness Evans of Bowes Park
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Does the noble Lord, Lord Kennedy, wish to mention waterways before I respond?

Lord Kennedy of Southwark Portrait Lord Kennedy of Southwark
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The amendment on waterways came about because at a meeting of tenants from around London I met a group of people who live on the waterways. I mentioned the Second Reading of the Bill and they said they felt aggrieved as they had been totally ignored by most of their local authorities. They live on waterways such as the Thames, in the dock areas, and they feel that when it comes to services they are not involved or consulted. I know that this is not a major issue in the Bill, but I would be grateful if someone could meet some of these people before we get to the next stage. Perhaps there could be some regulations or guidance to point them in the right direction. They had a valid point and such a meeting might be helpful to them.

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Baroness Evans of Bowes Park Portrait Baroness Evans of Bowes Park
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I will take it back. I would reiterate that it is a private matter, but we will have further conversations.

Lord Kennedy of Southwark Portrait Lord Kennedy of Southwark
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I am happy not to press my amendment after the explanation the noble Baroness has given us.

Baroness Meacher Portrait Baroness Meacher
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My Lords, I thank the noble Lords, Lord Shipley, Lord Judd, Lord Campbell-Savours and Lord Beecham, and the noble Baroness, Lady Hollis, for their considered, well-informed and powerful contributions to this short debate. I am not at all convinced that the Government’s housing survey will provide the necessary focus on the soaring levels of rent and rent arrears and their impact on families and children and on the Government’s emphasis on health, well-being, educational attainment and so on.

The Government and Parliament really need to understand what is happening now and what will happen over the next few years in these regards. However, it is a late hour. We will have to come back to this issue, and I will no doubt have a conversation with the noble Lord, Lord Beecham, about precisely what the wording of the amendment should be. With that, I beg leave to withdraw the amendment.