Renters’ Rights Bill

Lord Shipley Excerpts

Wednesday 14th May 2025 Lords Chamber

Moved by

[Lord Shipley]

253: After Clause 101, insert the following new Clause—
“Use of licence conditions to improve housing conditionsIn section 90 of the Housing Act 2004 (licence conditions), for “the management, use or occupation of the house concerned” substitute “all or any of the following—“(a) the management, use and occupation of the house concerned, and(b) the condition and contents of the house concerned.””Member’s explanatory statement
This amendment would enable local authorities operating selective licensing schemes to use licence conditions to improve housing conditions.

[Lord Shipley (LD)]

My Lords, I will also speak to Amendment 254 and, on behalf of the noble Lord, Lord Young of Cookham, Amendments 267, 268 and 269.

Amendments 253 and 254 would remove unnecessary barriers to the use of licensing schemes to improve housing standards. Licensing is an important tool for improving housing standards because it is proactive. It provides a means for local authorities to inspect privately rented housing using enforceable conditions, and to identify and resolve problems without the need for tenants to have complained.

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[Baroness Taylor of Stevenage (Lab)]

I thank the noble Lords, Lord Shipley and Lord Young of Cookham, for their amendments relating to selective licensing, and I particularly thank the noble Lord, Lord Shipley, for moving the amendments from the noble Lord, Lord Young, in his absence. I thank the noble Lord, Lord Jamieson, for his comments.

Amendment 253, moved by the noble Lord, Lord Shipley, seeks to allow local authorities to use selective licence conditions to improve housing conditions. We acknowledge and share the noble Lord’s intentions to improve housing conditions. We believe that all renters deserve to live in safe, secure and quality homes. With the introduction of a decent homes standard and the application of Awaab’s law through this Bill, the Government will reform and improve conditions across the sector. We think it is important that these measures benefit all renters and local authorities in tackling poor-quality homes, regardless of whether they are in selective licensing areas.

Amendment 254, also in the name of the noble Lord, Lord Shipley, seeks to allow local authorities to increase the maximum duration of selective and additional HMO licensing schemes from five to 10 years. As many noble Lords will be aware, the Government recently removed the requirement to obtain Secretary of State approval to introduce larger selective licensing schemes. We think it is right that local authorities have greater autonomy to implement schemes provided that they meet the statutory criteria. However, we also recognise licensing schemes do, as noble Lords have said, place additional burdens on landlords. It is therefore important that local authorities monitor any schemes to make sure that they are proportionate and are continuing to achieve their aims. A maximum scheme duration of five years strikes the right balance in giving local authorities time to make this assessment, while also ensuring that landlords are not by default subject to increased regulation for prolonged periods. I therefore ask the noble Lord, Lord Shipley, to withdraw his amendments.

I turn now to the amendments in the name of the noble Lord, Lord Young of Cookham. Amendment 267 seeks to streamline the selective licensing application process and cap the total fee that local authorities can charge for licensing similar properties in a block under single ownership. The Government recognise that selective licensing imposes a burden on landlords. The financial and administrative cost can be particularly significant for large portfolio landlords, such as those operating in the build-to-rent sector.

Local authorities already have discretion to streamline licence applications and fees for landlords whose properties meet the requirements for block licences. Where appropriate and consistent with the aims of their licensing schemes, we would encourage local authorities to make greater use of block licences. This reduces the burden on large portfolio landlords and can better reflect efficiencies for local authorities in licensing such properties, for example, the ability to inspect multiple properties in a block during a single visit.

It is right that licensing schemes continue to be determined locally and that local authorities have the flexibility to decide the best application process and fees to support delivery of schemes. Placing a cap on application fees could cause issues due to regional differences in costs between local authorities and potentially undermine the success of some schemes.

Amendment 268 seeks to allow the transfer of selective licences in circumstances where the licence needs to be passed to an employee of the same corporate body. As noble Lords will be aware, under Section 91 of the Housing Act 2004, licences currently cannot be transferred, as the noble Lord, Lord Shipley, explained. A new licence application is needed where a change to a licence-holder is required after a licence has been issued. A crucial part of the application process is ensuring compliance with the fit and proper person test. This is designed to ensure that prospective licence-holders do not pose a risk to the welfare of tenants. I am sure it is not the intention of the noble Lord, Lord Young, but accepting this amendment might mean circumventing those important checks for any new licence-holders within the same organisation.

I accept that it may seem excessive for a local authority to require a full licence application to be submitted where a licence needs to be transferred due to changes in staff in cases where there are no other changes to the management or use of the property. We would encourage local authorities to take a proportionate approach in these cases, for example, by requiring only details of the new licence-holder to be provided in the application and charging a fee that covers only the essential parts of the application process, for example, the fit and proper person test.

Amendment 269 seeks to allow a local authority to grant a temporary exemption from selective licensing to an applicant where it has determined that it requires more time to process the relevant licence application. I recognise the issues this amendment attempts to address. Where a local authority has received multiple licence applications from the same applicant, it needs sufficient time to review them. As a result, applicants may receive a decision after the period they deem reasonable. I totally agree with the noble Lord, Lord Jamieson, about digitisation of this process and making the whole process more efficient.

Local authorities are already required to determine all licence applications within a reasonable time. We would encourage them to set out clearly their expected processing timelines when inviting applications. When planning a licensing scheme, local authorities should also carefully consider the level of resources needed to process applications to avoid large backlogs being created.

However, regardless of any challenges a local authority may face in processing licence applications, landlords with licensable properties should apply for licences. This ensures that they are protected from enforcement action being taken against them for having control of or managing an unlicensed property. With this in mind, I ask the noble Lord, Lord Young, not to press his amendments.

[Lord Shipley (LD)]

My Lords, I thank the Minister for her very full explanation. I think the best course of action would be to review in Hansard what she has said and look at ways in which we might progress some of these issues by the time we reach Report in a few weeks’ time. For the moment, I beg leave to withdraw Amendment 253.

Amendment 253 withdrawn.