Tenant Fees Bill

Debate between Lord Shipley and Baroness Barran

Monday 5th November 2018 Grand Committee

[Baroness Barran (Con)]

My Lords, this amendment builds on the points raised by my noble friend Lady Jenkin in her speech at Second Reading relating to home share schemes. I am aware that in his summing up of that debate, my noble friend the Minister noted that this is an issue he is keen to resolve. I hope that this amendment will go some way to achieving that.

Clause 25 sets out the meaning of the term “letting agent”. However, as currently drafted the Bill is likely to define home share organisations as letting agencies and to ban them from charging young people who currently pay a contribution towards those organisations’ costs. Although home share is relatively small in this country it helps several hundred older and younger people. It is an approach that I believe has great potential. Indeed, before I joined your Lordships’ House, as the chief executive of SafeLives we developed a partnership with Homeshare, looking to use the scheme to support the victims and the perpetrators of domestic abuse.

My amendment seeks to ensure that home share schemes are explicitly excluded from the definition as it stands. As drafted, it seeks to capture the essence of home share arrangements and to distinguish them from those of commercial letting agents. I have tried to put in the technical aspects of the arrangement; namely, the nature of the instructions from the landlord, the absence of any rent or occupation charge from either the tenant or the home share organisation and the potential contribution by the tenant towards utility costs, as well as, crucially, the purpose of the scheme. The purpose must be quite clear: it is to promote the landlord’s well-being. The amendment also clarifies the meaning of the term “principal home” in line with Section 1 of the Housing Act 1988; “utility costs” which could also potentially include additional council tax; and “well-being” in line with Section 1(2) of the Care Act 2014.

The amendment is needed to ensure that home share can continue to grow in the UK. It helps hundreds of isolated and lonely older people. I have spoken to a number of family members whose parents are supported through home share schemes and they could not praise them enough for the support their parents receive. It also has the potential to help thousands in the future. This is clearly timely given the epidemic of loneliness that we hear so much about facing not only older people. There is increasing evidence that it is an issue for younger people as well. Indeed, without addressing the definition of a letting agent to explicitly exclude home share schemes, their sustainability will be put at risk.

In her speech, my noble friend Lady Jenkin articulated powerfully the scheme’s strengths, highlighting the human benefits to both the landlord and the home sharer, the contribution to the duties of the local authority under the Care Act 2014 and, importantly, the potential for these schemes to be financially sustainable. The quality of the relationship between the two individuals in the home share scheme is crucial to its success. It is specifically for people whose primary motivation is not commercial but who each want to contribute to the other’s life. It is vital to frame an exemption for genuine home share agencies from the prohibition on charging tenants, without creating a loophole for commercial letting agents.

To reiterate, the amendment seeks to exempt from the fees prohibition house-sharing arrangements that meet four tests. The first test is that they have been arranged by an organisation that recruits, vets, supports and, where appropriate, trains people for the purposes of providing support in a shared home environment. The second test is that the individual with the licence to occupy pays no rent. The third test is that they contribute to an agreed level of companionship, care or support. The fourth test is that it happens in the home of an individual who requires that support. To be absolutely clear, in this arrangement the homeowner receives no rent or any payment from the agency.

As I mentioned at the beginning, home share helps hundreds of young and old people in the UK, but if we look at home share as it works in Europe, we see that it has the potential to help thousands more. I hope that this amendment is a step towards making sure that that becomes reality. With that, I beg to move.

[Lord Shipley]

My Lords, very briefly, I spoke at Second Reading on the importance of exempting home-share schemes from the impact of the Bill. It seems to me that the amendment moved by the noble Baroness, Lady Barran, supported by the noble Lord, Lord Kennedy of Southwark, addresses the problem. I hope very much that the Minister is in a receptive mood.