Marcus Jones
Main Page: Marcus Jones (Conservative - Nuneaton)Housing and Planning Bill
Marcus Jones Excerpts(8 years, 9 months ago)
Commons ChamberRead Full debate Read Hansard Text
Madam Deputy Speaker (Natascha Engel)
Order. The hon. Gentleman is aware that that is almost certainly more a point of annoyance than a point of order. The Minister has heard what he has said and he has put his point on the record, but it is not a point of order and we are really pressed for time. I am therefore going to call the Minister on the next group, who may or may not wish to respond on this matter.
New Clause 62
Offence of contravening an overcrowding notice: level of fine
‘(1) Section 139 of the Housing Act 2004 (overcrowding notices) is amended as follows.
(2) In subsection (7), omit “and is liable on summary conviction to a fine not exceeding level 4 on the standard scale”.
(3) After subsection (7) insert—
“(7A) A person who commits an offence under subsection (7) in relation to premises in England is liable on summary conviction to a fine.
(7B) A person who commits an offence under subsection (7) in relation to premises in Wales is liable on summary conviction to a fine not exceeding level 4 on the standard scale.” —(Mr Marcus Jones.)
The maximum fine for contravening an overcrowding notice under section 139 of the Housing Act 2004 is currently a level 4 fine. This new clause would remove the restriction on the level of fine that may be imposed where a conviction relates to premises in England. Where a conviction relates to premises in Wales the maximum fine is unchanged.
Brought up, and read the First time.
The Parliamentary Under-Secretary of State for Communities and Local Government (Mr Marcus Jones)
I beg to move, That the clause be read a Second time.
Madam Deputy Speaker
With this it will be convenient to discuss the following:
New clause 3—Conversion of leasehold to commonhold for interdependent properties—
‘(1) On 1 January 2020 long leases of residential property in interdependent properties shall cease to be land tenure capable of conveyance.
(2) On 1 January 2020 long leases as set out in subsection (1) shall become commonholds to which Part 1 of the Commonhold and Leasehold Reform Act 2002 (“the 2002 Act”) shall apply, subject to the modifications set out in this section.
(3) Leaseholders, freeholders and those with an interest in an interdependent property are required to facilitate the transfer to commonhold, in particular they shall—
(a) by 1 January 2018 draw-up an agreed plan for the transfer;
(b) by 1 October 2018 value any interests to be extinguished by the transfer where the interest is held by a person who after transfer will not be a unit-holder; and
(c) by 1 January 2019 draw up a commonhold community statement for the purposes of—
(i) defining the extent of each commonhold unit;
(ii) defining the extent of the common parts and their respective uses;
(iii) defining the percentage contributions that each unit will contribute to the running costs of the building;
(iv) defining the voting rights of the members of the commonhold association; and
(v) specifying the rights and duties of the commonhold association, the unit-holders and their tenants.
(4) In any case where the parties at subsection (3) cannot or refuse to agree arrangements to facilitate the transfer any of the parties can make an application to the First-tier Tribunal (Property Chamber) for a determination of the matter.
(5) Section 3 [Consent] of the 2002 Act shall cease to have effect on 1 January 2017.
(6) In subsection (1) “long lease” means—
(a) a lease granted for a term certain exceeding 21 years, whether or not it is (or may become) terminable before the end of that term by notice given by the tenant or by re-entry or forfeiture; or
(b) a lease for a term fixed by law under a grant with a covenant or obligation for perpetual renewal, other than a lease by sub-demise from one which is not a long lease.”
This new Clause would end the tenure of residential leasehold by 1 January 2020 by converting residential leases into commonhold.
New clause 4—Tenants’ rights to new management in property sold under LSVT—
‘(1) This section applies to housing which—
(a) was previously owned by a local authority;
(b) was part of a large-scale voluntary transfer falling within the definition of section 32(4AB) of the Housing Act 1985; and
(c) the disposal of which was subject to the consent of the Secretary of State under section 32 of the 1985 Act.
(2) Where the transfer took place more than five years before this section comes into operation the current owner of the transferred housing shall consult the current tenants on their satisfaction with the management of that property.
(3) Where the transfer took place less than five years after this section comes into operation the current owner of the transferred housing shall not more than every five years consult the current tenants on their satisfaction with the management of that property.
(4) If more than 50 per cent of tenants responding to the consultation under subsections (2) or (3) are dissatisfied with the management of the property, the owner of the housing must carry out a competitive tender for the management of the property and report the outcome to the tenants.”
New clause 42—Mobile Homes Act 1983: limit of commission—
‘(1) For sub-paragraph (5) of paragraph 7A of Schedule 1 to the Mobile Homes Act 1983, as inserted by section 10 of the Mobile Homes Act 2013, substitute—
“(5) The new occupier is required to pay the owner a commission on the sale of the mobile home at a rate not exceeding five per cent of the purchase price of the mobile home as may be prescribed by regulations made by the Secretary of State.”
(2) For sub-paragraph (8) of paragraph 7B of Schedule 1 to the Mobile Homes Act 1983, as inserted by section 10 of the Mobile Homes Act 2013, substitute—
“(8) The person to whom the mobile home is sold (“the new occupier”) is required to pay the owner a commission on the sale of the mobile home at a rate not exceeding five per cent of the purchase price of the mobile home as may be prescribed by regulations made by the Secretary of State.””
This new clause would limit the amount of commission that a site owner could receive when a park home is sold to no more than 5% of the purchase price.
New clause 52—Implied term of fitness for human habitation in residential lettings—
‘(1) Section 8 of the Landlord and Tenant Act 1985 (c.70) is amended as follows.
(2) Leave out subsection (3) and insert—
“(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) Leave out subsections (4) to (6).
(4) 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 often 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.”
(5) In section 10 of the Landlord and Tenant Act 1985, after “waste water”, insert—
(6) Regulations may make provision for guidance as to the operation of the matters set out in section 10 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 receives Royal Assent 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.””
This new Clause would place a duty on landlords to ensure that their properties are fit for habitation when let and remain fit during the course of the tenancy.
New clause 53—Requirement to carry out electrical safety checks—
‘(1) A landlord of a rental property shall ensure that there is maintained in a safe condition—
(a) any electrical installation; and
(b) any electrical appliances supplied by the landlord so as to prevent the risk of injury to any person in lawful occupation or relevant premises.
(2) Without prejudice to the generality of subsection (1), a landlord shall—
(a) ensure that the electrical installation and any electrical appliances supplied by the landlord are checked for safety within 12 months of initial leasing and thereafter at intervals of not more than 5 years since they were last checked for safety (whether such check was made pursuant to this Act or not);
(b) in the case of a lease commencing after the coming into force of this Act, ensure that the electrical installation and each electrical appliance to which the duty extends has been checked for safety within a period of 12 months before the lease commences or has been or is so checked within 12 months after the electrical installation or electrical appliance has been installed, whichever is later; and
(c) ensure that a record in respect of any electrical installation or electrical appliance so checked is made and retained for a period of 6 years from the date of that check and which shall include the following information—
(i) the date on which the electrical installation or electrical appliance was checked;
(ii) the address of the premises at which the electrical installation or electrical appliance is installed;
(iii) the name and address of the landlord of the premises (or, where appropriate, his agent) at which the electrical installation or electrical appliance is installed;
(iv) a description of and the location of the electrical installation or electrical appliance checked;
(v) any defect identified;
(vi) any remedial action taken;
(vii) the name and signature of the individual carrying out the check; and
(viii) the registration number with which that individual’s firm is registered with a Part P competent persons scheme approved by the Department for Communities and Local Government and certified as being competent in periodic inspection and testing.
(3) Every landlord shall ensure that any work in relation to a relevant electrical installation or electrical appliance carried out pursuant to subsection (1) or (2) above is carried out by a firm registered with a Part P competent persons scheme approved for the time being by the Department for Communities and Local Government.
(4) The record referred to in (2)(c), or a copy thereof, shall be made available upon request and upon reasonable notice for the inspection of any person in lawful occupation of relevant premises who may be affected by the use or operation of any electrical installation or electrical appliance to which the record relates.
(5) Notwithstanding subsection (4), every landlord shall ensure that—
(a) a copy of the record made pursuant to the requirements of (3)(c) is given to each existing tenant of premises to which the record relates within 28 days of the date of the check; and
(b) a copy of the last record made in respect of each electrical installation or electrical appliance is given to any new tenant of premises to which the record relates before that tenant occupies those premises save that, in respect of a tenant whose right to occupy those premises is for a period not exceeding 28 days, a copy of the record may instead be prominently displayed within those premises.
(6) A landlord who fails to comply with this section commits an offence and is liable on summary conviction to a fine not exceeding level 4 on the standard scale.”
The new clause would introduce a requirement for landlords to undertake electrical safety checks.
New clause 54—Description of HMOs—
‘(1) The Licensing of Houses in Multiple Occupation (Prescribed Descriptions) England Order 2006 is amended as follows.
(2) Clause 3, subsection (2), leave out paragraph (a).
(3) Clause 3, leave out subsection (3).’
The new clause would remove the three storeys condition from the conditions HMOs must satisfy in order to be of a description prescribed by article 3(1) of the Housing Act 2004.
Amendment 154, in clause 91, page 38, leave out lines 6 and 7.
This amendment would retain sections 225 and 226 of the Housing Act 2004 regarding accommodation needs of gypsies and travellers.
Amendment 99, in clause 92, page 38, line 24, at end insert—
“(c) has a current entry on the Database of Rogue Landlords and Letting Agents as set out in Part 2 of the Housing and Planning Act 2015”.
The amendment would deny those with an entry on the Database of Rogue Landlords and Letting Agents from being granted a licence for a HMO.
Amendment 67, in clause 93, page 39, line 25, leave out “as an alternative” and insert “in addition”.
The amendment would allow for a financial penalty as an addition rather than as an alternative to prosecution.
Government amendments 27 to 30.
New clause 47—Duty of Care—
‘(1) The Secretary of State shall by 31 December 2016 introduce via regulation a statutory Duty of Care to be placed upon acquiring authorities.
(2) The Duty of Care established under subsection (1) must include, but need not be confined to specifications regarding the treatment by acquiring authorities towards those losing land or property to compulsory purchase.”
This new clause would place a Duty of Care upon acquiring authorities to ensure that those losing land or property to compulsory purchase are treated fairly, as well as introducing a clear set of guidelines by which authorities would have to adhere to and could be judged against.
Amendment 79, in clause 141, page 70, line 44, at end insert—
‘(6) If an acquiring authority fails to make an advance payment of compensation and the landowner has fulfilled all of the requirements to facilitate a payment, the acquiring authority will not be able to take possession of the relevant land without the written permission of the landowner or until an advance payment has been made.”
This amendment would require compensation to be paid in advance of entry to allow for the purchase of replacement land or another business asset. The failure to provide compensation in advance would prohibit the acquiring authority to take possession of the land in question without the written permission of the landowner.
Amendment 76, in clause 142, page 71, line 15, at end insert—
‘(1A) The rate of interest on compensation due to be paid in advance of entry, but paid late, shall be set at 8% above the Bank of England base rate.
(1B) Interest on compensation that is paid after entry, but was not due in advance of entry, shall be paid at 4% above the Bank of England base rate.”
This amendment would set the interest rate on compensation that was due before entry, but not paid on time, at 8% above the base rate, in line with the interest rate on late commercial payments. Any compensation which is paid after entry but was not quantifiable at the time of entry would attract an interest rate of 4% above the base rate, in line with commercial lending rates.
Amendment 77, page 71, leave out lines 24 to 32.
This amendment is consequential to amendment 76.
Mr Jones
I will give way later in my comments. This is the final group before we send this Bill to the other place. A small number of landlords and property agents do not manage their lettings or properties properly, sometimes exploiting their tenants and the public purse through renting out overcrowded accommodation. New clause 62 deals with the contravention of an overcrowding notice under section 139 of the Housing Act 2004. The maximum fine currently allowed is set at level four, which is £2,500. The amendment, which affects premises in England only, would remove the restriction on the fine that may be imposed. The landlords and property agents who let overcrowded properties will therefore face the same penalties as those who let out substandard and unsafe properties.
Amendments 27 to 30 revise schedule 6 to the Bill to increase the maximum amount of civil penalty that can be imposed as an alternative to prosecution for the following offences: failure to comply with an improvement notice; failure to obtain a licence for a licensable house of multiple occupation or to comply with HMO licence conditions; and failure to obtain a licence for a property subject to selective licensing, or to comply with licensed conditions. The maximum penalty for those offences will now stand at £30,000. The amendments also increase the civil penalty to £30,000 for contravening an overcrowding notice. Once again, that is in line with the civil penalties for other housing offences under the Housing Act 2004.
In addition, the offence of failing to comply with management regulations in respect of a house in multiple occupation has also been added to the list of offences that can attract civil penalties as well as an alternative to prosecution.
We have listened to the debate that has taken place as the Bill has progressed through the House. In Committee, Members expressed concern that £5,000 was not much of a disincentive for a rogue landlord to continue to operate as they could easily recoup that sum in a relatively short period of time through unlawfully continuing to rent out properties, and we absolutely agree with that. A potential fine of up to £30,000 will significantly negate any economic advantage a rogue landlord might seek to achieve through breaching a banning order. The amendments tabled during this part of our debate will help to create a fairer housing market and to see unscrupulous landlords driven from the sector.
Teresa Pearce (Erith and Thamesmead) (Lab)
I rise to speak to new clauses 52 to 54 and amendments 154, 99 and 67.
New clause 52 follows on from the private Member’s Bill of my hon. Friend the Member for Westminster North (Ms Buck), which sought a similar aim, and from the discussions in Committee. It seeks to put into legislation a duty on all private sector landlords to ensure that, when they let their properties, they are fit for human habitation.
The majority of landlords let property that is, and remains, in a decent standard. Many go out of their way to ensure that even the slightest safety hazard is sorted out quickly and efficiently, which makes it even more distressing when we see reports of homes that are unfit for human habitation being let at often obscene prices. A quarter of a million properties in the private rented sector are estimated to have a category 1 hazard. According to a major report by Shelter, following a YouGov survey, 61% of tenants were found to have experienced mould, damp, leaking roofs or windows, electrical hazards, animal infestations or a gas leak in the previous 12 months.
Jake Berry
I would like to disagree with the hon. Gentleman at length, but time will not allow me to do so. Leasehold tenure solves problems that cannot be solved by commonhold, including problems relating to the flying freehold, which can be dealt with only by a lease. I do not believe that commonhold is the answer to that problem. Whatever the answer is, however, if we were to create a new form of tenure, of which we expected commonhold to become a part, we would have to ensure that mortgage companies were happy with it. In my career, I have seen lots of properties with a market value of zero because they were unmortgageable owing to problems with flying freeholds.
Finally, I want to comment on the proposals on the electrical safety certificate set out in new clause 53, tabled by Labour Members. It is a good idea for the Government to find ways of ensuring that landlords prioritise electrical safety, but I do not agree with the proposals in the new clause. Subsection 2(b) seems to propose that a landlord would have to provide a certificate every 12 months. That is too onerous and a longer period should be proposed.
It is important that landlords take electrical safety very seriously, but we should also be looking at ways in which we can get owner-occupiers to take it more seriously. We lived in the house I was brought up in for 35 years and when we put the light on to go into the cellar it would flicker on and off. We had had no electrical work done for 35 years, yet my parents were amazed when the people who bought the house from them, when they eventually moved, said that it needed rewiring. Anything that can encourage people to look at what is in place in their own home, not just rented properties, would be advisable. I do not think it is necessary to have primary legislation to deal with this, because I know from properties I let that estate agents often insist that landlords provide an electrical safety certificate. If they do not insist on it, often the insurance company will insist on an up-to-date electrical safety certificate for a proper buy-to-let commercial insurance policy. I am not sure that we need primary legislation, but I would encourage people to look at this.
Finally, I reiterate my call on the Government to push forward with the excellent family-friendly tenancy, which is sat there waiting for Ministers to embrace it to ensure that families are protected. All the other provisions in this Bill relating to the private rented sector would be so much more welcome if people could have more security of tenure in private rented leases.
Mr Marcus Jones
Given the time available, I will move straight on to dealing with the proposals. On the amendments tabled by the hon. Member for Poplar and Limehouse (Jim Fitzpatrick), I recognise the comments that he and my hon. Friend the Member for Worthing West (Sir Peter Bottomley) made about the benefits of commonhold tenure, but there are important differences between it and leasehold. For example, a different statutory framework of rights and protections is in place, and my hon. Friend the Member for Rossendale and Darwen (Jake Berry) eloquently explained his experience of some of the challenges in that area. That is partly why commonhold is, and was intended to be, a voluntary alternative to long leasehold ownership, and we believe it should remain so, without forcing commonhold on those who may not wish it. Notwithstanding that, I hear what the hon. Gentleman has said, and I know that he and my hon. Friend the Member for Worthing West have discussed this matter with the Minister for Housing and Planning. He will keep it under review and will continue the dialogue with them.
I understand the arguments put forward in new clause 4, but I do not believe it to be necessary. It would conflict with last week’s deregulatory clauses. Housing association tenants already have a number of ways to scrutinise their landlords and hold them to account, in addition to the Homes and Communities Agency’s regulatory standards. They may, for example, refer complaints to the housing ombudsman, who may also, along with tenants, raise specific concerns with the regulator, who has the power to initiate a statutory inquiry. That can lead to interventions in housing association management structures or to forced mergers or takeovers where the boards are not fit for purpose.
Mr Jones
I need to make progress because I have not got long. I am glad to say that the regulator rarely needs to use such powers.
My hon. Friend the Member for Carlisle (John Stevenson) tabled new clause 42, and I can understand why he has raised this issue, as has my hon. Friend the Member for St Albans (Mrs Main), and why mobile home owners object to a 10% commission on the sale of a home. Commission is one of the legitimate income streams for park home businesses. If the commission was reduced or abolished, there would need to be a compensatory increase in pitch fees to cover the shortfall in income, a move which many park home residents would not support. Following its inquiry into the park homes sector in 2012, the Select Committee on Communities and Local Government held an inquiry into the park homes sector just before legislation was passed, recommending that the right of site owners to receive up to 10% commission from the sale of a home should remain in place. The coalition Government agreed with the finding of the Select Committee, and this Government’s view remains unchanged. That said, the Mobile Homes Act 2013 introduced substantial changes to the sector and it is important that the new measures are given time to have an impact. We will therefore review the effectiveness of the legislation in 2017. I can reassure colleagues that a working group is already in place, and I am sure that they will await its recommendations with bated breath and anticipation.
Robert Neill
I am grateful to my hon. Friend for his response, and will of course not press my amendment. I hope that we can now go forward with some constructive discussions.
Mr Jones
In the same spirit let me say that I am extremely glad to hear that. I am sure that the Minister for Housing and Planning will continue to work with my hon. Friend, as he has undertaken to do.
In bringing this stage of the Bill to a close, I wish to say that it has been a pleasure to support my hon. Friend the Minister for Housing and Planning in helping the House to scrutinise the Bill and the amendments that we have tabled to improve it. I trust that the House will look favourably on the remaining Government amendments, and that Members who have spoken to other amendments will not push them to a Division.
Question put and agreed to.
New clause 62 accordingly read a Second time, and added to the Bill.
New Clause 52
Implied term of fitness for human habitation in residential lettings
‘(1) Section 8 of the Landlord and Tenant Act 1985 (c.70) is amended as follows.
(2) Leave out subsection (3) and insert—
“(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) Leave out subsections (4) to (6).
(4) 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 often 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.”
(5) In section 10 of the Landlord and Tenant Act 1985, after “waste water”, insert—
(6) Regulations may make provision for guidance as to the operation of the matters set out in section 10 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 receives Royal Assent 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.”’—(Teresa Pearce.)
This new Clause would place a duty on landlords to ensure that their properties are fit for habitation when let and remain fit during the course of the tenancy.
Brought up, and read the First time.
Question put, That the clause be read a Second time.