Draft Housing and Planning Act 2016 (Banning Order Offences) Regulations 2017

Melanie Onn Excerpts

Tuesday 9th January 2018 General Committees

[Melanie Onn (Great Grimsby) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Robertson.

The legislation has been a long time coming, but I welcome the Government’s adoption of yet another Labour party initiative. It was the last Labour Government who first proposed protecting tenants with a national register of landlords. The coalition Government labelled the proposal burdensome red tape and bureaucracy, and ditched it. My right hon. Friend the Member for Doncaster North (Edward Miliband) revived the idea, promising to root out rogue landlords, but it was then dismissed by the Conservatives because it meant more spending, which is odd considering the Government’s own impact assessment two years later that put the cost at a maximum of £40 million a year.

During that period, we have seen hundreds of thousands more households pushed into the private sector. Rents have increased by an average of 16%, and there has been no protection from that kind of exploitation. The changes in the Housing and Planning Act 2016 fall well short of the tough action we have been advocating for years, but they are a step in the right direction. To protect tenants from rogue landlords, we must have in place penalties for breaching the law and ways of rooting out those whose past actions deem them unfit to be landlords. The Act was passed in May 2016, so why has it taken 20 long months to introduce this statutory instrument? It took almost 11 months from the close of the consultation for the Government to publish their response and introduce the regulations. The delay has unnecessarily allowed rogue landlords the freedom to continue operating, without housing authorities having easy recourse to the law to protect tenants.

The Government’s consultation response states that almost half of respondents suggested additional offences that should be considered banning order offences, some of which were not criminal offences and some of which were already covered in the Government’s proposals. However, some of the suggestions were not adopted in the legislation because they were deemed

“not sufficiently serious to warrant a banning order”.

Will the Minister give some examples of those suggestions, and if possible make available a full list of the suggestions in that category after this sitting? It is quite a subjective assertion, and we could do with some more detail.

The offences added to the list following the consultation—items 7 to 14 of the schedule to the regulations—will be considered banning order offences only when they have been committed against or in collusion with a tenant at a time when the offender is a landlord. Why has that qualifier been introduced for those offences? Although they are not housing-specific offences, is it not the case that they would still make a landlord or agent not a fit and proper person for the role, regardless of whether the victims were their own tenants?

On the matter of banning orders, will there be guidance for tribunals? What qualifies for the minimum 12-month banning order, and what extends to the presumably indefinite banning order that may well come about as a result of that process? Will the indefinite bannings be monitored, or will there be any monitoring of repeat-offender rogue landlords to establish the effectiveness of the legislation?

I notice that the Minister mentioned that if a banning order were to be implemented, tenants would not lose their rights and would remain in the property, and a local housing authority would take responsibility for the property. Who will the local housing authority be? Will it necessarily be a local authority, or could it be a housing association if the local authority no longer has responsibility for managing properties? We have been discussing the quality of properties and landlords who allow their properties to fall into disrepair. In order for tenants to be properly protected and live in properties kept to a decent standard, will it become the responsibility of the third party to make good the property, and who will foot the bill?

Also, it seems to me that for a banning order, the local housing authority might need to gather further evidence to meet the thresholds expected by the first-tier tribunal. Will additional funds be provided for the local housing authority to undertake that work? I am unclear how onerous it might turn out to be for the authorities, but if it becomes particularly onerous, there may be resource implications for them.

What estimate has the Minister made of the number of landlords currently operating who would be eligible for banning orders if the legislation were already in place? In other words, if the legislation is made, how many landlords does he expect will receive orders in the next year, two years or five years?

I also wish to make a point about enforcement, because the regulations are only as good as the levels of enforcement that will accompany them. If landlords are not policed, what is the value of the laws that supposedly govern them? The Government have stood in the way of local authorities such as Newham and Redbridge that are willing to use the licensing powers available to them to crack down on rogue landlords. Newham’s licence was, bizarrely, not renewed for the Queen Elizabeth Olympic park area, while Redbridge’s entire application was rejected. Newham has prosecuted more than 1,200 landlords who were illegally evicting tenants and providing substandard accommodation that, in many cases, failed to meet the most basic health and safety standards. It has recovered more than £3 million in unpaid council tax, and has banned almost 30 of the worst offenders. Why would the Government want to side with rogue landlords over exploited tenants?

Having said that, I accept that the regulations are absolutely better than the status quo, so we have no plans to oppose their progress.