Tenant Fees Bill

Debate between Melanie Onn and Bob Blackman

Ping Pong: House of Commons
Wednesday 23rd January 2019 Commons Chamber

[Melanie Onn]

I have already given way generously.

The first point that our amendments seek to address is the financial staggering for the cap level that landlords are allowed to impose. I have sympathy with the Government’s aim of prioritising a reduction of the deposit burden on those at the cheaper end of the market, but the specific provisions in Lords amendment 36 could mean that those in joint tenancies end up being subject to the higher cap, despite individually paying significantly less in rent than is used as a threshold in the amendment. It is counterintuitive to create a cap that allows deposits to be relatively higher for someone paying £5,000 a year in rent in a 10-bed large house in multiple occupation than for someone paying £45,000 in an individual rent, so I would welcome reassurance that joint tenants will not be short-changed by the differential cap. If they will be, I would welcome an explanation of the logic behind the decision to allow those in joint tenancies to be charged relatively more.

Regardless of the functioning of the differential cap, the Lords amendment will do little for the majority of tenants in this country. The cap will have a negligible effect on the majority of deposits in the country and will allow the current system to function virtually unchanged. For the graduate who cannot afford the up-front costs to move to a city for a new job, or for the family given just two months to save enough money to find a new flat and avoid homelessness following a section 21 notice, the system is simply not fit for purpose and needs urgent change.

According to the English housing survey, a five-week rental deposit will set new tenants back an average of almost £1,000 across the country, and over a staggering £1,500 in London. For many in society who are living pay cheque to pay cheque, saving that sort of money would take an enormous amount of time, and certainly far longer than the two months that tenants are given when they are served with section 21 notices. That means that many struggle to access the flexibility that renting should offer. They fear being served notice to vacate because that could result in homelessness. That is simply not how the private rented sector should function.

Our amendments would change that. Lords amendment 36 introduces an ill-thought-through staggering system. Amendment (a) in lieu would reduce the cap on deposits from five or six weeks to three, and our amendments together will reduce deposits to three weeks for all, closing the loophole that could be opened by Lords amendment 36.

I was interested to hear the Minister’s announcement of the enactment date. A written statement is due today, which I look forward to reading. I was also interested to hear her comments in response to my hon. Friend the Member for Manchester, Withington (Jeff Smith), who is no longer in his place, on enforcement and trading standards. She said that the consumer money protection measures in the Bill would be in place before enactment. I would appreciate clarity on whether she meant enactment on 1 June 2019, which is rapidly approaching, or whether she was referring to the commencement date of April next year.

Labour’s amendments would give private rented sector tenants a very welcome helping hand at a very expensive time. If passed, the amendments would reduce the deposit barrier by almost £400 across the country, and by over £600 in London, offering significant change to tenants from all backgrounds and building a better private rented sector for the many.

[Bob Blackman]

I draw the attention of the House to my entry in the Register of Members’ Financial Interests.

It is a pleasure to follow the hon. Member for Great Grimsby (Melanie Onn). I had the opportunity to chair—and the challenge of chairing—the Housing, Communities and Local Government Committee during pre-legislative scrutiny in the absence of the elected Chairman of the Committee, the hon. Member for Sheffield South East (Mr Betts), who unfortunately was undergoing health treatment at the time. I take absolutely the praise that the hon. Lady pours on me for reaching the judgment of Solomon—[Interruption.] It was possibly unintended at the time. From the outset of our pre-legislative scrutiny, on an all-party basis, we sought to balance good landlords and tenants, who are the overwhelming majority, with the small minority who are rogue landlords and rogue tenants. The risk here is the balance that is struck.

I do not intend to go over all aspects of the Bill but, clearly, I am absolutely delighted that the Government have seen fit to endorse all the Select Committee’s recommendations, especially the reduction of deposits from six to five weeks’ rent. I will again set out why we came to that conclusion. As Members might recall, we had a long discussion about it in Committee. Some promoted the concept of a six-week deposit and some a four-week deposit. No one but no one on the Select Committee promoted less than four weeks, for very good reasons.

Our view was that a six-week deposit was clearly too onerous for tenants. I accept what the hon. Member for Great Grimsby says about the cost to tenants of a six-week contribution, but there is also a clear risk with only a four-week deposit—or, worse still, her proposed three-week deposit—because we might get to a position in which, in the last month before the end of a six-month assured shorthold tenancy, a tenant has no incentive whatever to pay their last month’s rent. Tenants could just skip, and the landlord would then have to pursue them through the courts, bearing incredible costs unreasonably.

The issue for us was that four weeks would lead to a position whereby the tenant had an incentive to say, “Okay, I won’t pay the last month’s rent—just take it out of the deposit,” and then if the landlord could reasonably wish to claim money from the deposit because of damage or other reasons, they would have to pursue court action to recover it. That would be grossly unfair on good landlords, who are the vast majority in this country. Other members of the Committee promoted six weeks, so we ended up with the view that five weeks struck a balance between giving tenants an incentive to pay their last month’s rent, in the knowledge that they would get back their deposit had they been good tenants, and landlords being forced to go through a proper claim process to recover moneys as a result of damage by a tenant.

Easter Adjournment

Debate between Melanie Onn and Bob Blackman

Thursday 24th March 2016 Commons Chamber

[Bob Blackman]

I am more used to barracking from the other side. However, my hon. Friend is the Minister’s Parliamentary Private Secretary.

During the Budget debate, I raised the plight of the Equitable Life policyholders. It is to the eternal credit of the Chancellor and his team that we honoured our election promise in 2010, and delivered a scheme to compensate the victims of that scandal. However, there are still some very vulnerable people—the pre-1992 trapped annuitants—who have received only a small fraction of the money that is due to them in comparison with the loss that they suffered. I believe that we owe a debt of honour to those people, and that we should honour that debt by delivering 100% compensation to them.

Moreover, nearly a million people in other categories have not received full compensation, and I believe that they are also owed a debt of honour. We need to ensure that more money is provided so that those people can lead a proper life in retirement, because they had saved for their retirement and, through no fault of their own but as a result of a scandal, were then deprived of a reasonable income. The all-party parliamentary group for justice for equitable life policyholders now has more than 200 members, and we will continue to battle until such time as the Chancellor sees fit to let us have some more money for those people who are due compensation.

Another all-party parliamentary group of which I am a member, the all-party parliamentary group on primary care and public health, recently released a key report about the signposting of people in the NHS. Far too often, people who are ill arrive in accident and emergency departments when they should be seeing someone in the primary care sector, such as a GP or a nurse. We must do more to ensure that that happens.

I want to raise another health-related matter, namely stopping smoking. I warmly welcome the Chancellor’s decision to continue to increase the tobacco tax by 2% above inflation, with a 3% increase in the rate for hand-rolling tobacco. That is a good move, and it should continue. However, I think we should go further. Given that the Chancellor has now talked about a sugar tax to drive behaviour, let us have a tobacco tax to do the same. By increasing the tax on tobacco by just 1p per cigarette, we would deliver £500 million a year that could be invested in smoking cessation services.

This year, I had the honour of paying my first visit to India. My visit to Jammu and Kashmir cemented my view that that country, and above all the people of Jammu and Kashmir, should be reunited as part of India. They should have the right to be integrated, and the Pakistani forces should leave Pakistani-occupied Kashmir. I also had the opportunity to visit the world cultural festival. We talk about the brilliant work that was done at the Olympics, but I saw at first hand the festival’s 165,000 participants dancing and performing. Nearly 2.5 million people attended. We talk about the grand schemes that we organise, but just imagine what it would be like to put a festival like that together.

[Melanie Onn (Great Grimsby) (Lab)]

It sounds like the Hull city of culture.

[Bob Blackman]

It was indeed deeply cultural.

Mr Deputy Speaker, I wish you and all the staff of the House a very happy Easter. I trust that you will have a chance to take a break. I just want to mention one more thing that I am concerned about. On Easter eggs now, we never see the word “Easter”. They are just chocolate eggs. The “Easter” has been taken away. It is time that we restored the “Easter” to Easter eggs.