Rating (Property in Common Occupation) and Council Tax (Empty Dwellings) Bill

Debate between Neil O'Brien and Rishi Sunak

Tuesday 16th October 2018 Commons Chamber

[The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Rishi Sunak)]

I beg to move, That the House agrees with Lords amendment 1.

It gives me great pleasure to speak in support of the amendment. As previously discussed in this House, this Bill takes forward two important measures that featured in the Chancellor’s Budget speech of last November. The first fulfils the Government’s promise to end the so-called “staircase tax”, giving welcome relief to businesses. The second, which is the subject of our deliberations today, addresses the issue of long-term empty homes, doubling to 100% the council tax premium that local authorities can charge on homes that have been empty for two years or more.

[Neil O'Brien (Harborough) (Con)]

Is the Minister aware that in my constituency the number of empty properties has been driven down by a third by the existing empty homes premium? I am delighted to see this measure, because it will reduce the number of empty homes in my constituency, which is currently at 400—that represents a village the size of Great Bowden. That means far less pressure on development and a better use of our housing stock.

[Rishi Sunak]

I thank my hon. Friend for that intervention and for his support for the measures in this Bill. I also pay tribute to his local authority for the sterling work it has clearly done, as have so many others across the country, in tackling this blight of empty homes. I am particularly grateful to him, because I know he has another housing-related debate coming up in short order and so I am privileged that he has made time to speak in support of this measure. I wish him well in his further debate later this afternoon.

--- Later in debate ---

[Rishi Sunak]

I can see my diary filling up rapidly as the debate progresses, but I would be delighted to visit my hon. Friend and the successful redevelopment. Indeed, I will perhaps mention it to my hon. Friend the Housing Minister for when he is next in the area.

[Neil O’Brien]

I promise not to invite the Minister to my constituency—although I stress that he is always very welcome there. He tempted me to intervene with his mention of the pub that was brought back into use through the “No Use Empty” programme. Does he agree that this legislation is an example of a wider point that needs to be discussed: the reuse of our existing building stock more generally? Permitted development rights and other things that make it easier to reuse older buildings have taken the share of new properties coming on to the market through change of use from about 12% of supply to 20% of supply over the past couple of years. Does he agree that that is saving a huge amount of countryside?

[Rishi Sunak]

As ever, my hon. Friend makes an insightful point. He has great experience in this area. Indeed, he has published proposals relating specifically to this area, on which my hon. Friend the Housing Minister is engaging with him. More intelligent use of development rights and our existing stock can help play a part in solving the housing market problems that we see.

Oral Answers to Questions

Debate between Neil O'Brien and Rishi Sunak

Monday 23rd July 2018 Commons Chamber

[Neil O’Brien (Harborough) (Con)]

I welcome the Government’s commitment to a fair funding formula, and I thank the Minister for meeting me and representatives of Leicestershire County Council. Will he confirm that the review that is under way will look at the balance of funding between districts and counties? After all, it is the counties that are bearing the burden of a growing older population and the growing burdens on children’s social services.

[Rishi Sunak]

I can confirm that I have met representatives of my hon. Friend’s council regularly to discuss this topic, including just the other week at the local government conference. We received more than 300 submissions to the recent consultation on fair funding. That is one of the topics raised, and the Department is considering all responses with a view to replying later this year.

Tenant Fees Bill (First sitting)

Debate between Neil O'Brien and Rishi Sunak

Committee Debate: 1st sitting: House of Commons
Tuesday 5th June 2018 Public Bill Committees

[Neil O'Brien]

Q Some have argued for taking it down to four weeks. What would be the effect of that?

David Cox: If we drop it to four weeks—the security deposit is a risk mitigation product, and therefore four weeks is effectively one month. If the tenant leaves without paying the last month’s rent and damages the property, if it is a month, they will either have the money for the lost rent or the money for repairing the property. That is why we have suggested the cap or agree with the cap at six weeks—because it gives the ability for the tenant not to pay the last month’s rent and to damage the property. That is why we have suggested and support six weeks, bearing in mind that, provided everything goes smoothly, the tenant will get that full money back at the end.

Isobel Thomson: I would like to see a permitted payment or an exemption for the situation where a tenant has a pet. Often, agents charge a higher deposit because of having a pet. We would not want to disadvantage people with cats and dogs, would we? That is something that should be looked at.

Adam Hyslop: I agree. The risk from limiting the level of deposit is simply that it limits tenant choice. Some tenants are higher risk than others. Pets are a good example where a landlord might want to take a higher deposit. Another example is that we get quite a lot of people who come from overseas and they are harder to reference. Although you can contact employers, they do not have a UK credit score and things like that. The remedy, without charging that tenant an actual fee, would be to increase the deposit to a reasonable level.

There are things such as rent in advance that can work around that, but frankly, a six-week deposit feels like a reasonable compromise to protect tenant choice on this, rather than foreclosing on some groups.

[The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Rishi Sunak)]

Q May I thank all the panellists for being with us this morning and thank you for engaging with the Department during the course of the formulation of the Bill. I appreciate all the time you have given.

For the record, the Government and I do not have the intention of trying to drive letting agents out of business, as was potentially characterised early on. We very much recognise the valuable role that high quality letting agents play. We have got a great example of one here this morning. This Bill is just about improving the industry to make it work for tenants where there have been abuses of the system and an asymmetry of power. I wish to put on record our thanks for the work many good letting agents do.

In the brief time we have—and in a quick answer to the question—the Bill allows for default fees for things such as a lost key or a late rental payment. Do you think that is a sensible provision to have in the Bill? Also, the Bill allows for payment for changes to the tenancy agreement at the request of the tenant—such as an extra sharer added to the tenancy agreement—capped at the landlord’s reasonable fees for that. Do you think those are sensible? Do you think they should be limited or broadened?

Isobel Thomson: I would say that they are eminently sensible but we just need guidance around how they will operate. I know that civil servants have already started to engage with stakeholders on that.

David Cox: I would support that; I think they are absolutely necessary. I highlighted one example a few moments ago. Under the Bill, they will have to be written into the tenancy agreement so that tenants are aware of them from the outset. Our reading of the Bill is also that anything that is in the tenancy agreement will need to be in the fee schedule, that is displayed prominently in the office and on the website and, under the Bill, on any third-party websites such as Rightmove or Zoopla. I would just query on that one. A lot of agents use Twitter to display their fees; I am not sure how they would get the fees on to the advert in the necessary number of Twitter characters.

We also have to factor in that—

Oral Answers to Questions

Debate between Neil O'Brien and Rishi Sunak

Monday 30th April 2018 Commons Chamber

[Rishi Sunak]

I hope that Manchester is willing to thank this Conservative Government for backing it with the resources it needs: £13 million in housing infrastructure funds, £30 million for adult social care and, indeed, a business rates pilot that is delivering £20 million, benefiting businesses across Manchester. Those are the actions of a Conservative Government who are delivering for people across the country.

[Neil O’Brien (Harborough) (Con)]

If Leicestershire was as well funded as London’s Camden Council, it would be £350 million a year better off. Does the Minister agree that the only way of making good councils financially sustainable is to have a fair funding formula, with transparent formulae and up-to-date data? Will he look closely at the Leicestershire model for bringing that about?

[Rishi Sunak]

I could not agree more, and it was a pleasure to meet his local council to understand its model. It has a lot to commend it, and we will consider it as part of our fair funding consultation.