Private Landlords (Registration)

Phil Wilson Excerpts

1st reading: House of Commons
Wednesday 17th January 2018 Commons Chamber

[Phil Wilson (Sedgefield) (Lab)]

I beg to move,

That leave be given to bring in a Bill to require all private landlords in England to be registered; and for connected purposes.

Over the years, one of the key issues consistently raised with me by my constituents has been the role played by some private landlords and their tenants in the local community. Let me say up front that the majority of private landlords are responsible. As always, there are those who do not fall into that category—private landlords who do not care about their tenants or who they rent to, or the communities in which their properties are placed; all they are interested in is the rent they can secure, and nothing else.

The whole policy area surrounding the regulation of private landlords is frustrating. It is failing to solve the problems faced by local communities, local authorities are stretched beyond their ever-shrinking budgets, and local people feel neglected. I now believe it is time to consolidate regulation on private landlords, underpinned by a mandatory licensing scheme to help to remedy some of the disquiet felt by people in Sedgefield and throughout the country.

Once, Durham’s economy was based on coal: 100,000 miners worked down 100 collieries and, with their families, lived in tight-knit communities. Many of the colliery villages thrived in that economy—villages such as Ferryhill, Fishburn, Chilton, the Trimdons, Wheatley Hill, Wingate, Thornley and West Cornforth. They all had and have one architectural characteristic in common: row upon row of back-to-back colliery terraces. Now, years after the end of the coalmining era, they have become the preserve of private landlords, and in some areas a hotspot for neglect and crime.

Some residents who have lived in the local area for years and remember earlier times can tell better than most how it has changed. To help to resolve the problem, selective licensing schemes have been introduced in the county, with some success, but they can be administratively burdensome and very staff intensive. The council’s accreditation scheme is voluntary and attracts only the good landlords. A mandatory registration scheme would place the onus on the landlord. In 2008, the Labour Government ordered a review of the private rented sector. In response to the review, in May 2009 the Government outlined their intention to introduce a national mandatory register of the private landlord sector, but the general election intervened and the coalition Government decided not to take the proposal forward.

By the time of the 2011 census, the number of private rented homes in the county had increased by 78% to nearly 16,000 properties, or 14% of the housing stock. Half of that stock consists of typical colliery terraced housing, which is difficult to sell and difficult to let. Also, there are about 4,000 long-term empty homes in Durham. They are empty for different reasons: some are inherited, some are part of the estates of deceased persons with no living relatives, and some are left empty because the owners have moved on and cannot sell their property; while other properties are bought by investors and left empty through choice. Under current legislation, properties can stand empty for as long as the owners like, and their only duty is to ensure that accessible windows and doors are secure. This leads some properties to become an attraction for antisocial behaviour, arson and fly-tipping. The county council informs me that it sometimes takes weeks or even months to track down the owner of a property so that a problem can be addressed.

I have been working on this issue with the police and crime commissioner for Durham, Ron Hogg. The police are concerned about the effect that a high concentration of private landlords has on areas of high deprivation. Ron Hogg’s office has provided me with data from the Office for National Statistics showing that nationally there is a link between the prevalence of private landlords in areas of high deprivation and levels of crime. In Wheatley Hill in my constituency—one of the most deprived communities in the county, where the number of people who are economically inactive due to long-term sickness or a disability is almost three times the national average—43% of households in an area of the village that is of concern to the local authority and agencies are private lets, of which 30% are standing empty. The crime figures for the village are equally startling: in 2017 there were 122 crimes per 1,000 head of population, whereas the average for County Durham is only 77 per 1,000 head of population.

The lack of information on private landlords leads to an increased workload for the police. In one incident, a property in County Durham was being used for drug taking. The police had the previous landlord’s details and later discovered the details of the new landlord, but did not have a contact number. Letters were written to him, but it took a fixed penalty notice from environmental health to make him contact the council. The tenants who had caused the problems had moved on by this time due to rats in the property, but the house had also been trashed. Had the landlord’s information been available at the start, the issue could have been resolved quickly, instead of dragging on for seven months. In another incident, a police constable reported that he had attended an empty private rented property after an arson. It was in the process of being burgled. Two arrests were made. Local letting agents and the council were contacted, but no one knew who the landlord was. Those arrested were released under investigation because the matter could not be recorded as a crime without an injured party. If the landlord’s details had been known, charges could have been brought.

Ron Hogg has said about the private landlord sector:

“Not only are large numbers of properties unfit for habitation...but the lack of control over the market is resulting in the breakdown of many of our communities and in many cases resulting in increases in crime and disorder.

He goes on:

“This is costly to local communities and costly to the state—too much police time is being spent dealing with problems that could be avoided if it were possible to identify the landlords and provide enforcement at an earlier stage.”

Mr Hogg says:

“Only a mandatory private landlord registration scheme, administered by local authorities and funded by private landlords and fines from enforcement, can create a situation where this can be brought under control.”

Chief Constable Simon Cole of Leicestershire police, who is the National Police Chiefs Council portfolio lead for antisocial behaviour, has said that

“it would be helpful to local policing if local authorities had to have a register of private landlords so that they can fulfil their responsibilities in protecting vulnerable people.’

Chief Constable Mike Barton of Durham constabulary has said:

“A mandatory register would save time and public money for the whole range of organisations delivering services in areas where antisocial behaviour is common... It would mean that police and our partners...would be much better placed to nip problems in the bud rather than being unable to carry out enforcement on unidentifiable landlords, often based hundreds of miles away. I am sorry to say that, too often, such people couldn’t care less about the misery their indifference causes to decent hard working families”.

I, those who work in local government, the police and, more importantly, the communities we serve want attention to be paid to this issue, which has been neglected, or at best addressed with piecemeal legislation from those who believe a light touch is best. Light touch is not good enough if you have to live with the consequences of inadequate resources to chase people who do not care.

How would a mandatory registration scheme work? Under such a scheme, to rent out property a landlord would have to register, pay a fee and adhere to a strict code of compliance. The code should require all landlords to manage their properties to ensure they are fit to live in, with tenancies managed in such a way that any issues are addressed immediately. The scheme should be administered by individual local authorities with appropriate budgets attached. Revenue would be raised by a registration fee, with tough fines imposed for failing to adhere to the code. Tenants’ rights should be enshrined in law, and fit-for-habitation certification procedures introduced. A mandatory scheme should make data sharing between statutory agencies easier. That would bring in revenue to the Exchequer by ensuring that all such incomes were registered for tax purposes, and enable statutory agencies, the police and HMRC to co-operate more effectively to tackle landlords who are not prepared to play by the rules. The benefits would be improved quality of life in our communities, reduced demand on policing, reduced demand and cost to local authorities, and potentially increased revenue to the Exchequer. This would be a self-funding scheme administered locally.

Before some people start mentioning red tape, I point out that the Immigration Acts 2014 and 2016 require private landlords to check the immigration status of their tenants. Non-compliance can lead to a fine of up to £3,000. It would seem that national schemes can be implemented when we want them to be.

I believe that a mandatory scheme would look after the best interests of private landlords, their tenants and the communities in which they are located. The people of Wheatley Hill and similar communities deserve the security such an initiative would offer.