Private Landlords (Register and Duties)

Phil Wilson Excerpts

Tuesday 14th June 2011 Commons Chamber

[Phil Wilson (Sedgefield) (Lab)]

I beg to move,

That leave be given to bring in a Bill to make provision for a register of private landlords; to require private landlords to take certain actions in the event of anti-social behaviour by their tenants; to give additional powers to private landlords and local authorities in cases of anti-social behaviour by tenants; to establish a community fund to which private landlords must contribute; and for connected purposes.

In every community, the number of private landlords and the size of the private sector are increasing. It has been estimated that, by 2020, 20% of the UK’s housing stock will be private lets. At the beginning of the 21st century, about 10 years ago, 3% to 4% of the housing stock in Sedgefield was private lets. Today the figure is about 11% or 12%. In inner-city areas of London such as Camden and Newham, it is as high as 30%. Shelter estimates that the proportion of households in private lets stands at 15%—an increase of 40% over five years. Such households with children have grown at an even faster rate, increasing by 16% in just 12 months.

With proposed changes to homelessness legislation, cuts to housing and high house prices and deposits, private renting will be under increasing pressure, especially at the lower end of the market among the most vulnerable groups. The private rented sector is rife with problems. Some 36% of Shelter advice queries come from private renters, more than double the proportion in the population at large. Satisfaction is lower, and accommodation is more likely to be of a poor standard. According to Julie Rugg’s investigation of the private rented sector in 2008, 50% of privately rented properties failed to meet the decent homes standards.

The expansion of buy-to-let lending over the past decade saw a much wider range of individuals become landlords, many of them with little or no experience, knowledge or understanding of their responsibilities and the complex legal framework of renting. In fact, the buy-to-let sector includes more than 650,000 homes that could have been in the owner-occupier market, and the fact that they are not has helped to force up house prices.

Where there are high concentrations of private lets, some have caused a blight on the local community, especially in low-demand areas. In Sedgefield, where there are several ex-colliery villages with rows of terraced housing, private landlords have moved in. In some streets up to 40% or 50% of the properties are private lets. In others half the landlords are absentees, with some even living abroad. Over the past four years I have had numerous cases of private landlords who have neglected their properties and tenants. Antisocial behaviour has become a major problem in the affected areas, and some of the residents who have lived in the streets in question for years now do not feel part of the local community that they have known for a long time.

Two areas of Sedgefield—Dean Bank in Ferryhill and an area of Chilton—have been designated selective licensing areas, in which private landlords have to sign up to special conditions and protocols. They have been successful, but more needs to be done.

The basic problem is not private landlords. Some are a problem and some are very good landlords, but the vast majority are amateurs without the skills and wherewithal to deal with being a private landlord. The buy-to-let market has led to a huge increase in such landlords. The market has grown because people saw it as an opportunity to make capital gain, for example, from increased profits from the value of properties.

To help the huge number of private landlords, it is in their interest for a national register to be set up. With satisfaction lower in the sector than in others, and problems with private renting leading so many people to seek advice, it is clear that private renting is not securing the needs of households and communities. The universal cover of a national register will be a significant help to local authorities in identifying and targeting rogue landlords, and in enabling better joint working between local authorities to tackle such landlords across multiple areas. Serial offenders could be struck off the list.

In the immediate future, however, the private rented sector is under increasing pressure and there is a need to strengthen local authorities’ response to tackle rogue landlords and the many amateur landlords who need help as much as anything else. The purpose of the register would be distinct from licensing. It would be mandatory and its purpose would be to enable local authorities to get a handle on the local private sector so that they can work with landlords. The register could be run by local authorities or housing associations, or it could be outsourced to a third party. A fee could be charged for administrative costs. Sanctions for failing to register could be preventing landlords from serving section 21 notices, rent payment orders or fines.

The register could help local authorities to determine how many private landlords there are in a given area. If the number reaches a certain level, I believe that landlords should pay a community levy, especially in those areas where they dominate the housing stock. If people take out of the community, they should put back into it. If, for example, 25% of homes in a given area are private lets, or if one landlord owns several properties in an area, a community levy should be payable into a fund to put towards the upkeep of the area. Local people, in the spirit of localism, could decide how the fund is spent, whether to help with policing, environmental issues or whatever. Social landlords already do that, so why not private landlords? Again, the levy could be administered by a local authority, housing association or another arm’s length organisation. The more efficiently the community levy fund is administered, the more money will be available for investing in community programmes.

If in nine years’ time—by 2020—one in five of our homes is a private let, the whole sector will need to be professionalised. The private rented sector is the only sector that is currently expanding. The sector is necessary, but it needs to live up to its responsibilities. I have seen that for myself in my communities.

The sector needs regulation. Even the Rugg report says that market forces alone do not adequately police management quality in the sector. Therefore, intervention is required, not only for our communities, but for tenants and private sector landlords themselves. The Bill goes some way towards redressing the balance. In any event, I hope it raises what is a growing concern to many in the House, but more importantly, a growing concern to the people and communities whom we represent.

Question put and agreed to.

Ordered,

That Phil Wilson, Tom Blenkinsop, Mrs Jenny Chapman, Nic Dakin, Lilian Greenwood, Graham Jones, Ian Mearns, Owen Smith, David Wright, Stella Creasy and Lyn Brown present the Bill.

Phil Wilson accordingly presented the Bill.

Bill read the First time; to be read a Second time on Friday 18 November, and to be printed (Bill 201).