Housing and Planning Bill

Debate between Teresa Pearce and Jim Fitzpatrick

Tuesday 12th January 2016 Commons Chamber

[Jim Fitzpatrick (Poplar and Limehouse) (Lab)]

My hon. Friend is making a very strong case for the Government to take electrical safety checks more seriously. May I suggest, given the pressure on housing and the increasing number of buy-to-lets, HMOs and Airbnbs, and the different ways in which people are renting property, that this is an issue that will not go away? In fact, it could get worse. As my hon. Friend says, most decent landlords are already carrying out these checks and this is very much about encouraging those who do not to follow good practice.

[Teresa Pearce]

I thank my hon. Friend for that intervention, and that is exactly right. Across the private rented sector, many good landlords do all the things we would wish of them. It is for the minority that we need to legislate. As I mentioned, the Minister said in Committee that the Government were considering this and I know that there have been conversations with the sector, so I would be pleased to hear how far they have gone and whether something will be introduced in future.

New clause 54 would remove the three-storey condition for HMOs. That would require mandatory HMO licences for all buildings that meet all the other requirements of an HMO but are not three storeys high. HMOs come in a variety of forms and the current definition does not fit the actuality on the ground.

I know that the Government are consulting on extending mandatory licensing of HMOs and I shall be interested to hear where the Minister thinks that consultation might go. HMOs make up one of the main forms of private sector housing for students, young professionals and single people on low incomes and the three-storey threshold means that many actual HMOs do not require a licence. Indeed, down my road there is a bungalow—it clearly does not have three storeys—that has over the previous year had as many as 10 unrelated people living in it. Clearly, it would be classed as an HMO in any other regard apart from the fact that it is not three storeys high.

Private rented housing is an important part of the housing sector and with the reduction of housing benefit for the under-35s allowing only shared occupancy, more and more properties are in effect HMOs apart from the fact that they do not meet the three-storey provision. The new clause and wider Government consultation provide an opportunity to evaluate the purpose of HMO licensing simply to provide for a more robust, secure and safe private rented sector through the licensing of houses in multiple occupancy that operate with shared facilities.

Amendment 154 would lead to the retention of sections 225 and 226 of the Housing Act 2004, under which every local authority must, when carrying out a review under section 8 of the Housing Act 1985, carry out an assessment of the accommodation needs of Gypsies and Travellers who reside in the area, and provide for the Secretary of State to issue guidance on how local housing authorities can meet those needs. Clearly there has been and continues to be a need to recognise the differing housing needs of Gypsies and Travellers. Anyone with an understanding of the community will appreciate that they have different housing needs and the Government’s impact assessment for the Bill recognises a perception of differential treatment of Gypsies and Travellers. In Committee there was a great deal of written and oral evidence of the devastating impact that the withdrawal of sections 225 and 226 could have on Gypsy and Traveller communities. This amendment would retain those sections.

The Joseph Rowntree Foundation noted that the former Commission for Racial Equality concluded in 2006 that Gypsies and Irish Travellers were the most excluded groups in Britain. Concern was expressed that the existing provisions weakened the understanding of those groups’ specific accommodation needs. As the Department for Communities and Local Government’s “Gypsy and Traveller accommodation needs assessments: guidance” of 2007 states:

“In the past, the accommodation needs of Gypsies and Travellers . . . have not routinely formed part of the process by which local authorities assess people’s housing needs. The consequences of this have been that the current and projected accommodation needs of Gypsies and Travellers have often not been well understood.”

If the requirement specifically to assess their accommodation needs is removed, there will be an even higher rate of homelessness, even fewer sites to meet their assessed need will be delivered, and even less land will be allocated in local plans to meet their need.

As a result of the shortage of authorised sites, Gypsies and Travellers will have no alternative but to camp in an unauthorised manner, which impacts not only on their community but on the settled communities around them. Without authorised sites they will have difficulty accessing running water, toilets, refuse collection, schools and employment opportunities. Local authorities already spend millions of pounds each year on unauthorised encampments in legal costs, evictions, blocking off land from encampments and clear-up costs, so this is a lose-lose situation. Where Gypsies and Travellers’ needs are not assessed or met, local communities are impacted upon as a consequence. The Community Law Partnership is concerned that as a result of the clause Gypsy and Traveller accommodation needs will be buried within general housing need. CLP highlights the fact that this community consists of traditionally hard to reach groups, and calls for focused guidance for local authorities to assess their needs.

Gypsies and Travellers already experience some of the poorest social outcomes of any group in our society, and accommodation is a key determinant of those wider inequalities. We have seen written evidence from the Showmen’s Guild of Great Britain, the main representative body for travelling show people, which shared extreme concern about these clauses and the impact on its work. I would be grateful if the Minister outlined the impact on travelling show people and provided reassurance to the guild and show people that the clauses will not affect them.

The policy in this area is different across the nations. The Welsh Government are taking a different approach, introducing a statutory duty on local authorities to facilitate site provision. Why does the Minister think Gypsies and Travellers should face such a postcode lottery? We believe the amendment is necessary to continue support for Traveller and Gypsy communities, which are some of the most excluded groups in Britain.

There are legal concerns, too. The public sector equality duty recognises Romany Gypsies and Irish Travellers as ethnic minorities, and the European Court of Human Rights has held that the UK has an obligation to facilitate the traditional way of life of Gypsies and Travellers. Will the Minister clarify whether the removal of the clause would go against that?

Our amendment would retain sections 225 and 226 of the Housing Act 2004, which would ensure that the housing needs of Gypsies and Travellers were assessed by local authorities. This would make sure that safe sites could continue to be identified and would avoid the lose-lose situation set out in the Bill, where an under-represented group faces the prospect of its housing needs being swallowed up within the general housing need. As the clause stands, it would lead to many unintended consequences—a shortage of authorised sites for Gypsies and Travellers, a rise in unauthorised sites, worse safety standards, and greater pressure on local authorities and on local communities. I hope the Government will consider the amendment.

Amendment 99 to clause 92 would ensure that those with an entry on the database of rogue landlords and letting agents would not be granted a licence to run an HMO. Although those subject to a banning order would not be able to receive an HMO licence as they would be in breach of the banning order, there may be others on the rogue landlord and letting agents database who could still apply and receive an HMO licence. As the House is aware, a local housing authority may include other persons on the database, rather than applying for a banning order in a case where a person’s offences are slightly less serious and the local authority considers that monitoring the person is more appropriate than seeking a banning order. This amendment seeks assurance that those people would not be considered for an HMO licence. It would have the added bonus of ensuring that the local housing authority checked with the rogue landlords and letting agents database to ensure that the application was allowed and that nobody subject to a banning order could slip through. If in future the database of rogue landlords and letting agents were expanded, that would provide further protection for tenants against such landlords.

As was mentioned in earlier debates, including in Committee, we support measures to tackle rogue landlords to ensure security and safety for tenants in the sector and to penalise criminal landlords. However, we would like this further measure to be added, to ensure that in no circumstances can rogue landlords be granted an HMO licence. The amendment would help drive up standards across the sector and protect tenants in HMOs from rogue landlords.

Amendment 67 relates to clause 93, which would change the Housing Act 2004

“to allow financial penalties to be imposed as an alternative to prosecution for certain offences.”

Our amendment would ensure that financial penalties could be sought “in addition” to prosecution rather than as an alternative. Although we support the measures that tackle rogue landlords, we believe that the Bill could go further to penalise criminal landlords, to make it harder for them to get away with housing-related offences and deter them from committing the crimes and from returning to the sector, as well as providing an adequate punishment for their offence.

At present, the Bill would allow for a financial penalty to be sought instead of a criminal prosecution in cases ranging from failure to comply with improvement notices to letting an unlicensed HMO, among other offences. Clearly there will be cases in which a financial penalty is more appropriate, just as a prosecution route will be in others. However, there may well be further situations where both routes would be appropriate. Our amendment would allow that to happen.

The amendment would also help in situations where the impact of the offence was unclear. A local authority may deem a financial penalty appropriate, but for repeat offenders, or if the impact of the original offence escalates, it may also wish to use an additional prosecution route. Making provision for both routes will allow greater flexibility: local authorities could choose to fine, prosecute or do both. The amendment would increase the options available to local authorities. In that way, we hope to ensure further security and safety for tenants in the sector and to help drive up standards.

If the Government do not agree to it, we will divide the House on new clause 52. Amendments 79, 76 and 77, tabled by the hon. Member for Bromley and Chislehurst (Robert Neill), among others, seek to test the House’s will on the compulsory purchase order provisions. We believe that those amendments would water down those provisions, so the Opposition will oppose them in a vote.