Housing and Planning Bill (Seventeenth sitting)
Debate between Teresa Pearce and Roberta Blackman-Woods
Dr Blackman-Woods
I want to make it clear that, in moving the motion, we were not in any way suggesting that we were against a degree of overseas investment. The new clause is clear that the provisions would relate to a proportion of the dwellings that are marketed. It was simply intended to allow local people to have a way in to some of the new developments and to ensure that the new homes were not totally unavailable to them because they had all been bought up by overseas investors.
I have heard the Minister’s comments, however, and I think the Government are seeking to find a way of addressing the issue. We will mull over his comments and decide whether to investigate things at a later stage. I therefore beg to ask leave to withdraw the motion.
Clause, by leave, withdrawn.
New Clause 22
Security of tenure
“After section 19A of the Housing Act 1988 insert—
‘(1) Any assured shorthold tenancy (other than one where the landlord is a private registered provider of social housing) granted on or after April 1, 2018 must be for a fixed term of at least thirty six months. It is an implied term of such a tenancy that the tenant may terminate the tenancy by giving two months’ written notice to the landlord.’
(2) In section 21 Housing Act 1988 insert—
‘(4ZA) In the case of a dwelling-house in England no notice under subsection (4) may be given for thirty six months after the beginning of the tenancy.’”—(Teresa Pearce.)
This amendment would prevent private sector landlords from using the ‘notice only’ grounds for possession for the first three years of a tenancy, without affecting the rights of tenants to give notice and leave the tenancy early.
Brought up, and read the First time.
Teresa Pearce (Erith and Thamesmead) (Lab)
I beg to move, That the clause be read a Second time.
The new clause would have the effect of making longer-term tenancy much more common. Landlords and tenants would both have stability, but with the ability to terminate contracts early with proper notice, if they have to, just as they can now.
The private rented sector is an important and growing part of the housing sector. The number of people living in the private rented sector has increased by 2.5 million since 2010. Now, 1.5 million families with children are renting from a private landlord and could be evicted with as little as two months’ notice. Some 9 million people now rent privately. Almost half of those who rent are over 35. Many of them want the same security and stability that they would have if they owned their own home but the rules on private renting have not caught up with the way people live now.
Teresa Pearce
I beg to move, That the clause be read a Second time.
The new clause is largely a probing one, but it raises an important issue. In many cases up and down the country, someone making a claim for housing benefit has to send in a copy of their lease or tenancy agreement, on which the landlord is named. I would like local authorities and housing benefit departments to ensure there is quarterly or annual reporting to HMRC of the moneys paid when they pay out housing benefit.
The overwhelming majority of landlords pay their taxes in a timely and correct fashion. However, a few choose not to. I have seen evidence of that myself, where tenants have to pay every Sunday, when the landlord comes round and collects the money in cash. That is public money—housing benefit money—but it goes into the landlord’s pocket, and they do not pay any tax on it.
I was so concerned about this issue that I wrote to Lin Homer at Her Majesty’s Revenue and Customs and to HM Treasury. I got a reply from a Minister and Lin Homer, both of whom estimated that the tax gap for letting income could be as high as £500 million a year. Something needs to be done about that, because housing benefit is public money—it is taxpayers’ money, and we should ensure that where it goes to a landlord, it is treated with the respect it deserves.
If HMRC had quarterly or annual reporting of the moneys paid, it would have more information to allow it to track down certain individuals, ensuring that those who are not being proper landlords and acting as decent citizens are caught up with much sooner. At the moment, we all know that HMRC is running on less resources, but it is clear that it wants to tackle tax evasion wherever that occurs. Where someone evades tax on public money they have received, it is even more important that HMRC does that.
Dr Blackman-Woods
My hon. Friend makes a powerful case. The Government want to set up a whole public body to transfer information about tenants’ incomes from landlords to HMRC. Does she agree that this is another thing the body could do? That would be helpful for recouping much-needed money for the taxpayer.
Teresa Pearce
I completely agree with my hon. Friend. We are talking about people who are receiving taxpayers’ money, taking it as income and not paying tax on it. We should do whatever we can to tackle those people, because they are exactly the same group of people who will not be carrying out electrical safety checks on the properties they rent out and who are cramming people into bedrooms that are too small. They are exactly the rogue landlords that this Bill seeks to ban, so we should also be ensuring that they are not profiting from this.
This is a probing new clause to raise the issue for consideration by the Committee. I look forward to the Minister’s response, and I hope that something can be done to ensure that every citizen of this country who gets income pays the right amount of tax on that income.
Teresa Pearce
I understand what the Minister says about the roll-out of universal credit but, at present, every local authority has a payroll department and has to make annual reports of payments made outside of the payroll to contractors and people like that. The proposal is not that onerous on councils, but I accept that it might not fix the problem, so I ask the Minister to go away and consider what would fix the problem. There clearly is an issue, and I would like to think that the Government will consider it and try to find some way of ensuring that such people are not avoiding their due taxes. In the spirit of accepting that he may do that, I beg to ask leave to withdraw the motion.
Clause, by leave, withdrawn.
New Clause 29
Accreditation and licensing for private landlords
“Local authorities shall be required to operate an accreditation and licensing scheme for private landlords.”—(Dr Blackman-Woods.)
This amendment would require local authorities in England and Wales to put in place a scheme to license and provide for the accreditation of private sector landlords in their area.
Brought up, and read the First time.
Dr Blackman-Woods
I beg to move, That the clause be read a Second time.
New clause 29 would introduce an accreditation and licensing scheme for private landlords. It is possible to argue that we would not have needed to table so many new clauses to improve the quality of much of our private rented sector and to improve the way in which landlords operate if we had followed the excellent example of some of our devolved Administrations by having a proper register of landlords. I will use the scheme set up and operated by the Scottish Government since 2006 as an example. That register is extremely straightforward. Anyone who owns residential property in Scotland that is let must apply to register with the local authority for the area in which the property is located unless the property is covered by one of the exemptions. It is the owner of the property who must register, and in some cases that may not be the landlord who has the letting agreement, but they must declare that information. The scheme is very straightforward, and it is operated online. The exemptions are very clear and it is the property that is exempt from registration: it is the only or main residence of the landlord; there are not more than two lodgers; it is let under an agricultural tenancy; it is let under a crofting tenancy; it is used for holiday lets; it is regulated by the Care Commission; it is owned by a religious organisation; it is occupied only by members of a religious order; or it is let to members of the landlord’s family. We can see that those are very sensible and straightforward exemptions.
Dr Blackman-Woods
As I suggested earlier to the Minister, this new clause is very much about getting further clarity from him about the extent of land, and the purpose, that could be behind permission in principle. It appears that it goes beyond housing and the Minister has helpfully clarified that this afternoon. On that basis, I beg to ask leave to withdraw the new clause.
Clause, by leave, withdrawn.
New Clause 34
Extension of the Housing Ombudsman to cover the Private Rented Sector
“(1) The Secretary of State shall by regulations introduce a scheme to extend the Housing Ombudsman Scheme, as set out in section 51 and Schedule 2 of the Housing Act 1996, to cover disputes between tenants and private landlords in the Greater London Authority.
(2) The scheme under subsection (1) shall—
(a) last at least one year and no longer than two years; and
(b) come into effect within 6 months of this Act receiving Royal Assent.
(3) The Secretary of State shall lay before each House of Parliament a report of the scheme under subsection (1) alongside any statement he thinks appropriate, within 3 months of the closing date of the scheme.
(4) The Secretary of State may by regulations extend the powers of the Housing Ombudsman Scheme as set out in section 51 and Schedule 2 of the Housing Act 1996, to cover disputes between tenants and private landlords nationwide.”—(Teresa Pearce.)
This new clause would give the Secretary of State the power to introduce a pilot scheme which would see the Housing Ombudsman extend its cover in London to private sector housing and disputes between tenants and private landlords, to require that the Secretary of State reports on the pilot scheme, and to give the Secretary of State power through regulations to extend the Housing Ombudsman to cover private sector housing and disputes between tenants and private landlords nationwide.
Teresa Pearce
I beg to move, That the clause be read a Second time.
The new clause would give the Secretary of State power to introduce a pilot scheme that would see the housing ombudsman extend its cover in London to the private sector. That would require a report from the Secretary of State following the pilot, and would give the Secretary of State the ability to extend the powers of the housing ombudsman to the private sector nationwide if that pilot is successful.
In London, the private rented sector is growing and is a significant proportion of the housing market. Extending the ombudsman scheme to cover the private rented sector would be a big change. That is why this new clause proposes a pilot to establish whether such an extension would be worth while.
Most landlords are effective and efficient in letting their property, but disputes between landlords and tenants can and do occur. They could be about a delay in responding to a situation in a flat. Perhaps there could be problems with electrics, gas or heating, or there could be a concern that the property is dangerous. A tenant could be concerned that part of the tenancy agreement or lease has not been upheld. The housing ombudsman is a fantastic independent service that helps to resolve many such complaints and concerns.
The ombudsman considers complaints about how a landlord has responded to reports of a problem, and considers what is fair in all circumstances. The ombudsman does not look at the original problem. For example, it does not decide whether or not a property is damp. What they look at is whether or not the landlord has done what he needs to do in line with the tenancy agreement and the ombudsman’s policies. It helps to defuse disputes by having an independent person look at them.
All local authorities and housing associations must be a member of the ombudsman scheme. At present, private sector landlords can join on a voluntary basis, but not nearly enough of them do so, leaving many tenants in a position where they have nowhere left to turn when things go wrong.
In total, 87% of cases referred to the housing ombudsman were resolved by landlords and tenants with the support of the ombudsman. Many of those landlords and tenants have gone on to build and keep good relations, and they continue to rent from and let to each other.
The measures in the Bill will bring about a decline in social housing, whether it is managed by the local authority or a housing association. As a result, the private rented sector, particularly in London, will increase its share of the housing market. Surely, therefore, it is right to ensure that all tenants across the sector are afforded the same protections and dispute resolution service.
That is why I have tabled new clause 34, which would extend the housing ombudsman scheme as a pilot in London. I hope the Minister will look favourably on it and let me know whether he sees any merit in this scheme. If he does, I hope he will accept the new clause.
Housing and Planning Bill (Sixteenth sitting)
Debate between Teresa Pearce and Roberta Blackman-Woods
Dr Blackman-Woods
At this point, I do not—in fact, I was going to ask the Minister about that. Another question is: what about adult children who have been living in the house as their home for a very long time?
I shall finish with the following point. The reason why Margaret Thatcher offered secure tenancies in the 1980s is that she understood the need for tenancies that would offer families stability. There was a lot of discussion in the run-up to the 1979 election about what would happen to people in the social rented sector, and it was a good thing. It was the result of many years of lobbying and of knowing how important secure tenancies are to the stability not only of households but of communities that the legislation was introduced. It was introduced after a long period and a lot of deliberation, and it is critical that we do not legislate this morning to just get rid of it on what appears to be the whim of a Minister, a particular set of Ministers, or even the Prime Minister. It requires careful consideration, and we have not had the opportunity to consider the full implications of the measures.
My family had years of private rented accommodation and of being moved on, with young children. Getting a secure council tenancy was critical in giving all of us stability and good opportunities for social mobility. I cannot see where social mobility comes into these clauses. We know that making life more insecure does not lead to greater social mobility.
Teresa Pearce
I am very interested in what my hon. Friend is saying about social mobility. When I was granted a social tenancy at 21, I was on my own with my daughter. I stayed there for two years. In those two years, due to the lower rent and my increased job prospects, I was able to save enough to move out and buy my own property. Had I had a tenancy that I knew would end, I probably would not have been in a position to do that, because I would have been so fearful of where I would go next that it would have held back my social mobility.
Dr Blackman-Woods
I thank my hon. Friend for that helpful intervention, which demonstrates the clear difference between Opposition and Government Members: we appreciate the value of social rented housing to many individuals and families in this country, and how important it often is in enabling people to turn their lives around and in giving stability, particularly to families on low incomes seeking to do their best in difficult circumstances. It is not simply a product that can be used one way and then another; it is important for whole families and for their life choices.
Security of tenure often gives people time, as my hon. Friend said, to think about what options and opportunities might be available to them, such as education or retraining. It is critical that we do not remove that important support mechanism and pull the rug from under people, particularly when they might be facing difficulties. We should ensure that they get the support they need.
Teresa Pearce
Just to clarify, I did have a lifetime tenancy, and my options were either to stay, to buy the property—which I did not do—or to save up, buy something, and leave the tenancy for someone else. Since then four other families have had the flat, because I did not remove it from the social stock by buying it. I do not understand the point about what I could have done if I had had a lifetime tenancy, because I did have one.
Housing and Planning Bill (Thirteenth sitting)
Debate between Teresa Pearce and Roberta Blackman-Woods
Dr Blackman-Woods
The clause is really problematic, in particular because subsection (1) is absolutely extraordinary:
“Rent regulations may require a local housing authority to make a payment or payments to the Secretary of State in respect of any estimated increase in rental income because of the regulations.”
Given our earlier discussions, we know that, as yet, the Government have made no estimate of the amount of day-to-day income. They are not able to furnish us with any estimates of the income to be raised or the expenditure necessary to make the scheme function, but under the terms of clause 79(1) somehow, on some basis that we do not know at the moment, there will be an estimate of rental income. Presumably, local housing authorities will then make a payment to the Secretary of State in respect of any estimated increase. That is extremely worrying, to put it mildly.
Teresa Pearce (Erith and Thamesmead) (Lab)
Does my hon. Friend recall, as I do, that the Minister said earlier that the cost of the scheme will be offset by the income to be derived? Does this clause mean that local housing authorities will not get to keep the income?
Dr Blackman-Woods
My hon. Friend makes an interesting point, which I hope we will discuss when we come to subsequent amendments in the group because all of them are about trying to get information from the Minister about how the scheme will work in practice for local authorities. In particular, the councils are coming forward to us to say that they are extremely concerned about the making of some arbitrary estimate—and we must understand that that is what it is, at the moment, because the Government have not given us any information on how it will be arrived at.
Milton Keynes Council, for example, has written:
“We are concerned that the Bill seeks to establish a process for taking a sum of money from councils based on a national estimate that will unlikely reflect actual local conditions. Councils, like housing associations, should be able to retain the additional income generated from these rents to build new homes.”
That is exactly the point that my hon. Friend the Member for Erith and Thamesmead was making. The council added:
“This would have far greater benefits for local communities than the money going to the Treasury.”
Housing and Planning Bill (Fourth sitting)
Debate between Teresa Pearce and Roberta Blackman-Woods(9 years, 1 month ago)
Public Bill CommitteesRead Full debate Read Hansard Text
Dr Blackman-Woods
My hon. Friend makes an excellent point. It struck me yesterday, as I went through the evidence to the Committee, how many people commented on their concern that such an emphasis on starter homes risks crowding out other sorts of low-cost home ownership. They suggested that perhaps the Government should have looked at other ways of supporting people into home ownership, rather than concentrating on starter homes as much as they have done.
Teresa Pearce (Erith and Thamesmead) (Lab)
Is my hon. Friend concerned, like me, that it is not just affordable rent that could be crowded out? The British Property Federation believes that starter homes could kill off the build-to-rent sector, which is one of the fastest-growing in the UK.
Dr Blackman-Woods
Yes. That is a very worrying piece of evidence. Interestingly, it is not only the British Property Federation that thinks so. I was looking, as one does, at comments made by the Mayor of London. I notice that the Mayor’s office is concerned that the measure might crowd out other initiatives by the Mayor to support people in moving from renting into home ownership.
Clearly, the issue is not one that we have dreamed up out of nowhere. Out there in the real world, people who are responsible for supporting the delivery of housing and, indeed, producing housing, are concerned about the impact of the Bill, and particularly the clauses in question, on the viability of other products.