Homes (Fitness for Habitation) Bill

Tim Loughton Excerpts

3rd reading: House of Commons & Report stage: House of Commons
Friday 26th October 2018 Commons Chamber

[The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Mrs Heather Wheeler)]

Thank you—[Interruption.] Get on with it, absolutely—God almighty! I just think that this is an important Bill and it needs all the time and love that it can have.

Before I start my speech, I draw Members’ attention to my entry in the Register of Members’ Financial interests. I thank the hon. Member for Westminster North (Ms Buck) for everything she has said and congratulate her for tenaciously taking this Bill through Committee and bringing it to the House today. Her Bill is an important part of our work to raise awareness of this vital issue of standards in rented properties. I want to talk about rented houses and flats, both social and private, and the sort of unacceptable conditions that some tenants have to put up with. Many Members have already mentioned the minority of landlords who do not think that they need to comply with the law, and how their tenants suffer as a result. I would also like to describe some of the new requirements we have brought in to help improve the lives of tenants and make sure rogue landlords are either driven out of the sector or forced to sort out their properties and their attitude. The hon. Lady’s Bill is an extremely valuable part of this work.

We had, I felt, a very productive, interesting and worthwhile debate in Committee. I am going to set out the other work we are doing to help tenants, which includes some new requirements but also makes sure we sharpen the tools we already have. In England, privately rented houses and flats provide housing for 4.7 million households—20% of all households. The social rented sector provides a further 17%, another 3.9 million house- holds. The majority of these are safe, secure, warm and dry.

People are tenants for all sorts of reasons—maybe the flexibility is convenient for them, maybe it makes more financial sense or perhaps it means they can live in the area they want to. Some 84% of tenants in the private rented sector and 81% of social housing tenants have said they are satisfied with their accommodation. These tenants have already seen an improvement in the quality of the houses and flats they live in. In 2008, serious category 1 health and safety hazards would have been found in around 30% of properties in the private rented sector and 15% in the social sector. By 2016, those figures had fallen to 15% of private rented and 6% of social properties.

However, it is still not acceptable that there is a hard-core, stubborn minority of landlords who rent out places that are not fit for their tenants to live in. Not all tenants have the luxury of choosing where to live, and some of the most vulnerable people in society live in these unfit properties. It is precisely this minority of houses and flats which still have serious hazards that the Bill will help to tackle.

We have been working hard to improve housing conditions and tackle rogue landlords. For example, since 2015 landlords must install a smoke detector on every floor of their properties, and they must have carbon monoxide detectors where the heating comes from solid fuels. I congratulate my hon. Friend the Member for Walsall North (Eddie Hughes) on all the work he has done on that issue.

We also used the Housing and Planning Act 2016 to give local authorities tough new powers to tackle rogue landlords and poor property conditions in their areas. If landlords do not comply with legal notices served on them because their properties are not safe to live in, local authorities can now impose civil penalties of up to £30,000. Bristol City Council, for example, has imposed 12 civil penalties, with the lowest at £628 and the highest at £25,800. Local authorities do not even have to take rogue landlords to court to give them that short, very sharp shock, and they can use the revenue to further fund their enforcement activities. That is hugely important for council finances.

As well as that, if tenants have had to live with a serious health and safety hazard in their house or flat and the local authority has served a legal notice on their landlord, they may be able to reclaim up to 12 months’ rent. If the rent was paid through benefits, the local authority can get that back, too. Really serious offenders can have their name added to the new database of rogue landlords and property agents and could be banned from being a landlord, possibly for life.

In addition to those powers, we have extended the licensing of houses in multiple occupation. These properties are occupied by tenants who are not related but who share facilities such as bathrooms and kitchens. They are often good value and form a useful part of the housing market for many tenants. However, they are higher risk. Landlords of larger HMOs—those on three or more floors with five or more tenants—require a licence issued by the local authority for each property. On 1 October this year, we extended that to include HMOs with one or two storeys and five or more tenants. We have also introduced requirements for minimum room sizes, to help prevent some of the overcrowded conditions that local authorities have reported to us.

I am pleased to say that this is the third private Member’s Bill introduced by a Labour Member that this Government have supported, following the Assaults on Emergency Workers (Offences) Act 2018, which was promoted by the hon. Member for Rhondda (Chris Bryant) and received Royal Assent in September, and the Mental Health Units (Use of Force) Bill, which was promoted by the hon. Member for Croydon North (Mr Reed) and is now in the other place.

The Bill before us builds on the work that has been done and adds a new dimension to the fight against rogue landlords. It will empower tenants by allowing them to seek redress from their landlords if their rented house or flat is in an unacceptably dangerous condition. Landlords will have to keep their properties free from hazards from the outset and for the entirety of the tenancy. Tenants will be able to seek redress without having to rely on their local authority, if they prefer to, and local authorities will still have the same strong enforcement powers to serve legal notices where they find serious health and safety hazards.

No further obligations will be put on landlords who rent out safe, secure, warm and dry properties. If a landlord is quick to carry out repairs when they are reported, manages their property well and takes their responsibilities seriously, the effect the Bill will have on them will be to level the playing field. Rogue landlords will have to improve their properties or leave the business. Landlords who do not maintain safe properties prevent an effective and competitive rental market where all landlords operate on an equal footing.

It is those two aspects of the Bill—giving more power to tenants but putting no new obligations on good landlords—that allow it to sit so well with the range of initiatives we have already introduced. The Bill will give power to tenants, which will complement the existing powers and further enforcement options we have provided to local authorities. Good landlords have nothing to worry about because there are no new obligations or costs for them under the Bill.

It was reassuring to hear such support and general agreement from Members across the House on Second Reading. That is a testament to how seriously all parties take this issue. In Committee in June, I once again heard cross-party support for the Bill and agreement that we need to act now. Members drew attention to issues in the private and social rented sectors that concerned them, and no one argued against the Bill.

Amendments were made in Committee that have further tightened the provisions of the Bill and made it more effective. For example, the common areas of rented properties will now be included. That is important because properties with common areas such as shared stairwells can be at a higher risk from hazards such as fire, as we have heard. Tenants need to be confident that they can hold their landlord to account when it comes to health and safety hazards in those common areas. That amendment will further help tenants in properties such as houses in multiple occupation.

The Bill will extend tenants’ rights and, for the first time, allows them to seek redress if their landlord rents them a property that is not fit for human habitation. It is vital that tenants understand their rights and know how to use them, as Members have said. Subject to the Bill receiving Royal Assent, we will produce guidance for tenants that will explain their rights and how to represent themselves in court should that prove necessary. We will also signpost where and how they can get any support they might need. That guidance will complement the “How to” series of guides produced by my Department, which have recently been revised and expanded. The guides include checklists for new and existing tenants, landlords and letting agents. Whatever the circumstance, we want to ensure that tenants are armed with information, so that they know their rights and responsibilities and can challenge poor behaviour.

There is still more to do. Our support for the hon. Lady’s Bill is an important part of our programme of work to drive up standards in rented houses and flats, and that support does not sit in isolation. We recognise the important role that landlords play in providing homes to millions of people around the country. We want to bring fairness to the market and promote good practice. It is key to the Bill that landlords ensure their properties are fit for human habitation.

Whether a house or flat is fit is determined by the presence of serious hazards. Those hazards are set out in the housing health and safety rating system—or the HHSRS, as it is nattily known. The HHSRS focuses on the hazards that are most likely to be present in housing. Tackling those hazards makes homes healthier and safer to live in. As part of our ongoing work to improve standards, we will commission a review to ensure that the HHSRS continues to work well, and that will take place next year.

Tenants are, of course, at the heart of the Bill. The intention behind it is to empower tenants, which is our intention as a Government. We have introduced legislation banning letting agents from making unfair and hidden charges, making it easier for tenants to find a property at a price they are willing to pay and saving renters an estimated £240 million in the first year alone. In addition, we have announced plans to make client money protection mandatory for letting agents and will introduce requirements on training and accreditation to ensure that tenants are protected. We will further empower tenants by requiring all landlords to belong to a mandatory redress scheme. The work the Government have already done to improve conditions for tenants, as well as the work we are now doing and the hon. Lady’s Bill, will mean a real improvement for tenants and a serious driving up of standards in both the social and rented sectors.

I want to thank the right hon. Member for East Ham (Stephen Timms), the hon. Members for York Central (Rachael Maskell), for Streatham (Chuka Umunna), for Oldham West and Royton (Jim McMahon), for Hammersmith (Andy Slaughter), for Warrington South (Faisal Rashid), for Reading East (Matt Rodda), for Kensington (Emma Dent Coad), for Brentford and Isleworth (Ruth Cadbury) and for Great Grimsby (Melanie Onn), and my hon. Friends the Members for Colchester (Will Quince), for Walsall North, for Torbay (Kevin Foster), for Harborough (Neil O’Brien) and for West Aberdeenshire and Kincardine (Andrew Bowie) for all their contributions today and in Committee. I am grateful for all the hard work on the Bill across the House.

To conclude—

[Tim Loughton (East Worthing and Shoreham) (Con)]

Oh!

[Mrs Wheeler]

I could go on, if my hon. Friend would like me to.

It is clear that there is support for the Bill across the House. The Bill will empower tenants and help to further improve standards in rented houses and flats. It has been a pleasure working with the hon. Member for Westminster North, and I am sure her Bill will get the continued support it deserves as it progresses.

Question put and agreed to.

Bill accordingly read the Third time and passed.