Unscrupulous Landlords

Debate between Tom Blenkinsop and Lord Stunell

Wednesday 8th September 2010 Westminster Hall

[Andrew Stunell]

I am not quite sure what the hon. Gentleman is asking me to do. If he thinks that there should be a legal requirement for private landlords not to let if their home is not of a decent standard, I think that that will give a number of social housing landlords problems as well. I fully accept his point that standards in some places are low and need to be brought up to standard. I was trying to illustrate the fact that local authorities have powers at their disposal to achieve that.

There is an extensive enforcement framework. Where high levels of hazard are identified—categories 1 and 2—the local authority can compel private landlords to make the necessary improvements. It can issue improvement notices and require property to be closed down. Failure to comply carries a fine of £5,000.

One of the points that the hon. Member for Dagenham and Rainham made was that there are repeat offences, and one of his questions to me was what the Government will do about repeat offenders. Repeat offenders go to the courts, and the courts will take the decision based on the facts of the case. I strongly support the hon. Gentleman in thinking that the courts should take those breaches very seriously.

[Tom Blenkinsop (Middlesbrough South and East Cleveland) (Lab)]

Given that the legislation in place to pursue rogue landlords is not strong, and even if we take the Minister at his word that the current legislation is strong enough, is it not the case that when local authorities are being asked to make cuts of 25% to 40%, the ability to pursue those landlords will be curtailed?

[Andrew Stunell]

The reality that we face means that there will be less public money to spend. The policy of the Department for Communities and Local Government and of the Government is to devolve the priority-setting process to local councils. If local councils share the hon. Gentleman’s view that increased enforcement is an essential core activity that they must build up, they will have much more freedom to do that. They will have to set priorities, just as the Government have to set priorities.

Conditions in the private rented sector have improved. Since the early 1990s, the gap in the level of decency between owner-occupied and privately rented homes has narrowed. Indeed, on average, the private rented sector has become more energy efficient than the owner-occupied sector. I fully understand that averages disguise highs and lows, but we should not demonise one sector of the housing market without taking better account of the evidence.

Local authorities have powers in respect of management standards. Under the houses in multiple occupation regime, there are statutory requirements for HMOs of three or more storeys occupied by five or more people who form more than one household. It is a bit of a rigmarole to say that, but we know what we mean. There is also the power for local authorities to have discretionary licensing schemes in their areas, covering smaller HMOs that do not meet the mandatory licensing criteria where they have identified problems with management and property condition. Hon. Members will know that there is a selective licensing scheme to cover all privately rented property in areas that suffer from low housing demand and persistent antisocial behaviour.

As part of the previous Government’s localism agenda, local authorities were granted, from April of this year, a general consent to introduce discretionary licensing schemes without reference to the Secretary of State. It is right for local decisions to be made by those who are directly accountable to local communities. We certainly have no plans to repeal that power.

Licensing schemes mean that local authorities can impose conditions on licences, such as a specified maximum number of occupants and that adequate amenities are in place. Private landlords have to be identified as “fit and proper” in terms of their suitability to manage the property. That perhaps deals with the repeat offenders point from a different direction. A breach of a licence condition is an offence. Letting or managing a property that requires a licence without one could result in a maximum fine of £20,000. Given all that, the Minister for Housing and Local Government came to the view that there was no need for more regulation at present. We do not want to introduce new burdens for landlords that will discourage them from letting homes to those who really need them.

Several comments were made about the tenancy deposit protection scheme. Of course, that is statutory. It helps to ensure good practice in deposit handling, so that when a tenant pays a deposit and is entitled to get it back, they can be assured that that will happen.

Perhaps in the last second of the debate, I can say that when it comes to raising tenants’ awareness, I am entirely with the hon. Member for Dagenham and Rainham. I believe that it is of absolute importance that at national and local level, and by us as MPs, the point is made to tenants—