Tenant Fees Bill

Wera Hobhouse Excerpts

2nd reading: House of Commons
Monday 21st May 2018 Commons Chamber

[Wera Hobhouse (Bath) (LD)]

I draw Members’ attention to my entry in the Register of Members’ Financial Interests.

The Liberal Democrats have long fought for renters’ rights. The Bill is in many ways the result of the hard work of my colleagues in the other place, who have campaigned tirelessly for a ban on letting fees and for private rented sector reform. I am therefore pleased that the Government have listened and will make the sector fairer for my constituents in Bath and people across the country. However, the Government could be much more ambitious. The Bill introduces a ban on letting fees, but currently does not include provision for local government to enforce fines if the ban is breached. What is proposed is a self-financing system, and that often does not work in practice. Equally, we must ensure that the Bill covers all fees. We cannot permit letting agencies to attempt to bring in fees under an alias or to exploit the default fees loophole, as a couple of Members have already pointed out. We need more information from Government to understand how this issue is being addressed.

Many landlords are not badly intentioned, but we must do more to stop those who abuse the system. There must be compulsory registration for landlords. There must also be public access to the Government’s database of rogue landlords, and those landlords should not be able to obtain a licence for houses in multiple occupation. There should be support for longer tenancies; I completely agree with the hon. Member for Lewes (Maria Caulfield). We should have Government-backed loans to help people to afford a tenancy deposit. By tackling rogue landlords and supporting those struggling to afford a deposit, we would be reducing the key factor behind the rise in homelessness.

The housing crisis is denying young and vulnerable people in my constituency access to a place to call their own. The Bill is a step in the right direction. I am pleased that a practice that was a nice earner for some but an injustice to the young and most vulnerable people will now end. However, I urge the Government to be far more ambitious if we are truly going to make a difference to renters.

Tenant Fees Bill

Wera Hobhouse Excerpts

3rd reading: House of Commons & Report stage: House of Commons
Wednesday 5th September 2018 Commons Chamber

[Wera Hobhouse (Bath) (LD)]

May I first draw the attention of the House to my entry in the Register of Members’ Financial Interests?

One of the many effects of the housing crisis is the sheer amount of people now forced into the private rented sector. It is for this reason that I am adamant that we must improve conditions for renters. The Liberal Democrats have fought long for renters’ rights, so I welcome and support this Bill. It is vital that we in Westminster ensure that tenants’ fees are abolished because of the transient nature of the private rented sector, particularly for young people. However, the housing crisis has also pushed many families into renting and, as we heard earlier, the leading cause of homelessness is the ending of a private rented sector tenancy.

While rental costs continue to spiral, people are becoming trapped. They cannot afford their rent, but nor can they afford to move because of the myriad administrative fees. We must ensure that the Bill fully ends the practice of tenants’ fees. However, as the Bill is currently drafted, there are still loopholes around default fees. The Secretary of State’s amendments go some way towards closing the gap, and ensuring that letting agents and landlords do not introduce new fees under a different name. However, the text of the Bill is still too ambiguous, leaving what constitutes a reasonable cost to the discretion of landlords or letting agents. We must also provide local authorities with appropriate funding to enforce the ban. If local authorities have no resources to enforce it, landlords and letting agents will just continue with this unreasonable practice.

I urge the Secretary of State to listen to the concerns raised today. Otherwise he will undermine legislation that could really make a difference to people’s lives. There is little merit in introducing legislation with obvious loopholes that allow individuals to continue with a practice that we want to stop. There is also very little merit in introducing legislation that we cannot enforce due to the lack of resources.

We currently have about 5 million households in the private rented sector. Today we are beginning to tackle letting fees, but there must be more wholesale reform of the private rented sector. For example, my Liberal Democrat colleagues and I believe that there must be compulsory registration of landlords, that there must be public access to the Government’s database of rogue landlords, and that those landlords should not be able to obtain a licence for houses in multiple occupation.

This Bill is, in good measure, the result of the hard work put in by my Liberal Democrat colleagues in the other place. I look forward to further improvements as the Bill progresses.

Tenant Fees Bill

Wera Hobhouse Excerpts

Ping Pong: House of Commons
Wednesday 23rd January 2019 Commons Chamber

I believe that the Lords meant well in tabling some of their amendments, but I also believe that some of them are unfair and potentially unworkable, and might have unintended consequences, particularly for tenants in adverse circumstances. I think that we should keep this under review to ensure that the rules are fair for landlords, agents and tenants, and that those who are on the margins when it comes to affordability are not disadvantaged.

[Wera Hobhouse (Bath) (LD)]

I, too, draw the House’s attention to my entry in the Register of Members’ Financial Interests.

The Bill has returned to the Commons in a much better state than it was in when it left. The loophole relating to default fees has now gone. The detail on default fees will be on the face of the Bill, which will specify

“a key…or other security device”.

There is much more transparency in relation to the holding of deposits, with a fairer transaction between letting agents and tenants, and the deposit levels are better aimed at people on low incomes, having been reduced to five weeks’ rent.

I listened carefully to both sides of the argument about the length of deposits. I listened to what was said by the hon. Member for Great Grimsby (Melanie Onn), but I also listened to the counter-arguments. I entirely agree with the hon. Lady that we need to protect tenants and make the system easier for them, because there is a tough world out there for people on low incomes. I also agree that we should not inadvertently disadvantage renters. As long as we do not have the number of affordable and social homes that we need, they will always be in that tough world in which, ultimately, they are at the mercy of landlords when it comes to charges. This is only the beginning of an overall improvement for renters, and I hope very much that we will continue to make changes in the law that will make life easier for them, but I also hope that we will eventually provide the number of homes that we need in order to create an entirely fair rental market.

I pay tribute to my colleagues in the House of Lords, Lord Shipley and Baroness Grender. Lady Grender initiated these proposals in a Private Member’s Bill in 2016 and, with Lord Shipley, worked assiduously with the Government to improve the Bill. I also congratulate the groups that have long campaigned for this change in the law, including Shelter, Generation Rent and Citizens Advice.

For too long, upfront costs—often rip-off fees charged to tenants by unscrupulous lettings agencies—have pushed people into unmanageable levels of debt, and sometimes into homelessness. The current system means that people, particularly those on low incomes, must pay as much as £3,000 to move, even if they will be paying a lower rent. Some have predicted that we will see a rise in rents as a result, but evidence from Scotland suggests that that is unlikely. If rents rise, the relatively small amount per month will be manageable in comparison to the extortionate amount that it costs to move.

For too long people living in the private rented sector have been treated as second-class citizens, and the Bill goes some way towards putting that right. The Liberal Democrats welcome it, and welcome the Conservatives’ change of heart. We look forward to its introduction on 1 June, with only the small regret that it has taken so long for it to reach this stage. As I said earlier, I hope that we will continue to make changes in the law to make it easier for people to rent in a fair market where there is a good number of affordable and social homes.

[Mrs Wheeler]

With the leave of the House, Madam Deputy Speaker. I shall be very short and very pithy.

I thank Members on both sides of the House for their passionate and constructive contributions to the Bill’s passage. I also thank the civil servants who have worked so hard to bring the Bill to this successful stage. We particularly wanted that to happen quickly so that the lady who is pregnant would not give birth in the Box. I have told her that if the baby is a boy, it must be called Bill!

I hope we can all agree that improvements have been made, thanks to the work of many Members on both sides of the House, and that as a result the Bill will be even more effective in delivering its promise to protect tenants from unfair charges. I hope that the assurances I have been able to give will mean that the Commons amendments will not be pressed to the vote.

Lords amendment 1 agreed to.

Lords amendments 2 to 35 agreed to.



Schedule 1

Permitted Payments

Motion made, and Question put, That this House agrees with Lords amendment 36.—(Mrs Wheeler.)

The House proceeded to a Division.