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Renters (Reform) Bill - Sitting 9

28 November 2023

Proposing MP
Greenwich and Woolwich
Type
Public Bill Committee

At a Glance

Issue Summary

The statement discusses amendments to clause 19 of the Renters (Reform) Bill, focusing on ensuring landlords comply with deposit protection requirements before issuing possession notices. Matthew Pennycook is proposing an amendment to extend the definition of a residential landlord under the Renters (Reform) Bill. Matthew Pennycook discusses the Renters (Reform) Bill's part 2, which aims to establish a single private rental ombudsman and a digital property portal for England. Matthew Pennycook proposes an amendment to clause 24 of the Renters (Reform) Bill, aiming to impose a duty on residential landlords to join a landlord redress scheme. The statement discusses concerns over the Renters (Reform) Bill's clauses related to private rented sector ombudsman and redress schemes, focusing on ensuring mandatory membership for landlords and addressing inconsistencies in deposit protection schemes. Matthew Pennycook is proposing amendments to increase the financial penalties for non-compliance with mandatory landlord redress scheme requirements. Matthew Pennycook discusses concerns about the fines proposed in the Renters (Reform) Bill and requests that the government reconsider the maximum fine levels. Matthew Pennycook discusses the importance of extending rent repayment orders under new clause 57 of the Renters (Reform) Bill. The statement discusses the implementation and effectiveness of guidance for scheme administrators and local housing authorities in relation to a landlord redress scheme. Matthew Pennycook discusses an amendment to Clause 32 of the Renters (Reform) Bill, proposing to require the database to record details of eviction notices served by landlords. Matthew Pennycook discusses the importance of the property portal in providing transparency and information for tenants regarding health and safety compliance and landlord conduct. MP Matthew Pennycook is addressing amendments related to ensuring landlords provide necessary information and documentation to a property portal, maintaining regulatory obligations around section 21 notices. Matthew Pennycook questions the financial sustainability and resourcing requirements for a new database proposed under the Renters (Reform) Bill. MP Matthew Pennycook is discussing amendments related to financial penalties for landlords who breach registration requirements. The statement discusses amendments and new clauses aimed at prohibiting blanket bans on renting to families with children or those in receipt of benefits. Matthew Pennycook discusses the Renters (Reform) Bill, specifically clause 52 and related amendments that aim to prohibit discriminatory practices against benefit claimants and families with children. Matthew Pennycook addresses concerns about the effectiveness of the Government's amendments in prohibiting discriminatory practices against families with children and benefits claimants in the private rented sector. Matthew Pennycock discusses the enforcement responsibilities placed on local authorities by the Renters (Reform) Bill, focusing on oversight and resource capacity issues. The statement addresses amendments to the Renters (Reform) Bill aimed at improving enforcement of landlord responsibilities and preventing unlawful activities by landlords. The statement discusses amendments to Clause 61 of the Renters (Reform) Bill, which involve changing references from 'local housing' to 'relevant local' to include county councils in England that are not local housing authorities.

Action Requested

Matthew Pennycook proposes amendments 170-172 to require landlords to protect deposits and provide information before serving a notice for possession. He seeks clarification from the Minister about whether these changes represent a less stringent application of current requirements. If reassured, he may withdraw his amendment.

Key Facts

  • Amendments 170-172 aim to ensure landlords comply with deposit protection rules both at service of notice and at hearing.
  • The Bill allows landlords to protect deposits or return them up to the court hearing date under current proposals.
  • Clause 19 protects tenants from non-compliant landlords while allowing good-faith landlords time to rectify issues.
  • Amendment 173 would add subsections (c) and (d) to the definition of a residential landlord.
  • The amendment aims to cover agreements under the Mobile Homes Act 1983 and any licence of a dwelling.
  • The government first announced intentions for improving landlord redress schemes in late 2017.
  • The commitment to extend mandatory membership to all private landlords was made through primary legislation in 2019.
  • Matthew Pennycook proposes amendment 173 to extend the definition of residential landlord to include park home operators, providers of purpose-built student accommodation, and property guardian companies.
  • Research by Sheffield Hallam University found poor conditions in property guardianship accommodations.
  • Amendment 174 proposes changing 'may' to 'must'.
  • The amendment would apply to residential landlords as defined in clause 23.
  • Amendment 196 aims to include disputes regarding tenancy deposits under the scope of complaints made to the ombudsman scheme.
  • Amendment 24 aims to ensure the private rented sector is brought within an ombudsman's remit.
  • The Government committed four years ago to extend mandatory membership of a redress scheme through primary legislation.
  • Clause 25 permits regulations that can provide for multiple redress schemes rather than specifying a single ombudsman as precedent would dictate.
  • Amendment 196 seeks to include deposits within the scope of oversight by the ombudsperson, allowing tenants an appeal process when dissatisfied with deposit scheme decisions.
  • Amendment 165 would increase the maximum financial penalty for breaches of clause 24 requirements from £5,000 to £30,000.
  • Amendment 166 proposes raising the alternative to prosecution fine from £30,000 to £60,000.
  • The proposed penalties aim to deter unscrupulous landlords who wish to evade mandatory redress scheme membership.
  • The proposed fines range from £5,000 to £30,000.
  • Local housing authorities can pursue prosecution through the court for repeat breaches.
  • New clause 19 would allow rent repayment orders against landlords who fail to join the ombudsman scheme.
  • Rent repayment orders were introduced by the Housing Act 2004 and expanded in 2016.
  • The maximum period for rent repayment orders can be extended from 12 months to 24 months under certain circumstances.
  • In London, more properties have been subject to rent repayment orders than civil penalties or criminal convictions relating to licensing since 2020.
  • Clause 29 allows the Secretary of State to issue or approve guidance on effective working between local councils and the ombudsman.
  • The guidance aims to provide clarity on communication and co-operation scenarios where both parties can help resolve tenant complaints.
  • Richard Blakeway, housing ombudsman, highlighted the risk of duplication and lack of clarity for residents about which route to take.
  • Matthew Pennycook's amendment 175 aims to add details of eviction notices to the private rented sector database.
  • The amendment seeks to ensure public availability of key information on landlords' history for tenant decision-making and accountability.
  • The Government plans to use regulations to prescribe information collected by the property portal.
  • Pennycook hopes the portal will give tenants real power through transparency about landlord conduct.
  • The Minister has indicated a willingness to consider including a history of possession notices granted to landlords.
  • Amendment 176 aims to ensure landlords provide various documents and information to a database operator.
  • The amendment covers items like address, contact details, rental properties, compliance with 'How To Rent' booklet, rent charges, enforcement actions, banning orders, safety certificates, and licensing requirements.
  • Minister Jacob Young agrees the portal should include necessary information but suggests specifying it in regulations rather than the Bill.
  • The database will be funded through fees charged to private landlords.
  • The new system aims to reduce local authority burdens significantly.
  • Local authorities' time spent locating landlords and properties for enforcement is expected to decrease.
  • Amendment 167 would increase the maximum financial penalty local authorities can impose on landlords for breach of registration requirements from £5,000 to £30,000.
  • Amendment 168 would increase the maximum financial penalty from £30,000 to £60,000 for offences under clause 48.
  • The Local Government Association supports these amendments.
  • Amendment 71 provides for financial penalties in relation to discriminatory practices.
  • New clause 8 prohibits discrimination relating to children.
  • New clause 9 prohibits discrimination relating to benefits status.
  • Clause 52 provides local authorities with powers to impose financial penalties for non-compliance with private rented sector database requirements.
  • Proposed new chapter 2A includes clauses to prohibit discriminatory practices in granting tenancies, applicable to England and Wales through proposed chapter 2B.
  • Successive YouGov surveys show that a significant number of landlords prefer not to rent to benefit claimants or those with children.
  • Matthew Pennycook is from Greenwich and Woolwich constituency.
  • The Government's amendments aim to remove discriminatory terms in contracts but are seen as insufficient by Pennycook.
  • Pennycook threatens to return with further legislation if current practices continue.
  • Local authorities have never had a duty to enforce prohibitions of landlord legislation before.
  • Financial penalties under the Bill are capped at £5,000 and £30,000 respectively.
  • The White Paper committed to conducting a new burdens assessment on reform proposals.
  • Clause 58 places a duty on every local housing authority in England to enforce new measures.
  • Government amendments extend enforcement powers to county councils in two-tier areas.
  • New clause 23 mandates data supply from local authorities to the Secretary of State for evaluating reforms.
  • Amendments 86, 87, 88, 89, 90, 92, and 93 involve changing references from 'local housing' to 'relevant local'.
  • Amendment 91 defines 'relevant local authority' to include a county council in England which is not a local housing authority.
  • Amendments 94 and 95 deal with investigatory powers of lead enforcement authorities and define 'relevant local authority' for Clause 62.
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