Deregulation Bill — House of Lords, 2015-02-11
Topic: Housing
Greville Patrick Charles Howard (Conservative, Centre-right): In moving the amendment I will also speak to Amendments 46AB, 46BA and 46HA. These are all amendments to the amendments proposed by my noble friend the Minister. Before so doing, I must declare an interest as an owner of rented-out residential properties Amendment 46AA would allow for a landlord to be away when a letter of complaint arrives. He or she may be absent for whatever reason—business, holiday, et cetera. In spite of what my noble friend said, I believe that it would be sensible to allow for this possibility when imposing a time limit. There may also be a need to seek professional advice to be able to give an adequate response to a complainant, so the time period should be adequate to allow for those items Under Amendment 46AB, the situation would be avoided when a tenant makes a written complaint and the local authority does not react promptly, say for four months, and the authority then issues a relevant notice, and when that relevant notice is issued a new six-month period begins. In effect, the ability to issue a Section 21 notice will have been blocked for 10 months—four months starting with the tenant’s written complaint, which was not acted on by the authority, followed by the six months starting with the issue by the local authority of a relevant notice. I do not believe that that was what was intended. I may have misunderstood it but perhaps my noble friend can make that clear That point becomes particularly relevant when I come to Amendment 46BA. It allows a Section 21 notice to be served if a tenant is in arrears of rent for two or more consecutive payment dates, even if the tenant has made a written complaint. My noble friend referred to Section 8 of the Housing Act but I understand that the only method of controlling the situation would be the issue of a Section 21 notice. Any tenant not wishing to pay his rent only has to put a complaint in writing to the landlord, and the tenant has security of tenure without paying any rent for the next six months—or if the local authority delays in its actions, an even longer period. This creates a situation that is open to abuse, and although most tenants would not dream of doing so, there will be occasions when such action is taken deliberately. It could be argued that my amendment is too lenient because, in effect, sanctions against non-payment of rent are taken away the moment a complaint is issued Amendment 46HA allows any money owing to a landlord to be deducted when returning rent to a tenant. Frequently a deposit is taken to cover damage by tenants over and above normal wear and tear. These deposits are regulated and held by a third party. It is only fair that where there is a reasonable claim for dilapidation, that is deducted from any rent due to be repaid to a tenant Finally, I would be grateful if my noble friend will say what is to happen when a landlord does not have the resources to make necessary repairs or improvements quite reasonably asked for by the tenant. In this context my noble friend might like to consider that where I live and rent out properties a full repair costs on average 16 times the annual rent, and a minor refurbishment five years’ rent, and that does not allow for any tax. That makes it difficult for many people to finance repairs. I am not trying to say that they should not make repairs but the Minister should consider what happens when people cannot pay.