Tenant Fees Bill

Eleanor Laing Excerpts

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

[The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Rishi Sunak)]

I beg to move amendment 5, page 2, line 17, after “(c),” insert—

“() requires the person to do any of those things—

(i) as a result of an act or default of the person relating to such a tenancy or housing let under it, and

(ii) otherwise than pursuant to, or for the breach of, a provision of a tenancy agreement,”

This amendment means that Clause 1 prohibits a landlord from requiring a tenant or other relevant person to make a prohibited payment or take other action within the clause in the event of an act or default of the tenant where the requirement is imposed otherwise than by the tenancy agreement.

[Madam Deputy Speaker (Dame Eleanor Laing)]

With this it will be convenient to discuss the following:

Government amendments 6 and 7.

Amendment 1, in clause 8, page 5, line 13 leave out “£5,000” and insert “£30,000”.

Amendment 2,  page 5, line 16, leave out from “exceed” to end of line 17 and insert “£30,000”.

Government amendments 8 to 23.

Amendment 4, in schedule 1, page 23, line 29, at end insert—

“Letting agent charges

3A (1) A payment to a letting agent or third party for the establishment or renewal of a tenancy is a permitted payment.

(2) In this section, a payment for the establishment or renewal of a tenancy may include, but is not limited to, fees for—

(a) administrative costs,

(b) credit checks,

(c) tenancy renewal fees, and

(d) inventory charges.

(3) The total payment under this section must not exceed £300.”

This amendment would allow letting agents to charge fees for various services connected with the establishment or renewal of a tenancy but would cap such fees at £300.

Amendment 3, page 23, line 30, leave out paragraph 4 and insert—

“Payment of Landlord or Agent expenses

4 (1) A payment that a tenant is required to make to cover a landlord’s or agent’s reasonable loss arising from a breach of a fair condition of the tenancy agreement by the tenant is a permitted payment.

(2) In this paragraph a “fair condition” is one that relates to—

(a) the replacement cost of a lost key or security device, or

(b) payment of the amount of late rent payments and interest relating to those payments

arising under or in connection with the tenancy.

(3) Paragraph 4(2)(a) does not apply if the payment required—

(a) pertains to rent that was paid within 14 days of the date due under the tenancy agreement, or

(b) exceeds the interest at Bank of England base rate on the rent from the day the rent was due to the day it was paid.

(4) Paragraph 4(2)(b) does not apply if the condition in the tenancy agreement prescribes a fixed fee to be paid for each breach of this term.”

This amendment would remove default fees as a permitted payment and permit the payment of landlord and agent expenses where there is a clear cost due to a tenant fault.

Government amendments 24 to 48.

[Rishi Sunak]

I will speak to all the Government amendments but, for ease, I will take them in a slightly different order from the one in which they have been set out.

I welcome the Under-Secretary of State for Housing, Communities and Local Government, my hon. Friend the Member for South Derbyshire (Mrs Wheeler), back to her place on the Front Bench. Everything we are discussing today is built on the foundations of her incredible diligence in preparing the Bill for us to consider in Committee, where I enjoyed constructive discussions with my opposite number, the hon. Member for Great Grimsby (Melanie Onn). I am delighted that my hon. Friend is back with us to help us to move the Bill through its final stages.

Amendments 5 and 6 will ensure that landlords and agents cannot charge any fees to tenants in the event of default, except under those circumstances set out in paragraph 4 of schedule 1. That now specifically includes prohibiting default fees that may have been set out in a separate agreement between the agent and the tenant, rather than in the tenancy agreement.

More generally, our provision on default fees in paragraph 4 of schedule 1 has been the source of much discussion and debate. Indeed, the hon. Member for Great Grimsby has tabled an amendment to the provision. Members from across the House, the Housing, Communities and Local Government Committee, and those who provided evidence to the Bill Committee have agreed with the principle that it is not fair for landlords to pay fees that arise due to the fault of the tenant. However, we have listened to concerns expressed by Members on Second Reading and in Committee, including the hon. Members for Great Grimsby and for Dulwich and West Norwood (Helen Hayes), and by tenant groups and the Chartered Trading Standards Institute that the default fees provisions as currently constructed may be open to abuse.

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[Several hon. Members rose—]

[Madam Deputy Speaker (Dame Eleanor Laing)]

Order. It will be obvious to the House that there is one hour and one minute left to debate this part of the proceedings and that a great many people wish to speak. I quite understand why those on the Front Benches had a lot to say and took a lot of interventions; this is a very large group of amendments. I appeal to hon. Members that if anybody speaks for much more than five minutes, they will be preventing many of their colleagues from speaking at all. It is not up to me to regulate that; it is up to the honour of each Member of the House to limit their remarks, not necessarily in scope but in time, because brevity is the soul of wit.

[Mr Goodwill]

I was very pleased to serve on the Bill Committee and to hear the very good reasons why the Bill came forward. I am pleased that the Minister has responded to some of the points made in Committee with the Government amendments, which I am very pleased to support.

The picture painted by colleagues from the south of England, particularly from London, does not represent the position in places such as Scarborough in the north of England, where there is a very vibrant rented sector, with adequate supply and demand and where the sort of fees that some have been talking about are not extracted from tenants. However, it is obvious from what we have heard that the current system is not working to protect tenants. Ninety-three per cent. of local authorities have failed to impose a penalty, and with many letting agents not publicising their fees it is difficult for prospective tenants to know what they would actually have to pay and almost impossible to make comparisons. I have also spoken to local estate agents, who have told me about some of the charges they have to take on board. A credit check, for example, can cost as little as £15, but a rogue agent could be charging as much as £625, which is taking advantage.

Tenant Fees Bill

Eleanor Laing Excerpts

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

[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.

[Madam Deputy Speaker (Dame Eleanor Laing)]

I remind the House that the motion is subject to double majority voting of the whole House and of Members representing constituencies in England.

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[Madam Deputy Speaker (Dame Eleanor Laing)]

We now come to motion 4 on private Members’ Bills.

[The Lord Commissioner of Her Majesty’s Treasury (Jeremy Quin)]

Not moved.

[Sir Christopher Chope (Christchurch) (Con)]

On a point of order, Madam Deputy Speaker. That motion would have given us some certainty that this House would be sitting on Friday week, for example, to consider private Members’ Bills. Is it not extraordinary that we now have no certainty about that? The presumption now is that we will not be sitting on Friday 1 February. At one stage we were told that we would be sitting on Friday 25 January. My point of order relates to the amendment that I tabled to the business in motion 4. Prior to hearing that the motion was not going to be moved, I sought to find out whether my amendment had been selected. It is the convention of this House that if someone has tabled an amendment, they get advance notice prior to the debate as to whether it has been selected. We often get printed papers telling us which amendments have been selected and in what order. Can you tell us, Madam Deputy Speaker, whether my amendment and/or the one tabled in the name of the Labour environment spokesman, amendment (b), were selected for debate, subject of course to the debate starting at the behest of the Government? The other point I would like to make is to ask whether I am correct in saying that the only way in which we can avoid this sort of scenario is for Back Benchers on both sides to sign Government motions so that they cannot be withdrawn?

[Madam Deputy Speaker (Dame Eleanor Laing)]

Order. I beg the House to be a little quieter because, as a matter of practicality, I could not hear the hon. Gentleman—[Interruption.] I am politely asking for a little bit of quiet. Just talk quietly among yourselves.

The hon. Gentleman makes a perfectly reasonable point. As to whether it is extraordinary, I cannot possibly comment from the Chair. However, he has asked me, as a point of order, whether his amendment (a) to motion 4 was selected and, indeed, whether amendment (b) was selected, and I can tell him that I do not know the answer to his question. The selection of amendments is entirely a matter for Mr Speaker, and the Deputy Speakers have no part in the consideration or discussion of whether an amendment should be selected. I do not know whether either amendment was selected, but I have every sympathy with the hon. Gentleman.

[Sir Christopher Chope]

Further to that point of order, Madam Deputy Speaker. I accept your ruling in relation to the prerogative of the Speaker to decide which amendments are selected and which are not, but what I was really concerned about was the fact that the Member who tabled the amendment was not notified as to whether it had been selected. Is there now a new convention in this place that a Member does not know whether their amendment has been selected until the debate starts? If that is a new convention, let us all be clear about it, but my understanding, after more than 30 years in this place, is that if a Member moves an amendment, they normally get advance notice of whether it has been selected.

[Madam Deputy Speaker]

The hon. Gentleman again makes a perfectly reasonable point about his experience over the past 30 years, but we live in ever-changing times, and I genuinely do not know the answer to his question.

[Hilary Benn (Leeds Central) (Lab)]

Further to that point of order, Madam Deputy Speaker. First, if the Government Whip had not said, “Not moved,” we would now be in the debate on the motion. If we had had that debate, I would have spoken against the amendment of the hon. Member for Christchurch (Sir Christopher Chope), so at what point would those who had put down amendments have known that they would be put to a vote? Secondly—maybe the Leader of the House can assist with this—have you had any indication that the Government intend to move the order relating to private Members’ Bills days at some point in the future? If so, when might that be?

[Madam Deputy Speaker]

Again, the right hon. Gentleman makes a perfectly reasonable point. I should point out to him and to the House that Mr Speaker‘s selection of amendments is published as a provisional selection of amendments. It is then up to Mr Speaker which amendments he finally selects. That would be the normal course of action. I am unaware of a provisional selection of amendments having been published in relation to motion 4 today.

[Mr Mark Francois (Rayleigh and Wickford) (Con)]

Further to that point of order, Madam Deputy Speaker. As you can well imagine, there may be a lot of interest in this House about the selection of amendments over the next few weeks, so this is not merely some esoteric question. Now, I have been here for only 18 years—I am a relative newbie—but the Speaker’s conference would have taken place this morning, and the usual practice is that a provisional selection of amendments is issued thereafter. As you say, it is provisional, but it can at least guide the House as to what is likely to be available for debate.

Now, today’s Bill was relatively uncontroversial. Being able to rent a home is important, but it was not as controversial as, say, some of last week’s debates, so it was not beyond the wit of man to work out that the debate on the Tenant Fees Bill would end early. The Speaker’s conference should have practically been able to foresee this situation. That being the case, why was no provisional selection of amendments issued in the normal way?

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[Madam Deputy Speaker]

I appreciate the right hon. Gentleman’s point, and I can give him a very direct answer. I will not disclose to the Chamber or in any other way what happens at the Speaker’s conference in the morning. It is a private meeting between Mr Speaker and his Deputies and senior Clerks, and I will not and cannot answer questions about it.

[Ms Angela Eagle (Wallasey) (Lab)]

Further to that point of order, Madam Deputy Speaker. As someone who has been here for 27 years, my service is obviously larger than that of the right hon. Member for Rayleigh and Wickford (Mr Francois). Can the—[Interruption.]

[Madam Deputy Speaker]

Order. The hon. Lady is making an important point. Just be quiet.

[Ms Eagle]

While we are living in an era of some creativity with respect to the House’s Standing Orders, can you confirm that we have not been so creative so far that amendments can survive the main motion being withdrawn?

[Madam Deputy Speaker]

I am delighted to answer the hon. Lady’s perspicacious point of order. She is absolutely correct that amendments cannot survive the withdrawal of the main motion. I will say it again that the selection of amendments is entirely a matter for Mr Speaker, and I am sure that if Mr Speaker had been here, as he will be at some future point, he would have been delighted to answer these questions.

[Sir Oliver Heald (North East Hertfordshire) (Con)]

Further to that point of order, Madam Deputy Speaker. Can you confirm that it would be in order for the Government to propose a future motion—hopefully very quickly—that would allow the Service Animals (Offences) Bill finally to make progress and get its Third Reading? The Bill has support on both sides of the House and had cross-party support in Committee last week.

[Madam Deputy Speaker]

I am happy to confirm to the right hon. and learned Gentleman that that would be perfectly in order. He also reminds me that I did not answer the second point of the right hon. Member for Leeds Central (Hilary Benn) about whether the Government intend to bring forward motion 4 again at a future time. I am not aware at this point of any such intention, but one would hope so.