Immigration Bill

Lord Hope of Craighead Excerpts

Monday 10th March 2014 Lords Chamber

Neither tenants nor landlords are pleased with this requirement in the Bill, but we are where we are, and the amendments I am supporting and proposing are intended to moderate and mitigate the effects of this measure. In supporting Amendments 50 and 51, which call for pilot schemes to assess just how workable the arrangements may be, I add to the words of the noble Baroness, Lady Smith, that evaluation of the impact in pilot areas needs to establish not just whether any illegal migrants have been identified by landlords but whether the new measure has distorted the selection of new tenants. Certainly we need to know from the pilots how much the new measure has cost in hard cash and in time and effort for tenants, landlords and local authorities and to what effect. I support these amendments.

[Lord Hope of Craighead (CB)]

My Lords, I rise to speak to Amendment 56, which is tabled in the name of the noble and learned Lord, Lord Mackay of Drumadoon, who regrets that he cannot be in place. I have put my name to the amendment. I should make it clear that the matter with which it deals was drawn to our attention by the Law Society of Scotland. Just to set the background, it raises a short point in relation to Clause 28, the discrimination clause, to which the noble Baroness, Lady Smith, referred. That clause requires the Secretary of State to issue a code of practice with a view to ensuring that landlords or agents do not breach the provisions of the Equality Act 2010 so far as it is related to race when performing the obligations imposed on them by Chapter 1 of Part 3.

Clause 28(3) provides that:

“Before issuing the code (or a revised code) the Secretary of State must consult … the Commission for Equality and Human Rights … the Equality Commission for Northern Ireland”.

This amendment adds the Scottish Human Rights Commission to that list.

The reasoning behind the proposal can be put very shortly. It is that while Chapter 1, with which the code will be concerned, can be said to fall under the broad heading of immigration, which is a reserved matter for the Home Office, it also involves the devolved area of tenancies in relation to both social housing and private lettings between landlord and tenant. This is a sensitive area where the Article 8 right to family life and to respect for the person’s home is involved. It could also be argued that there is an Article 1, Protocol 1, right with regard to the landlord since he is having to take decisions about his own property.

The reference in Clause 28(3)(c) to,

“such persons representing the interests of landlords and tenants as the Secretary of State considers appropriate”,

suggests that there is room for adding something to the two particular bodies which are mentioned in the list set out in the clause. But it is suggested that, in order to complete the protection for the tenant’s rights under a devolved system, the inclusion of the Scottish Human Rights Commission would be appropriate. In a sense, it is a precautionary proposal because one has to be careful with regard both to the devolved system and to the risk of entrenching on the human rights of either party, which could give rise to very unfortunate consequences. The safer course, I respectfully suggest, is to include the Scottish Human Rights Commission so that it can offer its advice on the drafting of the code.

[Baroness Neville-Rolfe (Con)]

My Lords, I am sorry that prior engagements meant that I missed part of the Second Reading debate and could not speak then on this important Bill, which I support. I start by thanking my noble friend the Minister for the briefing he kindly provided on the residential tenancy provisions. I thank noble Lords opposite for initiating a debate on Clause 15, as it gives me the opportunity to probe the Government’s intentions and the “workability” of the provisions, to quote the noble Baroness.

I come at the subject as a business person, although I should declare an interest as the part-owner of a son’s flat which is currently let while he works out of London. We are asking the landlord community, nearly 2 million of us, to be part of the enforcement service for immigration. This is a new burden, as the noble Lord, Lord Best, has said. I understand that, for 62% of landlords, the required documentation is already available to satisfy the provisions. But that leaves a lot of people burdened for the first time, and required to keep copies and records that they do not have to worry about at present. I suspect that many will not know about the new rules and that they risk a civil penalty—£1,000 for the first offence, £3,000 thereafter— if they let to somebody whose papers are not in order.

I have a fear that the immigration authorities, in order to hit targets, could turn their attention to the easy task of cracking down on landlords who make a mistake, rather than the labyrinthine task of fighting illegal immigrants through the courts. Can my noble friend give landlords, especially small landlords who do not use expensive letting agencies, some comfort on these issues?

This is an important Bill, as I have said, and it is clearly essential that the new provisions are communicated really well. I have two thoughts on this and would be glad to hear the Minister’s reactions before we accept the provisions on landlords in Clause 15 and subsequent clauses. One is to use the web properly. We should place on gov.uk, in one user-friendly place, all the new rules for landlords, wherever they are set out, including the new online checking resource that is planned; briefing on the new biometric residence permits, which will ease landlords’ task of identification; the contact details for the phone inquiry line; and the 48-hour e-mail immigration checking service, which I agree will need to be adequately staffed, as the noble Lord, Lord Best, has said.

A different version could also be provided for tenants, including, perhaps—having listened to earlier debates—students, from whom I believe the paperwork requirements may be relatively light. It would be good for all of those people to know what the rules are and be able to check them in a simple place on the web. With modern techniques, prospective tenants could easily translate this briefing using an online app, obviating the need for expensive advice and lawyers.

Secondly, we should ask the landlords’ associations to prepare model clauses on the new immigration controls to be added to their standard shorthold lease. This would make it less likely that the new requirements were overlooked and the tenant would have to make an undertaking, which would be helpful, for example, in avoiding illegal sub-letting.

Finally, I would like to understand the Government’s intentions on timing, a point which links to Amendment 51 on a possible pilot. I believe that the Government plan to trial the new arrangements in a specific area or areas, which is an excellent idea that I would like to see applied to more areas of regulation. However, what would the timetable look like, and will the Government, as suggested by the noble Lords opposite, feel able to feed back to this House what they have learnt before the new system goes nationwide?

As a supporter of the Bill I am very keen that it should work well and not lead to an adverse reaction by small landlords or a reduction in available accommodation because people do not want to risk a fine or the hassle involved in the new scheme. The money-laundering laws were no doubt good in intent, but the repetitive bureaucracy they have introduced into every aspect of asset purchase certainly comes at a cost which affects UK productivity. I am keen to know whether we have learnt from this experience in establishing this important new regime for landlords.