Private Rented Sector Database Regulations 2026 Debate
Full Debate: Read Full DebateLord Howard of Rising
Main Page: Lord Howard of Rising (Conservative - Life peer)Department Debates - View all Lord Howard of Rising's debates with the Ministry of Housing, Communities and Local Government
(1 week, 3 days ago)
Grand Committee
Lord Howard of Rising (Con)
My Lords, I declare an interest as a landlord. I cannot see how this database will achieve anything more than create a bureaucratic nightmare. It will not improve the conditions of properties to let. It will not increase the numbers of them—indeed, it will reduce the number. What it will do is drive rogue landlords underground.
Furthermore, I understand the Government have been advised that the database, as it stands, runs the risk of being operationally unusable. The database will not, as currently designed, enable landlords and letting agents to view data to ensure the accuracy of information. Without this, it will become all but impossible for landlords and letting agents to check whether they are compliant and abiding by their legal obligations in relation to the database. It risks creating a system in which landlords are held accountable for compliance without being given the ability to verify registration details.
Larger landlords will not be able to bulk-upload property information on the database. This may mean writing individual letters for each property. Have the Government considered the ability to cope with approaching 5 million letters? Letting larger landlords bulk-upload would take some of this burden away.
Officials have said that the proposed model for the database would operate on a property-by-property basis, with agents receiving individual links for each property they help to register and manage. Surely the Government are competent enough to create a system which has a much greater degree of automation. As proposed, it will be time-consuming and cumbersome for letting agents to carry out registration on behalf of landlords. Why should this be any different from someone using a letting agent which already has a responsibility for complying with existing legislation? Agents should be able to comply with these regulations without going backwards and forwards to the principle.
The reason has been given that the system is created in such a way that landlords must bear the responsibility. As has already been said, in any other case of instructing professional advisers—for example, lawyers, accountants, stockbrokers et cetera—it is the person giving the instructions who has the ultimate responsibility. Is it different in this case or has it been created in order to add to the chaos?
A registration fee of £65 represents a substantial recurring cost. Many individual landlords will see income tax rates on rentals increase from April next year and the Government want landlords to pay up to £10,000 per property to meet their proposed energy efficiency standards. We should not see the fee to join the database in isolation from these other costs facing the sector—which, we have to remember, will ultimately be borne by the tenants in the form of higher rents. Can the Minister explain the breakdown of the £65 annual fee to join the database?
The impact assessment accompanying the then Renters’ Rights Bill assumed a database registration fee of £28.58 per property every three years. Now, £65 per property is proposed every year, as the property has to be reregistered every 12 months. How much will go to the local authorities and what will be ring-fenced to support enforcement activity? How much will be kept by central government and what will it be used for? What assurances are there that the funds will actually be used to support landlords and tenants?
I remind the Minister that there are approaching 5 million rented houses in this country, of which a very substantial number are owned by someone with no more than one or two properties. Many of them will find great difficulty in complying with the proposals. Larger landlords, as has already been commented, believe that the Government’s estimate of cost compliance is wildly underestimated.
Not wishing to burden your Lordships, I have not gone into as much detail and as many technical arguments as I would have liked to have done. Will the Minister consider meeting to explore in more detail how the database will operate in practice? Although I believe the whole exercise is pointless, we must at least make some attempt to make it work properly.
Finally, I draw the Minister’s attention to the adverse comments made by the Secondary Legislation Scrutiny Committee.
My Lords, if the Minister allows me, I will just respond initially to a few comments that have been brought up already. Some good points have been made that I want to identify the Liberal Democrats with.
The double entry issue is really troubling councils and others, and that really needs addressing and answering. I think we all need some assurance on readiness. Perhaps my question is: was there a decision about piloting this initially to get out all the teething problems?
On property agents, my deep concern that I take from what the noble Lords, Lord Best and Lord Howard, just said is one that the Minister will not be surprised to hear me express: property agents are not regulated and they have no professional codes of conduct and so on, just simple guidance. To me, we are giving them an incredibly powerful tool, and I think this is a strong argument for moving on the professionalisation of property agents, which I think the noble Lord, Lord Best, first reported on in one of his reports. When was it?