House of Commons Amendments

Session 2014 - 15
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Other Bills before Parliament

87

House of Commons

Monday 16 June 2014

Consideration of Bill

New Amendments handed in are marked thus

Amendments which will comply with the required notice period at their next appearance

Consumer Rights Bill, As Amended

Note

The Amendments have been arranged in accordance with the Order of the House

[13 May 2014].

New Clauses and new schedules relating to parts 2 and 3

Secretary Vince Cable

NC24

To move the following Clause—

“Duty of letting agents to publicise fees

(1)
A letting agent must, in accordance with this section, publicise details of the

agent’s relevant fees.

(2)
The agent must display a list of the fees—

(a)
at each of the agent’s premises at which the agent deals face-to-face with

persons using or proposing to use services to which the fees relate, and

(b)
at a place in each of those premises at which the list is likely to be seen

by such persons.

(3)
The agent must publish a list of the fees on the agent’s website (if it has a

website).

(4)
A list of fees displayed or published in accordance with subsection (2) or (3) must

include—

(a)
a description of each fee that is sufficient to enable a person who is liable

to pay it to understand the service or cost that is covered by the fee or the

purpose for which it is imposed (as the case may be),

(b)
in the case of a fee which tenants are liable to pay, an indication of

whether the fee relates to each dwelling-house or each tenant under a

tenancy of the dwelling-house, and

(c)
the amount of each fee inclusive of any applicable tax or, where the

amount of a fee cannot reasonably be determined in advance, a

description of how that fee is calculated.

Consideration of Bill: 16 June 2014
88

Consumer Rights Bill, continued

(5)
The Secretary of State may by regulations specify—

(a)
other ways in which a letting agent must publicise details of the relevant

fees charged by the agent;

(b)
the details that must be given of fees publicised in that way.”

Member’s explanatory statement

This new Clause requires letting agents to publish a list of their fees and provides for where and

how this must be done. The Secretary of State may also make regulations about what must be

published and where

Secretary Vince Cable

NC25

To move the following Clause—

“Letting agents to which the duty applies

(1)
In sections (Duty of letting agents to publicise fees), (Letting agents to which the

duty applies), (Fees to which the duty applies), (Letting agency work and

property management work), (Enforcement of the duty) and (Supplementary

provisions) “letting agent” means a person who engages in letting agency work

(whether or not that person engages in other work).

(2)
A person is not a letting agent for the purposes of sections (Duty of letting agents

to publicise fees), (Letting agents to which the duty applies), (Fees to which the

duty applies), (Letting agency work and property management work),

(Enforcement of the duty) and (Supplementary provisions) if the person engages

in letting agency work in the course of that person’s employment under a contract

of employment.

(3)
A person is not a letting agent for the purposes of sections (Duty of letting agents

to publicise fees), (Letting agents to which the duty applies), (Fees to which the

duty applies), (Letting agency work and property management work),

(Enforcement of the duty) and (Supplementary provisions) if—

(a)
the person is of a description specified in regulations made by the

Secretary of State;

(b)
the person engages in work of a description specified in regulations made

by the Secretary of State.”

Member’s explanatory statement

This new Clause provides that the duty applies to a person who engages in letting agency work.

Employees are exempt from the duty. The Secretary of State may make regulations exempting

other persons or types of work

Secretary Vince Cable

NC26

To move the following Clause—

“Fees to which the duty applies

(1)
In sections (Duty of letting agents to publicise fees), (Letting agents to which the

duty applies), (Fees to which the duty applies), (Letting agency work and

property management work), (Enforcement of the duty) and (Supplementary

Consideration of Bill: 16 June 2014
89

Consumer Rights Bill, continued

provisions) “relevant fees”, in relation to a letting agent, means the fees, charges

or penalties (however expressed) payable to the agent by a landlord or tenant—

(a)
in respect of letting agency work carried on by the agent,

(b)
in respect of property management work carried on by the agent, or

(c)
otherwise in connection with—

(i)
an assured tenancy of a dwelling-house in England, or

(ii)
a dwelling-house in England that is, has been or is proposed to

be let under an assured tenancy.

(2)
Subsection (1) does not apply to—

(a)
the rent payable to a landlord under a tenancy,

(b)
any fees, charges or penalties which the letting agent receives from a

landlord under a tenancy on behalf of another person,

(c)
a tenancy deposit within the meaning of section 212(8) of the Housing

Act 2004, or

(d)
any fees, charges or penalties of a description specified in regulations

made by the Secretary of State.”

Member’s explanatory statement

This new Clause provides that the duty applies to fees payable in respect of letting agency work,

property management work and other work done in connection with assured tenancies. The clause

provides that certain payments are not fees for the purposes of the duty. The Secretary of State may

make regulations to exempt other payments

Secretary Vince Cable

NC27

To move the following Clause—

“Letting agency work and property management work

(1)
In sections (Duty of letting agents to publicise fees), (Letting agents to which the

duty applies), (Fees to which the duty applies), (Letting agency work and

property management work), (Enforcement of the duty) and (Supplementary

provisions) “letting agency work” means things done by a person in the course of

a business in response to instructions received from—

(a)
a person (“a prospective landlord”) seeking to find another person

wishing to rent a dwelling-house in England under an assured tenancy

and, having found such a person, to grant such a tenancy, or

(b)
a person (“a prospective tenant”) seeking to find a dwelling-house in

England to rent under an assured tenancy and, having found such a

dwelling-house, to obtain such a tenancy of it.

(2)
But “letting agency work” does not include any of the following things when

done by a person who does nothing else within subsection (1)—

(a)
publishing advertisements or disseminating information;

(b)
providing a means by which a prospective landlord or a prospective

tenant can, in response to an advertisement or dissemination of

information, make direct contact with a prospective tenant or a

prospective landlord;

(c)
providing a means by which a prospective landlord and a prospective

tenant can communicate directly with each other.

(3)
“Letting agency work” also does not include things done by a local authority.

Consideration of Bill: 16 June 2014
90

Consumer Rights Bill, continued

(4)
In sections (Duty of letting agents to publicise fees), (Letting agents to which the

duty applies), (Fees to which the duty applies), (Letting agency work and

property management work), (Enforcement of the duty) and (Supplementary

provisions) “property management work”, in relation to a letting agent, means

things done by the agent in the course of a business in response to instructions

received from another person where—

(a)
that person wishes the agent to arrange services, repairs, maintenance,

improvements or insurance in respect of, or to deal with any other aspect

of the management of, premises in England on the person’s behalf, and

(b)
the premises consist of a dwelling-house let under an assured tenancy.”

Member’s explanatory statement

This new Clause defines letting agency work and property management work. It provides that

letting agency work does not include publishing advertisements, enabling landlords and tenants to

communicate directly with one another or things done by a local authority

Secretary Vince Cable

NC28

To move the following Clause—

“Enforcement of the duty

(1)
The Secretary of State may by regulations—

(a)
impose functions on a local authority in connection with the enforcement

of the duty in section (Duty of letting agents to publicise fees);

(b)
make provision for civil penalties to be imposed in respect of a breach of

that duty.

(2)
Regulations under subsection (1)(b) may provide for the amount of a civil penalty

to be determined by the person imposing it, subject to subsection (3).

(3)
The amount of a civil penalty that a person may impose by virtue of regulations

under subsection (1)(b) may not exceed £5,000 for each breach of the duty in

section (Duty of letting agents to publicise fees).

(4)
The Secretary of State may by regulations amend the figure for the time being

specified in subsection (3).

(5)
Regulations under subsection (1)(b) must make provision about the procedure for

imposing a civil penalty and, in particular, must require a person imposing a

penalty to give the person on whom it is imposed a written notice stating—

(a)
the amount of the penalty,

(b)
the reasons for imposing it, and

(c)
the date by which and manner in which it is to be paid.

(6)
Regulations under subsection (1)(b)—

(a)
may give a person on whom a civil penalty is imposed a right to request

a review of the decision to impose the penalty, and

(b)
must give such a person a right to appeal against the decision to the First-

tier Tribunal.

(7)
Regulations under subsection (1)(b) must, in particular, specify the grounds on

which a person may appeal against a decision to impose a civil penalty, which

must include the grounds—

(a)
that the decision was based on an error of fact,

(b)
that the decision was wrong in law, and

Consideration of Bill: 16 June 2014
91

Consumer Rights Bill, continued

(c)
that the decision was unreasonable (including that the amount of the

penalty is unreasonable).

(8)
Regulations under subsection (1)(b) may, in particular—

(a)
specify the time within which a person must request a review of, or

appeal against, a decision to impose a civil penalty;

(b)
require a person to request a review before appealing;

(c)
specify the grounds on which a person may request a review;

(d)
make provision about the procedure for a review;

(e)
make further provision about reviews and appeals (including provision as

to the powers available on a review or appeal).

(9)
Regulations under subsection (1)(b) may make provision about the recovery of a

civil penalty, including—

(a)
provision for the person by whom it is imposed to recover the penalty as

a civil debt;

(b)
provision for the penalty to be recoverable, on the order of a court, as if

payable under a court order.

(10)
Sums received by a local authority under regulations under this section may be

used by the authority for the purposes of any of its functions.

(11)
A local authority on whom functions are conferred by regulations under this

section must have regard to any guidance issued by the Secretary of State about—

(a)
compliance by letting agents with the duty in section (Duty of letting

agents to publicise fees);

(b)
the exercise of those functions.”

Member’s explanatory statement

This new Clause enables the Secretary of State to make regulations about enforcement of the duty.

The penalty for non-compliance will be a civil penalty of up to £5,000. The regulations must

provide for a right of appeal against the penalty to the First-tier Tribunal

Secretary Vince Cable

NC29

To move the following Clause—

“Supplementary provisions

(1)
In sections (Duty of letting agents to publicise fees), (Letting agents to which the

duty applies), (Fees to which the duty applies), (Letting agency work and

property management work), (Enforcement of the duty) and (Supplementary

provisions)—

“assured tenancy” means a tenancy which is an assured tenancy for the

purposes of the Housing Act 1988 except where—

(a)
the landlord is a private registered provider of social housing, or

(b)
the tenancy is a long lease;

“dwelling-house” may be a house or part of a house;

“landlord” includes a person who proposes to be a landlord under a tenancy

and a person who has ceased to be a landlord under a tenancy because the

tenancy has come to an end;

“long lease” means a lease which—

Consideration of Bill: 16 June 2014
92

Consumer Rights Bill, continued

(c)
is a long lease for the purposes of Chapter 1 of Part 1 of the

Leasehold Reform, Housing and Urban Development Act 1993,

or

(d)
in the case of a shared ownership lease (within the meaning given

by section 7(7) of that Act), would be a lease within paragraph

(a) of this definition if the tenant’s total share (within the

meaning given by that section) were 100%;

“tenant” includes a person who proposes to be a tenant under a tenancy and

a person who has ceased to be a tenant under a tenancy because the

tenancy has come to an end.

(2)
In sections (Duty of letting agents to publicise fees), (Letting agents to which the

duty applies), (Fees to which the duty applies), (Letting agency work and

property management work), (Enforcement of the duty) and (Supplementary

provisions) “local authority” means—

(a)
a county council in England,

(b)
a district council,

(c)
a London borough council,

(d)
the Common Council of the City of London in its capacity as local

authority, or

(e)
the Council of the Isles of Scilly.

(3)
References in sections (Duty of letting agents to publicise fees), (Letting agents

to which the duty applies), (Fees to which the duty applies), (Letting agency work

and property management work), (Enforcement of the duty) and (Supplementary

provisions) to a tenancy include a proposed tenancy and a tenancy that has come

to an end.

(4)
References in sections (Duty of letting agents to publicise fees), (Letting agents

to which the duty applies), (Fees to which the duty applies), (Letting agency work

and property management work), (Enforcement of the duty) and (Supplementary

provisions) to anything which is payable, or which a person is liable to pay, to a

letting agent include anything that the letting agent claims a person is liable to

pay, regardless of whether the person is in fact liable to pay it.

(5)
Regulations under sections (Duty of letting agents to publicise fees), (Letting

agents to which the duty applies), (Fees to which the duty applies), (Letting

agency work and property management work), (Enforcement of the duty) and

(Supplementary provisions) are to be made by statutory instrument.

(6)
A statutory instrument containing (whether alone or with other provision)—

(a)
the first regulations to be made under section (Enforcement of the

duty)(1)(b), or

(b)
regulations under section (Enforcement of the duty)(4),


is not to be made unless a draft of the instrument has been laid before, and

approved by a resolution of, each House of Parliament.

(7)
A statutory instrument containing regulations under sections (Duty of letting

agents to publicise fees), (Letting agents to which the duty applies), (Fees to

which the duty applies), (Letting agency work and property management work),

(Enforcement of the duty) and (Supplementary provisions) other than one to

which subsection (6) applies is subject to annulment in pursuance of a resolution

of either House of Parliament.

(8)
Regulations under sections (Duty of letting agents to publicise fees), (Letting

agents to which the duty applies), (Fees to which the duty applies), (Letting

agency work and property management work), (Enforcement of the duty) and

(Supplementary provisions)—

(a)
may make different provision for different purposes;

(b)
may make provision generally or in relation to specific cases.

Consideration of Bill: 16 June 2014
93

Consumer Rights Bill, continued

(9)
Regulations under sections (Duty of letting agents to publicise fees), (Letting

agents to which the duty applies), (Fees to which the duty applies), (Letting

agency work and property management work), (Enforcement of the duty) and

(Supplementary provisions) may include incidental, supplementary,

consequential, transitional, transitory or saving provision.”

Member’s explanatory statement

This new Clause provides definitions of the terms used in the new clauses and sets out the

procedures for making regulations

Hilary Benn [R]

Emma Reynolds

Stella Creasy

NC30

To move the following Clause—

“Letting Agents: Report

Within three months of Royal Assent of this Act, the Secretary of State shall

prepare and publish a report, and lay a copy of the report before Parliament, on—

(a)
the consumer detriment caused to tenants by letting agent fees and the

impact this has on the ability of tenants to secure and maintain tenancies,

and

(b)
the steps that the government intends to take to prohibit fees that cause

detriment to tenants.”

Hilary Benn

Emma Reynolds

Stella Creasy

20

Clause  84,  page  44,  line  1,  at end insert—

“(2A)
Section [Prohibition of fees in contracts for services: letting of residential

accommodation] extends only to England.”

Stella Creasy

Stephen Doughty

1

Schedule  2,  page  51,  line  9,  at end insert—

“1A
A term which requires a consumer to pay a charge for, or be liable for, an

element of a good or service that another party has also been charged for in the

course of the same transaction.”



© Parliamentary copyright	Revised 16 June 2014