Session 2017-19
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1

 

House of Commons

 
 

Wednesday 5 September 2018

 

Consideration of Bill (Report Stage)

 

New Amendments handed in are marked thus Parliamentary Star

 

Parliamentary Star - whiteAmendments which will comply with the required notice period at their next appearance

 

Tenant Fees Bill


 

Note

 

This document includes all amendments tabled to date and includes any

 

withdrawn amendments at the end. The amendments have been arranged in the

 

order in which they relate to the Bill.

 

 


 

Secretary James Brokenshire

 

5

 

Clause  1,  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,”

 

Member’s explanatory statement

 

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.

 


 

Secretary James Brokenshire

 

6

 

Clause  2,  page  3,  line  6,  after “tenancy,” insert—

 

“(aa)    

requires the person to do any of those things pursuant to a provision of an

 

agreement with the person relating to such a tenancy which requires or


 
 

Consideration of Bill (Report Stage): 5 September 2018      

2

 

Tenant Fees Bill, continued

 
 

purports to require the person to do any of those things in the event of an

 

act or default of the person,

 

(ab)    

requires the person to do any of those things pursuant to a provision of an

 

agreement with the person relating to such a tenancy which requires or

 

purports to require the person to do any of those things if the tenancy is

 

varied, assigned, novated or terminated,

 

(ac)    

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, an agreement

 

entered into before the person’s act or default,”

 

Member’s explanatory statement

 

This amendment brings Clause 2 largely into line with Clause 1 so that the prohibitions that apply

 

to letting agents under the Bill are similar to those that apply to landlords.

 

Secretary James Brokenshire

 

7

 

Clause  2,  page  3,  line  19,  at end insert—

 

“( )    

This section does not apply to a requirement imposed by a letting agent on a

 

relevant person if—

 

(a)    

the requirement is imposed by the letting agent in consideration of

 

providing a service to a tenant,

 

(b)    

as part of that service the agent finds housing for the tenant to rent and

 

the tenant rents that housing, and

 

(c)    

the agent does not act on behalf of the landlord of that housing, whether

 

in relation to that housing or any other housing.”

 

Member’s explanatory statement

 

This amendment removes a service provided by a letting agent to a tenant from the prohibitions in

 

Clause 2 where the agent finds housing for the tenant to rent and does not also act for the landlord

 

of that housing.

 


 

Melanie Onn

 

1

 

Clause  8,  page  5,  line  13,  leave out “£5,000” and insert “£30,000”

 

Melanie Onn

 

2

 

Clause  8,  page  5,  line  16,  leave out from “exceed” to end of line 17 and insert

 

“£30,000”

 

Secretary James Brokenshire

 

8

 

Clause  8,  page  5,  line  38,  leave out from “(6)” to “in” in line 39 and insert “Only

 

one financial penalty under this section may be imposed”

 

Member’s explanatory statement

 

Clause 8(6) currently provides that an enforcement authority may not impose more than one


 
 

Consideration of Bill (Report Stage): 5 September 2018      

3

 

Tenant Fees Bill, continued

 
 

penalty under the clause for the same breach. This amendment clarifies that, in addition, no more

 

than one authority may impose a penalty for the same breach.

 


 

Secretary James Brokenshire

 

9

 

Clause  10,  page  6,  line  27,  after “that” insert “, with the consent of the relevant

 

person”

 

Member’s explanatory statement

 

This amendment and Amendments 10, 12, 18, 19 and 43 have the effect that a prohibited payment

 

or a holding deposit which must be repaid may only be applied to a payment of rent or the tenancy

 

deposit if the relevant person consents.

 

Secretary James Brokenshire

 

10

 

Clause  10,  page  7,  line  17,  after “that” insert “, with the consent of the relevant

 

person”

 

Member’s explanatory statement

 

See the explanatory statement for Amendment 9.

 


 

Secretary James Brokenshire

 

11

 

Clause  14,  page  9,  line  22,  at end insert “, or

 

( )    

the enforcement authority brings proceedings for an offence under

 

section 12 and the defendant in the proceedings is convicted of the

 

offence.”

 

Member’s explanatory statement

 

This amendment requires an enforcement authority to notify the lead enforcement authority if the

 

enforcement authority brings proceedings for an offence under Clause 12 and the defendant in the

 

proceedings is convicted.

 


 

Secretary James Brokenshire

 

12

 

Clause  15,  page  10,  line  36,  after “that” insert “, with the consent of the relevant

 

person”

 

Member’s explanatory statement

 

See the explanatory statement for Amendment 9.

 

Secretary James Brokenshire

 

13

 

Clause  15,  page  11,  line  6,  leave out from “period” to end of line 7 and insert

 

“specified in the order”

 

Member’s explanatory statement

 

This amendment and Amendments 14 and 44 to 48 change the period for repayment of a prohibited

 

payment from 28 days to a period of at least 7 days but not more than 14 days.


 
 

Consideration of Bill (Report Stage): 5 September 2018      

4

 

Tenant Fees Bill, continued

 
 

Secretary James Brokenshire

 

14

 

Clause  15,  page  11,  line  7,  at end insert—

 

“( )    

A period specified under subsection (9) must be a period of at least 7 days but not

 

more than 14 days beginning with the day after that on which the order is made.”

 

Member’s explanatory statement

 

See the explanatory statement for Amendment 13.

 


 

Secretary James Brokenshire

 

15

 

Clause  16,  page  11,  line  12,  after “person” insert “—(a)”

 

Member’s explanatory statement

 

This amendment and Amendments 16 and 17 enable an enforcement authority to assist a relevant

 

person to recover an amount which the First-tier Tribunal orders to be paid to that person on an

 

application under Clause 15.

 

Secretary James Brokenshire

 

16

 

Clause  16,  page  11,  line  13,  at end insert “, or

 

(b)    

to recover all or part of an amount which the First-tier Tribunal orders to

 

be paid to the relevant person under that section.”

 

Member’s explanatory statement

 

See the explanatory statement for Amendment 15.

 

Secretary James Brokenshire

 

17

 

Clause  16,  page  11,  line  14,  leave out “to apply”

 

Member’s explanatory statement

 

See the explanatory statement for Amendment 15.

 


 

Secretary James Brokenshire

 

18

 

Clause  17,  page  11,  line  31,  after “if” insert “, with the consent of the relevant

 

person”

 

Member’s explanatory statement

 

See the explanatory statement for Amendment 9.

 

Secretary James Brokenshire

 

19

 

Clause  17,  page  11,  line  40,  after “if” insert “, with the consent of the relevant

 

person”

 

Member’s explanatory statement

 

See the explanatory statement for Amendment 9.

 



 
 

Consideration of Bill (Report Stage): 5 September 2018      

5

 

Tenant Fees Bill, continued

 
 

Secretary James Brokenshire

 

20

 

Clause  28,  page  19,  line  39,  after “landlord” insert “or a letting agent”

 

Member’s explanatory statement

 

This amendment and amendments 21 and 22 have the effect that, if a payment under a pre-

 

commencement tenancy agreement is made to a letting agent after the end of a year from the

 

commencement of Clause 1, it is a prohibited payment.

 

Secretary James Brokenshire

 

21

 

Clause  28,  page  19,  line  41,  after “(b)” insert “the landlord or letting agent”

 

Member’s explanatory statement

 

See the explanatory statement for Amendment 20.

 

Secretary James Brokenshire

 

22

 

Clause  28,  page  19,  line  43,  after “landlord” insert “or letting agent”

 

Member’s explanatory statement

 

See the explanatory statement for Amendment 20.

 

Secretary James Brokenshire

 

23

 

Clause  28,  page  20,  line  18,  after “(b)” insert “the letting agent”

 

Member’s explanatory statement

 

This amendment ensures that the wording of paragraph (b) of subsection (10) of Clause 28 follows

 

on from the opening words of that subsection.

 


 

Daniel Kawczynski

 

Sir Christopher Chope

 

4

 

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.”

 

Member’s explanatory statement

 

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.


 
 

Consideration of Bill (Report Stage): 5 September 2018      

6

 

Tenant Fees Bill, continued

 
 

Melanie Onn

 

3

 

Schedule  1,  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 devise, 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.”

 

Member’s explanatory statement

 

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.

 

Secretary James Brokenshire

 

24

 

Schedule  1,  page  23,  line  31,  leave out “that a tenant is required to make”

 

Member’s explanatory statement

 

This amendment and Amendments 25 and 29 to 42 clarify that a payment may be a permitted

 

payment whether it is required to be made by the tenant or a person acting on behalf of, or who

 

has guaranteed the payment of rent by, a tenant.

 

Secretary James Brokenshire

 

25

 

Schedule  1,  page  23,  line  32,  leave out from first “the” to end of line 33 and insert

 

“tenancy agreement requires the payment to be made.”

 

Member’s explanatory statement

 

See the explanatory statement for Amendment 24.

 

Secretary James Brokenshire

 

26

 

Schedule  1,  page  23,  line  38,  leave out “loss suffered” and insert “costs which—

 

( )    

are reasonably incurred”

 

Member’s explanatory statement

 

This amendment and Amendment 28 means that, to be permitted payment, a default payment must

 

be limited to the landlord’s or agent’s reasonable costs, which must also be evidenced in writing.

 

Secretary James Brokenshire

 

27

 

Schedule  1,  page  23,  line  38,  at end insert “or letting agent”

 

Member’s explanatory statement

 

This amendment has the effect that a payment to a letting agent in the event of a default by the

 

tenant may be a permitted payment where paragraph 4 of Schedule 1 applies.


 
 

Consideration of Bill (Report Stage): 5 September 2018      

7

 

Tenant Fees Bill, continued

 
 

Secretary James Brokenshire

 

28

 

Schedule  1,  page  23,  line  39,  after “default,” insert “and

 

“( )    

are supported by evidence in writing which is provided to the person

 

on whom the requirement to make the payment is imposed,”

 

Member’s explanatory statement

 

See the explanatory statement for Amendment 26.

 

Secretary James Brokenshire

 

29

 

Schedule  1,  page  24,  line  2,  leave out “that a tenant is required to make”

 

Member’s explanatory statement

 

See the explanatory statement for Amendment 24.

 

Secretary James Brokenshire

 

30

 

Schedule  1,  page  24,  line  15,  leave out “that a tenant is required to make”

 

Member’s explanatory statement

 

See the explanatory statement for Amendment 24.

 

Secretary James Brokenshire

 

31

 

Schedule  1,  page  24,  line  25,  leave out “that a tenant is required to make”

 

Member’s explanatory statement

 

See the explanatory statement for Amendment 24.

 

Secretary James Brokenshire

 

32

 

Schedule  1,  page  24,  line  38,  leave out “that a tenant is required to make”

 

Member’s explanatory statement

 

See the explanatory statement for Amendment 24.

 

Secretary James Brokenshire

 

33

 

Schedule  1,  page  24,  line  39,  leave out from “payment” to end of line 41

 

Member’s explanatory statement

 

See the explanatory statement for Amendment 24.

 

Secretary James Brokenshire

 

34

 

Schedule  1,  page  25,  line  2,  leave out “that a tenant is required to make”

 

Member’s explanatory statement

 

See the explanatory statement for Amendment 24.

 

Secretary James Brokenshire

 

35

 

Schedule  1,  page  25,  line  3,  leave out from first “the” to end of line 4 and insert

 

“tenancy agreement requires the payment to be made.”

 

Member’s explanatory statement

 

See the explanatory statement for Amendment 24.


 
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Revised 04 September 2018