| Previous Section | Index | Home Page |
(3) Regulations under—
(a) section 171C of that Act (modifications of Part 5 in relation to preserved right to buy), or
(b) section 17 of the Housing Act 1996 (c. 52) (application of that Part in relation to right to acquire dwelling),
may make provision for continuing the effect of a suspension order where the secure tenancy in respect of which the order was made has been replaced by an assured tenancy.'.—[Paul Clark.]
Brought up, read the First and Second time, and added to the Bill.
New Clause 12
'(1) Section 16 of the Housing Act 1996 (c.52) (right of assured tenant of registered social landlord to acquire dwelling) is amended as follows.
(2) After subsection (3) insert—
11 May 2004 : Column 258
"(3A) In subsection (3)(a) the reference to the freehold interest in the dwelling includes a reference to such an interest in the dwelling as is held by the landlord under a lease granted in pursuance of paragraph 3 of Schedule 9 to the Leasehold Reform, Housing and Urban Development Act 1993 (mandatory leaseback to former freeholder on collective enfranchisement)."
(3) The amendment made by subsection (2) applies in relation to the right conferred by section 16 as follows—
(a) it applies for the purposes of any exercise of that right on or after the day on which this section comes into force, and
(b) it so applies whether the lease granted in pursuance of paragraph 3 of Schedule 9 to the Leasehold Reform, Housing and Urban Development Act 1993 was granted on or after that day or before it.'.—[Paul Clark.]
Brought up, read the First and Second time, and added to the Bill.
New Clause 2
'(1) Where a landlord requires payment of a deposit in relation to any premises occupied as a dwelling under a tenancy, the occupier must pay that deposit into the Deposit Scheme unless subsection (2) applies.
(2) Landlords, or their appointed agents, who are members of national self-regulated bodies that are bonded by insurance schemes approved by the appropriate national authority may request in writing the payment of any deposit lawfully demanded directly to themselves.
(3) Where subsection (2) applies, the occupier must pay the deposit directly to their landlord, upon which the landlord must provide a written receipt.
(4) Any dispute between the landlord and the occupier over the return of the deposit is to be resolved by independent adjudication.
(5) The appropriate national authority may by regulations specify—
(a) The terms, conditions and management of the Deposit Scheme;
(b) Approved bodies and schemes under subsection (2);
(c) The mechanisms and procedures to be followed under subsection (4).
(6) The appropriate national authority may by regulations specify that a failure to adhere to such sections of this Part as it sees fit constitutes acts or omissions for the purposes of section 211(2) of the Enterprise Act 2002.'.—[Dr. Desmond Turner.]
Brought up, and read the First time.
Dr. Desmond Turner: I beg to move, That the clause be read a Second time.
I apologise for the earlier confusion. I was becoming anxious because time is running out so fast.
The new clause sets out enabling powers for the Government to introduce a national mandatory tenancy deposit scheme. I shall not detail the arguments in favour of such a scheme or the copious abuses that happen, but many millions of pounds are milked from tenants by unscrupulous landlords and letting agencies every year. Everyone, including respectable and responsible landlords associations, wants that abuse to be stopped.
Matthew Green:
I remind the hon. Gentleman that good landlords also lose out from the absence of a
11 May 2004 : Column 259
tenancy deposit scheme, because they lose money when tenants withhold their last month's payment. A good scheme would help both tenants and landlords.
Dr. Turner: The hon. Gentleman is right. As far as the Government are concerned, I am knocking on an open door. However, it is only partly open, the hinges are a bit rusty, it needs oiling and it takes a bit of a push to open. That is what my amendment seeks to do. In principle, the Government are minded to move towards a national tenancy deposit scheme. They have carried out a voluntary pilot scheme and their conclusion appears in evidence given to the Office of the Deputy Prime Minister: Housing, Planning and Local Government Committee, which reads:
"It has been a very worthwhile pilot for us because it has proved that the principle of tenancy deposit protection through either of the two methods used—guarantee or the third party custodial approach—does work and it has also shown to us that a voluntary scheme is not going to work".
The principle has therefore been clearly established.
The scheme need not be expensive. Once established, the administration costs could be covered by the interest paid on the deposits held. Some relatively small costs would be incurred as the scheme was set up, but it would be cost-effective once it was set up. I do not foresee many disputes, because after a few cases that demonstrated that abuse of the system no longer worked, neither tenants nor landlords would see much point in trying. I am convinced that it would work and would not need to be as complicated as my right hon. Friend the Minister seems to think. He pointed out that a few outstanding issues remain, such as the need for written tenancy agreements, funding for a custodial deposit scheme, the nature of industry schemes, adjudication, enforcement and how to define a deposit. However, none of those issues is particularly complex or could not be readily resolved during the further progress of the Bill.
I know that my right hon. Friend the Minister has referred the matter to the Law Commission, but I ask him not to wait for the outcome of its considerations. The Law Commission is also considering tenure, and we could have to wait a long time for its conclusions. The Bill is a suitable vehicle through which to establish a tenancy deposit scheme. In the days before congestion charging, one never knew when a London bus would come along. Well, here we have an opportunity and I appeal to my right hon. Friend to get on the bus and do the business. I shall not press the issue to a vote because I know that the Government are well disposed towards it. I prefer instead to stroke the Government into submission, and I ask them to accept the new clause.
Mr. Syms:
This suggestion is often brought up by citizens advice bureaux and in surgeries, but the official Opposition are not yet persuaded that it is the right direction to take. Many voluntary schemes work well and the first option should be to consider those. A great deal of money is involved, as it is estimated that there is
11 May 2004 : Column 260
£790 million in tenancy deposits. The Government should certainly consider the issue to see whether practice in the area can be improved, but we would not be happy to see a regulatory scheme introduced. The argument for doing so is not overwhelming. Best practice and voluntary schemes can improve matters in many areas.
Some of the landlords who deal with the poorest tenants do not take deposits, because those tenants tend not to have deposits. Therefore, a mandatory scheme would not meet some of the objectives of those who favour one. However, in order to allow the Minister to put the Government's views on record on this important and topical subject, I shall conclude my remarks.
| Next Section | Index | Home Page |