Select Committee on Communities and Local Government Committee Minutes of Evidence


Examination of Witnesses (Questions 320 - 330)

MONDAY 5 FEBRUARY 2007

PROFESSOR MICHAEL BALL, MR ADRIAN TURNER AND MR MIKE STIMPSON

  Q320  Anne Main: Would you have an argument if it was a smaller sized property than that?

  Mr Stimpson: We think it is unnecessary.

  Q321  Anne Main: Okay. So you have got no problems with the standards, it is now that you would not like to see it for a smaller unit?

  Mr Stimpson: We do not think it is necessary. What we are seeing now is a lot of local authorities have got massive numbers of applications for licensing and they are not issuing licences.

  Q322  Anne Main: Why is that?

  Mr Stimpson: They cannot get round to it. They have not got sufficient staff. They were not well enough organised when the Act came in. What we are seeing is that the same people are being licensed that were registered before. All the good landlords are declaring and they are getting licensed, and what we are going to see, just the same as before, is the bad ones who will never ever be looked at because local authorities just do not get round to it. By the time the licensing period is up, they will be doing new licences for the same landlords who have come forward.

  Q323  Anne Main: Is this a government failure to give enough lead time for training up or being prepared? Have you got anything to say about that? Hopefully that is not an intractable problem you have just described.

  Mr Stimpson: I think there has been a real mess, to be absolutely honest. I believe that when licensing was brought in it should have done away with all previous schemes. It should not have allowed local authorities to continue with existing schemes, such as registration schemes, because it has confused landlords. Landlords do not know whether their property is due to be licensed or not, and I can tell you, many local authorities, even on the three storeys and five tenants, are doing totally different things. In Worthing they are doing totally differently to Brighton. If you are a landlord in Worthing it is very likely an HMO will not be licensed, but it is licensed in Brighton, simply because they do not understand the Act. The Act is not that clear. To give an example, if a property does not have all non self-contained accommodation (i.e. shared facilities), it is partly studios, some local authorities are saying that is not licensable, whereas if it has got all shared facilities it is; and so you have got different local authorities and landlords owning properties in these different local authorities going to one local authority and saying, "That is not licensed", going to the next one and the same property is. So there is a lot of confusion. It will get sorted out because LACORS are doing a lot of work in doing best practice, et cetera, but it has not come yet. What I would like to see is local authorities tackling the very organisation, the very properties and landlords that you would like to see them tackle. We are not seeing it.

  Q324  Chair: There is no reason why local authorities should not have started with the worst properties?

  Mr Stimpson: You are absolutely right, that is exactly what we expected to see, but it is not happening. It is the good landlords who come forward, and we want them to go after the bad ones.

  Q325  Chair: Would you contradict that?

  Mr Turner: No, I would not. You asked whether it was a government failure, I would make the point that, during the consultation period for the Housing Act 2004, we and others lobbied for consistency as being absolutely fundamental to the new Housing Act, consistency and prescription, where it was required, for local authorities.

  Q326  Anne Main: And guidance to start with the bad ones first, or anything like that?

  Mr Turner: That would have been nice, and that is what we did not get. I go round the country, I meet a lot of local authority representatives. They think it is as much of a mess as we do, and they would have liked there to have been prescription so that they knew what they were doing.

  Q327  Anne Main: So it is pointless suggesting introducing any other categories because you cannot deal the ones you have got?

  Mr Turner: Indeed. There are many local authorities, as Mike says, who have not yet got round to dealing with the backlog of applications from the very people that Mike talks about who are prepared to put their hand up and say, "I own an HMO, I want to be licensed." Local authorities are only just now, 12 months on, beginning to get round to looking at how on earth they are going to identify the people who will not put their hands up.

  Q328  Anne Main: Is there any simple step you could suggest that would make the regime be improved or reformed? I know you wanted guidance, and all the rest—you have not got them, you were not listened to—but simple steps now to move us forward?

  Mr Stimpson: What I would like to see is local authorities being required to, first of all, introduce, and get working properly, mandatory licensing and not start introducing selective licensing before they have got mandatory licensing properly established. Secondly, I would like to see converted flat licensing, which is additional licensing in the main (the secondary legislation has not gone through), left also until the mandatory licensing is well in place with local authorities. There is no doubt that it is the three and five (three storeys and five properties) that are the ones that need the attention first, and they need to be done properly. I should perhaps add, in my city we have pointed out to the local authority houses that have been empty for 20 years and are derelict. Nothing is being done.

  Q329  Anne Main: Yes or no: would you agree with those proposals?

  Professor Ball: Yes.

  Mr Turner: Yes and no.

  Q330  Mr Betts: Local housing allowance: The proposal from the pilot scheme is to roll it out across the country. I suppose it fits in with the agenda of tenants having a degree of choice. Do you generally support the concept? Do you think it is going to lead to any problems in terms of landlords not being willing to let properties to people who are on benefits?

  Mr Stimpson: First of all, I am a landlord who accepts housing benefit tenants. The housing allowance was introduced in Brighton quite a while ago and, as far as I am concerned, it is absolutely first-class, but I would give credit to the local authority, because the local authority is reasonable when it comes to challenging tenants. In other words, we have got tenants who perhaps would not pay the rent. If they do not pay the rent for two or three weeks, the local authority will, with the consent of the tenant, revert the payment to landlords. The worry of landlords, where it has not been introduced, is the non-payment to the landlord but to the tenant. I think, as long as local authorities are reasonable in their interpretation of vulnerability, then landlords will find that this is a good way forward and, as far as I am concerned, in the Pathfinders that have already been introduced it has been a great success.

  Professor Ball: My feeling would be that the administration has to be good. The problem with housing benefit in the past has been very low administration. In Pathfinder experiments administration tends to be good by definition because they are being looked at, and so it is important in the future that those local allowances are put in place very quickly, otherwise vulnerable people will be left in very difficult situations.

  Chair: Thank you very much indeed.





 
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