Clause 5 - Houses in multiple occupation
Home Energy Conservation Bill
4:30 pm
Mr Richard Bacon (South Norfolk, Conservative)
I was in full flood before lunch—lunch with the chairman of the BBC, which was a most welcome break from our proceedings—explaining why the amendment tabled by my hon. Friend the Member for Billericay (Mr. Baron) was so splendid, why I supported it and why the rest of the Committee should do likewise. My hon. Friend made several important points about the nature of the private rental sector, what may happen under the Bill and what could happen under Government new clause 7.
I have some worries about part 3, as drafted. It states that a house in multiple occupation
''means subject to subsection (2) below a house occupied by adult members of more than two families.''
Presumably, if a house were occupied by only two families, it would not be an HMO. I can imagine circumstances in which a house that was occupied merely by two families ought to be classified as an HMO, as I can imagine circumstances in which a house occupied by two families should not be so classified. Such a definition is a strange basis on which to proceed.
I greeted new clause 7 with some surprise. The Minister has had today's sitting in his diary for a considerable time, but he was unable to attend this morning because of an engagement. The new clause states:
''The Secretary of State may make regulations prescribing—
(a) circumstances in which a person is, or is not, to be regarded as occupying a house, or
(b) circumstances in which persons occupying a house are, or are not, to be regarded as forming a single household.''
The Minister's pressing diary engagement is evidence that Ministers do not have enough time as it is, without their having to consider whether someone who occupies a house forms or does not form a single household and when someone is, or is not, deemed to be occupying a house. They have better things to do than that. I therefore commend the amendment tabled by my hon. Friend the Member for Billericay, which would revert the clause to the original position that a house in multiple occupation
''means a house which is occupied by persons who do not form a single household.'
That is a clear definition and one under which disputes can be solved, not by far too busy Ministers, but by the courts as has hitherto been the case.
I have received a letter from a constituent, Mr. C. Binks, from Pulham Property Company Ltd. in Pulham Market. Those members of the Committee who knew my predecessor will know that Lord MacGregor of Pulham Market took his title from that splendid village in the heart of the constituency. Mr. Binks writes:
''We let mainly to students in Norwich, and work very closely through our agent with the students union.''
He believes that he does not need interference from the council to spoil the confidence that he has built up with his clients over many years. He objects to the permission that he would have to obtain under the Bill to sell a company property if it became unsuitable, and I shall expand on that later when we debate amendments Nos. 45 and 46, which I have tabled.
Mr. George Haines, Mr. Binks's colleague, explained the position to me as it obtains in Norwich where, in the golden triangle, is desirable terraced housing near the university of East Anglia in which some young professionals live, but which is also much liked by students. Typically, there are lets in houses of either four or five students living together, with shared lavatories, shared bathrooms and shared kitchens with one communal room, and one bedroom each. We would usually describe such conditions as a house share or a flat share. When I was a student, I lived in similar accommodation. We would not have regarded such accommodation as anything other than a single household. It would not have been right for it to have been included under the ambit of the Bill.
The problem, to which my hon. Friend the Member for Billericay alluded, is that if the Bill were passed in such a form that such properties were caught, the effect would be simple. According to Mr. George Haines,
''We would no longer be in charge of our own properties''.
People would move towards ordinary family letting, and the supply of rental property available to students would be reduced. He said that, although the income received would be lower, his company feels so strongly about the matter that it would do that. They are reputable landlords who work hard to form close relationships with their clients, build relationships with student unions, understand what their clients want and provide a good service at a reasonable price.
I understand that the purpose of the Bill is to catch the small proportion of landlords who are not doing the right thing. I do not believe that the definition of HMO as proposed either in the original Bill or in new clause 7 is the right approach. Instead, I feel strongly that the best approach in defining HMOs is to revert to the former definition as contained in amendment No. 51, and it is in that light that I support the amendment.