Clause 102 - Unlicensed HMOs and houses: offences

Renters’ Rights Bill – in a Public Bill Committee at 10:30 am on 5 November 2024.

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Question proposed, That the clause stand part of the Bill.

Photo of Clive Betts Clive Betts Labour, Sheffield South East

With this it will be convenient to consider clause 103 stand part.

Photo of Matthew Pennycook Matthew Pennycook Minister of State (Housing, Communities and Local Government)

I will be fairly brief on these two clauses. Licensing requirements are a fundamental part of ensuring that HMOs and other rented properties are safe and well managed. Clause 102 ensures that superior landlords can be liable for the offences of failing to ensure that a property is properly licensed.

In a situation in which a correct licence is not in place for a property, local authorities and tenants need the ability to take enforcement action against the person, or persons, responsible for failing to obtain a licence. The measure ensures that superior landlords can be held to account where they are responsible. Building on our discussion of a previous clause, that is critical to tackling sham rent-to-rent arrangements. It is important that superior landlords who could not have known that the property was being let as an HMO—for example, freeholders of a large block of flats with long leases—are protected. Clause 102 provides additional defences to make sure that that is the case.

Clause 103 seeks to ensure that both landlords and superior landlords can, where appropriate, be served with improvement notices requiring the removal of hazards. The provisions in the Housing Act 2004 do not allow improvement notices to be served on landlords or superior landlords in rent-to-rent arrangements in all circumstances. Clause 103 addresses that anomaly by giving local councils the ability to serve improvement notices on landlords and superior landlords, based on who should take the remedial action required. It will also ensure that tenants can pursue rent repayment orders against such landlords if they fail to comply with improvement notices. I commend the clauses to the Committee.

Question put and agreed to.

Clause 102 accordingly ordered to stand part of the Bill.

Clause 103 ordered to stand part of the Bill.