HC Deb 10 February 1999 vol 325 cc279-87 12.30 pm
Mr. Phil Willis (Harrogate and Knaresborough)

I am grateful for the opportunity to express my concerns about student accommodation, and to raise these issues within hours of my noble Friend Lord Tope's doing so in the other place. I trust that the Minister will agree that the current registration, inspection and enforcement of health and safety standards for student accommodation are confused and unsatisfactory. Indeed, that applies to much of the rented housing sector.

I hope that the Minister will also agree that reform of the rented housing sector is necessary. Indeed, it was one of Labour's now famous manifesto promises: We will provide protection where most needed: for tenants in houses in multiple occupation. There will be a proper system of licensing by local authorities which will benefit tenants and responsible landlords alike. The Liberal Democrats share that manifesto commitment, and I would expect any future leader of my party vigorously to fight for it.

At present, 1.5 million students in higher education live in halls of residence, university-owned premises or private sector rented accommodation. Many of them live in shared houses. Students make up a significant proportion of the rented sector, and they suffer disproportionately because of their circumstances. For many students, that is their first experience of independent living, and it can often be a nightmare. I should declare an interest in that my son is a first-year undergraduate at Lancaster university and is discovering the joys of finding suitable accommodation for his second year.

It is not my intention to shroud-wave, but I remind the House that research on fire risk in HMOs published by the Department of the Environment, Transport and the Regions in 1997 found that bedsit tenants are six times more likely to die as a result of fire than adults in houses occupied by a single household, and that 45 per cent. of fire deaths in houses of multiple occupation occur in buildings with one or two storeys. Deaths from leaking gas appliances and from carbon monoxide fumes are still common. Ten students have lost their lives unnecessarily since 1990.

In 1996, the English house conditions survey reported that 12 per cent. of shared houses were unfit for human habitation, rising to 23 per cent. of houses that were divided into bedsits. Both types of accommodation are typical student accommodation. The situation has, if anything, worsened since 1996. Last year, that prompted the Chartered Institute of Environmental Health to issue a hard-hitting press statement, which said: Some houses let to students are quite simply death traps. Students are in a particularly vulnerable position because they are often forced to rent housing which is on short term leases and only available to students, so removing pressure on the landlord to invest in long term improvements. The 1997–98 National Union of Students survey of student accommodation costs revealed that 60 per cent. of a student's income goes on housing.

Mr. Harold Best (Leeds, North-West)

Does the hon. Gentleman agree with me that among the many grievous problems to which he is drawing the House's attention are those associated with the serious decline in the housing stock and the communities where these properties are to be found? Is he aware that other hon. Members are trying to persuade the Department to move on this issue? Leeds district council is acting, with others, as a lead authority to bring about these changes.

Mr. Willis

I am grateful to the hon. Member for his intervention, because Leeds has many examples of good practice. UNIPOL has done a tremendous amount to vet student accommodation in the Leeds area, and has now become a major landlord. Leeds, Lancaster and Teesside city councils have some superb schemes on the go, and they should be extended across the country, so that there is a commonality of quality rather than just isolated pockets of excellence.

Housing costs affect not only students but the poorest members of our society, who, like the poorest students, spend a greater proportion of their income on housing costs but have the least choice.

I should like the Minister to respond to three issues: the legal definition of a house in multiple occupation; the licensing of HMOs and other rented properties; and the enforcement of health and safety regulations for all student properties, including HMOs.

The present confusion about the legal definition of what comprises an HMO must be resolved. Section 345 of the Housing Act 1985 states that an HMO is a house which is occupied by persons who do not form a single household. Between 1969 and 1995, an HMO was deemed to include student houses, which traditionally account for 56 per cent. of student accommodation. However, the Court of Appeal in the Barnes v. Sheffield City Council judgment ruled against that assumption, and, in effect, withdrew enforcement protection for a large body of students.

Sheffield city council had ordered the owners of a terraced house occupied by five female students to install fire escapes and other fire precautions. The owners refused, arguing that their property was not an HMO, so the council had no powers to insist on the improvements. Despite the fact that the students pursued entirely separate life styles, the court decided that it was a single household and not a house of multiple occupancy, because the students shared the facilities, had signed similar tenancy agreements, shared responsibility for cleaning and did not have locks on their doors. The Chartered Institute of Environmental Health and the vast majority of local authorities with large populations of students saw that judgment as an unscrupulous landlords' charter and roundly condemned it.

Mr. Richard Allan (Sheffield, Hallam)

I am grateful to my hon. Friend for raising the issue of Sheffield. Several thousand of my constituents are students who live in such accommodation. Does he share my view that a proper, enforceable system of licensing would benefit not only students, but the host community, which wants high-quality housing in the area, not unscrupulous landlords who allow housing to fall into disrepair?

Mr. Willis

My hon. Friend echoes the comments made by the hon. Member for Leeds, North-West (Mr. Best). This issue is not just about students; it affects large areas, particularly the towns and cities with major student populations. Under the 1985 Act, local authorities can have a registration scheme if they so wish. However, large areas are excluded from registration, even under the current legislation. That anomaly should be sorted out.

Mr. Mike Hancock (Portsmouth, South)

I appreciate my hon. Friend's raising of this issue. I would be interested to know whether he agrees with me that a fourth issue that should be tackled is the practice of universities that have irresponsibly encouraged more and more students to come to areas where they are located without having the proper housing resources and without the local authority or the community being able to absorb those students in suitable accommodation. Until that issue is addressed, we will be plagued by this problem across the nation.

Mr. Willis

I have tried not to get into that complex and difficult subject. My hon. Friend is right: the expansion of the student population in the past 10 years has overburdened some of our towns and cities. Universities have more often than not said that accommodation and the social well-being of students are not their responsibility. They are opting out of that responsibility, and that is a major problem.

Dr. Alan Whitehead (Southampton, Test)

There is another widespread problem, which certainly affects Southampton. Institutes of higher education have attempted to build accommodation for students to take them out of the housing market, but they have done so on disadvantageous borrowing terms, with the result that the hall fees are high. Either students are being driven back into the private rented market, or universities and colleges are tempted to cut corners in order to meet the costs that they have themselves incurred.

Mr. Willis

Indeed, an enormous number of problems are arising. I know from a survey that I completed recently that one London university has refurbished a block principally to attract what I would call private sector guests during the summer, and now charges students £114 a week. I challenged that university: was it right for student accommodation to be treated in that way? I was simply told, "We have enough takers in London." I do not think that is the right attitude. Student accommodation is there to support students and their education.

The Barnes v. Sheffield City Council judgment was a landmark. The hon. Member for Leeds, West (Mr. Battle), a former housing spokesperson who is now the Minister for Energy and Industry, was quoted thus in the Yorkshire Post of 10 May 1995: this has exposed a literally deadly loophole in the law". The hon. Member for Eastwood (Mr. Murphy), then president of the National Union of Students, said: This looks like a green light to treat students as second-class tenants". How right they both were. Immediately, local authorities with large student populations saw an increase in lettings on a shared basis to evade health and safety regulations. In response to a recent survey by Shelter, Nottingham city council said: Many landlords locally are very aware of the Barnes judgement. This is very worrying as it creates a 'sham' situation which is potentially dangerous to tenants". Perhaps the most disturbing effect of the Barnes judgment, however, has been local authorities' reluctance to use their HMO powers to inspect shared houses or enforce standards because of their fear of losing their case in the courts. They have good reason: only last year, Islington council lost a similar case in the Rogers v. Islington Council judgment, although I am pleased to say that it is appealing that judgment.

Many tragedies have occurred because of the failure of licensing and regulation. In Australia, all properties available to let to non-related family members, whether in discrete units or as a household, must be licensed. Such a simplification of the law is required here: all properties offered to let should be subject to mandatory licensing and inspection. That would immediately remove the loopholes that currently allow unscrupulous landlords to avoid their responsibilities for health and safety, and would end the absurd situation in which shared houses are not covered by existing regulations. As in any other workplace, the landlord would be responsible in law to those who used his premises; and university accommodation, which is currently exempt from requirements for independent registration and inspection, would lose that exemption.

There is an urgent need to replace the cumbersome framework for regulating standards in the private and public rented sectors, but that cannot be done until we have an effective licensing system. I hope that is what the Government had in mind when they promised a consultation document on the shape of licensing earlier this year. Can the Minister assure us, without prejudicing the outcome of that document, that the consultation will be about all rented accommodation, not just existing HMOs? Can he assure us that the present system under which universities are exempt from local authority HMO registration requirements will be ended, and that the practice of self-regulation will also be abandoned? In short, can he assure us that all student accommodation will come into the same broad category as other similar rented accommodation, and that it will not be assumed that universities or colleges do things better?

Finally, may I plead with the Minister to simplify the whole regulation and inspection framework? Local authorities have powers of entry to registered properties, under part IV of the Housing Act 1985, to require works to make houses safe and fit for human habitation. The Health and Safety Executive has powers to enforce the requirements of the gas safety regulations, but has not enough resources to inspect adequately. Trading standards authorities have powers to enforce furniture and furnishings regulations, but have no powers of entry. It is small wonder that responsible landlords throw up their hands in horror, and irresponsible landlords hide behind the confusion.

Local authorities should act as one-stop shops to enforce all the regulations during a single inspection. That would cut costs, increase efficiency, build up relationships with landlords and, above all, ensure that tenants were fully protected.

I suspect that little separates the Minister and me in terms of our objectives for the protection of students and other members of the public. We look to him to end the confusion over HMOs, and to fully license and regulate all rented student properties.

12.45 pm
The Parliamentary Under-Secretary of State for the Environment, Transport and the Regions (Mr. Nick Raynsford)

I congratulate the hon. Member for Harrogate and Knaresborough (Mr. Willis) on securing the debate, and on using it to raise an extremely important subject. By happy coincidence, today's debate follows a debate in the other place, which the hon. Gentleman mentioned. It was initiated by his noble Friend Lord Tope, and my noble Friend Lady Farrington responded.

The hon. Gentleman declared an interest: his son is a first-year student at Lancaster university. That has nudged me to declare a potential interest: my eldest daughter expects to go to university next year. The hon. Gentleman made a number of important points, as did several other hon. Members. I am glad that he was gracious enough to give way to his hon. Friends, and also to two of mine. I note the failure of any Conservative Members to attend this important debate.

I can reassure the hon. Gentleman and the House that the Government share his concerns, and are addressing them. I shall try to respond to his points in detail.

We are committed to introducing a national licensing scheme for houses in multiple occupation, which play an important role in providing student accommodation. We recognise the risks and problems in that part of the private rented sector. The worst housing conditions are often found in such accommodation. HMOs can present a number of risks to those who live in them. As with other housing, there may be problems of structural instability, disrepair, damp or a lack of adequate facilities. The 1996 English house conditions survey found that just under 10 per cent. of private sector HMOs failed to meet the general housing fitness standard. The 1996 definition was more stringent than earlier definitions.

There are particular risks associated with multiple occupancy. For example, kitchen, washing and toilet facilities may be entirely inadequate for the number of occupants. Houses may be overcrowded. The English house conditions survey found that 40 per cent. of houses providing bedsit accommodation were unfit for the number of occupants. That is a stunning figure, and a clear indication of the problems of overcrowding.

Fire safety is a particular worry. Research by our Department shows that—as the hon. Gentleman said—in some types of HMO the risk of death by fire may be six times greater than that in comparable single-occupancy accommodation. That is particularly serious.

Given the obvious need for the problems to be tackled, the Government intend to consult on proposals for a national and mandatory HMO licensing scheme. We hope to issue our consultation paper early this year. The Government are determined to protect the most vulnerable sections of the community from exploitation by unscrupulous or uncaring landlords. We aim to ensure that HMOs are safe, and provide acceptable living conditions.

We intend the new system to be comprehensive and effective. We especially want to avoid the ambiguities in definition, and the consequent enforcement difficulties, associated with existing HMO controls. At the same time, we recognise the need to ensure that unnecessary burdens are not placed on good landlords who provide a proper standard of accommodation.

HMOs play an important role in providing housing for groups of people, including students, who may have difficulty finding alternative accommodation, so our objective is to improve standards in HMOs, rather than to close them. Obviously, those in the worst condition may, in certain cases, require closure, but the objective is to raise standards, rather than to discourage HMOs, which, if well managed and maintained, can provide appropriate accommodation not just for students, but for other single people who are looking for such accommodation.

The hon. Member for Harrogate and Knaresborough raised the case of Barnes v. Sheffield city council. We are well aware of the difficulties with the definition of a multi-occupied house, particularly in relation to shared houses of the type occupied by students. I find it difficult to understand how the Court of Appeal can have reached the conclusion that a property that is occupied by a significant number of independent students can be treated other than as a house in multiple occupation, but it is not for me to comment on the law. I can respond only to the situation that is created by the judgment.

We recognise that there is a problem; we are keen that it should be dealt with. We intend to adopt a more precise definition for the purposes of both the proposed licensing system and other HMO-specific controls.

Views on suitable alternatives and definitions will be sought in our forthcoming consultation paper on licensing. One option is to use a definition that is based on that currently used for licensing in Scotland. That would apply to all houses that are shared by members of more than two families, thereby overcoming the problem that presented itself in the case of Barnes v. Sheffield city council. There may be difficulties associated with that particular approach, so we are not recommending it, but we will put it forward as one option for consideration in the consultation. We recognise that the vast majority of houses that are shared by students would be covered by the Scottish definition.

We are not convinced of the case for licensing all the private rented sector. There are two principal reasons for that. Such a scheme could be unduly bureaucratic and would involve unnecessary visits to properties that are in perfectly good condition and well maintained. Equally, we would not wish to discourage the supply of rented accommodation with a system that appeared to be unduly restrictive. However, we are concerned at conditions in the lower end of the privately rented market. If existing voluntary arrangements and any new voluntary arrangements that develop over the next year or two in response to our concerns do not raise standards adequately over time, we will consider alternative options.

We need to consider carefully how HMO licensing might work and what standards should be achieved. We also need to consider the cost to landlords and to local authorities that will administer the system. We do not want to impose a regime that proves unworkable and that leads to many landlords withdrawing their properties from the market rather than bringing them up to acceptable standards.

The Government view licensing as the primary control mechanism for ensuring acceptable standards in HMOs. Therefore a wide range of issues affecting the health and safety of HMO residents will be addressed in the consultation paper. Licensing criteria will cover three main areas: the physical condition of the premises, their management and the fitness of the licensee. We want to set published standards that are proportionate to fire and other health and safety risks, and which will be consistently enforced throughout the country. They will also need to be compatible with possible changes to the general housing fitness standard following the current review.

As the hon. Gentleman will understand, definitions must relate to the type of property and how the property is occupied, rather than to the type of tenant. I cannot therefore give him the assurance that all accommodation that is occupied by students will be covered. Nevertheless, we recognise that many students will occupy HMOs and accommodation that is likely to come within the definition of HMOs. We will set that out in the consultation paper.

Primary legislation will be required to introduce the scheme. The Government will legislate as soon as an opportunity becomes available.

The hon. Gentleman referred to inspection and enforcement arrangements. I can assure him that we want an effective enforcement regime that avoids conflict and overlap. Our consultation paper will examine the relationship between our proposed licensing regime and other present or proposed legislation that may apply to HMOs—for example, in respect of fire safety and gas appliances, both of which raise important issues.

While not prejudging the consultation, we will want to ensure that the respective expertise of the fire, health and safety and housing authorities is used to best effect. We envisage that local housing authorities will continue to be the first point of contact for licensable premises. We recognise the benefits of the existing one-stop shop approach that is provided to landlords by housing authorities.

I can also advise the hon. Gentleman that the Health and Safety Executive, as part of its comprehensive review of gas safety, is considering alternative enforcement strategies and bodies. Currently, the HSE is the sole enforcing authority for gas safety legislation, although it works closely with local authorities.

The HSE review is considering, among other issues, whether local authority environmental health officers should undertake gas safety inspection and enforcement. I do not wish to prejudge the review, but it may make sense for gas safety work to be integrated into housing authority inspection of HMOs. The HSE review's recommendations should be available by the end of the current year.

Mr. Willis

Will the Minister deal with the responsibilities of trading standards departments for furnishings and fittings, particularly furniture, which have to meet safety standards? Does he envisage that, particularly where we have two-tier authorities, with a district and a county having those responsibilities, environmental health departments will be able to take them on as well, so that we genuinely have a one-stop shop and, when an inspector goes to a property, he looks at everything from the gas appliance to the curtains and settee?

Mr. Raynsford

I can give the hon. Gentleman the assurance that we are keen to have a properly integrated approach that ensures the minimum duplication and overlap. He will understand that I cannot give a precise commitment in advance of the publication of the consultation paper, but I can assure him that we are looking to achieve that level of integration.

Local authorities have significant and wide-ranging powers to take action to ensure acceptable standards in HMOs. They can require landlords to carry out works if they consider that the HMO is not fit for the number of occupants on specified grounds—if there are inadequate kitchen, washing or toilet facilities, inadequate means of escape from fire, or other inadequate fire precautions. I accept that there may be definitional difficulties; we have touched on those in relation to the Barnes v. Sheffield city council case. However, in general, local authorities have powers that can help to tackle the problems. They can also require works to remedy management neglect, and can impose limits on the number of occupants.

Failure to carry out works is an offence. Authorities can do the work themselves and recover the cost, although I recognise that there is often anxiety that they may not be able to recover it. HMO managers also have a duty to maintain premises and certain installations, including gas appliances. Non-compliance is a criminal offence.

Local authorities have discretion to introduce HMO registration schemes. Those require HMO landlords to register properties that are covered by the scheme with the authority. Such schemes may have wider powers than general HMO legislation, and include the power to refuse or to revoke registration if acceptable standards are not met. We are encouraging local authorities to adopt registration schemes, using their existing HMO powers as an interim measure, pending introduction of the new mandatory national licensing system.

I have made clear the Government's commitment to tackling the problems in HMOs, which are used largely by students, as well as by other groups, and our commitment to introducing in the near future a full consultation on the proposals for an HMO licensing scheme. I hope that the hon. Gentleman is reassured that the Government take those issues seriously and are actively addressing them.