HOUSE of KEYS, TUESDAY, 23Rd MARCH 2021
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HOUSE OF KEYS, TUESDAY, 23rd MARCH 2021 5.3. Landlord Registration (Private Housing) Bill 2020 – Consideration of clauses commenced Mr Baker to move. The Speaker: We turn then to the Landlord Bill and on this occasion, to start us off, we will look 2130 at the amendments to the long title. I therefore call on Mr Hooper to move his amendments number 1 and 2. Mr Hooper: Thank you very much, Mr Speaker. As Hon. Members are no doubt aware, I had some significant reservations about this Bill at 2135 Second Reading, and I just would like to place on record my thanks to the Minister, his team and to the drafters for all the work that has gone into the Bill since that Second Reading to produce a long list of what I hope are very comprehensive amendments. I would just like to place on record my thanks really for that engagement. The two amendments that I am going to be moving to start with, amendments number 1 and 2, 2140 amend the long title of the Bill very specifically to allow the inclusion of a landlord’s representative as a concept in the Bill, to allow them to be registered separately. So the long title of the Act would provide for the registration of landlords and landlords’ representatives. The reason for this is that a landlord’s representative can range from a family member or a friend, right the way through to a professional firm like an estate agent. The Bill as originally 2145 drafted tied the representative directly into the landlord’s own registration, which would have made it quite difficult I think to separate out the two in legal or regulatory terms. If regulatory action then needed to be taken, it was only really possible to take it against the landlord because it was the landlord that had the registration, whereas it may actually have been the representative that the regulator would be needing to take action against. 2150 The original draft of the Bill also had a bit of a quirk in that the landlord would have been responsible for a range of actions of the representative. For example, ensuring their representative complied with certain minimum standards, which would clearly have been unworkable from the perspective of individual landlords. So the change of approach really that this changing long title sets out to ensure that landlords and their representatives are treated as 2155 two distinct groups in the Bill, each with their own registration entry and each subject to regulation in their own right is the underlying cause of the overwhelming number of amendments that I will be bringing to this Bill today. In essence, the related amendments to this long title change simply replicate the provisions for landlords and apply them separately to landlords’ representatives as well to ensure that what 2160 we end up with is a register of landlords and landlords’ representatives, and that the Bill will treat each group of persons appropriately. This is not a big step from the original position, it is not as big a step as it would sound, and that is because through the way the Bill was originally worded the representatives would have been regulated by the Department via the landlords’ registration. So this is not going to place any additional burden on the representatives than they would already 2165 have had under the original Bill. It simply sets that out in a clearer way and allows that additional registration to take place that the representative can then take ownership of and be responsible for. So, in very simple terms, it is not increasing any of that burden. It is just placing it perhaps in a better place. The approach that I have taken with these amendments, to separate out landlords and their 2170 representatives, and many of the amendments, it mirrors the approach that is taken in Scotland, where they have had landlords registration legislation in place since around 2002 and the Scottish legislation has been a very good point of reference and a very good source for a number of these proposals and changes. I hope Hon. Members can see the sense in this approach and will support the amendments that I am bringing today in this context. ________________________________________________________________________ Hansard Extract Page 1 www.tynwald.org.im/business HOUSE OF KEYS, TUESDAY, 23rd MARCH 2021 2175 Like I say, the vast majority of amendments I am bringing will flow from this very simple change to the long title of the Bill. So really, with that, Mr Speaker, I beg to move the changes to the long title, amendments number 1 and 2: Amendments to the long title 1. Page 17, line 1, after ‘landlords’ insert « and landlords’ representatives». 2. Page 17, line 2, after ‘landlords’ insert «, landlords’ representatives». The Speaker: Thank you. Mr Callister. 2180 Mr Callister: Thank you, Mr Speaker. I beg to second. The Speaker: Thank you. Mr Baker. Mr Baker? 2185 Mr Baker: Thank you, Mr Speaker – just coming off mute. Thank you very much, and I would like to start again by responding to the Hon. Member for Ramsey and also put on record my sincere thanks for his open and collaborative approach in bringing forward his amendments over the past three months, since the Second Reading, and also 2190 for sharing this intent with Hon. Members in advance of this sitting. Mr Speaker, the thrust of this Bill is to protect occupiers of rented dwellings. Both the Bill as introduced and the amendments that are being put forward by the Hon. Member for Ramsey today recognise the significant role that landlords’ representatives play in that process. This ranges from introducing would-be tenants to landlords, for example, through the management of 2195 the property and the liaison between landlords and their tenants. Both the Bill as introduced and the proposals being put forward by the Hon. Member ensure that a landlord’s representative may only act if he or she meets at least the minimum standards referred to in the Bill. The Bill as introduced requires the landlord to ensure that the representative meets those standards and to change the representative if he or she does not meet the standards. Hon. 2200 Members, Mr Speaker, Mr Hooper’s amendments will achieve the same outcome. The difference being that the evidence of the representative being of the required standard is in the formal representative’s registration, which will be a separate registration to that of the landlord. Either model will work. The Department would be able to achieve its aims of protecting tenants and improving rented housing standards equally by the Bill as introduced or by the Bill as amended in 2205 the manner advocated by my hon. friend. Mr Hooper clearly believes that his amendments will make the Bill more workable and in that he draws on his research and experience from the Scottish model. Whilst I am content with the Bill as drafted, I have seen nothing to suggest that Mr Hooper’s perspective is incorrect. Thank you, Mr Speaker. 2210 The Speaker: Thank you, Mr Baker. I call on Mr Hooper to reply to the debate on amendments 1 and 2 to the long title. Sorry, Mr Thomas. You just made it in time. Mr Thomas. 2215 Mr Thomas: Thank you, Mr Speaker, and to the mover of the amendment for doing all of the research in Scotland and for coming forward with these proposals today. Can the Member just advise the extent to which he has engaged with the profession and the people who carry out this function in respect of these amendments, in case there is any other professionally informed opinion that might be relevant to hear in respect of the proposals before 2220 us today? ________________________________________________________________________ Hansard Extract Page 2 www.tynwald.org.im/business HOUSE OF KEYS, TUESDAY, 23rd MARCH 2021 As far as I am aware, Mr Hooper is very diligent and I believe he will have circulated it to some people, and obviously it has been on the Order Paper since Thursday, but I think as a general principle it is a good idea to make such a substantial change after engagement with the professionals, chartered surveyors, estate agents and so on of the like, to see if there are any 2225 issues that have arisen in Scotland that the Member has not discovered in his very diligent research. The second point is that even in the Member’s own words, as he was moving for these amendments, these 90 amendments to bring into force this change, he talked about there being a range of people engaged in this function of being a landlord representative. Obviously, this 2230 affects only 28% of the privately rented properties on the Island, 72% of them being directly managed by the owner themselves, as we know from the excellent Private Sector House Condition Survey. But at one end, we have estate agents. Well, obviously for years, for decades even – I think going back 50 years – the Office of Fair Trading has been involved in estate agent regulation and for about 25 years they have been trying to amend the Estate Agents Act unsuccessfully. Indeed, 2235 it was promised to us most recently as being due before the House of Keys in June 2020. So I wondered whether the Office of Fair Trading had had time to reflect on this change, especially in the context of estate agents having been mentioned and the Office of Fair Trading’s decade-long experience of dealing with this type of professional, these qualified people, with years of experience and lots of obligations to their clients.