My Lords, while welcoming, in particular, the conditions set out in the draft order as being helpful to facilitate the successful operation of licensing schemes, I respectfully adopt the—critique is perhaps too strong a word—observations of the
noble Lord, Lord Best, and my noble friend Lord McKenzie in relation to the matters to which they spoke.
I have had some experience of the selective licensing regime, as I campaigned strongly for one to be created in the ward that I represent. It has been pretty successful. When I tried to persuade the local authority to extend the scheme for another, discrete, part of the ward, at that time—I am going back four or five years—it was not feasible because the Government were concerned about the size. A size factor was required, although that is probably no longer the case.
I fear that the drafting of this order contains potential problems and I should like to address my remarks to those matters. For example, paragraph 3 requires that,
“the area contains a high proportion of properties in the private rented sector”.
What on earth does that mean? Have the Government produced any guidelines or guidance, preferably in conjunction with the Local Government Association—I declare an interest as an honorary vice-president of that organisation—about the proportions they are talking about?
One or two issues of that kind are contained in paragraph 4. For example, it refers to where,
“the local housing authority considers it would be appropriate for a significant number of the properties”.
What is a significant number? The local authorities could be in danger of challenge here unless there are, again, clear guidelines.
There is also the question of the character of, rather than the number of, properties. There could be a number of three or four-storey houses in an area alongside a number of semi-detached houses or whatever, and the number of properties might not tell the whole story of the number of people involved in the appropriate lettings. I am concerned about that aspect.
Paragraph 5 states:
“The second set of conditions are … that the area has recently experienced or is experiencing an influx of migration into it”.
I have two questions about that: what is meant by “recently” and what is meant by “migration”? Migration could take a number of forms. In common parlance it is people from overseas but in an area, to take an extreme example, an influx of people from Sunderland to Newcastle might be regarded as a somewhat questionable process of migration. I do not say that I share that view but there is a question about what is meant by migration in that context.
In paragraphs 6 and 7 there are references to “a high level”. In paragraph 6 the area must be,
“suffering from a high level of deprivation”.
and in paragraph 7(a),
“from high levels of crime”.
These are potentially justiciable issues and seem very vague. It would be helpful if the department—again, in conjunction with the LGA and possibly other consultees—were to consider guidelines in that respect.
There is a reference in paragraph 7(b) to criminal activity having an impact on other households and businesses in “the area”. Does that mean in the area of the licensing scheme or in the wider area? What happens
in an area adjoining where there is a licensing scheme could well depend upon or be caused by the conditions in the licensing scheme area, although the impact might be outside. Would that be taken into account? It is not clear.
Finally, there is a significant issue which certainly affects Newcastle and many other places, and that is student accommodation. Large areas of my city and, I suspect, many others are now given over to student accommodation. That is often quite problematic. In fact, I would go so far as to say that it is very problematic in some areas. I am not sure whether, as an issue, that is implicitly incorporated within these conditions or whether it becomes a discrete factor in itself. My preference would be for the latter, but is the Minister able to say whether, to adopt the present order’s words, a high proportion of student residences in an area would be a factor that could justify a licensing scheme? If not, I encourage the Minister to take a look at that issue because it impinges quite significantly on what had hitherto been ordinary residential areas. I am talking not about purpose-built student accommodation but about the conversion of existing family accommodation into student accommodation. Sometimes they are HMOs and can be controlled in that sense, but very often they are not. It seems to be an increasing problem that is likely to increase further. If at all possible, it should be brought within the framework of the scheme.
Having said that, in general, I welcome the proposals. They should assist, but some of the issues that I and others have raised need to be addressed if we are going to make the best use of the possibility of deploying the scheme in the way that the Government wish.