I again thank my noble friend Lady Gardner for her amendments, which seek to address overcrowding and unlawful subletting in flats in residential blocks. She set out the case and the problems caused by overcrowding, as, indeed, did other noble Lords who contributed to the debate. Overcrowding is far more than just unpleasant; it is dangerous, and, as we have heard, has impacts on those living in unsatisfactory conditions and the neighbours around them. I hope, therefore, that I can reassure noble Lords that this is a matter we take seriously and that both local authorities and managers of residential blocks already have strong powers to tackle overcrowding and associated problems.
Part X of the Housing Act 1985 deals with statutory overcrowding, which it defines by reference to a room standard and a space standard. If either of these is contravened, an occupier or landlord may be guilty of an offence. The noble Baroness, Lady Grender, mentioned the recent raid in Newham. Last month, a landlord pleaded guilty in Norwich magistrates’ court to four charges relating to overcrowding. The charges, which included failing to license a house in multiple occupation and failing to provide adequate fire precautions to protect the occupiers of the HMO from injury, resulted in fines totalling £5,250, plus costs of £4,951 and a £120 victim surcharge. An investigation by Norwich City Council’s private sector housing team found 12 men crowded into the three-bedroom property, with several people sleeping in a partially adapted loft space with no window. Action is obviously being taken; these examples show that local authorities have powers to act and are using them.
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My noble friend and no doubt other noble Lords are aware that Clause 118, dealing with the contravention of an overcrowding notice for an HMO under Section 139 of the Housing Act 2004, would take the level of fine to unlimited, removing the restriction on the fine that may be imposed. This will also bring it into line with the fines for many other Housing Act 2004 offences that are already unlimited.
Local housing authorities can use their existing powers to gain entry to a dwelling to measure rooms to work out the permitted number of people. They also have powers to require information about the number of people sleeping in a dwelling and to inspect, report and prepare proposals on overcrowding generally in all or part of a district. As we have explained previously, where a local authority considers that a property is dangerously overcrowded—a category 1 hazard—it has a duty to act. That might include serving a prohibition order on the dwelling under Part 1 of the Housing Act 2004, thereby limiting the number of persons who can occupy it. It is a criminal
offence to contravene a prohibition order. Earlier this month, a landlord operating an HMO in Waltham Forest was fined £7,000, plus costs of £3,466, for failing to comply with licensing conditions by allowing tenants to live in overcrowded and poor living conditions. The prosecution means that the landlord will now not be able to have direct control over the property.
Under Section 49 of the Housing Act 2004, local authorities can already recover administrative and other expenses incurred by them in making a prohibition order. Noble Lords have argued that local authorities have limited resources to carry out inspections and take forward prosecutions. Through the new civil penalty measures outlined in the Bill, the ability of local authorities to enforce these measures will be strengthened as they will be able to retain penalties of up to £30,000 to use for housing-related activities. I entirely agree that overcrowded flats can cause problems for other residents of the block, but local authorities and managers of the block have the powers to address them. We believe that the measures provided for in the Bill in terms of levying stronger civil penalties will support their ability to take enforcement action. My noble friend’s amendment would enable local authorities to set standards in individual cases in addition to these national standards and systems. While I understand her motivation I fear that, by duplicating existing powers, it would simply cause confusion and uncertainty.
On Amendment 99, I reassure my noble friend that a freeholder and manager of a block of flats already has powers to investigate compliance with the terms of a long lease, such as whether a flat has been sublet in contravention of the terms of the lease. Of course, many—though not all—long leases permit subletting. The lease may specify such matters as the need to seek approval to sublet, a requirement to register the subletting with the landlord, the duration and nature of the subletting and restrictions on the persons to whom the flat can or cannot be sublet. Many leases will require the flat to be occupied only by a family unit in single occupancy. A long leaseholder who sublets in breach of the terms of the lease would risk having the lease forfeited. Where subletting is permitted, the long leaseholder remains responsible for complying with the terms of their own lease and is, therefore, liable if their sub-tenants breach any covenants, such as those that address noise or use of the flat. The long leaseholder would, again, risk forfeiting the lease if the terms were not complied with.
My noble friend also raised concerns about the lack of regulation caused through overcrowding by letting through companies such as Airbnb. Airbnb is not a landlord; it is simply an agent, a matching service that helps those who want to let their homes on a short-term basis to advertise availability to those looking for accommodation. It is one of many companies offering such services and reflects the growing interest in the sharing economy and the demands of today’s digital age. The law is very clear that where a property owner has responsibilities to their landlord or neighbours—for example, under the terms of a long lease—they remain responsible even if the property is sublet. There is no need, therefore, to change the law. In fact, I would again be concerned
that the proposed changes could muddy the water and make it harder for action to be taken against nuisance neighbours.
I hope that my noble friend will be reassured that the Government take her concerns very seriously but that a strong framework is already in place and local authorities are taking action to address some of the issues she has raised. With these reassurances, I ask that she withdraw her amendment.