My Lords, I thank noble Lords for this short debate. As this is a fresh part of the Bill, perhaps I may put on record that my wife is a small-scale private sector landlord. I will structure my response first by
speaking to the government amendments in this group which stand in my name and then seek to devote the rest of the time, which I think will be needed, to addressing the many points which have been raised.
It is important that we place this debate in some context. We had a significant debate on this issue at Second Reading. Following that, I wrote extensively to noble Lords seeking to provide some reassurances. We revisited the issue in Committee and further letters were sent. We also had what I thought was a very productive meeting on 11 February at the Home Office to which all interested Peers were invited, and we were delighted to have with us at that point the noble Lord, Lord Best, who cannot be with us today but who co-chairs the landlords consultative panel, to guide us through some of the working. A lot of reassurances were offered then but there were some outstanding issues of concern. In that context I will be referring to a letter I sent on 7 March to my noble friend Lord Howard of Rising, a copy of which is in the Library, which provides further reassurances on certain specific points that were made. Lastly, we are bringing forward today government amendments within this group. I have set this out as context to reassure all noble Lords that the Government are listening carefully to the concerns being raised and will continue to do so as the scheme is rolled out.
As I say, the Government have listened to the concerns about the effect that these provisions could have, which is a fear of prosecution on the part of genuine landlords. Government Amendment 62 provides a further defence for landlords who, once they know that they are renting to an illegal migrant or have reasonable cause to believe that that is the case, take steps to end a tenancy within a reasonable period. The amendment also provides that the courts must have regard to any statutory guidance issued by the Secretary of State in determining whether the landlord has proved that the defence applies on the balance of probabilities. This guidance must be laid before Parliament before being issued subject to the negative resolution procedure. The guidance will provide reassurance to landlords about the sorts of steps and periods of time which the Home Office considers reasonable and unreasonable in these circumstances. I understand that the Residential Landlords Association warmly welcomes the amendment, so I hope that it offers some reassurance.
Government Amendment 64 makes a minor change to the drafting, the effect of which will mean that, where an offence has been committed, it will not serve to render the terms of any tenancy agreement invalid or unenforceable on the grounds of illegality.
Government Amendment 72 seeks to remove a provision in Clause 40 that permits the Secretary of State to amend, repeal or revoke any enactment contained in this Bill. This follows a recommendation made by the Delegated Powers and Regulatory Reform Committee, to which we wrote in response to its report, which of course the Government fully accept. I shall be moving the government amendments in due course.
I turn now to the points that were raised in the debate by my noble friends Lord Howard of Rising and Lord Cathcart. In my letter dated 7 March, I wrote as follows:
“The ‘reasonable cause to believe’ threshold is a very high one. Its inclusion in addition to the ‘knows’ threshold arguably makes it easier to successfully prosecute the landlord who is fully aware that there are illegal migrants in his or her property and deliberately turns a blind eye, or the landlord who has all the pieces at their disposal to know that he or she is renting to an illegal migrant. For a successful prosecution in such cases, the fact that the landlord is renting to a disqualified person would still have to be the only reasonable conclusion the landlord could draw from the information available to them. For example, a landlord who had undertaken all of the relevant right to rent checks in accordance with his obligations under the scheme”—
including Greek passports in the example given—
“but had no idea that he had been deceived by a good quality fraudulent document, or a landlord whose tenants had subsequently moved occupiers who were disqualified from renting into the property without his knowledge, would never satisfy the mens rea for commission of this offence”.
I hope that that offers some reassurance to my noble friends.
The noble Earl, Lord Listowel, asked about care leavers. If they have lawful status, they will have the right to rent. If not, but there are genuine obstacles to their return, permission to rent is likely to apply.
The noble Baroness, Lady Sheehan, raised a number of issues relating to prejudice. I was particularly concerned about prejudice against people with northern accents in this regard.