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Meeting of the Parliament 17 March 2011

17 Mar 2011 · S3 · Meeting of the Parliament

Item of business

Private Rented Housing (Scotland) Bill

Doris, Bob SNP Glasgow Watch on SPTV

I start by saying something that I think that we all agree on: the private rented sector must become increasingly important in the provision of good-quality, affordable housing. Given the significant cuts of £800 million that have been made to Scotland’s capital budget in the coming financial year alone by the United Kingdom Government, it will be ever more difficult to meet housing need within the public sector alone.

We do not want it to be that way, but we have to acknowledge that it is. Therefore, we need the private sector and we have to work in partnership with it. As has been pointed out, most private sector landlords are excellent. Our discussions with the Scottish Association of Landlords show that those at the top of their game in the private sector can be a power for good in meeting housing need. That is why the bill must ensure that we regulate effectively to achieve the highest standards. Regulation under the bill will allow us to move a significant way towards doing that.

The lack of prosecution of unregistered landlords has concerned us all for a while. The only prosecution that we have had of an unregistered landlord resulted in a derisory fine being handed out. The issue has been mentioned, but it is important to reinforce the point that there is a need for better and more effective prosecution and more significant fines. I therefore welcome the increase in the maximum fine for unregistered landlords to £50,000, which I hope will drive change, although time will tell on that. I look forward to seeing the guidelines that the minister has talked about on best practice in securing prosecutions and engaging in enforcement.

Fines that are given to unregistered landlords should be retained in Scotland and used to pay for enforcement and the regulation of the private rented sector. The money should not simply flow to the London Exchequer, as currently happens. To put it bluntly, why should Scotland’s local authorities have to pay to enforce regulation while any profit—if I can use that terminology—from court fines travels south? Perhaps that is an argument for another day, but if prosecutions become increasingly successful, as we all hope that they will, that situation would surely stick in the craw of Scottish councils. Regulating the sector is hardly inexpensive, but local authorities get no cash benefit to reinvest in that area. I draw the distinction that the cash benefit would not cross-subsidise anything else; the money would come back to pay for effective regulation of the sector.

I welcome the introduction of landlord registration numbers, which should be a driver for consumer change, as I have said previously. I would hope that no one would buy a car that was not MOT’d, so why do people move into houses that are unregistered and do not have all the safety features that they should? We must drive that consumer change and ensure that there is consumer responsibility.

I would like to know more about how the tenancy deposit scheme, which would secure deposits for tenants should they leave a landlord, will work. I am interested in whether registered landlords will be the only people who will be able to opt into that scheme. I would also like to know how the benefits system will interact with landlord registration. The minister has spoken about considering greater tenancy security for social tenants in the private sector to meet affordable housing need. There is a lot of work to do as we move forward. I cannot say whether the housing minister in the next Scottish Government will be male or female, but I am content with the one that we have. Of course, I suspect that appointing the next housing minister will be Alex Salmond’s job as First Minister.

16:28

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Meeting of the Parliament 17 March 2011

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