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Tenants' Rights, Etc (Scotland) Bill

Volume 990: debated on Thursday 7 August 1980

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Lords amendments considered.

4.55 pm

On a point of order, Mr. Speaker. It might be for the convenience of the House if, before we start discussion of the detailed amendments, the Minister could give us some exact indication of what the Government intend to do to ensure that there is a provision in the Bill similar to that in the Housing Bill discussed yesterday. We have had a speech about it, but discussion of this matter is not announced for the week that we cone back from the Summer Recess. There will be difficulty unless the Government can give an assurance in the interim period that amending legislation will come forward. I think that it would be sensible if the Bill were not implemented until the amending legislation is enacted.

I ask for three assurances: first that the amending legislation will come forward in the overspill period; secondly, that there will be no interregnum so that the amending legislation will be applied right from the start of the implementation of the Bill; thirdly, that we shall be consulted about the exact wording before the Bill is published. If that can be done, I am sure that the Bill can proceed with extreme rapidity through this House and another place since all are agreed that it should be so.

Order. Yesterday I allowed something that was not within order and I shall allow the same today because I believe it is in the interests of the House. However, this kind of question should normally come at a different stage in our proceedings.

Perhaps I could reply to the right hon. Member for Glasgow, Craigton (Mr. Millan) after I have formerly moved the amendments, if that is acceptable.

Clause 1

Secure Tenant's Right To Purchase

Lords Amendment No. 1, in page 4, line 10, at end insert "or any statutory predecessor"

I beg to move, That this House doth agree with the Lords in the said amendment.

With this we may take Lords amendments Nos. 2 to 9.

I am grateful to the right hon. Gentleman. I am sure that the House would like to have an assurance, and I am glad to give him the assurances that he has sought. First, it is the Government's intention to produce the necessary Bill in the overspill period to give similar effect to the arrangements made yesterday in the English Housing Bill. Secondly, in the Bill we shall wish to provide that there is no possibility of an interregnum during which an old person's house might be inadvertently sold. That would be covered by the amendment. I am glad to assure the right hon. Gentleman that I shall ensure that the provisions are acceptable to him.

Will my right hon. Friend consult his hon. Friends on the wording?

I shall ensure that my hon. Friend is informed about the wording before it is published.

The amendments that we are discussing are purely drafting in their nature. I hope that the House will agree to accept them.

Question put and agreed to.

Lords amendments Nos. 2 to 9 agreed to.

Lords amendment: No. 10, in page 5, line 23, at end insert "and"

I beg to move, That this House doth agree with the Lords in the said amendment.

These are drafting amendments. They are designed to ensure that the wording of the clause coincides with that which the Committee and the House clearly intended.

Question put and agreed to.

Lords amendments Nos. 11 and 12 agreed to.

Clause 2

Procedure

Lords amendment: No. 13, in page 6, line 15, leave out from "months" to "after" in line 17 and insert—

",where the application is made during the first year after the commencement of this section, or, in any other case, within 2 months"

I beg to move, That this House doth agree with the Lords in the said amendment.

With this it will be convenient to take Lords amendments Nos. 14 to 23.

Amendments Nos. 13 to 19 are drafting amendments to various stages in the process dealt with in the clause. Amendments Nos. 20 and 21 are purely drafting amendments to correct the grammar of clause 2(9) consequent upon the insertion of a new subsection. Amendments Nos. 22 and 23 correct a printing error in the wording of a Government amendment that appeared on Report.

The Bill as drafted without the amendments illustrates the extremely complex procedure for which provision is made. In the Government's enthusiasm to take care of every possible circumstance and to ensure that no local authority shall ever have any flexibility, we now have an extremely rigid and complicated procedure. I do not say that I hope that it will work. I hope that it does not work.

It was considerations similar to those that the right hon. Gentleman has indicated that led the Government to believe that the present wording was necessary.

Question put and agreed to.

Lords amendments Nos. 14 to 23 agreed to.

Clause 4

Conditions Of Sale

Lords amendment: No. 24, in page 9, line 32, after "generality", insert "common".

I beg to move, That this House doth agree with the Lords in the said amendment.

With this it will be convenient to take Lords amendments Nos. 25 and 26.

These are technical amendments that correctly phrase the clause in the manner that was originally intended. They have no policy implications.

Question put and agreed to.

Lords amendments Nos. 25 and 26 agreed to.

Clause 5

Loans

Lords amendment: No. 27, in page 12, line 31, leave out "subsections (3) and (6) "and insert" subsection (3)".

I beg to move, That this House doth agree with the Lords in the said amendment.

This is a drafting amendment that clarifies the status of a declarator for a loan granted by a sheriff to an applicant under clause 5.

Question put and agreed to.

Lords amendments Nos. 28 to 30 agreed to.

Clause 13

Succession To Secure Tenancy

Lords amendment: No. 31, in page 19, line 25, leave out

"created on the death of a tenant"

I beg to move, That this House doth agree with the Lords in the said amendment.

This is a drafting amendment without any policy implications which I trust the House will accept.

Question put and agreed to.

Clause 17

Variation Of Terms Of Secure Tenancies

Lords amendment: No. 32, in page 23, line 39, after "of" insert "section 10 of"

I beg to move, That this House doth agree with the Lords in the said amendment.

This is a drafting amendment which clarifies the cross reference to the Bill to be included in the Housing (Scotland)

Question put and agreed to.

Clause 19

Re-Possession

Lords amendment: No. 33, in page 24, line 21, leave out "the date" and insert Act 1969 by making it more specific. "service"

I beg to move, That this House doth agree with the Lords in the said amendment.

With this it will be convenient to take Lords amendments Nos. 34 and 35.

These are technical drafting amendments to change the terminology of the clause to attract the general provisions governing the service of notices that is contained in clause 80.

Question put and agreed to.

Lords amendments Nos. 34 and 35 agreed to.

Clause 23

Landlord's Consent To Work

Lords Amendment: No. 36, in page 27, line 16, leave out

"(including wireless or television aerials)"

I beg to move, That this House doth agreed with the Lords in the said amendment.

The amendment removes the specific reference to the obligation of a tenant to obtain the landlord's consent to make the addition to his house of a television or wireless aerial. It is accepted that these aerials come within the general definition of fixtures and fittings.

Question put and agreed to.

Lords Amendments Nos. 37 and 38 agreed to.

Clause 27

Publication Of Rules

Lords Amendment: No. 39, in page 29, line 23, after "published" insert "by a body"

I beg to move, That this House doth agree with the Lords in the said amendment.

This is purely a technical drafting amendment that has no policy implications.

Question put and agreed to.

Clause 30

Local Authority Home Loan Interest Rates

Lords Amendment: No. 40, in page 32, line 11, leave out from "Notwithstanding" to "the" and insert

"anything contained in subsections (1) to (8) above, but subject to subsections (11) and (12) below,"

I beg to move, That this House doth agree with the Lords in the said amendment.

Amendment No. 40 provides for the Secretary of State to allow local authorities to charge low interest or waive interest for up to five years when they are granting a mortgage for the purchase of a house that is in need of repairs and improvements. The provision is aimed at encouraging what is known as homesteading. I understand that that concept was supported by the Opposition in another place when the issue was considered there. I think that the House will accept that it is highly desirable, especially in inner urban areas, that homesteading arrangements, which are often popular especially among young couples, should be encouraged. The amendment will achieve that purpose.

Amendment No. 41 enables the Secretary of State to approve individual schemes submitted by local authorities. If it appears appropriate, the Secretary of State may issue an order with the consent of the Treasury on the basis of which local authorities could proceed without the need for individual approval.

Question put and agreed to.

Lords amendment No. 41 agreed to.

Clause 31

Local Authority Indemnities For Bulding Societies Etc

Lords amendment: No. 42, in page 33, line 20, leave out "14"and insert "15".

I beg to move, That this House doth agree with the Lords in the said amendment.

Amendment No. 43 is a technical amendment that is necessary to allow building societies registered in Northern Ireland but operating in Scotland to accept indemnities under clause 31 from Scottish local authorities. Amendment No. 42 is a drafting amendment.

Question put and agreed to.

Lords amendment No. 43 agreed to.

Clause 34

Short Tenancies

Lords amendment: No. 44, in page 34, line 39, after "and" insert:

", notwithstanding the provisions of section 44(1) and (4) of the 1971 Act.".

I beg to move, That this House cloth agree with the Lords in the said amendment.

With this it will be convenient to take Lords amendments Nos. 45 to 48.

Amendment No. 44 is a technical amendment that is designed to ensure that, although the effective date of a fair rent determination will in future be either the date of registration or the date fixed by a rent officer, the effective date of a short tenancy shall be the date of the commencement of the short tenancy, which I know is agreeable to the Opposition.

Amendment No. 45 fulfils a Government undertaking given in Committee to scrutinise the clause and eliminate any scope for evasion. It ensures that the right of possession conferred upon landlords of short tenancies shall take into account the particular circumstances of either a statutory successor or a lawful sub-tenant and either will be able to remain in possession until the end of the contractual letting even though the head short tenancy is terminated before that date. Lords amendments Nos. 46, 47 and 48 remove certain ambiguities in the clauses as drafted. I commend them to the House.

I am not clear about Lords amendment No. 44. The Minister may care to remind the House why the rent in the case of a short tenancy takes effect from the commencement of the tenancy compared with the normal situation when it takes effect, particularly if there is some objection, from the date that the rent assessment committee makes its decision. I should like to know the implications from the point of view of the commencement date of the short tenancy. Short tenancies, by definition, will not last long. It can make a substantial difference to the date from which the tenancy operates. Is the date from which the rent is registered and operative of some significance or effect in terms of determining the date from which the tenancy itself starts and, therefore, the date on which the tenancy will eventually terminate?

I am happy to clarify the point. The right hon. Gentleman will recollect that in the terms of the Bill a short tenancy is one that must have a fair rent registered. There is no option for an agreement between the parties. Concern was expressed in earlier stages that in the interim period between a short tenancy beginning and a fair rent being determined the tenant might be charged an excessive rent. Although the matter would ultimately be resolved, he would be paying during that period more rent than he ought to have been paying. The amendment was brought forward to meet that point.

The Minister's explanation has brought back to my memory that this was the reason that the Opposition put forward this provision. I am therefore, content.

Question put and agreed to.

Lords amendments Nos. 45 to 48 agreed to.

Clause 37

Limits On Rent Increases

Lords amendment: No. 49, in page 37, line 26, leave out from "of" to "not" in line 27 and insert "subsection (2) above "rent" and "rental income" do"

I beg to move, That this House doth agree with the Lords in the said amendment.

Both amendments are minor technical amendments with no policy implications.

Question put and agreed to.

New Clause A

Amendment Of Reserve And Auxiliary Forces (Protection Of Civil Interests) Act 1951

Lords amendment: No. 50, after clause 38, in page 38, line 8, at end insert—

"A.—(1) The Reserve and Auxiliary Forces (Protection of Civil Interests) Act 1951 shall be amended in accordance with this section.
(2)In section 15 (protection of tenure of certain premises), after subsection (1) insert the following subsection—
"(1A) This section does not apply in relation to any tenancy entered into after the commencement of section 53 of the Tenants' Rights, Etc. (Scotland) Act 1980".
(3)In section 16 (protection of tenure of premises not falling under section 15)—
  • (i)in subsection (2Xc) the words from "and" to the end are repealed;
  • (ii)for subsections (3) to (8) substitute the following subsections—
  • "(3) The rent for any rental period (that is to say, a period in respect of which an instalment of rent falls to be paid) shall be the amount payable for the last rental period before thend of the tenancy, but subject to adjustment from time to time in accordance with section 22 or 23 of the Rent (Scotland) Act 1971 (adjustment, with respect to rates, services and furniture, of recoverable rent for statutory periods before registration).
    (4) Subsection (3) above has effect subject to any agreement between the parties for the payment of a lower rent; and where a lower rent is agreed it shall not be increased in accordance with the said section 22 or 23 but may, notwithstanding anything in any other enactment, be increased by agreement in writing between the parties up to an amount not exceeding the amount of rent provided for in subsection (3) above.".
    (4)In section 17(2)(b) (provisions supplementary to section 16 where the accommodation is shared other than with the landlord) for "(5) to (8)" substitute "(3) and (4)".
    (5)In section 18(2) (protection of tenure in connection with employment, under a licence or a rent-free letting) for "(5) to (8)" substitute "(3) and (4)".
    (6)Section 19(5) (limitation on application of Rent Acts—heritable securities) is repealed."

    I beg to move, That this House doth agree with the Lords in the said amendment.

    Lords amendment No. 50 amends the Reserves and Auxiliary Forces (Protection of Civil Interests) Act 1951 to take account of changes to the Rent Acts in the current Bill. That Act was concerned with the protection, in a variety of ways, of people called up in an emergency who might not have an opportunity to get their legal affairs in order before such call-up. It is right that the changes in the Rent Acts extending protection should also apply to such persons. These amendments cover the matter.

    Question put and agreed to.

    New Clause B

    Extension Of Rent (Scotland) Act 1971 To Crown Tenants Of Crown Estate Commissioners Etc

    Lords amendment: No. 51, in page 38, line 8, after the words last inserted, insert

    "B.—(1) Section 4 of the 1971 Act shall be amended as follows—
    (a) in subsection (1)—
  • (i)before "a tenancy" insert "Subject to subsection (3) below"; and
  • (ii)the words "or of the Duchy of Lancaster; or to the Duchy of Cornwall" are repealed.
  • (b) after subsection (2) add a new sub-section—
    "(3) An interest belonging to Her Majesty in right of the Crown shall not prevent a tenancy from being a protected tenancy or a person from being a statutory tenant if the interest is under the management of the Crown Estate Commissioners."
    (2) Section 6(3) of the 1971 Act shall be amended by inserting after paragraph (a) a new paragraph—
    "(aa) in relation to any dwelling-house of which a tenancy granted before the commencement of section B of the Tenants' Rights, Etc. (Scotland) Act 1980 becomes, or would but for its low rent become, a protected tenancy by virtue of that section, means the date of commencement of that section.".
    (3) Section 85 of the 1971 Act shall be amended as follows—
    (a) in subsection (3)—
  • (i) before "This Part" insert "Subject to subsection (3A) below";
  • (ii)in paragraph (a) the words "or of the Duchy of Lancaster or to the Duchy of Cornwall" are repealed;
  • (b) after subsection (3) insert a new sub-section—
    "(3A) An interest belonging to Her Majesty in right of the Crown shall not prevent this Part of this Act from applying to a contract if the interest is under the management of the Crown Estate Commissioners.".
    (4) Schedule 3 to the 1971 Act shall be amended as follows—
    (a) in Case 5 after "1965" insert "or, in the case of a tenancy which became a regulated tenancy by virtue of section B of the Tenants' Rights, Etc. (Scotland) Act 1980, after the commencement of that section"; and
    (b) in Part III, in paragraph 2 at the end add a new paragraph—
    "(aaa) in the case of a tenancy which becomes a regulated tenancy by virtue of section B of the Tenants' Rights, Etc. (Scotland) Act 1980, the relevant date means the date falling six months after the passing of that Act; and".
    (5) Section 134 of the 1971 Act shall be amended by adding the following new sub-sections—
    "(3) Where an interest belongs to Her Majesty in right of the Duchy of Lancaster, for the purposes of this Act the Chancellor of the Duchy of Lancaster shall be deemed to be the owner of the interest.
    (4) Where an interest belongs to the Duchy of Cornwall, for the purposes of this Act the Secretary of the Duchy of Cornwall shall be deemed to be the owner of the interest."."

    This amendment requires the Queen's consent and the Prince of Wales's consent.

    I beg to move, That this House doth agree with the Lords in the said amendment.

    5.15 pm

    The new clause has the effect of bringing within the Rent Act protection tenants of the Crown Estate Commissioners, the Duchy of Cornwall and the Duchy of Lancaster. Tenants who are brought within the Rent Acts by the clause will have full security of tenure and will be subject to the fair rents system. It has been the practice in the past to apply the Rent Acts administratively to such tenants. After this new clause is passed, the tenants will have for the first time statutory entitlement to this protection.

    Question put and agreed to.—[Queen's consent on behalf of the Crown, and Prince of Wales's consent on behalf of the Duchy of Cornwall, signified.]