Question proposed, That the clause stand part of the Bill.

With this it will be convenient to discuss the following:

Clauses 74 to 83 stand part.

Clause 87 stand part.

I turn to the private rented sector database provisions. Clauses 73 to 83 and clause 87 set the framework for establishing a database and the functions required for its operation and maintenance. The database has the potential to be transformative in the regulation of the sector, and I know there is a huge amount of interest across the Committee in that regard. The database will record the details of private landlords and their properties that are currently, or will be, let as a residential tenancy.

Clause 73 introduces the legal basis for the database to be created and maintained. The database will allow local authorities to build up a detailed picture of the private rented sector in their areas. It will support improvements in health and safety standards by increasing the intelligence available to local authorities. Landlords will be required to register on the database. The registration process will ensure that landlords are aware of their legal obligations and allow them to demonstrate their compliance.

Renters will be able to use the publicly available information to understand more about a landlord or a rental property. That information will increase renters’ confidence when deciding whether to rent a property. The information on the private rented sector database will support the Government in developing a richer understanding of the sector to inform future policy. The database will be key to the successful implementation and enforcement of the wider reforms legislated for in the Bill.

Clause 74 provides information about the database operator, which will operate and maintain the database. It specifies that the database operator will be either the Secretary of State or a body appointed by the Secretary of State. We intend the operator to be a public body rather than a commercial or private organisation. The clause will allow the Government to prescribe the features and functionality that the database operator will need to include on the database. We will allow the database operator to enter into contracts and agreements with other organisations to facilitate its operation. The provision in the clause for regulations to be made provides flexibility that we believe is crucial for operating a digital service. It will give the operator the ability to adapt how the database works based on user experience, technological advancements and evolving needs of the sector.

Clause 75 deals with the registration process. It allows the Government to lay regulations that will specify how landlord and property entries must be made in the database. Using regulations to set out the registration process will ensure that entries can be adapted and remain responsive to the sector. Landlords will be expected to register on the database and upload certain information. We expect that to include basic details about PRS landlords and their properties, including gas and electrical safety certificates, and confirmation that properties meet the decent homes standard. We are also exploring using the database to collect a range of tenancy-related data. These datasets will provide useful intelligence to local authorities and provide more information to renters when choosing a property.

We know that many landlords employ property agents to act on their behalf when managing a property. To accommodate that, we are examining whether a property agent could complete some elements of the registration on behalf of the landlord. We are creating a forward-looking digital platform that will be able to link up with advancements in technology and draw from any relevant datasets that are digitised in the future. We will create an offline method for registering on the database in circumstances where that is necessary.

Clause 76 allows regulations to be created that will ensure that active landlord and property entries remain up to date. Following the passage of secondary legislation, landlords will need to keep their entries on the database up to date by uploading compliance information when it expires and updating any personal details, such as their address, that have changed. For the database to be useful for local authority enforcement teams and tenants, the information it contains on landlords and their properties must be up to date. Clause 76 operates in conjunction with other clauses in the Bill, including clause 77.

Clause 77 contains a power to make regulations that will define the criteria for an entry on the database to be active or live, and when it would become inactive. To keep the information on the database accurate, entries that no longer meet the criteria for an active entry will become inactive. For example, if a landlord does not renew an entry after the initial registration has expired, then the entry will become inactive after a 28-day grace period. Once the specific criteria set out in the regulations are met, an inactive entry can become active once more. Entries will also cease to be active if the landlord or the property is no longer required to have an entry on the database, such as if the landlord sells the property. This both protects individuals’ privacy and ensures that the database remains a source of accurate information.

We intend that inactive entries will be archived for five years, so that they are traceable if a landlord is found to be marketing, advertising or letting a property with an entry that has lapsed or been removed from the database. Regulations are required because there are a range of scenarios that will be addressed, including how renewals will work for landlords with multiple properties registered at different times. We are designing the database to ensure that the renewal process is simple and as streamlined as possible for landlords.

Clause 78 allows for regulations to provide for the additional authentication of information supplied in database entries. While some processes may be automated, this regulation-making power may be used to enhance the integrity of the database, by subjecting some entries to further verification. It provides the Government with the power to require local authorities or others to verify landlord and property entries. To make best use of resources, we intend for only a quota of entries to be subjected to the verification process. It will allow for fraudulent documents to be detected and action taken against those who have provided incorrect information. The clause also allows for entries that are inaccurate to be removed from the database, for example if a landlord has registered in error. That will ensure that any inaccurate details about landlords are not accessed by local authorities or the public. Furthermore, it will help to maintain an accurate dataset for the private rented sector in England.

Clause 79 allows the Secretary of State or the database operator to use regulations to charge a fee to landlords for registering on the database. That will prevent its running costs from becoming a burden on the taxpayer. The fee will be set at a reasonable level and the database operator would not be expected to profit from the registration fee. Regulations will specify how the fee is to be calculated. The regulations will also permit landlords to be charged more than the renewal fee if their entry becomes inactive and is reactivated. For example, a landlord may be liable for an additional late fee. The clause allows the fee set by the database operator to be amended to reflect the costs involved in operating the database and to provide flexibility for other factors. The Secretary of State can direct that some or all of the fees received by the database operator be paid to local authorities or into the consolidated fund—pre-empting a question from the shadow Minister.

Clause 80 requires that a landlord and rental property is registered on the database before a person can market the property for rent. It also ensures that advertisements for rental properties must include unique identifiers, which are allocated to the property and the landlord by the database operator. Mandating that rental properties and landlords are registered before property is advertised will enable renters to make informed choices about where to rent. We will not penalise third-party advertising platforms for hosting adverts for unregistered properties; the responsibility for such listings will rest with the person who uploaded them.

Clause 81 allows the Government to take steps to protect tenants by holding criminal landlords to account. It places local housing authorities under a duty to make entries on the database in respect of people who are subject to a relevant banning order, or fines or convictions deriving from relevant banning order offences. Including information about relevant landlord offences will enhance the intelligence available to local authorities, enabling them to develop more effective enforcement strategies and to intervene before non-compliance turns into criminality. In addition, the data will give renters more information about the suitability of a landlord. To maintain the integrity of the database and to provide tenants with accurate information, the clause mandates local authorities to upload all relevant offences. It also sets out that local authorities have the power to record offences that are enforced by other agencies, such as the police.

Clause 81 also provides the power to use regulations to further extend the range of action recorded on the database, which could include improvement notices and other housing offences. That would allow local authorities to adopt a more co-ordinated approach to addressing housing problems. In combination, these provisions will allow local authorities to create a comprehensive repository of relevant offences and financial penalties. By using regulations to specify which offences will be recorded, we can adapt to evolving practices and the needs of the sector. Equally, the Government remain dedicated to safeguarding the privacy of landlords—a concern that some have raised with the Government. Any offence information shared publicly will be shared without compromising landlords’ data privacy rights.

Clause 82 mandates that each landlord and property record in the database be assigned a unique identifier, which will ensure that the database stores information accurately and can be easily maintained. The identifiers will be used in conjunction with unique property reference numbers to create an accurate dataset where each property and landlord entry is distinguishable from others. Using unique identifiers will ensure that local authorities and tenants can easily navigate the database and identify entries accurately.

Clause 83 lists the other duties that the database operator must perform, such as duties to support the effectiveness of the database for all users and to enable the Government to monitor the database’s performance. To ensure accessibility for all users, the database operator must provide alternative methods for landlords who cannot or do not wish to manage their registrations online. The clause also specifies that the database operator must create a method for people to report unregistered landlords or properties. The operator must also publish advice and information to residential landlords and tenants about their rights and responsibilities concerning the database.

Moving on to clause 87, the data collected in the database will serve as a crucial resource for local authorities and Government agencies, as I said. However, to maintain its effectiveness, the information must remain current and applicable to the private rented sector. To safeguard landlord privacy, the Government have established a clear data retention policy, which ensures that personal information contained in landlord and property entries is retained only for as long as is needed for effective enforcement. The clause mandates that the database operator removes from the database landlord and property entries that remain inactive for a period of five consecutive years.

The success of our enforcement efforts hinges on the accuracy and completeness of the database. By providing a repository of current and reliable information on private rented sector offences, we can empower local authorities to develop targeted strategies, to collaborate effectively and to address malpractice before it becomes criminality. I thank the Committee members for their forbearance and I commend the clauses to them.

I have a few questions and would be grateful for the Minister’s response. In this chapter of the Bill, the regulations will clearly do a lot of the heavy lifting on what the database is like and what the tenant and landlord experience will be. First, how will the proposed database interact with the existing selective licensing schemes that a number of local authorities have in place? In the regulations, will the Government draw on the learning from the existing schemes to inform the database’s operation? It is not entirely clear how it will interact, given the different regimes in Wales and Scotland that the Minister has announced. Again, I do not necessarily expect him to answer those questions straightaway, but it would be helpful to know, particularly given that a different enforcement regime will apply in Wales.

It is also not entirely clear what the Government’s thinking is about the geographical extent of the database and the way in which it will be designed. Given that designated local authorities will be enforcement bodies, will it operate in the same way as, for example, existing children’s social care databases? Will it be maintained by individual local authorities, but in a connected way so that we can extract data from it? Will there be a single national database or an England-wide database? I appreciate that the answers to some of those questions will result from the process of engaging with the market on who the provider will be. We know, from examples where such policies have been successful or gone badly wrong, that there are significant risks to the effectiveness of the Bill if we do not get this right. It would be helpful if the Minister could address those points, either now or later in writing.

I am grateful for the opportunity to provide some clarification, particularly on selective licensing, because I know that is a source of interest to many Members.

The Government are clear that selective licensing and the private rented sector database have different purposes. The database is not designed to replace selective licensing. Unlike the database, selective licensing schemes aim to target specific local issues in specific local geographies by enabling more intensive practical enforcement strategies. We believe that selective licensing is a valuable tool when used appropriately and combined with other measures. It enables local authorities to drive better outcomes for local residents, tenants and responsible landlords.

What is important, and what we are committed to doing, is ensuring that the use of selective licensing complements and is aligned with the new private rented sector database. There is some important work to do, which we are already engaged in, to refine the way the two systems will work together once they are both in force.

The shadow Minister asked me a reasonable question about the geographical extent of the database. I will come back to him on that specific point, particularly in respect of how it interacts with the rental discrimination provisions in the Bill, given our previous discussions on their application in Wales and Scotland.

Clause 75 deals with the making of the database, and I want to raise the importance of its content. Had I been quicker off the mark and more used to the procedures, there would be an amendment before the Committee that I would speak in favour of, but it is absent—time ran away.

Will the Minister comment on the importance and potential real value of the database, depending on the information that it carries? The Liberal Democrats want to see the Bill include: the accessibility of the property for disabled people; whether enforcement action has been taken against the landlord; the energy performance certificate rating of the property, so that people have some idea of how expensive it will be to heat and live in; and, crucially, the rent that was paid in the first tenancy.

As I said the other day, we firmly believe that market rents are often inaccurately described and arrived at, by virtue of looking at advertisements. I appreciated the points the Minister made the other day in response, but none the less it remains the case. As I also said the other day, we believe that the cost of interest is the bigger driver of landlords’ costs, rather than inflation, and it should be a better proxy for limiting rent increases. Even without that, a database with the actual rents paid could be an enormously powerful tool for both renters and landlords, as well as the market generally. More information makes for a better marketplace and will hopefully improve the lot of landlords and tenants. We particularly wish to see all those features in the register and believe that would enhance the market.

The other day, in relation to whether the Bank of England rate was a relevant proxy for landlords’ costs, the shadow Minister said that the commercial interest paid by landlords was more important, but there is a relationship between the Bank of England base rate and the commercial rates of interest paid. It is the key driver of commercial rates of interest.

My main point is that having on the register the rent, including the level of the last increase in rent, would be a really important and powerful indicator. We wish to press for the details I have outlined to be on the register. If I had been quicker off the mark, there would be an amendment before the Committee.

I will say two quick things. I remember probing the previous Minister about this issue during the debate on the previous Government’s Bill, because I thought it was worth teasing out. In general, we did not want to be too prescriptive with what is on the face on the Bill in terms of the frameworks, because we need to strike a balance between the primary legislation and the flexibility for the details of the database to be developed in secondary legislation, so that we can respond to any evolutions in the sector and technology. We do not want to be too prescriptive on the face of the Bill.

In response to the call from the hon. Member for Taunton and Wellington for particular data to be included on the database, I draw his attention to my previous comments, which I think I made in the third or fourth sitting, about the potential for rents to be included. I am extremely sympathetic to that. Other information could potentially go on the database that might show patterns of behaviour on the part of landlords that would inform tenants’ choices. At a minimum, we want the database to include information about private landlords, the homes they rent out and how those homes are managed. I want debate with hon. Members about what goes on the database, but all the detail, as I am sure the hon. Gentleman will appreciate, will come forward in secondary legislation. At that point, the hon. Gentleman or his colleagues will be able to have a further debate and discussion on those matters.

I am new to the procedures of Parliament, but I understand that some regulations are more easy to debate than others. Is the Minister saying that it will be possible for Liberal Democrat Members to debate the regulations when they come forward?

I am making no specific commitment, but such is the significance of the regulations—they will provide all the detail for how the service will work in future—it would not be a cursory debate.

Question put and agreed to.

Clause 73 accordingly ordered to stand part of the Bill.

Clauses 74 to 83 ordered to stand part of the Bill.

Ordered, That further consideration be now adjourned. —(Gen Kitchen.)

Adjourned till Tuesday 5 November at Twenty-five minutes past Nine o’clock.

RRB 64 Maxine Fothergill, Managing Director of Amax Estates & Property Services, Trainer for London Landlords Accreditation Scheme, and Portfolio Landlord

RRB 65 Nottingham Students Partnership on behalf of the University of Nottingham Students’ Union (UoNSU) and Nottingham Trent Students’ Union (NTSU)

RRB 66 UNISON

RRB 67 Olan Homes

RRB 68 Susan Osborne

RRB 69 Roy Wearing

RRB 70 Mandy Mills

RRB 71 Aster Group

RRB 72 London Councils (further submission - Asylum Accommodation)

RRB 73 Cats Protection

RRB 74 Hibiscus Initiatives

RRB 75 National Housing Federation

RRB 76 David and Manuela Yeandle