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Private Tenancies (Northern Ireland) Order 2006

rose to move, That the draft order laid before the House on 24 April be approved. The noble Lord said: My Lords, the purpose of the order is to introduce a series of measures which will create a new framework for the private rented sector in Northern Ireland. The private rented sector plays a very important role in meeting the housing needs of a large number of people in Northern Ireland. It offers choice and represents a flexible and speedy option for those who, for whatever reasons, are not ready to buy their own home. And it provides an alternative for those living in areas where there is a high demand for social housing. The sector can be divided into two distinct parts: the uncontrolled part, which is subject to minimal government intervention, and the controlled part: that covered in the Rent (Northern Ireland) Order 1978. This is complex and cumbersome. It has created a situation where tenants in properties subject to rent control have significant rights, whereas those in uncontrolled properties have only basic rights. However, the major problems of unfitness are in the controlled sector. That is largely due to the fact that rents are so low that the landlords have no incentive to improve or even repair their properties. As a determining factor in deciding whether a property should be subject to rent control is its status in 1978 rather than its current condition, the legislation makes no contribution to the department’s objective of creating a viable private rented sector. The order, therefore, focuses on addressing the main problems in the sector and removes unnecessary complexity from the existing legislative framework. It introduces a new system of repair enforcement and rent control over private tenancies in Northern Ireland. Fitness of a tenancy will be the chief factor in determining whether rent control should apply. Where the tenancy is found to be unfit, rent control will be imposed. District councils will have powers to enforce the necessary remedial work to bring the property up to fitness standard. Repeat offences will ensure that landlords cannot evade their responsibilities. The order rationalises the existing complex system of regulation. Once an existing protected or statutory tenancy comes to an end, the property will no longer be subject to rent control, unless it fails to meet the fitness standards. I should make it absolutely clear that existing protected tenants will retain their security of tenure. The order contains provisions that will clarify landlord and tenant responsibilities. Private landlords will have to provide tenants with a statement of the terms of their tenancy, which will include details of who is responsible for repairs. Where no such written statement is provided, default terms will apply. Provisions in the orders are based on the recommendations of a multi-agency working group comprising representatives from all interests, including landlords and tenants. They have been through consultation with district councils, the Housing Executive and the voluntary and community sectors in Northern Ireland. The public consultation on policy and legislation has received widespread support. This is the first major initiative for this growing sector of the housing market in Northern Ireland for 28 years. It will provide the basis of a co-ordinated inter-agency approach to tackling disrepair in the sector, involving the district councils and the Housing Executive, which we believe will make real inroads into the unacceptably high levels of unfitness. Tenants, many of whom are elderly and vulnerable, will have the opportunity to live in better quality homes. Many will have greater security of tenure than they have at present. Landlords of good quality accommodation will be able to receive a fair return on their investment. Those who wish to improve the standards of their properties can, as at present, access grant aid through the Northern Ireland Housing Executive. Landlords who fail to maintain their properties will find themselves subject to the full rigours of the law. I beg to move. Moved, That the draft order laid before the House on 24 April be approved.—(Lord Rooker.)