Lord Hunt of Wirral (Con)

My Lords, I rise to speak to Amendments 153, 201, 217 and 241, in the name of the noble and learned Lord, Lord Etherton, who cannot attend the Committee today. I know the whole Committee will join me in wishing him well. These amendments seek to limit the financial penalty that local authorities can impose for offences under these clauses. In the absence of the noble and learned Lord, Lord Etherton, I will briefly set out my reasons for supporting his amendments in this group. I should declare an interest that, as a practising solicitor for over 50 years, I am always concerned about penalties that are outside the judicial process, but my concern increases when the level of financial penalty is as high as is proposed. I agree with the noble and learned Lord, Lord Etherton, that the level of financial penalty set by the Bill is extremely high. A financial penalty of £40,000 would be ruinous for most landlords. According to the Government’s own Property Rental Income Statistics: 2024, the “average income from UK property remained relatively stable at around £17,000 between 2018 to 2019 and 2022 to 2023”. Therefore, a £40,000 penalty would, in effect, represent more than double the rental income of an average property. In certain egregious cases, a penalty of that severity may seem appropriate, but those cases can be dealt with by the courts. We must ask ourselves what effect this new level of financial penalty that can be imposed by local authorities will have on landlords today. We have serious concerns that the risk of a large financial penalty being imposed may encourage existing landlords to leave the sector and discourage new landlords from entering it. A more reasonable level of financial penalty would prevent that chilling effect. I have carefully heard the words of my noble friend Lord Jamieson on the Front Bench, and I know that my noble friend Lady Scott of Bybrook, also on the Front Bench, will surely agree with the noble and learned Lord, Lord Etherton, on this and consider the warning that we have given. Of course we accept that the Government will have their Bill, which should be effective in delivering its objectives, but we are seriously concerned and worried about the impact that these excessive financial penalties will have on the rental market.