To ask Her Majesty’s Government what progress they have made towards preparing the legislation to end “no fault” evictions announced in the Queen’s Speech on 19 December 2019.
My Lords, we remain committed to abolishing Section 21 of the Housing Act 1988 to enhance renter security and improve protection for tenants. However, our collective efforts are currently focused on responding to the coronavirus outbreak. We will bring forward a renters’ reform Bill once the urgencies of responding to the pandemic have passed and when parliamentary time allows.
My Lords, by all metrics, tenants started this pandemic with less savings and have lost more jobs and income than property owners, but the Government, in the name of balance, have made the callous move of including arrears accrued during the pandemic as grounds for eviction. They have therefore broken the promise that loss of income will not mean the loss of a home. Can the Minister share the data used to guide this decision? If it is not available, will he please write to me?
Given the significant level of financial support that has been available to renters throughout the pandemic, through furlough and welfare, it is unlikely that this expansion of rent arrears would have accumulated solely through Covid-related arrears. I point out the Citizens Advice data that 250,000 renters owe landlords some £360 million.
“Section 21 is the leading cause of statutory homelessness.”
The report continues, saying that
“92% of the rise in homelessness cases … in London can be explained by no-fault evictions”.
However, turning to the immediate, the Government’s ban on bailiff enforcement of eviction ends on 21 February and does not extend to renters in more than six months of arrears. What plans, if any, do Her Majesty’s Government have to revisit these two very important issues?
I point out that the new court rules will certainly prioritise cases such as anti-social behaviour, and that bailiffs do not currently enforce evictions. There have been plenty of protections for tenants throughout this pandemic, and those protections continue. It is important to get a balance between protecting tenants and providing the rights to landlords.
My Lords, I refer to my interests in the register. I support the ending of no-fault evictions and believe that the tenant should receive extra support during the pandemic and the current lockdown. The Minister will know that very many private landlords own just one or two properties. Can he say what the grounds for repossession would be should the landlord need to reoccupy their home or sell for financial reasons?
I will have to write on that specific point. It is important that this is seen as a balance of strengthening the rights for eviction while removing the no-fault eviction.
I declare my interests as recorded in the register. As part of a renters’ reform Bill, the Government have committed to improving the court process for landlords to make it quicker and easier for them to get their property back where they have a legitimate reason for doing so. Given this, when will Ministers publish their response to the consultation, Considering the case for a Housing Court, which closed over two years ago?
My Lords, campaigners have asked for a coronavirus home retention scheme of £750 million in support to be made available to help renters in arrears, recover loss of income and avoid rent debt. Have the Government conducted a cost-benefit analysis comparing such a fund with the potential cost of making many families homeless because of rent arrears?
My Lords, I declare my interests as in the register. Does my noble friend agree that tenants must have confidence that their landlords will treat them properly, but that the law should not penalise landlords unfairly—most of whom are responsible, have only one or two properties and may have lost significant amounts of rental income in the pandemic? I agree that we must be careful not to give unbalanced rights to tenants to occupy indefinitely—for example, if their landlord needs to sell or move in themselves.
My Lords, it is very important that, when we remove the ability to evict someone through no-fault evictions and Section 21, we also strengthen the rights where there are specific grounds for eviction. That is the nature of the tenancy reform and the Bill that we will bring before the House.
My Lords, the Government are definitely doing the right thing in giving renters greater security. But is there a problem that a rogue landlord could simply double the rent, thereby forcing the tenant to leave despite the extra security? Would the Minister agree that the forthcoming renters’ reform Bill will need to introduce not clumsy rent controls but a straightforward time period—perhaps four years—during which a tenant’s rent cannot be increased by more than inflation?
My Lords, I will look at what it will take to ensure that there are proper securities for renters, while recognising that we also need a healthy private rental sector and the role that good landlords play in that process.