Public Health (Coronavirus) (Protection from Eviction) (England) (No. 2) (Amendment) Regulations 2021

Considered in Grand Committee

Moved by

That the Grand Committee do consider the Public Health (Coronavirus) (Protection from Eviction) (England) (No. 2) (Amendment) Regulations 2021.

My Lords, the instrument before us today prevents enforcement agents—bailiffs—from attending residential premises in England to execute a writ or warrant of possession except in the most serious circumstances. The House will be familiar with the structure and content of this statutory instrument as it is the fourth that the Government have tabled to restrict the enforcement of evictions since November last year.

The instrument applies to enforcement action in England. It amends the Public Health (Coronavirus) (Protection from Eviction) (England) (No. 2) Regulations 2021 in only one respect: by amending the expiry date of those regulations from the end of 31 March 2021 to the end of 31 May this year. On 18 March, when we debated the previous statutory instrument, a number of noble Lords expressed concerns about the short-term nature of these regulations and suggested that both landlords and tenants would benefit from greater clarity about how long the restrictions would be in force.

I explained in the last debate that the Government have to balance the need for clarity against ongoing developments in the pandemic. We believe that retaining the restrictions in this instrument until 31 May while the Covid-19 restrictions remain in place will align with the broader strategy for protecting public health and will continue to help to reduce pressure on essential public services as we move out of lockdown. Indeed, as I explained last time, the extension to 31 May, which I headlined in that debate, is broadly in line with the road map out of lockdown. Step 3 of the road map will be taken no earlier than 17 May following a review of the relevant data. That step will see a number of restrictions being lifted, including—importantly, in this context—the restrictions on domestic overnight stays.

Noble Lords might say, “Why 31 May and not a date linked to step 4, which is scheduled for no earlier than 21 June?” The short answer is that we must remember, when considering the date of 31 May, that in most cases bailiffs are required to give 14 days’ notice of an eviction. In practice, therefore, protection from the enforcement of evictions will be afforded in most cases until mid-June. We have sought to strike the right balance in the prevailing circumstances.

I am sure that noble Lords will be familiar with the content of the statutory instrument. We have put a ban in place but there are the by now familiar limited exceptions to the ban in cases where we believe the competing public interests in ensuring access to justice, preventing harm to third parties or taking action against egregious behaviour and upholding the integrity of the rental market sufficiently outweigh the public health risks. The exemptions are: first, where the claim is against trespassers who are persons unknown; secondly, where the order for possession was made wholly or partly on the grounds of anti-social behaviour or nuisance, false statements, domestic abuse in social tenancies, or substantial rent arrears equivalent to six months’ rent; or, thirdly, where the order for possession was made wholly or partly on the grounds of death of the tenant, and the enforcement agent attending the property is satisfied that the property is unoccupied. In each case the court will have to be satisfied that the exemption applies, and that will be considered on a case-by-case basis.

My Lords, I welcome these regulations on evictions and thank the noble Lord, Lord Wolfson of Tredegar, for his clear explanation. I should be grateful if he would consider another suggestion to deal with the way in which home owners and would-be home owners have been hit by Covid. There has been considerable distress and hardship among those hoping to move or to buy a first home but who, as a direct result of the pandemic, have experienced a sudden and unexpected collapse in their income, triggering a sale collapse and loss of deposit after contracts had been exchanged, through absolutely no fault of their own.

One proposal is to insert for the duration of the pandemic a new Covid regulation containing four key elements: first, that the party’s right to serve a notice to complete will be suspended while an event directly related to Covid-19 prevents the other party from completing; secondly, that a party will not be in breach of its obligations because of a delay caused by Covid-19; thirdly, that either party may terminate the contract if completion does not take place by a specified longstop date, fixed at an agreed date beyond the contractual completion date; fourthly, that there will be a moratorium—with retrospective effect from the first national lockdown imposed by the Prime Minister on 23 March 2020—on deposits so that home buyers do not lose them because a Covid-19 impact prevented sales being completed.

Could the Minister bring forward new regulations, like the ones we are debating today, which would, in effect, freeze transactions due for completion after March 2020 but which, for Covid-related reasons, could not be completed because of an abrupt and dramatic change in financial circumstances? I should be grateful if the Minister looked at this.

My Lords, it was on 18 March that we last debated this matter. We knew then that there would be yet another extension—and here we are. However, I am left wondering what the Government’s plan is. Indeed, I wonder whether they have a plan at all.

We are now a year on from the introduction of the ban on evictions; a year in which more and more tenants fear becoming homeless—one in four, according to Shelter; a year of not addressing the pending crisis in landlords’ loss of income; a year of building up the backlog of claims for possession.

Landlords’ and renters’ organisations have talked to each other and have come up with a plan for a Government-led rent relief scheme which would help both landlords and tenants. We should bear in mind that Scotland and Wales already have schemes in place.

A year ago, the Secretary of State gave a commitment that no one would be forced out of their home because they have lost income as a result of coronavirus. He also said that no landlord would face unmanageable debts. Given that, what discussions have the Government had with those organisations about their proposal?

This further extension is clearly right, given the circumstances, but the problem is not going away because many tenants in the private rented sector are carrying substantial debt and must rely on that sector, because they have no choice. This is the consequence of the failure to build enough homes for social rent, which is making the situation so much worse.

My Lords, it is very good that the ban on commercial evictions has been extended to 30 June and the bailiff-enforced eviction ban has been extended to 31 May to protect residential tenants. As president of the CBI, I should like to say that we are very grateful for the many times that the Government have listened to business and shown flexibility and adaptability.

It is right to continue supporting renters with the cost of living and to align this with the Prime Minister’s timely road map, particularly when tenants may continue to be on furlough or working in sectors that cannot reopen for some weeks yet. For the some 49% of hospitality workers who have suffered so much during this pandemic, and the 36% of retail workers currently renting, the new measures will protect jobs as businesses reopen and many more renters can return to work.

However, landlords may be asking how, in some cases, the growing rental debt will be managed after the protection ends. The issue cannot be addressed if parties fall out with each other the moment the protection ends. The Government should be seeking to avoid a cliff-edge in June for residents and landlords and, where possible, helping tenants and landlords to work together to secure fair tenancy agreements moving forward. That should be a priority, as the Minister will agree.

The Government have promised mediation support for resolving issues where disputes arise, and this must be available to all who need it. We could produce a heavy caseload for mediation if the Government can publish guidance for tenants and landlords that will help negotiations to be held in a fair and transparent manner, in good time ahead of May.

It is positive that the Government continue to be clear about giving at least six months’ notice for evictions where eviction notices are necessary, as the Minister said. The Government appear to have launched a new free mediation service for disputes, so you can add this free service’s helpful support for tenants at what could be a difficult time, hopefully avoiding the need for court action. Can the Minister confirm this?

My Lords, I declare my interests as set out in the register. It is a great pleasure to follow the noble Lord, Lord Bilimoria. I thank my noble friend the Minister for setting out the regulations with his customary lucidity and precision. Of course, we have been here before, so it could be argued that he has had plenty of practice.

I certainly support the regulations. Clearly, we should extend help to tenants who would otherwise face eviction as a result of coronavirus. What we must now provide as we emerge from the shadow of Covid is long-term help for both tenants and landlords. Tenants still owe rent. Landlords are still owed rent. The whole system is in danger as the creditworthiness of hundreds of thousands of tenants is undermined by the current situation. There is a very real danger of masses of tenants facing eviction, even if it is six months away, as the system of respite from evictions comes to an end.

As the noble Lord, Lord Shipley, noted, a scheme is already in place in both Wales and Scotland. May I press my noble friend the Minister to ensure that a specifically tailored financial package is put in place for tenants? The alternative will be landlords seeking judgments against tenants who are in debt. It would not be correct to assume that the bulk of landlords are vastly wealthy. This needs urgent action from the Minister and the Government, as I have mentioned before. I am still not convinced that we have in place a plan—one is sorely needed—to ensure that, as I say, we do not face a serious problem with the eviction of private tenants as we emerge from the shadow of Covid.

The noble Baroness, Lady Andrews, has withdrawn so I call the noble Baroness, Lady Ritchie of Downpatrick.

My Lords, I welcome these regulations. I have several questions for the Minister, building on what we dealt with during our debate on 18 March.

Covid-19 has changed every aspect of our society and economy. The private rented sector has been impacted to a significant extent, with many people living in fear of evictions as they are now without a job and have little money with which to pay their rent. Many private renters are struggling to pay. More than 800,000 renters may have built arrears since lockdown measures started a year ago. As the noble Lord, Lord Bourne, said, many landlords are not property tycoons and are also struggling; they, too, need assistance.

With Ministers committing to a tapering-down of emergency restrictions in the sector from the start of June, tenants and landlords need a comprehensive, cross-departmental road map to tackle rent debts, speed up the operation of the courts and carefully taper down the current extended possession notice periods. In view of that, what plans do the Government have to prepare for the implementation of the road map to assist private renters and their landlords?

Furthermore, it needs to be recognised that the majority of tenants now in arrears do not qualify for financial support in the form of discretionary housing payments. What assistance can be provided for them? This is supported by Citizens Advice, the Resolution Foundation and the debt charity StepChange.

My Lords, I declare my interests as set out in the register. I welcome this statutory instrument and the delay until 31 May, but, like others, I would like an assurance from the Minister that the promised return to normality will encompass all the ministries involved in this complicated issue, such as the DHCLG, the DWP, the Treasury and, of course, the Ministry of Justice, so that a comprehensive solution is delivered rather than the current series of sticking plasters. Such is the conclusion of the Housing, Communities and Local Government Select Committee.

The biggest problems are with the private rented sector. Among the actions needed are measures to tackle growing rent debt so that existing tenancies can be sustained and tenant credit scores are protected from the consequences of county court judgments on evictions. It is also inappropriate to regard the private landlord as a bank. Most landlords are private individuals and have their own financial commitments to discharge. Hence, I repeat the request, mentioned also by the noble Lord, Lord Shipley, that the Government give interest-free hardship loans, payable direct to the landlord and repayable as tenants’ finances recover. Similar schemes exist in Scotland and Wales and have been welcomed by some housing charities.

Secondly, the speeding up of the court process, which has been called for by the House of Lords Constitution Committee, is essential. Can the Minister comment on the possibility of remote hearings using video technology? At present, I understand that, even without the effect of Covid measures, it takes an average of 12 months for a landlord to secure possession.

As the noble Baronesses, Lady Uddin and Lady McIntosh of Pickering, have withdrawn, I call the next speaker, the noble Lord, Lord Bhatia.