Public Health (Coronavirus) (Protection from Eviction) (England) Regulations 2021

The regulations will be in place until the end of 21 February. We are considering whether and, if so, how to extend them, including how long any such further extension should be in place, and will provide more details as soon as possible.

It is important to ensure that our approach remains proportionate and strikes the right balance between continuing to protect tenants and ensuring that landlords can access justice. On 8 December last year, during the debate on the previous statutory instrument, concern was raised that the Government had not gone further to protect renters and support landlords, many of whom are individuals. The Government believe the best way to support landlords at this time is to provide support to tenants to enable them to continue to pay their rent, and have provided an unprecedented package of financial support which is available to tenants. This includes the fact that, in April 2020, we increased the local housing allowance rate to the 30th percentile of local market rents in each area to help prevent people getting into financial hardship. It also includes an increase of nearly £1 billion in additional support for private renters claiming universal credit or housing benefit in 2020-21, which will benefit over 1 million households, including those in work. Claimants will gain on average an additional £600 this year in increased housing support.

The Secretary of State for Work and Pensions recently announced that the increase to local housing allowance rates in April this year will be maintained in cash terms in 2021-22, even in the large number of cases where the 30th percentile of local rents has gone down. The continued investment in local housing allowance will support claimants in the private rented sector to manage housing costs. That is on top of the other provisions in place, which the House will know of, to help businesses pay salaries, with the furlough scheme extended to April and the welfare safety net boosted by billions of pounds. In this context, the Government have made £180 million available to local authorities and discretionary housing payments to help renters with their housing costs. All that is critical factual background when considering this statutory instrument.

We continue to require landlords to provide tenants with six months’ notice before eviction in all but the most serious cases until the end of March. That means that most renters served notice now can stay in their homes until June 2021, with time to find alternative accommodation. The six-month stay on possession proceedings put in place at the start of the pandemic could only ever be temporary.

The new court rules also respond to the pandemic and will be reviewed. These include a requirement for cases from before 3 August last year to be reactivated by the landlord and subject to a new review hearing at least four weeks before the substantive hearing. There is a need for landlords to provide courts and judges with information on how tenants have been affected by the pandemic—if that information is not provided, an adjournment will be made. There is a new review stage at least 28 days before the substantive hearing so that tenants can access legal advice, and all enforcement agents must provide a minimum of 14 days’ notice before enforcing an eviction. That is on top of new listing prioritisation arrangements which have been introduced by the judiciary.

Further, we are piloting from early this month a new mediation service to support landlords and tenants in seeking to resolve disputes before a formal hearing takes place. That will be free to use for both landlords and tenants, if it is considered at a review that the case would benefit from mediation and the parties so agree.

Our approach strikes the right balance between prioritising public health and supporting the most vulnerable renters, while at the same time ensuring that landlords can access and exercise their rights to justice. Landlords can action possession claims through the courts, but evictions will not be enforced except in the most serious cases. This SI strikes the right balance, and I therefore commend the regulations to the House.

We are asking the Government to stick to their word: that no one will lose their home because of coronavirus. In the months that preceded this debate, the right measures could have been put in place to ensure that the Government’s promise was honoured. They could have brought in the right support for struggling tenants that would have benefited both tenants and landlords, with changes to the universal credit system and an uplifted local housing allowance. They could also have announced a credible plan to deal with rent arrears. Instead, they leapt from crisis to crisis and wasted months, and tenants now face the same predicament they faced at the beginning of the pandemic.

Measures that could have been looked at include the setting up of a Covid-19 hardship fund to help support those in receipt of benefits who are struggling, or an increase in local housing allowance, but instead the Government proposed a freeze in cash terms from April 2021. All that achieves is that tenants in higher-rent areas get less support than those in lower-rent areas. The shared accommodation rate should have been suspended for at least 12 months, as called for by the Social Security Advisory Committee. The housing benefit cap should be scrapped and the £20 monthly uplift to universal credit kept. Those measures and similar ones would in most cases have the support of both landlords and tenants. Neither good landlords nor good tenants who find themselves in real difficulties should be penalised because of the pandemic.

Looking at the measures called for by landlord trade bodies and by tenant organisations, what is striking is the similarities between them. It is also worth noting that the BMA and others have warned of a potential rise in Covid infections if the Government force people into homelessness or overcrowded accommodation, the consequences of which would extend far beyond those directly involved. Look at the tragedy that lifting the lockdown measures over Christmas brought to families—this is a deadly virus, and measures that do not respect that fact and protect people accordingly will have deadly consequences.

I intend to test the opinion of the House on the regret amendment in my name. It is another plea to the Government to get a grip on the situation. People are really suffering, both landlords and tenants. They are really scared about their future. Landlords and tenants need help to get through this nightmare. We all need to get back on our feet and on the road to recovery. We all desperately want to see that.

There is a second regret amendment, in the name of the noble Baroness, Lady Grender. I have great respect for her. She has considerable knowledge and experience of these matters. The House would do well to listen to her. I make it clear that I would have no problem voting for her amendment and fully endorse its aims.

Sadly, this change is only too transparent. It suggests that, when it comes to tenants, the Government’s assumption is that they are in some way irresponsible—but most evidence suggests that before this pandemic, well over 90% of tenants were not in arrears. Should not the assumption be that these are responsible people, the vast majority of whom until this moment paid rent in full on time, who are now often in the worst- case scenarios? Indeed, according to the Resolution Foundation, twice as many private renters have reported job losses as homeowners. The Government’s own Household Resilience Survey: Wave 1 found that private renters were by far the hardest hit by the pandemic.

When the noble Lord, Lord Kennedy, pushes his amendment to the Motion to test the opinion of the House, we will fully support him. I thank the noble Lord for his words of support. We feel that one vote is enough on this, and I will not push my amendment to a vote today.

When the Minister responds, I ask him to tell us what risk assessment has been conducted regarding the likelihood of families losing their home as a result of this substantive change.

The amendment to the Motion I have tabled explains the context in which so many private renters entered this pandemic and the devastating impact it has had on them. The Minister has already referred to the levels of support given. But, as my own amendment to the Motion makes clear, this support is given without an understanding of the context for most private renters at the start of this pandemic.

Renters had an average of £500 in savings at the start, and 60% had no savings at all. The average short- fall in support each month under the local housing allowance scheme, because it is only the bottom 30% of rents, is about £100—you do the maths. The benefit cap has also reduced allowances. So any savings—if renters did have them—are already gone, and many started with no savings at all.

Citizens Advice found that most tenants have accrued arrears of less than £600, but the people they help will take, on average, seven years to pay that back. The cost to the public purse right now to help those tenants through a support package of targeted loans and grants—a one-off financial boost that would pull them out of debt, so that they in turn can pay their landlord and stay in their home—would be less than the projected £360 million debt.

The final part of my amendment to the Motion refers to the need for just such a package of support to keep people in their home, proposed by the National Residential Landlords Association, Generation Rent, Citizens Advice and others. It is really important to note that, when we are talking about this balance issue with landlords, the NRLA is very clear that the real need is to tackle the rent debt crisis.

Let us put that £360 million debt in context. It is far less than the highly questionable £1 billion spent on lateral flow tests, devised by US firm Innova but made in China, and a tiny fraction of the staggering £15 billion spent in four months on test and trace, much of it on lateral flow tests. Let us think just for a second about the hurdles private sector tenants have to go through right now for support, and then compare it with the fact that only 1% of this massive test and trace expenditure has gone through any competitive tender, according to the National Audit Office. How different it is for renters, choosing between food, heat and rent.

For public heath safety, for security of a family home, and for mental health reasons alone, we should keep renters in their home. These measures fall far short of those aims.

Could my noble friend give some thought, and perhaps some preliminary thoughts to the House, on how we might move forward, at least with hardship loans or funds to help tenants, and thus landlords and the sector? Otherwise, this will be a long-term problem that is building up over time. I sympathise with the situation that my noble friend finds himself in, and I can appreciate the great pressure that the Government are under on so many fronts. However, I think we need to take a step back and look at this not just in tactical terms of what we need to do for the immediate problem but at the situation that is building up.

I know my noble friend said something on this in opening, but I am not quite clear why we have moved from nine months’ arrears to six months’ arrears. What is the reason for that? The problem is more serious now, so I cannot quite square that with the fact that we seem to be bearing down with six months of debt accrued rather than nine months. However, it may be that I missed something there.

As my noble friend said, we have provided unprecedented help, but on the other hand, we are in a unprecedented situation, and it looks to me as if it will last for some time. Even as we come out of the public health hazards, as I am sure we will this year, the long-term economic position will have an effect on tenancies. I look forward to my noble friend saying something on that but, in the meantime, I support the necessity of these regulations.

Progressively, over decades, under Governments of various political colours, we have destroyed a system that provided genuinely affordable, generally decent homes for all. Let us not forget that in 1979 nearly half the British population lived in secure council homes. Some of those were not as well built or maintained as they should have been, or were in areas with inadequate facilities and opportunities, but they were secure. As the noble Lord, Lord Bourne, has just said, we replaced that with a market, and that is not a successful model for housing.

As noble Lords might predict from those remarks, the Green group supports both of the regret amendments, particularly that in the name of the noble Baroness, Lady Grender, with its focus on the need to provide long-term security for tenants. However, looking at that longer term, we have to move away from regarding houses primarily as financial assets and instead focus on providing everyone with a secure, genuinely affordable home that meets their needs—although of course I acknowledge that that is beyond the immediate scope of this SI. I note research last month from Aldermore Bank showing that half of renters now regard their circumstances as unstable, with one in 10 struggling to pay the rent since March. Clearly, we have a broken housing system.

Coincidentally, I spent this morning chairing a Westminster Forum session about our broken food system. That is two basics of human existence—food and housing —on this planet, with a climate emergency and a nature crisis, where as a species we are smashing through multiple planetary limits while failing miserably to meet even basic human needs in a collectively wealthy country such as the United Kingdom. I have to say that we have a broken economic, social and political system. We have to rescue people in the immediate future, but we also have to think longer term about massive transformational change.