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The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Andrew Stephenson)
It is always a pleasure to see you in the Chair, Ms Nokes. I thank all hon. Members present for their considered contributions to the debate. It was valuable to hear real-life examples from different Members’ constituencies. To those who have invited me to visit, such as the hon. Member for York Central (Rachael Maskell), I say that I will be delighted to do so if I remain in post.
I thank the hon. Member for Liverpool, Walton (Dan Carden) for securing this important debate on the merits of ending section 21 evictions. He made a number of pertinent points regarding issues in the private rented sector. Those issues are faced in all our constituencies, including my own constituency of Pendle, and the Government are committed to tackling them.
As Members will know, the private rented sector is the second largest tenure in England. More than 11 million people call the private rented sector home, and it represents around 19% of households in England. Many of those households—1.3 million of them—are families with children. It is right that they and all tenants feel that their rented house is a home and that they can take jobs and start schooling, confident in the knowledge that they have long-term security. Right now, families across the country are worried about having to uproot their lives at short notice, and millions of tenants have less security than those who own their own homes or are in social housing. That does not need to be the case and should not be.
Everyone deserves a secure and safe home, and the Government are committed to ensuring a fair deal for renters. To do that, we will introduce a renters reform Bill in this Parliament to protect tenants, support responsible landlords and improve standards across the private rented sector. The reforms will be the largest changes to private renting for a generation, so we know how important it is to get them right. We are grateful to those across the sector who have worked closely with the Government on developing the reforms, and we will continue to listen to their concerns, just as I will ensure that the concerns set out by hon. Members are reflected in our responses.
Hon. Members are right to mention the insecurity caused by section 21 no-fault evictions. It is not right that a landlord can ask a tenant to leave without giving a reason, and with as little as two months’ notice. The Government are clear that they want to support the majority of landlords, who act responsibly, but it is not right for tenants to live in fear that their lives may be uprooted at the whim of a minority of rogue landlords. Too many tenants do not complain about dangerous conditions, criminal behaviour or unjustified rent increases, fearing they will be subject to revenge evictions if they do.
As we have set out in our manifesto, which has been mentioned by several Members, and confirmed in the House, the Government are committed to abolishing section 21 of the Housing Act 1988 and giving millions of private renters a secure home.
At the same time, we will simplify complex tenancy structures and move all tenants who currently have an assured tenancy or assured shorthold tenancy on to a single system of periodic tenancies, which will allow either party to end the tenancy when they need to. This will enable tenants to leave poor-quality properties without remaining liable for the rent or to move more easily when their circumstances change, such as when they take up a new job opportunity. Landlords will always have to provide a specific reason for ending a tenancy, which will provide greater security for tenants while retaining the important flexibility that private rented accommodation offers. This will enable tenants to put down roots and plan for the future.
Dan Carden
The Minister is clearly aware of the very difficult circumstances that face so many of our constituents. I said in my contribution that 200,000 people have been evicted because the Government have not acted since they promised to act. If the new Prime Minister leaves the Minister present in his job, will he give us a sense of urgency that the Government are going to act?
Andrew Stephenson
We are in strong agreement that we need to act. It has not been mentioned too many times today—[Interruption.] Well, the hon. Gentleman will remember that the December 2019 manifesto was soon followed by a global pandemic, when the Government took swift and decisive action to protect tenants across the country, so we have taken action. However, we were unfortunately unable to pursue other legislative priorities included in the manifesto with as much speed and vigour as we wanted. We are making significant progress, though. As the hon. Gentleman will know, the White Paper was published in June and some of the consultations that came under it closed only earlier this month.
Matthew Pennycook
Just to clarify—I think it might be helpful. I think the Minister said it is the Government’s intention to introduce a renters reform Bill in this Parliament. Will he give us a firm commitment today that the Government intend to make the necessary parliamentary time available to get that Bill on to the statute book by the time this Parliament ends?
Andrew Stephenson
I thank the shadow Minister for that remark. It is very much the priority of the Government to introduce the Bill and provide parliamentary time for it to proceed. Obviously, the Government’s policies can change, but, in today’s speech, the new Prime Minister underlined his commitment and the new Government’s commitment to the Conservative party’s 2019 manifesto, which included commitments in this area. I am sure that, whether it is myself or another Minister in post, this will remain a priority for the Government and we will want to bring forward the legislation in good time so that it can go through all the stages before the next general election.
We know that landlords need certainty, too. If a tenant needs to leave a tenancy, we will increase the amount of notice they must give. This will ensure that landlords recoup the costs of finding a new tenant and avoid lengthy void periods. The new system will be simpler for tenants and landlords to understand, enabling them to exercise their rights and fulfil their obligations. We are striking the right balance between improving security for tenants and ensuring that landlords continue to feel confident to invest in the market.
Good landlords play a vital role in providing homes for millions of people across the country, and we want to reassure them that the new system will continue to be a stable market for landlords to invest and remain in. No one will win if our reforms do not support landlords as well as tenants.
It is only right that landlords should be able to get their properties back when their circumstances change or tenants break the rules. We will reform the grounds of possession so that they are comprehensive, fair and efficient. We will streamline the possession process, removing unnecessary restrictions on landlords seeking to recover their properties, introduce a new ground for landlords wishing to sell their property and allow landlords and their close family members to move into a rental property. This, alongside the existing grounds for moving in, will give landlords confidence that they can get their property back if their circumstances change.
The vast majority of tenants abide by the rules, but landlords have told us how difficult it is to act when they are unfortunate enough to have an antisocial tenant. Antisocial behaviour causes misery to a tenant’s neighbours and the wider community. Where a tenant’s behaviour cannot be addressed in the property, we will support landlords to end the tenancy. In cases of criminal or serious antisocial behaviour, we will reduce the notice period, with landlords being able to make a claim to the courts immediately. We will explore prioritising those cases in court so that communities do not have to suffer for longer than necessary. We are working across Government to develop guidance for landlords on identifying and addressing antisocial behaviour, and we welcome further input from hon. Members on what we can do to further support landlords with antisocial tenants. Alongside that, we will continue to listen to landlords who provide much-needed accommodation for the thousands of students across the UK every year, to ensure that the sector continues to work for those in higher education.
Hon. Members here will agree that going to court should be the last resort when all other avenues have been exhausted, but sometimes it is unavoidable. Court proceedings can be costly and time-consuming for landlords, which is why we are working with the Ministry of Justice and His Majesty’s Courts and Tribunals Service to streamline the process and ensure that the most serious cases are prioritised. Alongside that, we are reviewing the bailiff process. It is currently the biggest source of frustration and delays for landlords, and we want to make sure that it is as efficient as possible.
Removing section 21 will help millions of tenants, but we understand that many are facing real pressures with the cost of living now. That is why the Government have provided over £37 billion-worth of cost of living support this year to those who need it most. We have also announced unprecedented support to protect households and businesses from the high cost of energy. The energy price guarantee and the energy bill relief scheme are supporting millions of businesses with rising energy costs. That is in addition to the £400 discount already announced through the energy bill support scheme. We have boosted investment in the local housing allowance by nearly £1 billion since 2020, and we are maintaining housing allowance rates at that increased level this year. Those most at risk of homelessness are able to access discretionary housing payments, alongside £316 million-worth of financial support through the homelessness prevention grant.
Finally, several hon. Members have raised the issue of the poor quality of some private rented homes. Most landlords and agents treat their tenants fairly and provide good-quality, safe homes. However, that is not always the case. Too many of the 4.4 million households that rent privately still live in poor conditions, paying a large proportion of their income to do so. Poor-quality housing undermines renters’ health and wellbeing, and we are determined to act. More than one in 10 privately rented homes have serious health and safety hazards that we need to address, as mentioned by the shadow Minister. We have strengthened local authorities’ enforcement powers by introducing financial penalties of up to £30,000, extending rent repayment orders and introducing banning orders for the most serious and prolific offenders, but we intend to go much further.
I hope that all Members here recognise that the Government are committed to reforming the private rented sector in a fair and balanced way, abolishing no-fault section 21 evictions and providing more clarity for landlords when seeking repossession. We are committed to giving tenants more security, meaning that they can stay in their communities and put down roots. In that spirit, I thank the hon. Member for Liverpool, Walton for his thoughtful speech, and hon. Members across the Chamber for their contributions. Delivering a fair deal for renters through these reforms remains a priority for this Government, and I look forward to working with hon. Members to deliver on that agenda.