Section 21 Evictions

Alex Chalk Excerpts

Thursday 6th December 2018 Westminster Hall

[Ms Buck]

Of course it does. As we have been discussing in the context of the Homelessness Reduction Act 2017, local authorities, because of the sheer pressure of homelessness applications, are also expecting tenants to wait until the court order has been issued and to wait until the bailiffs have been instructed and a date for the bailiffs to arrive has been received before they will consider the homelessness application. Landlords hate that, and one can understand exactly why—because of the insecurity about what happens to their rental payments. But the tenants absolutely loathe it and find it wholly traumatic to have to wait, often with their children, for the bailiffs to turn up before they can be rehoused by the local authority.

Research by the Joseph Rowntree Foundation last year found that the number of private tenants being evicted had risen by one fifth, that the overwhelming majority of the increase in possessions was driven by section 21, and that that was highly concentrated, with four out of five such repossessions being in London and the south-east, where rents are highest. It is precisely that concentration of section 21 use in certain areas correlating with the areas where market rents have risen most rapidly that I think is a real cause for concern.

The London boroughs identified by the Joseph Rowntree Foundation were all in the top 10 for the largest and fastest market rent increases from an initially low level. Although correlation must be treated cautiously, it is hard not to conclude that there is causation between increases in market rent levels and the use of section 21, whether that involves evicting tenants in rent arrears because of high rent levels, or evicting tenants in order to raise rents.

If anything, the flattening off of possession claims over the period 2015 to 2017—that has flattened from a period when it rose very steeply—has happened at a time when the private rental market has been under pressure from several other directions. It tends to reinforce the point that section 21 use reflects wider trends in relation to rents and that, crucially, we cannot stop worrying about it because there has been something of a flattening off in the last couple of years. If anything, now is the moment when we need to review the law, because if rents start picking up again, as over the longer term they almost certainly will, we will find that there will be a further acceleration in its use.

The Residential Landlords Association makes the case that its research shows that in half of all places where section 21 notices are served, that is because there is an alleged fault, such as rent arrears, but that argument is somewhat undermined by the local authority homelessness experience, because local authority acceptances of people who have been evicted from the private rented sector will happen only after there has been an inquiry into the cause of homelessness and it has been found that the homelessness is not a result of fault on the part of the tenant.

Homelessness is therefore a major factor in our wanting to reconsider the use of section 21, but it is of course only the sharp end of a much wider experience of insecurity. Unchosen ends of tenancies are disruptive, expensive and often traumatic for those involved. Having to make frequent moves, especially for families with children and for vulnerable and older tenants, is a deeply negative experience, even when it has not been imposed by a court order.

Shelter estimates that 27% of renters with children have moved three or more times in the past five years. That takes a toll on physical and mental wellbeing and on educational achievement. It also undermines communities and civic engagement. A very powerful case was made a few years ago by the Electoral Commission on the impact of high turnover and churn in the private rented sector. I know from my own casework, as I am sure all hon. Members do, just how distressing parents—it is not only parents, but it is parents in particular—find it to have to move around, changing schools and disrupting support networks. I could have chosen dozens of cases from my own case load to illustrate that point, but I have chosen the details of just one to read out— it is only a few paragraphs—with your permission, Mr Hollobone.

My constituent says:

“I have lived in this area for over 30 years. Due to overcrowding in our family home I was asked to leave in 2010, at which point I made a housing application to”

the local authority. They continue:

“The Council accepted a…duty and provided us with temporary accommodation in East London. We stayed in Dagenham for a short while before being lured back to Westminster by the Private Sector Team, reassuring us that this was a better option…When we signed a private tenancy we were promptly notified that the council has discharged its duty towards us because we have accepted private rent. We only rented for a year before the Housing Benefit was reduced under the new welfare reforms. As we could no longer afford the rent, we were obliged to find alternative accommodation”.

Despite their need for three-bedroom accommodation, they moved into two-bedroom accommodation. The council said that it

“could not and would not help us. I have a local connection as I have my family here. I look after my elderly father”,

who has cancer.

“I have 3 dependent children…attending local schools. I sit on the board of governors and play an active role in the…running of the school. I am…a member of the Parent Council.”

My constituent says that they are

“employed…and have served 18 years”

in their job in the local area. They say they have been served another

“Section 21 Notice by the landlords Agents requiring possession of the flat on 02^nd October.”

That will be the family’s fifth move in eight years. It is a simple example. It involves no fault, no arrears, no bad behaviour on the part of the tenants, but an imposed move of a vulnerable local family, and it is only too typical.

Renting privately is overall less secure than other tenures. Some 860,000 tenants moved between private rentals in 2016, up from 465,000 20 years ago, and one in 10 movers said that their move was down to being given notice by their landlord.

My hon. Friend the Member for Leeds North West (Alex Sobel) talked about retaliatory eviction. A significant minority of tenants fear retaliatory eviction if they make a complaint and so may be deterred from pursuing their rights for fear of the consequences. That unfortunately undermines efforts to improve standards in the private rented sector, despite its having, of all tenures, the highest level of substandard accommodation.

[Alex Chalk (Cheltenham) (Con)]

The hon. Lady is making a powerful speech, and the examples she is giving emphasise why it is important to re-examine the balance in this area; she has made that argument powerfully. Has she made any assessment of what the potential impact could be on the pipeline of available housing? I am always mindful in this place of the law of unintended consequences. I would be interested to hear her thoughts on that.

[Ms Buck]

It is a fair point. As always, a balance has to be struck. The private rented sector is important, and as much as we would like to build more social housing to accommodate some of the people in it, that would take longer than we can afford to take to accommodate the people in the pipeline. That has to be considered. It is fundamentally unknowable, because it cannot be taken out of the context of so many other aspects of housing need and supply, including the Government’s 2015 tax changes, which landlords are extremely concerned about, and the overall number of tenants seeking accommodation.

The fact is that if we get the balance right and remove no-fault from the equation, and if we concentrate on providing a means for landlords who legitimately need to recover their property for whatever reason and deal with some of their concerns about the operation of that system, there is no reason on earth people should regard that as unacceptable.

--- Later in debate ---

[Ms Buck]

I am grateful to my hon. Friend for that point. Certainly the landlord associations and landlords make the argument that the court process takes too long and is too complicated and, in many cases, too expensive for them to operate. I am unconvinced by that argument, because the figures that the landlord associations have put forward for the period of waiting for a court date or until a warrant can be issued are significantly different from the figures that the Library has provided for the debate. I am not sure that the associations are not using a different definition of average to make their case.

Obviously, once a landlord has decided that they want to recover a property, they will want to do so as quickly as possibly—that is inevitable—but whether the period that landlords have to wait and the quality of evidence that they have to provide if they are seeking a fault-based eviction should be lowered to make it easier for them, to the point where it effectively allows them to act without due regard for the rights of tenants, is a highly moot point.

[Alex Chalk]

I am entirely persuaded that landlords who issue a notice in a cynical, cruel and egregious way—in an almost deliberately upsetting way—should not be in a position to do so. The difficulty is in what an appropriate pretext or legitimate reason to seek to end a tenancy is. Can the hon. Lady say more about how she would crystallise and identify what amounts to a good cause?

--- Later in debate ---

[Alex Chalk (Cheltenham) (Con)]

It is a pleasure to say a few words with you in the Chair, Mr Hollobone. I thank the hon. Member for Westminster North (Ms Buck) for her excellent speech. I had not intended to speak in this debate, but I wanted to say that I find it very powerful, and I personally am persuaded that this is something we need to look at again. I should declare an interest: my brother, my sister and I are joint landlords of a cottage just outside my constituency. I wanted to give a few words of perspective.

First, it is worth emphasising that a house is not like any other commodity: it is not like anything else that one might consume. It is a matter of supreme, central importance to the security of individuals, their sense of wellbeing and their mental health. In those circumstances, it is critically important that we have a framework in place that ensures that on the one hand, there is a sufficient pipeline of that essential resource, and on the other, the pipeline is regulated in a way that is fair to all parties, particularly those who dwell in those houses.

It would be unfair to suggest that we have not come an awfully long way, and this Government can take some credit for the extent to which they have properly rebalanced the tenant-landlord relationship. I am thinking, of course, about the Homes (Fitness for Human Habitation) Bill: it is axiomatic that homes should be fit for human habitation, and I am glad that that Bill will be in statute. I am also glad that there is a more rigorous system of penalties for rogue landlords who act in a capricious and vicious way, or do not take proper account of the wellbeing of their tenants. I am thinking, of course, about legislation regarding carbon monoxide detectors and so on. The penalties are now far more severe—financial penalties and potentially even criminal penalties. That is as it should be.

I feel it would be appropriate to look again at the issue of no-fault evictions. Although it is right to say that in the overwhelming majority of cases, landlords behave appropriately and with a proper sense of their responsibility to their fellow citizens, it does cause me some unease that there remains scope in the legislation for landlords to act in a capricious way. The hon. Member for Westminster North has identified some chilling examples, and the quote that she read, while wholly unrepresentative of the broad mass of landlords, revealed that a landlord could seek to leave someone homeless over the Christmas period for vindictive reasons. That would be an act of appalling cruelty.

However, I wanted to make some other points, very gently. As the hon. Lady was right to mention and acknowledge, this is a balance, and it is important that as part of any examination of this matter, the Government should consider what the implications are for the pipeline of homes. I say that because there is a potential risk—probably a tolerable risk, but none the less a risk—that further measures could seek to interfere with that pipeline. For the reasons that the hon. Lady indicated, I suspect that risk is tolerable, and if the conditions were crafted appropriately to ensure that there was a genuinely good reason to issue a notice, that risk ought not to eventuate. It would be important to allow landlords to issue a notice if, for example, their financial circumstances had changed or they were selling up to move abroad.

Any measures would have to be drawn up with appropriate flexibility. However, as long as that could take place, as long as any examination proceeded with care, and as long as projections could satisfy us that those measures would not lead to an intolerable diminution in the pipeline of available homes, the hon. Lady has a point—a point that the Government would in conscience do well to consider. We should keep this matter under constant review, and I pay tribute to the hon. Lady for drawing this important issue to the attention of the House.

[Wera Hobhouse]

On a point of order, Mr Hollobone. I failed to draw attention to my entry in the Register of Members’ Interests, and I do so now. I apologise that I failed to do so.

--- Later in debate ---

[Andy Slaughter]

What my hon. Friend says is absolutely true: tenants are damned if they do and damned if they don’t. If they leave too early, they can be criticised by the local authority; if they leave too late, apart from the cost risk, they may find that time has literally run out. Increasingly, tenants are coming to me and saying that they have been evicted and lost their belongings, which were in the property after the bailiffs arrived, and that they and their children are sleeping on somebody’s floor, sofa-surfing or in wholly inadequate hostel accommodation and being moved on night by night. My council acts as responsibly as it can to try to keep families together and ensure that people are rehoused in the borough or as close to it as possible, but as we all know, schooling, employment, support networks and caring responsibilities are all disrupted by the process—that is very common now.

I hope that nobody here has experienced eviction at first hand, but I am sure we have all met many constituents who have. It is one of the most traumatic things that someone can go through. The humiliation, the cost, the uncertainty, the rejection—the whole process is just appalling, and it is now accelerating as a consequence of simple greed or commercial practice. Unfortunately, with the growth of buy-to-let and temptation in the private rented market, rents are escalating at a huge rate.

Only the other day, we were talking about the difficulty of building affordable homes. I am proud to say that my local authority is now building 1,500 new affordable homes, rather than knocking them down as it did when it was Conservative. However, the rent for a new social rented home is about 20% of the market rate, which means that building it requires a huge subsidy, which is very difficult to obtain. [Interruption.] I can hear the hon. Member for Cheltenham (Alex Chalk) tutting, but he knows that that will just encourage me.

In 2010, all the support for subsidy for social rented homes was removed, so it is no wonder that there has been a huge decline in availability and more reliance on the private rented sector. There is a fourfold or fivefold discrepancy in rent levels and landlords are being tempted to increase their income substantially simply by evicting tenants and replacing them with others. Alternatively, they may be thinking, “I don’t want to make more of a profit than I make already, but with benefit caps and restrictions on the rent that the tenant can pay”—given London rents, tenants will inevitably be partially reliant on housing benefit, even if they are working full-time—“I cannot afford to rent to them any more, so I’m evicting them.”

[Alex Chalk]

The hon. Gentleman knows how fond I am of him and his remarks, but his slightly party political point tempts me to intervene. This debate is about whether it is right to update the 1988 legislation. Does he accept that his party was in power between 1997 and 2010 but declined to do so? Does he agree that we ought to consider the matter in a more cross-party, consensual and reasonable way, rather than drawing party political points? [Interruption.] The hon. Member for Great Grimsby (Melanie Onn) is shaking her head, but does the hon. Gentleman agree that this need not be too partisan an issue?

[Melanie Onn]

You’re in the minority here—you should be careful!