Section 21 Evictions

Dan Carden Excerpts

Tuesday 25th October 2022 Westminster Hall

[Dan Carden (Liverpool, Walton) (Lab)]

I beg to move,

That this House has considered the potential merits of ending section 21 evictions.

I am grateful to have secured time for a debate on this matter, which continues to affect all our constituents. I start by paying tribute to my constituents in Liverpool, Walton, who are the innocent victims of the country’s current broken housing system.

“Everyone renting in the private sector has the right to feel secure in their home, settled in their community and able to plan for the future with confidence. But millions of responsible tenants could still be uprooted by their landlord with little notice, and often little justification. This is wrong”—

those are not my words but the words of the right hon. Member for Maidenhead (Mrs May), who was the Prime Minister in 2019, when the Government first committed to scrapping no-fault evictions. In the three years since, more than 200,000 renters have been evicted—that is the equivalent of an eviction every seven minutes, and that is despite an eviction ban that was in place for 14 months during the pandemic.

Section 21 evictions allow for landlords in the private rented sector to evict tenants from their properties without having to establish any fault on the part of the tenant. When a notice is served, it gives tenants just two months to leave their homes. Even the threat of eviction has detrimental effects on tenants. Section 21 notices mean that tenants are unlikely to exercise other rights, such as the very limited right to challenge rent increases, for fear of retaliatory eviction.

Research by Shelter shows that nearly one in five renters have decided not to complain about poor conditions in their homes for fear of being evicted. I witness that frequently in my constituency. A constituent who visited my office had complained to her landlord about the lack of essential repairs to the front and back doors. The landlord refused to carry them out. After she complained again, she received a section 21 notice in the post, telling her to leave the property. That shows the clear imbalance in power when tenants are held hostage to a bad landlord in an inadequate property.

It is easy to underestimate the dislocating and exhausting experience of someone being evicted from the place they call home: living in limbo; never certain of when their time may be up; having to pack up belongings, leave support networks and potentially change employment —all at immense personal, mental and financial cost. Children being unmoored and having to move schools or leave friends and family behind can have a lifelong impact on learning and development.

My constituency office recently spoke to a constituent who contacted us after being served a section 21 eviction notice. She has been living in her property for 13 years with her two children, aged 12 and two. She suffers from anxiety, and after being told she must leave the property her anxiety has “gone through the roof”. She has never had panic attacks as bad as they are now. She said it is

“exhausting to look after kids at the same time as worrying about where we will end up.”

She told us that being served with the eviction notice was “cruel”, and that

“you should not be able to drop a note through someone’s door telling them to pick their lives up and move on.”

If constituents are removed from properties, they are often placed on long property waiting lists, compounding the sense of uncertainty and insecurity that they experience. I want to take this opportunity to commend local organisations such as Vauxhall and Merseyside law centres, ACORN and my local Liverpool Shelter branch, which carry out fantastic work in almost impossible circumstances to support my constituents in the face of minimal Government support. All MPs here will have similar stories from their own constituents, and may be planning to share their contributions today. Indeed, it was those stories, and the tireless work of the renters’ unions and housing campaigners, that pushed the then Prime Minister, the right hon. Member for Maidenhead, to promise a new deal for renters in 2019.

It will come as little consolation that the Labour party announced in December 2017 that any future manifesto would contain a commitment to remove no-fault evictions. The 2019 Conservative manifesto echoed that commitment, promising the abolition of no-fault evictions so that tenants were

“protected from revenge evictions and rogue landlords”.

Again, those are the Conservatives’ words, not mine. Of course, like many Tory promises, that was not worth the paper it was written on. The two and a half years of the premiership of the right hon. Member for Uxbridge and South Ruislip (Boris Johnson) passed without any Bill being published.

We have had a consultation, which the Government responded to by again vowing to abolish section 21, but now we find it kicked into the legislative long grass. It was not a priority for the previous Administration and no one knows what the new Government are minded to do—I hope the Minister can shed some light on that today. This is all despite the huge public support for the reform of private renting: some 79% of the public, 80% of Conservative voters and 86% of voters over the age of 65 back greater protections for private renters, according to Generation Rent data.

The private rented sector is dominated and characterised by insecure tenure, increasingly unaffordable rents, poor housing quality and the ever-present risk of eviction. Data from Crisis showed that in the last financial year nearly 20,000 households faced homelessness after receiving a no-fault eviction notice. Losing a private tenancy is the second biggest cause of homelessness in England. If the Government are serious about ending homelessness, what are their reasons for delay? No one should be going homeless.

When we know that private sector tenants have to move more often than people in any other tenure, and then face average moving costs of well over £1,500, we should be doing all we can to ensure that constituents are not pushed into destitution following receipt of a section 21 notice. That is more important than ever in the midst of the current Tory-engineered economic chaos that is causing absolute misery to many people throughout the country.

We are all aware of the huge challenges that our constituents face: the skyrocketing cost of living, food prices at a 40-year high, record energy costs and skyscraping inflation. All those conditions make the need for a safe and secure home more important than ever before. Add to that the dwindling supplies of affordable housing, and more than three decades of deregulation, and it is easy to realise how we have created the toxic conditions that we now find ourselves in.

Where is the Government’s plan to deal with this? It may prove to be too late for many people throughout the country. To use just one example, statistics from the Ministry of Justice show that the situation is not getting better for renters but much, much worse: there was a 52% increase in the number of no-fault evictions between April and June 2022.

Conditions for private renters are continuing to deteriorate, and the Government’s neglect is the cause. That increase in forced evictions took place against the background of 11% inflation, and rent increases of 11.8% outside of London, according to Rightmove. Those rent increases are widespread—data from Shelter shows that 1 million private renters were hit with a rent increase in August 2022 alone—and have a clear knock-on effect: eviction claims for rent arrears are at their highest level since records began.

No one from the Conservative party seems to recognise that rent increases also cause inflation. They are frequently eager to call for pay restraint, or for benefits to be held down, but never for landlords to heed the same advice. The Government continue to consult on a rent cap in the social housing sector. Why is it that private sector tenants are always forgotten about? Announcing the consultation, the Department for Levelling Up, Housing and Communities said:

“Putting a cap on rent increases for social tenants offers security and stability to families across England.”

Highlighting the potential increases of 11% next year for social tenants, the press release stated that this move would

“prevent rents…from rising significantly.”

When we know that price rises will be the same or potentially higher in the private rented sector, why will the Government not provide the same protection to private renters?

In Scotland, emergency legislation has been announced to freeze rents and establish a six-month moratorium on evictions, for both the private rented and social sectors. That demonstrates that, where the political will exists, action can be taken quickly and decisively to provide relief for tenants. What analysis of that legislation have the UK Government carried out? Would the Government be minded to announce a similar pause on evictions?

A dramatic increase in the availability of buy-to-let mortgages, little growth and access to the social rented sector, and now skyrocketing interest rates caused by a mix of backwards ideology and financial illiteracy, have led to a growth in the number of households renting privately. The lack of housing affordability and tenant security in the private rented sector go hand in hand. The cost of frequent, unwanted moves makes people worse off, and money spent on rent is money that is not spent on putting down a deposit or saving for a mortgage.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

The hon. Member cites the experience in Scotland, where they have had to introduce rent controls on the back of abolishing section 21; is he advocating that we should adopt rent controls for the private rented sector?

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[Dan Carden]

Yes, I am. I thought I had laid out that argument quite clearly. We have a system in which housing benefit subsidises landlords who own property. A much wiser use of that money would be to use it to build new council housing. That saves money in the long run, and allows those living in the properties to have the sense of belonging and security that is vital to wellbeing.

Frankly, successive Governments have not taken this problem seriously enough. The Government must recognise the damaging consequences of this delay and announce what is vital legislation as soon as possible. The promise to abolish no-fault evictions was included in the Conservative manifesto of 2019. The renters reform Bill was included in the Queen’s Speech of December 2019. Three and half years, three Prime Ministers and four Secretaries of State later, that legislation has still not been put before the House.

It is no surprise that many organisations simply do not trust the Conservative party to deliver on these much-needed reforms. Just a few weeks ago, in one of her many U-turns, the right hon. Member for South West Norfolk (Elizabeth Truss) had to reassure the House that it was her policy to press ahead with banning no-fault evictions, after reports had suggested the opposite. Anyone seeking another example of the Government’s half-hearted approach in this area need look no further. Even today, we see another change in Administration. Who knows whether that manifesto commitment will be kept or tossed aside?

We need to see action, not more delay. That is the very least that private renters deserve. We need to keep tenants in their homes. Will the Government investigate incentives to sell with tenants in situ? What will they do to work more closely with councils to help them to create and buy more social housing? Will they look at unfreezing housing benefit, which is currently lagging way behind rents? Will the Minister explain why social tenants may receive a rent cap, following a consultation, but there have been no similar moves in the private rented sector?

I invite the Minister to meet me and organisations such as the Renters’ Reform Coalition to discuss these matters further. Will he give a clear date for the introduction of legislation? To give security and certainty to tenants, it must be in this parliamentary Session.

Before I finish, I pay tribute again to the fantastic organisations that work in this area, particularly all members of the Renters’ Reform Coalition. To use a term that the Government and their allies hold very dear, the renters reform Bill is oven-ready, so set a date and publish it.

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[Kevin Hollinrake]

I appreciate that. The hon. Lady could have made an intervention and I would have responded, but she is absolutely right, and I draw Members’ attention to my entry in the Register of Members’ Financial Interests. For many years, I owned an estate agency lettings business, which I do not own any more. I have, I think, four private rented properties in the private rented sector, but I absolutely do not speak on my own behalf; if anything, I speak on behalf of tenants, because I think that the measures being advocated would lead to a reduction in supply, which would ultimately be massively counterproductive for tenants. That is the conversation we should be having: one about whether or not this idea is good for tenants.

If the hon. Member for Liverpool, Walton will just indulge me for a second in terms of responding to his points—he is shaking his head, but if he just listened to my points, it might be useful. Rent controls applied back then. It was not as if rent controls were set according to market value, because there is no market value at that point. As soon as we introduce rent controls, we effectively get rid of market values. That is what happens. Back then the rent offices would compare a property only with other properties that had been rented out, none of which were accessible by the open market. Rent controls take us away from a free market completely.

The Government are also saying that if a landlord needs to reoccupy a property or wants to sell it, they will allow them to do that and ask the tenant to leave on that basis, but that loophole was closed then and it will be closed again. Back then, if someone wanted to ask a tenant to leave, they had to find another house for them. They had to be provided with another house, because the Government did not want that to be used as a back door to getting that tenant out.

[Dan Carden]

To bring the debate back to the merits of ending section 21 evictions, does the hon. Member think that his Government should deliver on their promises, or should they backtrack on them?

[Kevin Hollinrake]

My speech is very much in the context of section 21, in that the end of section 21 will not be the end of such measures. I do not think we should abolish section 21, certainly not without more measures relating to how we deal with section 8, which is the other mechanism for getting to grips with difficult tenants—difficult not just for the landlord, but for communities. Some 50% of section 21 notices are used to get people who are guilty of criminal or antisocial behaviour out. Let us not forget the impact of what the hon. Gentleman proposes on local communities.

[Dan Carden]

It’s your Government.

[Kevin Hollinrake]

I have spoken to every single Government Minister about my opposition to their plans. Section 8 uses a court-based process. It takes around eight months to get somebody out of a property using section 8. If a person is guilty of antisocial behaviour or is well behind on the rent—measures cannot be taken until somebody is about two months behind—it will take months. It is not that much of a problem for Legal and General, Grainger, Fizzy Living or whatever. They have thousands of properties. If they have a few dodgy tenants, they can blend that problem across their whole estate, so everybody pays for the tenants who make trouble, do not pay their rent or behave in an antisocial manner. What about the small landlord?

I like it when the Opposition talk about business. They always talk about small and medium-sized businesses, as do I. They say that we should abolish section 21, but if someone with one or two properties has a tenant who does not pay their rent for eight months, for whatever reason, that can be devastating to their investment, so lots of SMEs will exit the marketplace, particularly if we abolish section 21 without first reforming court- based process.

When the section 21 measures were introduced in the Housing Act 1988, we saw a massive increase in supply, which has been very good for tenants. The reality is that in most parts of the country, most yields on properties—the return on capital investment—are pretty low. We are looking at a rental yield of 2% to 4%. Interest rates will be 5%, 6% or higher, so if landlords borrow money to buy a property, most will not get an annual return. Most landlords are not profiteering from the private rented sector—far from it.

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[Rachael Maskell (York Central) (Lab/Co-op)]

It is a pleasure to see you in the Chair this afternoon, Ms Nokes. I congratulate my hon. Friend the Member for Liverpool, Walton (Dan Carden) on his excellent introduction to the debate.

For far too long, housing has been an investment as opposed to a human right. That is why it is so important that we start turning the equation around and ensuring that everybody has access to housing. The reality is that few people want to live in the private rented sector. They aspire to have a home that they can call their own, but as rents increase, they are unable to save up to live the dream. It is important that we build the housing stock required to meet need now and in the future.

[Dan Carden]

There has been discussion about who exactly is in the private rented sector. People may not wish to live long term in the private rented sector, but too many of our constituents are trapped there. The travesty of this Government is that their economic chaos has probably led hundreds of thousands of people in areas such as mine, who would have wanted to get on the housing ladder in the next couple of months and years, to rethink their plans and stay put.

[Rachael Maskell]

My hon. Friend is absolutely right. Many people saved up for that much-wanted mortgage, and events in recent days have meant their sales disappearing before their very eyes. Demand for property is outstripping supply, which means that the availability of property is such that hope is fading fast for so many people.

This issue is about power and control—about who has wealth and who has none in our country. More and more is being extracted from people who are desperate just to have a level playing field. That is why this debate is so important. If a Government have given their word to the electorate, they should keep it—not least when we are dealing with a significant housing crisis. York so exemplifies a place where there is housing chaos and challenge that I would invite the Minister—if he remains in his place this afternoon—to visit us and see what is really happening.

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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.

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[Dan Carden]

It has been a pleasure to serve under your chairmanship, Ms Nokes. I thank all the Members who have contributed. There has been widespread agreement and support for these changes. I will finish on this point alone: our constituents are facing a terrible winter, with economic pressures from all sides. I encourage the Minister to start the process of acting on these commitments. The Government could act now to cap rents and stop evictions, as our constituents face a torrid winter.

Question put and agreed to.

Resolved,

That this House has considered the potential merits of ending section 21 evictions.