Lindsay Hoyle
Main Page: Lindsay Hoyle (Speaker - Chorley)
Mr Deputy Speaker (Mr Lindsay Hoyle)
That normally happens for the wind-up speeches, but as we did not know when they would happen, I do not think that we need to worry.
Stephen Williams
I forgive them for not being here. I am sure that they will diligently read Hansard to see how I responded to the points that they made.
My hon. Friend the Member for Harrow East asked what would happen if a landlord was obliged to make repairs but then tried to evict the tenants in order to get vacant possession. I am advised that the council can issue a prohibition order prohibiting use of the dwelling by someone else while repairs are taking place—
Stephen Pound
On the subject of meat, the hon. Gentleman is well known for his prodigious appetite for research. Where in his last comment is there any link to the wording of the Bill? I cannot see any connection between his comments and what the hon. Member for Brent Central (Sarah Teather) is seeking to help with.
Philip Davies
I was merely pointing out that others had said there was a problem with supply and demand—that there was too much demand—and therefore that landlords had too much of a whip hand. I was merely pointing out that there were better ways of dealing with the supply-and-demand issue than through this Bill, so my point was very pertinent to the Bill. The hon. Member for Ealing North (Stephen Pound) seems to be slower on the uptake than normal, so I shall repeat that point: there are better ways of dealing with the supply-and-demand issues than by passing the Bill, which makes my remarks very pertinent to whether we need to pass the Bill.
As I was trying to say before I was rudely and repeatedly interrupted, the private rented sector has been a topical issue for many years, and there have always been arguments for greater regulation of the industry. The historical context of assured shorthold tenancies and section 21 notices, which are the subject of the Bill, can be easily traced. The 1987 Conservative manifesto recognised that there was a problem with the shortage of rented properties available, and to help increase the supply of rented dwellings, it pledged to make renting easier for landlords. I will not read out the whole section of the manifesto, under the “Better Housing for All” heading, but the relevant bits read, under the sub-heading, “A Right to Rent”:
“Most problems in housing now arise in the rented sector. Controls, although well-meant, have dramatically reduced the private rented accommodation to a mere 8 per cent of the housing market. This restricts housing choice and hinders the economy. People looking for work cannot easily move to a different area to do so. Those who find work may not be able to find rented accommodation nearby. Those who would prefer to rent rather than buy are forced to become reluctant owner-occupiers or to swell the queue for council houses. Some may even become temporarily homeless. And it is not only these people and their families who suffer from the shortage of homes for rent. The economy as a whole is damaged when workers cannot move to fill jobs because there are no homes to rent in the neighbourhood.”
Many might say we face similar challenges today. It went on:
“The next Conservative Government, having already implemented the right to buy, will increase practical opportunities to rent. We must attract new private investment into rented housing… First, to encourage more investment by institutions, we will extend the system of assured tenancies. This will permit new lettings in which rents and the period of lease will be freely agreed between tenants and landlords. The tenant will have security of tenure and will renegotiate the rent at the end of the lease, with provision for arbitration if necessary. Second, to encourage new lettings by smaller landlords, we will develop the system of shorthold. The rents of landlords will be limited to a reasonable rate of return, and the tenant's security of tenure will be limited to the term of the lease, which would be not less than 6 months. This will bring back into use many of the 550,000 private dwellings which now stand empty because of controls, as well as making the provision of new rented housing a more attractive investment.”
That touches on the point made by the hon. Member for Islington North (Jeremy Corbyn). The reason for the system used today was to bring into use lots of properties that were out of use, because unfortunately the system then was not conducive to encouraging people to rent out their properties.
The figure of 550,000—the number of private dwellings to be brought back into the rental market—is staggering and shows starkly the dangers of too much regulatory interference. The fewer properties on the market, the worse is the supply-and-demand issue, so if people think there is a problem with supply and demand now, I must point out that it can only get worse if we introduce too much regulation into the sector.
Jeremy Corbyn
On a point of order, Mr Deputy Speaker. I have been listening carefully to the speech of the hon. Member for Shipley (Philip Davies), and he does not seem to me to be talking much about retaliatory evictions. He is talking more about the generality of the private rented sector. It is obviously in order to refer to that, but it is clearly not the central factor of the Bill. The Bill is quite specific—it deals with retaliatory evictions.
Mr Deputy Speaker (Mr Lindsay Hoyle)
We are going to hear quite a speech. I am sure that the hon. Gentleman will be heading that way, but he is actually in order.
Philip Davies
Thank you, Mr Deputy Speaker. If the hon. Gentleman would let me get on with it, we might get to a conclusion, instead of having him delaying proceedings all the time.
It is interesting to note in that Select Committee report the clear reference to the deregulation of the private rented sector and changes to tenancies in the late 1980s as being reasons for the increase in rented accommodation. That was exactly the point made in the 1987 Conservative manifesto, which I mentioned earlier. The exact figures are interesting, too. The number of private rentals nearly doubled from 1999 to 2012. In 1999 there were 2 million; in 2011-12 there were 3.8 million; whereas the social rented sector declined from 4 million to 3.8 million, but just below the number of the private rentals.
When it comes to understanding the procedure in relation to a section 21 notice for an assured shorthold tenancy, let me tell the hon. Member for Islington North that that is what the Bill is about. I do not know whether he has read the Bill, but that is what it is about. I am sorry to have surprised him by telling him that the Bill is about section 21 notices for an assured shorthold tenancy.
The Department for Communities and Local Government has guidance called, “Gaining possession of a privately rented property let on an assured shorthold tenancy”. It is dated 14 November 2012, but is the current online guidance on the DCLG’s webspace. It says:
“You cannot use Section 21 to gain possession of your property during the fixed term. You can serve a Section 21 notice on your tenant during that time, providing the date you state you require possession is not before the end of the fixed term. If your tenant paid a deposit, you cannot use Section 21 unless the deposit has been protected in accordance with the tenancy deposit schemes.”
This idea that landlords can go along willy-nilly using section 21 at any time a tenant decides to complain about the condition of their property is just for the birds. It is just not accurate. The guidance on the Department’s website is perfectly clear about that.
The tenancy deposit scheme is another regulatory burden on landlords, and it is relevant to the Bill because it is a crucial element of the qualifying criteria for a landlord to issue a section 21 notice. However, that is the only respect in which it is relevant, so I do not think that I need to dwell on it any further, which will please the hon. Member for Islington North.
The guidance on the Department’s website goes on to say:
“You must give at least 2 months notice in writing. If the fixed term has expired the notice will end on the last day of the rental period and you must explain that you are giving notice by virtue of Section 21 of the Housing Act 1988. You will need to give more than 2 months’ notice if the fixed term has expired and the gap between the dates that the rent falls due is more than 2 months (e.g, a quarterly rent).”
Serving the notice is only part of the story, however. Giving notice under section 21 is merely that; it does not constitute a guarantee that the tenants will actually leave. The Department gives a helpful explanation on its website, and I shall set out some quotations from it:
“What do I do if my tenant refuses to leave on the date specified in the notice?
You will need to apply to the courts for a ‘possession order’.”
“What do I do if my tenant refuses to leave by the date given in the court order?
You must apply to the courts for a warrant of possession and the court will arrange for a bailiff to evict the tenant. You will need to use the ‘Request for Warrant of possession of Land (N325)…form.”
“How can I speed up the process?
You can use the possession claim online service if you are seeking possession of the property together with any rent arrears. The service allows you to access court forms online”.
“Where possession is sought under Section 21, an accelerated procedure can be used which is a straightforward and inexpensive procedure for getting possession of your property without a court hearing.
In most cases using this procedure the court will make its decision on the papers, and can order possession to be given up within 14 days unless exceptional hardship would be caused, in which case the maximum time that can be allowed is 42 days.
You can only use this procedure if you have a written tenancy agreement and you have given the tenant the required notice in writing that you are seeking possession. You cannot use this procedure if you are also claiming rent arrears.”
The landlord therefore still has plenty of hoops to jump through, even after serving notice, unlike the tenant, who will have no problems at all if he or she wants simply to leave.
Stephen Pound
On a point of order, Mr Deputy Speaker. I would never dare for a moment to suggest a course of action that you should take from the Chair, but surely, Sir, you would agree that this is utterly, totally and completely irrelevant. We will be on to episodes of “Rising Damp” next. Is it in order for the hon. Gentleman to seek to read out a list of necessities including “sanitary conveniences” in his pathetic attempt to talk out a good and decent Bill?
Mr Deputy Speaker (Mr Lindsay Hoyle)
That is not a point of order, but we have heard the hon. Gentleman’s view and his opinion. My opinion is that the hon. Member for Shipley (Philip Davies) is in order. However, I agree with the hon. Member for Ealing North (Stephen Pound) on one point: we do not want to be given too many more examples.
Philip Davies
I am grateful to you, Mr Deputy Speaker.
I am surprised that the hon. Member for Ealing North has led with his chin by drawing attention to the fact that he has absolutely no idea what the Bill is about. The Bill is about retaliatory evictions. That is the whole purpose of it, and that is what the campaign that resulted in the Bill was about. The moment I mentioned the Select Committee’s report that considered retaliatory evictions, the hon. Gentleman stood up to say that that was irrelevant to the Bill. Either the hon. Gentleman is wasting time himself, or he has not the first idea what he is talking about. I have no idea why he is sitting on the Opposition Front Bench masquerading as some sort of expert on the subject.
Philip Davies
My hon. Friend is right. I know that this is very inconvenient, but the whole point of Select Committees is to look at and scrutinise issues in detail and to take evidence, with the Committee then making recommendations on the basis of its expertise. It is a sad day in this House when Members seem not to want to know what that Select Committee, under its Labour Chairman, said about the issue we are debating. Free speech is a long way away from the Labour party. The detailed Select Committee report is a hefty 79 pages long.
Mr Deputy Speaker
Order. I am not sure that I was referring to a Select Committee report, but we are dealing with a Bill. The two must presumably link, but I am not sure how, as I do not have the Select Committee report before me. I know that the hon. Gentleman wants to discuss the Bill and I presume that that is what we are going to do.