Section 21 Evictions Debate
Full Debate: Read Full DebateLyn Brown
Main Page: Lyn Brown (Labour - West Ham)Department Debates - View all Lyn Brown's debates with the Ministry of Housing, Communities and Local Government
(6 years ago)
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The Minister is shaking her head. However, where we have had a landlord licensing scheme in a small defined area, that has proven to be effective. However, that has simply pushed the problem into another area.
The consensus is around a scheme that I believe has worked very effectively both in Liverpool and in Newham in London. I am grateful to my hon. Friend the Member for Liverpool, Walton (Dan Carden), who has hosted visits from local elected representatives.
We had very fruitful discussions with a Minister about the need for a private sector blanket ban in Newham. The only bit that the ban does not cover currently is the new build in the Olympic village. That has meant that there has not been anywhere else in Newham for people effectively to fly to, in order to escape even worse conditions. We had a very effective conversation with the Government. I urge my hon. Friend to keep pushing at this issue, because that ban has made a real difference to tenants in my constituency.
I am grateful for that intervention; it is really helpful. I think that such a policy will make a difference and we will keep pushing for it. It is not our intention to introduce a blanket ban on private landlords; we simply want to have a scheme whereby the absentee private landlords will behave in a reasonable fashion, including towards their tenants.
In conclusion, I support the abolition of section 21. Abolition would strengthen tenants’ rights. However, until we address the wider housing crisis, for example by building a new generation of social housing properties in the numbers that we did in the 1960s and 1970s, the national housing crisis will worsen. I saw some figures recently that showed that up to 40% of the council houses that were originally built are now in the hands of private landlords and on average the rents are double what they were when they were in the social sector.
Our children will be burdened with high rents or unmanageable mortgage debt, and they will live in insecurity, worried about reporting repairs or poor housing conditions for fear of eviction. Our communities will also be burdened—particularly those in villages such as Horden in my constituency—as properties are mismanaged by absentee private landlords, whose interests seem to lie in making quick profits rather than in engaging with others to make a sustainable community. So I hope that the Minister will listen to the concerns of my constituents and those of Members from all parties in the House, and that she will take the time to examine this issue and consider how she could help to transform and regenerate not only housing but the life opportunities of many people, including those in the communities of Horden and east Durham, who I represent.
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.
It is a pleasure to serve under your chairmanship, Mr Hollobone, more than ever when we have the luxury of time—such a rare event in this place.
Settle down, everyone. I do not need to speak for very long, because my hon. Friend the Member for Westminster North (Ms Buck) has done the heavy lifting for us by clearly setting out why section 21 should be banished. She has even persuaded Members from the Government Benches; let us hope that she has persuaded the Minister. I am sure that we will listen carefully to what the Minister has to say on this issue, having heard those arguments.
I also thank my hon. Friend the Member for Easington (Grahame Morris) for his speech, because the property market in his constituency is very different from that which we experience in London. Quite rightly, a lot of attention is focused on London because it is a hothouse of a market. Exploitation of tenants for financial reasons has certainly been very much on the increase with house price rises, but he correctly points out that that is a problem across the country. In some ways, we are lucky in London, in that properties tend to be valued and perhaps kept in a better state of repair. What one does not tend to see now, because the properties are such valuable commodities, is whole areas that have fallen into disuse.
On 15 January next year—just over a month’s time—it will be 30 years since the Housing Act 1988 came into effect. Assured shorthold tenancies are now, as was anticipated under the Act, the major form of tenancy in the private sector. That is not something we need to celebrate. I became a councillor in 1986 before the Act came into effect, and that was probably when I first started to get involved in tenancy matters and tenants’ rights, but it was probably not until I became a housing law practitioner from 1993 onwards that I fully understood just how dramatic a change had been wrought on the private rented market. It was quite an audacious piece of legislation. That was appreciated by practitioners and experts—there was quite a lot of fuss about the 1988 Act at the time—but it probably did not register so much with politicians or tenants, although it possibly did with landlords, just what a change we had made.
Perhaps the best way I can illustrate that change is from what I found by googling “protected tenancies”. Most tenancies before the 1988 Act would have been some form of regulated tenancy. That was the case for decades before, but many would have been protected tenancies under the Rent Act 1977. The first thing that came up when I googled “protected tenancies” was the Landlord Law Blog. I read from it not to be sarcastic—perish the thought—but because it gives insight into how landlords view assured shorthold tenancies. The post is titled, “Three ways to recognise a protected tenancy under the Rent Act 1977 (And avoid buying a property with a tenant you can’t evict)”. It states:
“If you work in property, particularly if you are an investor, it is important that you are able to recognise a protected tenancy when you see one.
Why? Because protected tenants have long term security of tenure.
This means that you will not normally be able to evict them if you want vacant possession. Not unless you are able to provide another property for them to live in. And even then, only if it is considered ‘suitable’…The main effects of this are…The tenant can register a ‘fair rent’ which is then the only rent the landlord is allowed to charge…The tenant can normally only be evicted if he is in arrears of rent (sometimes) or if the landlord is able to provide ‘suitable alternative accommodation’, and”—
shock horror!—
“If the tenant has a spouse or family member living with them at the time of their death, they will inherit either another protected tenancy (if they are a spouse) or an assured tenancy (which also has long term security of tenure!)
The effect of all this is that you are stuck with a tenant who you cannot evict and who is usually entitled to pay a rent which is considerably lower than the market rent you could have charged had the property been an AST.
So how can you recognise when a property is being sold with a protected tenant?
Here are three tips for recognising protected tenancies.
1. The property is being sold for a low price…2. No tenancy agreement is available…3. Check the Valuation Office rent register”
to see whether a fair rent has been registered.
What could be worse than for a landlord to end up with a tenant who has protected rights? That was the norm, however, prior to the 1988 Act. Most tenants would have rights of that kind: rights of succession, rights to a fair rent and rights to be shown cause before eviction took place. In many ways, a private sector tenancy had more in common with a social tenancy than with an assured shorthold tenancy now. The irony is that the rights of social tenants have been substantially weakened under Conservative Governments, both in terms of so-called affordable rents, which generally are not affordable, and in terms of the end of lifetime tenancies or fixed-term tenancies. Actually, social tenancies have gravitated towards that lack of security and affordability at the same time as they have declined as part of the housing sector.
I make those observations not to suggest that we simply repeal the 1988 Act and go back to the pre-Act regime, but to point out that it is within living memory —it is within my memory of my time as an elected representative—that that was the norm. Indeed, I am sure that other Members will still have protected tenants coming to them. It is very few now, obviously, because we are 30 years on, but it is usually about landlords trying to get rid of them to maximise the value of the property for sale or rent. The majority of our casework will be for social tenants or private sector tenants who are living in poor conditions or are subject to eviction because they have no security, but it is always interesting to look at the cases of protected tenants.
It puzzles me why we did not notice the fundamental change that the 1988 Act made to the way the housing market operated. One reason, which my hon. Friend the Member for Westminster North alluded to, is that the private rented market was very different 30 years ago. I suspect that the Government knew what they were doing in legislating to shift the balance of power wholly in favour of landlords. The balance had always been that way to some extent, but then it became massively so. One reason that was not noticed was that the private sector had got itself a bad name, partly for the conditions, but partly because it was no longer seen as desirable as compared with owner-occupation or a social tenancy with a council or a housing association. In 1988, 9% of homes were in the private rented sector in England. That has more than doubled to 20%. That is mainly accounted for by a decline in social tenancies across England. If one looks at London specifically, it is even more dramatic. The best figures I have are census figures. In 1991, 14% of homes were privately rented, and that is now 30%. Again, it has more than doubled. Interestingly, there has been a decline in owner-occupation from 57% to 48% and in social rent from 29% to 22% over that period.
For my borough of Hammersmith, the situation is different again. Again, the most recent figures I can get are census figures from 2011, but I am not sure things have changed much since then. A third of properties are private rented, a third are owner-occupied and a third are social tenancies. There has been a significant decline in owner-occupation and a significant increase in private rented from 23% to 32% over that 20-year period. That is a massive change in how the housing market operates. I suspect therefore that the sort of people who become private tenants now are different, too. I am not saying that having no security of tenure is good for anyone, but when, predominantly, those in private tenancies were those who would have chosen short-term rents—perhaps students or people waiting to buy properties—it was clearly less traumatic to be asked by a landlord to leave in a set period than it is for a family who want to stay and live in that area. Increasingly, it is families who are occupying private rented accommodation.
What has also changed is where someone then goes. One of the worst things that the coalition Government did—I apologise to my Lib Dem friend over there, the hon. Member for Bath (Wera Hobhouse), but we have to remember the Liberal Democrats’ complicity in all these matters at all times—was to introduce a duty to permanently discharge into the private sector those in housing need. That means that many families now have no expectation of ever getting a social tenancy. They are therefore at the mercy of a private landlord who may evict them. If they are still in priority need, they will go back to the local authority and ask to be rehoused. Due to benefit cuts and caps, that may be impossible in that area, and they may be moved a long way away. In any case, the process of recycling tenancies and moving on will occur on a regular basis.
My hon. Friend is right. It is almost tormenting people, and these are the people in a preferential situation—in temporary accommodation rather than permanently discharged to the private rented sector. They may have been waiting 10 years, and just as they are getting ready to receive their one offer of accommodation—
Yes, take it or leave it. At that point, one of the children turns 18 and is not in full-time education. Suddenly the family is either told, “You can have a two-bedroom flat rather than the three of four-bedroom property that you need,” or, “Sorry—you’re not in priority need at all any more.” It is extraordinary that whole generations have had to grow up in wholly inadequate housing and temporary accommodation.
My hon. Friend has tempted me to digress, so I will give just one example. Many boroughs and housing associations use the locator scheme, which is the bidding scheme. Sometimes it works, and sometimes it does not, but something extraordinary happened in my borough. When the Conservatives took control of the council—I am pleased to say only temporarily—they simply abolished the waiting list. Having decided that they did not want to build any more affordable homes—indeed, they started selling off and demolishing the ones that we had—there was obviously a difficulty in rehousing people, so the waiting list and the locator scheme were abolished.
Suddenly, 10,000 people were no longer in line to be accommodated at all. Once the borough came to its senses and returned to Labour control, the list was opened again, but what happened created a hiatus of several years in people’s lives that they will never recover. In addition to the long waiting periods that people face in any event, they were not on a waiting list of any kind during perhaps the prime years when their children were growing up and going to secondary school. Again, many of them are languishing in over- crowded accommodation or unsuitable private rented accommodation.
I do not want to paint a rosy picture of the world in the 1980s. I remember some dreadful, terrible private-sector accommodation then, but at least there was sometimes redress. When local authorities were better resourced, there were housing action areas, so we could go mob-handed, if I can put it that way, into a particular ward with environmental health officers and housing advisers. Also, legal aid was still available—actually, they were quite good days now I come to think about it.
If private landlords took the mickey in terms of the conditions their tenants were in or the way in which they treated their tenants, enforcement action could be taken. How different the situation is now, as evidenced by the fact that the Bill introduced by my hon. Friend the Member for Westminster North—the Homes (Fitness for Human Habitation) Bill—is necessary to give tenants that power, because often local authorities are no longer able to take such action.
I know that my hon. Friend is, like me, a great rooter around inside plastic carrier bags when they are brought into her surgery. Often one can find, among many other papers, half a dozen possession notices. Social landlords are better at this—or worse, depending on how one looks at the matter—because they often rather lazily issue notices seeking possession with no intention of pursuing them, the only purpose perhaps being to terrify the tenant. However, private landlords do it as well. They will issue section 21 notices like confetti, either as protective notices, or to try to scare the tenant off or something of that kind.
Although my hon. Friend is right that the advice should always be to stay put, to try to get what legal advice is available and to talk to the local authority housing adviser, one thing that the landlord will say is, “If you don’t go now, there will be costs when, at the end of the two-month period, I issue proceedings, or after that when I issue the bailiff notice, and you’ll have to pay them. It will be several hundred pounds at least, and if you challenge, or attempt to challenge, the action it could be more than that.”
I hate to extend my hon. Friend’s peroration because I am desperate to get in myself, but he reminds me of a constituency case in which a woman who had learning difficulties, whose son was magnificently supported by a local school, was being terrified by the landlord about her eviction. She left on the date that he told her. The council then had the issue of intentionality, and she has ended up, because she just could not cope with the stress, in a small village outside Bradford, and her little boy is simply not getting support. Had I known that we were going to have a long debate today, I would have brought every single one of those cases to lay before the Minister. Some of the stories that we hear, and know to be true, are just appalling.
If my hon. Friend wants to pop back to her office, I can keep things going until she comes back.
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.”
In a moment.
I should not look a gift horse in the mouth, because the hon. Member for Cheltenham has come here to be conciliatory and supportive, so I will move on. Although I regard Labour Governments as scrupulously honest, fair and absolutely on the ball in many respects, I agree that there are one or two aspects of housing that past Labour Governments have not got 100% right. Shall we leave it at that?
[Sir Graham Brady in the Chair]
I think there is now a realisation that things have shifted too far in one direction. There is a willingness to look at the issue again and to effect change, whether through rent-to-buy schemes, which are a big part of the Mayor of London’s platform, through longer-term tenancies or through wholesale reform, as has happened in other jurisdictions within the United Kingdom—Scotland is the example that we have used. Labour party policy has moved on beneficially, not least since I was sacked as shadow Minister last year and somebody far more radical and impressive has taken over.
I am always delighted to follow my hon. Friend the Member for Hammersmith (Andy Slaughter), who always makes pertinent and important remarks. To carry on from where he left off, let me say that I hope the Minister hears the plea from my hon. Friend the Member for Easington (Grahame Morris) and ensures that when his council asks for powers to improve housing stock and stop tenants being exploited, it will receive the same powers that have been extended to my council. That would be a jolly good thing for the Minister to offer this afternoon. I realise that the civil servants behind her might suggest that she should not act so radically and precipitately, but I genuinely believe that it would be very welcome. It would show that she had listened to the debate, understood it and taken positive action.
I thank my hon. Friend the Member for Westminster North (Ms Buck) for securing the debate. She has already accomplished a huge amount in the fight to secure safe and affordable homes for all, and the debate is an important continuation of that campaign. I think that I can say without fear of contradiction that the housing crisis is more severe in Newham than almost anywhere in the country. We have an enormous shortage of affordable homes, with almost 26,000 households on the council’s waiting list. The average time for a family to wait for a three-bedroom home in Newham at the moment is 13 years, and it has been higher.
I want to deviate slightly from what I was going to say to talk about my family, which was cleared from a slum in West Silvertown in 1963. I was born a little earlier. We moved into a beautiful two-bedroom flat overlooking the dying docks. It was that flat—that secure accommodation —that everything else stemmed from. My mum and dad had stability. They both worked locally, to provide for us. That home, however small and inadequate it was, gave me the ability to study, to build community support and to continue with my education in just two schools. So many children in my constituency do not have those privileges now. They have to move from school to school, or face journeys of more than an hour a day, which their families can ill afford, in order to continue having the same friends and teachers and some stability in their lives.
Instability is creating enormous difficulties for such families, and that will go on for years. Often it means that they are not registered with doctors. Often it means that the children are not fulfilling their potential in education. Often the implications of what has happened to them go on into the future. I could try a Conservative argument: there will be a cost effect for the families and for the state in years to come. Children who do not fulfil their potential at school will not fulfil their potential in a functioning economy. The children and parents who are not getting the primary healthcare they need often go on to cost the NHS more in years to come. It is a false economy not to invest in our families, and if that investment had not been made for me, I would not be here today and my little sister would not be a solicitor. It would not have happened and we would not have been able to accomplish what we have. I want the same for my constituents as was given to me.
In Newham, like many other places, the social housing stock has declined massively because of right to buy. The council did not see the return from that—the Treasury did—and it has not been able to borrow as cheaply in order to replace the stock. Half of the local homes bought under right to buy are owner-occupied, but the other half—5,000 in Newham—have made their way into the private rented sector, where rents have shot up. Rents in Newham increased by 47% in just five years between 2011 and 2016.
The lack of social housing is at the root of this huge problem. We should not play a blame game here, because the problem has increased under successive Governments. Does the hon. Lady not agree that it is now for all of us to work together to massively rebuild our social housing stock? Otherwise, we will not solve the crisis.
I am absolutely fully committed to building social housing and ensuring that the people I represent have proper access to it and to stability, because a single mum in my constituency, working full time on low pay with two children, living over a chicken shop, will spend 73% or more of her income on the private sector rent on even a cheap flat like that—73% or more of income, before paying for food, heating, travel or clothes.
Evictions from the private sector are now by far the biggest cause of homelessness in Newham, and homelessness is increasing rapidly. Some 14,611 people are now homeless in Newham, which is one in every 24 residents—the highest rate in the country. I genuinely believe that section 21 is one of the reasons behind the rising rents that have led to such a horrifying level of homelessness in my constituency.
I want to mention one story—I should have taken up the offer from my hon. Friend the Member for Hammersmith and nipped back to the office to get a few more. I want to tell hon. Members about Martin, who lives with his wife and two children in a rental property in Newham. The property had not been properly maintained and is not fit for a family to live in. The bathroom had tiles falling off the walls when they used the shower, and the ceiling was at risk of falling in under the weight of water that was sitting in the plaster. In his son’s bedroom, water streamed down the walls and through the ceiling, damaging the laptop that he needed to do his schoolwork. The landlord promised to act because Martin had repeatedly gone back to him in desperation, but the repairs were never done. Instead, Martin and his family were served with a section 21 eviction notice in August this year. He was given absolutely no reason why the family needed to move.
Martin is still in the property, resisting the eviction, with support from the London Renters Union. I pay tribute to the work that that organisation does in supporting many of my constituents who find themselves in similar situations. The family have been faced with illegal tactics from the landlord. He regularly sends his family members and agents to the house to try to make them leave—they try to bully them into leaving. Frankly, if it had been other constituents of mine who I am in regular contact with, that tactic would have worked by now and I would be arguing with my council over intentionality.
Martin believes, as I do, that this is a revenge eviction. By demanding their right to live in a home fit for human habitation, Martin and his family have simply made themselves more trouble than they were worth. The landlord knows that he can rent the property to someone else, probably for a higher figure, and can just sit it out and wait until they start to complain about the conditions, and then he will go through the same cycle again.
It is so distressing for a working family who are on a low income. They have had to fill out a homelessness application to the council. Given their financial circumstances, they may not be able to access any other private accommodation in Newham, because letting agent fees, deposits and rents are quite simply extortionate. Vulnerable and poor families are paying the price for a housing system that unfairly empowers landlords to carry out no-fault evictions. Our councils and our council tax payers are paying the price too. We desperately need to bring homelessness down and improve housing conditions in the private rented sector. For that to happen, section 21 just has to go.
It is a pleasure to serve under your chairmanship, Sir Graham. I start by welcoming the Minister back to her place. This is the first time that we have had the opportunity to face each other in recent months, and I am very pleased to see her.
I pay tribute to my hon. Friend the Member for Westminster North (Ms Buck) for securing this debate, and for her truly exceptional work to help those who struggle to get a long-term decent home in the private rented sector. She has been absolutely tireless in ensuring that the quality of people’s accommodation is sufficient and suitable for people to live in in the 21st century, and she is so persuasive that the Government supported her private Member’s Bill earlier in the year. I congratulate her on that.
For many of the 4.7 million private rental households in England, the risk of being evicted by a section 21 notice casts a looming shadow of insecurity over their time in the private rental market. In as little as two months after being served a notice, a tenant’s life can be turned around. For the one in four families with kids who live in rented accommodation, that can mean moving their children out of the settled environment of their school, where they have friends and connections. As my hon. Friend the Member for West Ham (Lyn Brown) eloquently said, that reduces their potential, limits their life chances and impacts on their healthcare and education. She helpfully set out some of the financial ramifications of failing in housing in the first instance, making those families move into new and strange environments. For many, their ability to raise the money for new accommodation, including deposits that can now stretch into thousands of pounds, is simply a pipe dream.
It is no coincidence that the rise of the loss of a private rental tenancy as a reason for statutory homelessness since 2010 has come in parallel with a rise in the use of section 21 eviction processes, and Generation Rent research suggests that more than 200 households a week are being made homeless through section 21 evictions. The use of section 21 has severe impacts on those who face it, yet there is no oversight of its use to ensure that it is justified, fair or proportional.
Nothing sums up better how deeply unjust the application of section 21 can be than the experience of a number of my constituents who were moved on to universal credit this time last year. During the transition to universal credit in my area as part of the pilot roll-out, a property company that housed the vast majority of universal credit tenants—generally at the lower end of the market and in cheaper properties that are not always in the best condition—sent blanket section 21 notices to people in its properties. While the landlord said that it had absolutely no intention to evict tenants who did not fall into arrears, the form 6A that was handed to tenants clearly stated that they were required to leave their property on 15 January. That action by the property company left people and their families facing homelessness just three weeks after Christmas. Those tenants need not have been in significant debt arrears to end up losing their home. Only the Leader of the Opposition’s raising this matter at Prime Minister’s questions brought home to the agents just how unfair and unnecessary their actions were. On first reading, the letter indicated that the information on the form was final, and the full wording of that letter can easily be interpreted as saying that late payment by even one day would result in eviction.
My hon. Friend the Member for Hammersmith (Andy Slaughter) mentioned how those possession orders and the letters can literally terrify tenants, which is something that I experienced on a large scale only a year ago. He also commented on tenants being issued with a possession notice and being terrified. If they are deemed to have left the property too early, the local authority considers them to be intentionally homeless. How does that now work with the Homelessness Reduction Act 2017 and the local authority’s duty to prevent homelessness? The two seem to be in conflict, and I shall be grateful if the Minister touches on that in her closing remarks. I am sure that she will absolutely agree that causing families that much stress over Christmas and putting people at risk of homelessness due to Government system changes rather than to individual fault, and when they have no previous rent arrears or a track record of being a bad tenant, is not how we want the eviction process to work in this country in the 21st century, but that is completely legal under section 21.
It is not just the eviction process where section 21 has a devastating effect on tenants in England. Giving landlords the power to play fast and loose with security of tenure creates a power imbalance, which unscrupulous landlords use to intimidate or exploit tenants and to get away with improper and often illegal practices. Some of the most extreme cases of this were made clear in Westminster Hall last week during the debate on sex for rent, which was secured by my hon. Friend the Member for Hove (Peter Kyle). Shelter estimates that this issue affects 100,000 women each year.
When landlords can evict tenants indiscriminately, they can hang the threat of eviction over tenants at any time they see fit. Tenants, who are often unaware of the help that is available to them, and often unaware of their rights and where they can get advice, feel that they have very little right, even if they could afford—particularly in terms of legal support—to challenge whether they had been correctly served with a notice.
My hon. Friend spoke about tenants not knowing where to go to receive advice. One of the biggest problems we have in Newham is that there is no longer anywhere for our tenants to go for advice—we do not really have that kind of advice and services. We no longer have legal aid to look after our tenants, and we certainly do not have fully functioning and properly funded citizens advice bureaux or housing rights services, which exacerbates everything and makes it so much worse.
My hon. Friend is absolutely right. I have a personal understanding of that situation, particularly in Newham, because my mum used to work for Community Links, which suffered huge cuts in 2012, resulting in her redundancy. That was precisely the organisation that provided that kind of detailed advice, support and casework to individuals in my hon. Friend’s constituency.
When landlords can evict tenants indiscriminately, tenants do not feel empowered or that they have sufficient knowledge or support. When they think that they have a very slim chance of winning a legal case where a threat is made with no written evidence, they just think, “What on earth is the point?” and look for somewhere else to live, which can often be far out of the area, particularly in London. If a landlord is seeking to move somebody on because they want to receive a higher rent—we know that is the case due to the demand in the city—it can be impossible for people to find similar accommodation in their locality and local community. Landlords can use the threat of section 21 eviction to pressure tenants into sex, and too often they can carry out the threat of eviction, as there are no clear checks that would allow a tenant to challenge an unfair and punitive eviction.
My hon. Friend the Member for Westminster North was absolutely right to talk about the private rented sector as the only housing option available to people, now that the ability to buy is so far out of so many people’s reach. She was also right to talk about how different the private rented sector is from the way that it used to be perceived. We are approaching 5 million people in the private rented sector who will be there for the long term—who will be in that sector, even if not temporary accommodation, for many years. Surely it is right that when circumstances change, we should acknowledge and accept that and say, “Yes, let’s change the policy accordingly—it has to reflect modern times.”
We need a new system of evictions in England, with proper checks and balances to prevent abuse. We know that there are numerous valid reasons why a landlord needs to evict a tenant. None of us wants to do away with a landlord’s right to evict bad tenants, sell their property or move back in, if need be, but it surely cannot be beyond our capabilities to draw up a new system that reflects that while protecting tenants. It is a case only of whether there is the will to do it. Some landlords use section 21 to carry out evictions because the current section 8 process is too slow and complex to evict bad tenants, but we do not need a no-fault eviction process to allow landlords to reclaim their properties legitimately. It is easy to prove that a tenant is in rent arrears or has caused significant damage to a property, easy to prove that you are in the process of selling a rented property, and easy to prove that you have genuinely reclaimed a property for self-use and not to rent commercially to another tenant. So simplifying section 8 and putting in a proper system that means landlords must give a valid reason for eviction—I say again—should not be beyond the means of the Government. If we create a system that provides better checks and balances, there seems to be no reason at all to keep a no-fault eviction clause that causes so much hurt for thousands of tenants around the country.
Before I finish, I want to say that my hon. Friend the Member for Easington (Grahame Morris) deserves a visit from the Government. I hope the Minister will rapidly flick through her diary to find an available date to go and look at how integral security of housing, quality of housing, availability and affordability are to people’s wellbeing and strength in his local community. A visit would be greatly appreciated.
If the Minister recognises that we have to root out bad and exploitative landlords; that we need to try to professionalise the private rented sector; that we want to tackle discrimination of renters and improve communities by ensuring that people feel invested in their properties as homes and not somebody else’s investment; and that the private rented sector is a valued and necessary part of the housing mix in this country while we wait for councils to be able to start building more social homes, hopefully she will agree with what my hon. Friend the Member for Westminster North has proposed today.
Fortunately, as we have so much time, I have an extremely long speech and the hon. Gentleman might be stunned to hear what I have to say. Or he may not.
Growing numbers of tenants are families or older people and the Government are firmly committed to helping them. The measures announced in the housing White Paper mean that most tenants in the build-to-rent sector are now being offered tenancies of a minimum of three years. We recently consulted on overcoming the barriers to longer tenancies in the private rented sector. We sought views on a three-year longer tenancy model with a six-month break clause and asked for views on its viability and how it can be implemented. The consultation closed at the end of August and we are now analysing responses.
A three-year tenancy is one option. However, we have not made any policy decisions regarding tenancy length, whether to change the legislation on section 21 evictions or how our proposed model could be implemented. We are considering the consultation responses fully before making any policy decisions and will set out next steps shortly. In the meantime, for tenants who want a longer tenancy, we have published a model tenancy agreement that landlords and tenants can choose to use as the basis for longer, family-friendly tenancies. We have also published “How to Rent” and “How to Let” guides for tenants and landlords to support them in understanding their rights and responsibilities.
To answer some of the points made by the hon. Members for Westminster North and for Easington (Grahame Morris), the Government recognise the important role that private landlords play in supporting the UK economy and in providing homes to millions of people across the country. We recognise that in order to continue to offer housing, landlords need the flexibility to be able to get their property back quickly when circumstances change. Without those assurances, landlords would be less willing to enter and stay in the market, which does not help tenants.
We recognise that some landlords have concerns about the section 8 eviction process and instead use the section 21 accelerated procedure. We are keen to understand those concerns, and last month, on 13 November, we launched a call for evidence to better understand the experience of courts and tribunal service users in property cases. The call for evidence seeks views from members of the judiciary, landlords and tenants on the private landlord possession action process in the county court and the case for structural changes, such as an extension to the remit of the property tribunal or a new housing court.
There have been calls from hon. Members here today to abolish section 21 evictions. As I have said, we have not yet made any firm policy decisions on whether to legislate to alter the provisions set out in section 21. We first want to consider carefully the responses to the call for evidence on user experience of the courts.
I am grateful to the Minister for giving way; she knows that I have a soft spot for her. What will I say to Martin about what she has offered this afternoon? Can I say that she is considering getting rid of section 21, or that his rights will be enhanced by the Government’s future actions? What advice would she like me to give to Martin?
I am sure that the hon. Lady has espoused the brilliance of the licensing scheme in Newham and the brilliance of her council. Perhaps her council should have gone round to the flat to deal with the dreadful situation that she has enlightened us with today.
We will indeed; I would be delighted to have that conversation.
As I stressed at the start of my speech, property is a valuable asset and landlords may need to gain possession quickly for various reasons, perhaps because they wish to sell the property, or to enable them or a family member to move in. As I said, there is a clear legal protection for tenants, and a clear process that landlords must follow when carrying out a section 21 eviction.
I appreciated hearing what the hon. Member for Easington had to say about selective licensing and borough-wide licensing, and about enforcement of property standards. Selective licensing is meant to be a targeted tool that can deliver improved standards and safety in the private rented sector for areas suffering serious problems. It can be used at local authorities’ discretion, but where it covers more than 20% of the private rented stock, confirmation by the Secretary of State is required. That is to ensure that local authorities focus their activity on the worst areas and avoid an adverse impact on good landlords. Local authorities have an array of powers at their disposal for enforcing property standards. We expect them to use those to maximum effect and have set up a £2 million fund to help them kick-start enforcement and share best practice. Having said all that, the offer that I would like to make to the hon. Gentleman is that my officials will contact his local authority to talk about an application for licensing.
The 2016-17 English housing survey found that only a tenth of private tenants, when asked about their most recent move, said that they were asked to leave or were given notice by their landlord. There were 1.1 million moves into and within the private rented sector in 2016-17, with private renters making up a larger proportion of movers compared with other tenures. However, there has been an overall decrease in the number of private landlord possession cases since 2014. In England and Wales there were 20,590 private landlord possession cases in 2016-17. That shows that only a small percentage of moves in the sector end in the courts. Of course, where that does happen it can have a devastating impact on the tenants involved. The Government acknowledge that the end of an assured tenancy in the private rented sector can cause homelessness.
I want to make it clear that we have one of the strongest safety nets in the world to prevent homelessness, and we recently strengthened it through the Homelessness Reduction Act 2017. The Act came into force in April and brought in a new prevention duty, extending the period for which an applicant is “threatened with homelessness” from 28 days to 56 days. That will ensure that those served with a valid section 21 notice that is due to expire will be classed as threatened with homelessness and supported until their situation is resolved—to answer a question that was put during the debate—with no gap between prevention and relief duties, if they have nowhere else to go. If the landlord intends to seek possession and there is no defence to the application, the local housing authority must take reasonable steps to prevent a person’s homelessness. Local authorities must work with applicants to develop personalised housing plans, tailored to the needs and circumstances of the household.
I thank the Minister for her further explanation of the point about the Homelessness Reduction Act 2017. Can she confirm that, were someone to leave their property early, having received the possession notice, and were they to attend the local authority, they would be deemed homeless, and not intentionally homeless, and given the same support as someone who was homeless as a result of another set of circumstances?
The hon. Lady says from a sedentary position that I cannot. The absolute truth is that the person must go to the local authority as soon as they get the section 21 notice, and the local authority then has a duty to help them.