Section 21 Evictions

Matthew Pennycook Excerpts

Tuesday 25th October 2022 Westminster Hall

[Matthew Pennycook (Greenwich and Woolwich) (Lab)]

It is a pleasure, Ms Nokes, to serve with you in the Chair.

This has been an important and timely debate because, as we have heard in the many excellent contributions this afternoon, the problems inherent in a sector that for far too many renters has always been characterised by insecurity, high rents and poor conditions, have become far more acute over recent months, as those renting privately struggle to cope with the impact of high inflation and rising prices.

I start by congratulating my hon. Friend the Member for Liverpool, Walton (Dan Carden) on securing the debate and on the characteristically powerful way in which he opened it. He always speaks with strength and clarity on behalf of his constituents and he did so again today, making a powerful case that overhauling the private rented sector in Liverpool and across the country is a matter of the utmost urgency.

I also thank my hon. Friends the Members for West Ham (Ms Brown), for Wirral West (Margaret Greenwood), for York Central (Rachael Maskell) and for Hammersmith (Andy Slaughter), as well as the hon. Members for Strangford (Jim Shannon) and for Bath (Wera Hobhouse), for their excellent contributions. Although there are common problems and solutions, I am always mindful of the fact that there are different “geographies” of renting and challenges that are specific to certain parts of the country. The debate usefully highlighted that point.

Doubtless it was not the choice of my hon. Friend the Member for Liverpool, Walton, but when I read the title of this debate late last week it struck me as somewhat odd, given its implicit suggestion that the merits of ending section 21 evictions are still essentially being contested. While there are, of course, those who remain resolutely opposed to reform of any kind, the reality is that there is now a broad political consensus on the need to ban these so-called no-fault evictions. It is obvious why such a consensus exists. As things stand, and as we have heard again today, landlords can evict tenants, after giving as little as two months’ notice, at any point after their fixed-term tenancy has come to an end. They do not have to give a reason for doing so, or even have one.

As a result, large numbers of private renters live day to day in the knowledge that they could be uprooted with little notice and minimal justification, if any. With the threat of summary evictions hanging over them, a significant proportion of those people concentrated at the lower end of the private rental market, who have little or no purchasing power, have to put up with appalling conditions for fear that a complaint will lead to an instant retaliatory eviction. Far too many tenants are evicted each year using a section 21 notice, which is why it is a leading cause of homelessness in England. Abolishing section 21 no-fault evictions is therefore long overdue and will give private renters much-needed security in their homes.

The available evidence also suggests that scrapping section 21 is likely to provide private renters with greater certainty and control over their lives without any corresponding detrimental consequences—unintended or otherwise—or disruption. I draw the attention of the hon. Member for Thirsk and Malton (Kevin Hollinrake) to research carried out by Shelter into the impact of the effective abolition of no-fault evictions in Scotland, following the introduction of new private residential tenancy agreements there in 2017. It found that the measure had no discernible impact on either the size or functioning of the private rented sector there, or on increased levels of homelessness.

[Kevin Hollinrake]

I add my thanks to the hon. Member for Liverpool, Walton (Dan Carden) for bringing forward the debate. He raised some good points at the start of his speech, which we should consider.

The hon. Member for Greenwich and Woolwich (Matthew Pennycook) might be interested to know that, in the past year, UK rents have risen fastest in Scotland. If he was including me among the people who do not want any reform, then he should not: I absolutely do want to see reform. I would like to see property rental standards that landlords must adhere to, and reforms of the section 21 process, but just not the abolition we are talking about today.

[Matthew Pennycook]

I deliberately did not assign to the hon. Gentleman a blanket position of “no reform”, but I think that, on this point, he is fundamentally wrong. We need reform, on section 21 and more widely; I will come on to that point.

That research for Shelter is telling because the predictions made by landlord groups in Scotland prior to the introduction of PRT agreements, including that they would kill the sector entirely, have ultimately not come to pass. We should have that at the forefront of our minds when vested interests in the English sector warn of the dire consequences of renters reform.

We in the Opposition still appreciate that good landlords may still harbour concerns about how reform will impact them. We recognise that when section 21 evictions are finally abolished, landlords will need recourse to robust and effective grounds for possession in circumstances where there are good reasons for taking a property back—for example, anti-social or criminal behaviour. We also share the sector’s concern about how ongoing delays in court proceedings could impact on a landlord’s ability to make use of such grounds. However, it is a welcome sign that most landlords and landlord associations now appreciate that greater security and better rights and conditions for tenants are the future of the lettings sector.

When it comes to reforming the private rented sector, scrapping section 21 evictions is obviously not the end of the matter. Among a wide range of necessary measures, we need action on standards to address the shameful fact that one in five private rented homes does not meet the decent homes standard, and one in 10 has a category 1 hazard posing a risk of serious harm. We need changes to landlord-to-tenant notice periods and a national register of landlords. We must make it illegal for landlords and agents to refuse to let to renters claiming benefits, and we need effective measures to address unreasonable within-tenancy rises.

Those go alongside other reforms that are desperately needed. As my hon. Friend the Member for York Central will know, we have argued for many months in the Levelling-up and Regeneration Bill Committee that the Government must act with far more urgency on the growing short-term and holiday lets sector. That is why Labour has made clear that, in Government, we will introduce a new renters’ charter, a new statutory decent homes standard, and take action on short-term and holiday lets.

Thankfully, there is significant consensus across the Chamber on the need to reform the sector more fundamentally, and a number of the measures that I have just outlined were in the White Paper published by the Government earlier this year. The problem is that, as things stand, not only do we not have any firm parliamentary timeline for a renters reform Bill, but, given the disarray within Government, we do not even have the certainty that one will ultimately come forward in this Parliament or, if it eventually does, that it will contain all the proposals set out in the White Paper. As such, I would like to use the opportunity presented by this debate to ask the Minister two simple questions to which private renters following our proceedings will expect answers.

First—as many hon. Members have asked today, and as I have asked many times without receiving a satisfactory answer—when do the Government plan to finally introduce a renters reform Bill? It was in the Conservative party manifesto, so presumably the Government intend to have it secure Royal Assent before the end of this Parliament. However, the Minister must appreciate that private renters facing a difficult winter cannot wait until 2024 for the Government to act. If they introduced emergency legislation, we would support it, but private renters deserve at least some assurance today that the Government will make that a priority.

Secondly, can the Minister confirm that if and when it is finally published, the promised renters reform Bill will contain all 12 of the proposed reforms set out in the White Paper? The last piece of legislation that fundamentally altered the relationship between landlord and tenant in England was the Housing Act 1988, but, as my hon. Friend the Member for Hammersmith rightly made clear in incredible detail, the private rented sector has changed beyond recognition in the more than three decades since that legislation was put on the statute book. It is simply no longer possible to regard its role as primarily a residual tenure for those temporarily unable to access owner occupation or social housing.

Some 11 million people now rent from a private landlord. As well as the young and mobile, the sector now houses many older people and families with young children, for whom greater security and certainty is essential to a flourishing life. At the end of the day, that is what we need to be thinking about here—not the price of housing or the commodification elements involved in the sector. To ensure that private renters get a fair deal, we in this place need to transform how the private rented sector is regulated and level the playing field between landlords and tenants.

As hon. members have said, it is now well over three years since the Conservative Administration of the right hon. Member for Maidenhead (Mrs May) promised to abolish section 21 no-fault evictions. In that time, over 45,000 households have been threatened with homelessness as a result of section 21 evictions, and the figures released so far this year suggest that possession claims resulting from them are increasing markedly as the cost of living crisis intensifies. It is high time that the Government stopped talking a good game about renters reform and got on with legislating for it, and the Minister needs to make it clear this afternoon that they will do so.

--- Later in debate ---

[Andrew Stephenson]

We are in strong agreement that we need to act. It has not been mentioned too many times today—[Interruption.] Well, the hon. Gentleman will remember that the December 2019 manifesto was soon followed by a global pandemic, when the Government took swift and decisive action to protect tenants across the country, so we have taken action. However, we were unfortunately unable to pursue other legislative priorities included in the manifesto with as much speed and vigour as we wanted. We are making significant progress, though. As the hon. Gentleman will know, the White Paper was published in June and some of the consultations that came under it closed only earlier this month.

[Matthew Pennycook]

Just to clarify—I think it might be helpful. I think the Minister said it is the Government’s intention to introduce a renters reform Bill in this Parliament. Will he give us a firm commitment today that the Government intend to make the necessary parliamentary time available to get that Bill on to the statute book by the time this Parliament ends?

[Andrew Stephenson]

I thank the shadow Minister for that remark. It is very much the priority of the Government to introduce the Bill and provide parliamentary time for it to proceed. Obviously, the Government’s policies can change, but, in today’s speech, the new Prime Minister underlined his commitment and the new Government’s commitment to the Conservative party’s 2019 manifesto, which included commitments in this area. I am sure that, whether it is myself or another Minister in post, this will remain a priority for the Government and we will want to bring forward the legislation in good time so that it can go through all the stages before the next general election.

We know that landlords need certainty, too. If a tenant needs to leave a tenancy, we will increase the amount of notice they must give. This will ensure that landlords recoup the costs of finding a new tenant and avoid lengthy void periods. The new system will be simpler for tenants and landlords to understand, enabling them to exercise their rights and fulfil their obligations. We are striking the right balance between improving security for tenants and ensuring that landlords continue to feel confident to invest in the market.

Good landlords play a vital role in providing homes for millions of people across the country, and we want to reassure them that the new system will continue to be a stable market for landlords to invest and remain in. No one will win if our reforms do not support landlords as well as tenants.

It is only right that landlords should be able to get their properties back when their circumstances change or tenants break the rules. We will reform the grounds of possession so that they are comprehensive, fair and efficient. We will streamline the possession process, removing unnecessary restrictions on landlords seeking to recover their properties, introduce a new ground for landlords wishing to sell their property and allow landlords and their close family members to move into a rental property. This, alongside the existing grounds for moving in, will give landlords confidence that they can get their property back if their circumstances change.

The vast majority of tenants abide by the rules, but landlords have told us how difficult it is to act when they are unfortunate enough to have an antisocial tenant. Antisocial behaviour causes misery to a tenant’s neighbours and the wider community. Where a tenant’s behaviour cannot be addressed in the property, we will support landlords to end the tenancy. In cases of criminal or serious antisocial behaviour, we will reduce the notice period, with landlords being able to make a claim to the courts immediately. We will explore prioritising those cases in court so that communities do not have to suffer for longer than necessary. We are working across Government to develop guidance for landlords on identifying and addressing antisocial behaviour, and we welcome further input from hon. Members on what we can do to further support landlords with antisocial tenants. Alongside that, we will continue to listen to landlords who provide much-needed accommodation for the thousands of students across the UK every year, to ensure that the sector continues to work for those in higher education.

Hon. Members here will agree that going to court should be the last resort when all other avenues have been exhausted, but sometimes it is unavoidable. Court proceedings can be costly and time-consuming for landlords, which is why we are working with the Ministry of Justice and His Majesty’s Courts and Tribunals Service to streamline the process and ensure that the most serious cases are prioritised. Alongside that, we are reviewing the bailiff process. It is currently the biggest source of frustration and delays for landlords, and we want to make sure that it is as efficient as possible.

Removing section 21 will help millions of tenants, but we understand that many are facing real pressures with the cost of living now. That is why the Government have provided over £37 billion-worth of cost of living support this year to those who need it most. We have also announced unprecedented support to protect households and businesses from the high cost of energy. The energy price guarantee and the energy bill relief scheme are supporting millions of businesses with rising energy costs. That is in addition to the £400 discount already announced through the energy bill support scheme. We have boosted investment in the local housing allowance by nearly £1 billion since 2020, and we are maintaining housing allowance rates at that increased level this year. Those most at risk of homelessness are able to access discretionary housing payments, alongside £316 million-worth of financial support through the homelessness prevention grant.

Finally, several hon. Members have raised the issue of the poor quality of some private rented homes. Most landlords and agents treat their tenants fairly and provide good-quality, safe homes. However, that is not always the case. Too many of the 4.4 million households that rent privately still live in poor conditions, paying a large proportion of their income to do so. Poor-quality housing undermines renters’ health and wellbeing, and we are determined to act. More than one in 10 privately rented homes have serious health and safety hazards that we need to address, as mentioned by the shadow Minister. We have strengthened local authorities’ enforcement powers by introducing financial penalties of up to £30,000, extending rent repayment orders and introducing banning orders for the most serious and prolific offenders, but we intend to go much further.

I hope that all Members here recognise that the Government are committed to reforming the private rented sector in a fair and balanced way, abolishing no-fault section 21 evictions and providing more clarity for landlords when seeking repossession. We are committed to giving tenants more security, meaning that they can stay in their communities and put down roots. In that spirit, I thank the hon. Member for Liverpool, Walton for his thoughtful speech, and hon. Members across the Chamber for their contributions. Delivering a fair deal for renters through these reforms remains a priority for this Government, and I look forward to working with hon. Members to deliver on that agenda.