Rented Homes: End of Evictions Ban

Thangam Debbonaire Excerpts

Wednesday 22nd July 2020 Commons Chamber

[Thangam Debbonaire (Bristol West) (Lab)]

(Urgent Question): To ask the Secretary of State for Housing, Communities and Local Government, if he will make a statement on the implications of the end of the evictions ban for people renting their home.

[The Minister for Housing (Christopher Pincher)]

As the Government take steps in the next phase of the response to coronavirus, it is right that we consider how to transition from the emergency measures put in place in March in the face of the then imminent public health emergency. On 13 May, the Government took decisive steps to unlock the housing market, enabling people, whether they own or rent, to move home safely if they need to. The end of the pause on possession proceedings on 23 August is another important step towards more normal life resuming and to ensuring all people—landlords and tenants—have access to justice. Prioritising cases is a matter for the judiciary, but I consider it important that cases such as those of serious antisocial behaviour are heard again.

During this period, we are working to provide appropriate support to those who have been particularly affected by coronavirus when possession proceedings start again. As part of this, we have been engaging with a working group convened by the Master of the Rolls. An early outcome of the group’s work has been changes to the court rules of possession proceedings. These rules will apply within the current legislative framework from 23 August. They will require landlords seeking possession of their property to set out relevant information about a tenant’s circumstances, including information on the effect of the pandemic. This encourages landlords to have the right conversations with tenants before seeking repossession. Through guidance, we are also encouraging landlords to agree to rent repayment plans or rent flexibilities, where possible. Landlords will need to follow strict procedures if they want to gain possession of their property. This includes, until at least 30 September, giving tenants a minimum of three months’ notice of their intention to seek possession, as set out in the measures introduced in the Coronavirus Act 2020.

The Government have provided unprecedented financial support to renters through the job retention scheme, boosting the welfare safety net by more than £9 billion and increasing the local housing allowance rate to the 30th percentile. These measures will remain in place when the courts reopen. We are also committed to bringing forward reforms to provide greater security to tenants, alongside strengthening the rights of landlords who need to gain possession of their property when they have a valid reason to do so. Legislation will be brought forward in due course.

[Thangam Debbonaire]

I thank the Minister for that response, but it really will not do, because he knows that his proposals are toothless. Eviction law remains intact, so extra information about the tenant will not prevent people from losing their home, and in the middle of a public health crisis. In a Government statement on 18 March, the Secretary of State for Housing, Communities and Local Government said:

“The Government is clear—no renter who has lost income due to coronavirus will be forced out of their home, nor will any landlord face unmanageable debts.”

Labour wants to hold him to this.

The evictions ban ends on 23 August. The Government have failed to plan for what happens next. That failure looks set to lead to evictions and homelessness this autumn. Data from Citizens Advice and others indicates millions of households are struggling with rent. Current law makes evictions mandatory, with no court discretion, if tenants are in two months’ of arrears under ground 8, section 8 of the Housing Act 1988, and discretionary evictions can still be made under section 21, which the Government have promised to abolish but so far have not done so. They could have prevented people from falling into arrears by adjusting social security or bringing in emergency temporary legal changes, but they have chosen not to.

What assessment have the Government made of likely numbers of people facing homelessness? What consideration have they given to public health, with possibly thousands of households becoming homeless as we go into winter? What resources have they provided to councils for the cost of additional advisers and emergency and other accommodation? Will the Minister admit that yesterday’s practice direction will make no material difference to the outcomes for tenants with arrears, as eviction laws remain unchanged?

The Government made a promise. This is not just affecting antisocial tenants; it is affecting people struggling now. Nobody benefits from renters becoming homeless, nor mortgage payers struggling with the end of the deferral scheme. We have called on the Government repeatedly to act. It is not too late to extend the ban and sort out the legal changes in September. For the sake of everyone whose home is at risk, and everyone who cares, I urge them to act now.

[Christopher Pincher]

The hon. Lady knows full well—the House knows full well—that this an unprecedented epidemic. In its face, we have brought forward unprecedented measures to help tenants in difficulty. We are protecting 8.6 million people as a result of the stay in court action, the moratorium on evictions and the three-month minimum notice period that landlords need to apply.

We have spent billions of pounds on the furlough scheme, which the shadow Chancellor has described as a lifeline, to make sure that people have an income and can help pay their rents. We have given local authorities £4.3 billion. We have given £500 million in council tax relief. We have spent £433 million on the Everyone In campaign to help with homelessness, which has resulted in 90% of homeless people being taken off the streets. We have committed to 6,000 new long-term homes—3,300 this year—to help anyone who suffers from homelessness. I think the House will agree that that is, by any measure, a real effort to help people who are in need.

But we are moving out of the worst of the epidemic, and we are moving through a transition phase. It is right that we normalise proceedings and procedures. To that effect, I have had conversations with the Master of the Rolls and with Sir Robin Knowles. They have been quite clear that they want to ensure that courts act properly to hear landlords’ and tenants’ concerns. They are also very clear that, should a landlord not provide requisite information to the courts about the effect of covid-19 on a tenant when the landlord brings forward an application, the courts will have power to adjourn the case, which will hit the landlord in the pocket—something that will focus the landlords’ minds.

I have been told by many stakeholders and representatives, including the National Residential Landlords Association, that this will definitely be a wake-up call to landlords. It will also be of definite support to tenants, so I am convinced that we have struck the right balance between tenants’ needs and the landlords’ rights. I am convinced that we are supporting people to the best of our ability. I am pleased that we are now moving out of the epidemic and we are supporting people appropriately.