Section 21 Evictions

Wera Hobhouse Excerpts

Thursday 6th December 2018 Westminster Hall

[Ms Buck]

That is absolutely right. It is important to address the points from landlords. Having seen some of the concerns expressed by landlords in the social media commentary in the build-up to the debate, and having spoken at the Residential Landlords Association conference and at other conferences, one hears from landlords that they feel unfairly treated and tarred with the same brush as the rogue minority, which I think is probably fair. Unfortunately, the rogue minority bring down the sector as a whole. However, addressing section 21 is not about the behaviour of the small minority; it is about recognising that there is now a structural imbalance in tenancies that unexpectedly provide long-term homes for a much wider spectrum of society than was previously the case.

[Wera Hobhouse (Bath) (LD)]

Is it not true that we want to make sure that good landlords remain good landlords? This change is not against them. If they do the right thing, they should not be afraid of what we propose.

[Ms Buck]

It is absolutely true that good landlords should have no reason to fear a change in policy that reflects the differences in the demography of the sector, but I know that some do. It is also fair to say that the minority of landlords, whether we are talking about housing conditions—I acknowledge the Minister’s consensual approach to the Homes (Fitness for Human Habitation) Bill—or security of tenure, bring down the reputation of the sector as a whole, which needs to be addressed.

Some of the better landlords may not have among their number the person who posted on social media before the debate:

“We need to fight to protect section 21…2 months is plenty to find a new rental…although if a tenant has annoyed me I wait to pull the trigger in mid-November to screw up their Christmas”.

That is not the behaviour of the overwhelming majority of landlords, but it is certainly not helpful to their wider reputation.

--- Later in debate ---

[Wera Hobhouse (Bath) (LD)]

It is a pleasure to serve under your chairship, Mr Hollobone.

I congratulate the hon. Member for Westminster North (Ms Buck) on securing this very important debate. I still consider myself to be a new MP, but the number of people who have contacted me in my constituency of Bath about this issue has been shocking. It is really difficult to hear these heartbreaking stories and not feel that we need to do something about this issue very urgently.

The housing crisis and severe shortages of social housing mean that more and more vulnerable people are reliant on the private rented sector. There are now 4.3 million households in privately rented homes. According to the English housing survey, more than half of renters are aged over 35 and the private rented sector is home to one in four families with children, with 20% of the families in private rented homes having a baby or an infant under the age of five.

The hon. Lady has already related to us the severe impact that these insecure tenancies have on family life. I am a member of the all-party parliamentary group on the prevention of adverse childhood experiences, and that type of situation is exactly one of these adverse childhood experiences, which invariably lead to children struggling at school, and from there on finding it difficult to get qualifications. Such situations early in life lead almost directly to later adversities, so we need to do something urgently for families in these very insecure housing situations.

As a result of the lack of social homes, more and more people have no other choice but to rely upon privately rented accommodation. Section 21 evictions lock these individuals into situations where the landlord has total control, creating a culture of uncertainty whereby tenants are afraid to exercise their rights.

Section 21 evictions are known as “no fault” evictions and they are highly damaging, because they mean that a landlord can evict a tenant at two months’ notice without offering an explanation and without the tenant having breached the terms of their contract. That forces the evicted tenant into unwanted and undeserved financial strain. On average, an unwanted house move costs around £2,306. Understandably, many families find this cost impossible to pay, so they end up in in debt and struggle to afford alternative accommodation. We have heard that the biggest reason for homelessness is now the end of a private sector tenancy. That is a serious problem in my constituency, where the prices of rented accommodation have shot up in recent years. I would like to share the story of one of my constituents, who wrote to me about her eviction; I hope it illustrates the very real consequences of the uncertainty in the private rented sector.

My constituent lived alone with her daughter in a property they had rented for four years. Despite making promises when they moved in, the landlord never made repairs, and rubbish that was left by a previous tenant was never removed from the property. My constituent, who suffered from both anxiety and depression, was incredibly distressed about the landlord’s refusal to pay for or complete repair work. She repeatedly tried to get the landlord to listen, with no progress. Eventually, worn down by the stonewalling, she withheld rent for a very short time. Within a matter of days she was issued with an eviction notice, requiring her and her daughter to leave the property within eight weeks. She had not breached her tenancy agreement. She described her situation this way:

“I have nowhere else to go, I haven’t breached my tenancy agreement and therefore feel it appalling that I have been requested to leave within 8 weeks. My daughter and I are going to be homeless in the winter. I have registered my application for general needs accommodation but as the housing crisis is so very real I worry I could be on the list for years before I am offered a property. I cannot afford to rent anywhere else privately in Bath. My daughter goes to school in Bath and I don’t own a car therefore it is completely impractical for me to look to rent elsewhere. I am at my wits end. I don’t know what else I am supposed to do.”

These are real stories. These are the people who talk to us directly, and we Members need to listen.

Section 21 evictions permanently tilt the balance of power towards landlords and cement a culture of fear, in which tenants are afraid to stand up for themselves. Given the threat of losing a cherished family home, unwanted financial pressure and the risk of homelessness, that cannot be surprising. Section 21 evictions and short-term tenancies have a direct impact on the ever-expanding problem of homelessness across this country. We must review the policies that govern the private rented sector, to ensure that tenants have freedom and security. Of course, at the bottom of this problem lies the severe shortage of social housing, and we Liberal Democrats committed at our autumn conference to build 100,000 new homes for social rent every year in order to address the housing crisis, which is so very severe. Ultimately, only the social rented sector will secure the long-term and affordable tenancies that we need. However, in the meantime we must reform the private rented sector, making it fit for purpose.

In the rapidly changing context of our housing crisis, there has been an ongoing failure to protect tenants’ interests, which cannot be allowed to continue. The charity Shelter has asked for all leases in the private sector to be no shorter than three years, as proposed in a recent Government consultation, and I hope the Government are seriously looking at that proposal. The growing housing shortage, especially of affordable housing, has made it imperative that we in this place look at how we can reform the private rented sector to avoid throwing hundreds of thousands of people into destitution and homelessness.

[Alex Chalk (Cheltenham) (Con)]

It is a pleasure to say a few words with you in the Chair, Mr Hollobone. I thank the hon. Member for Westminster North (Ms Buck) for her excellent speech. I had not intended to speak in this debate, but I wanted to say that I find it very powerful, and I personally am persuaded that this is something we need to look at again. I should declare an interest: my brother, my sister and I are joint landlords of a cottage just outside my constituency. I wanted to give a few words of perspective.

First, it is worth emphasising that a house is not like any other commodity: it is not like anything else that one might consume. It is a matter of supreme, central importance to the security of individuals, their sense of wellbeing and their mental health. In those circumstances, it is critically important that we have a framework in place that ensures that on the one hand, there is a sufficient pipeline of that essential resource, and on the other, the pipeline is regulated in a way that is fair to all parties, particularly those who dwell in those houses.

It would be unfair to suggest that we have not come an awfully long way, and this Government can take some credit for the extent to which they have properly rebalanced the tenant-landlord relationship. I am thinking, of course, about the Homes (Fitness for Human Habitation) Bill: it is axiomatic that homes should be fit for human habitation, and I am glad that that Bill will be in statute. I am also glad that there is a more rigorous system of penalties for rogue landlords who act in a capricious and vicious way, or do not take proper account of the wellbeing of their tenants. I am thinking, of course, about legislation regarding carbon monoxide detectors and so on. The penalties are now far more severe—financial penalties and potentially even criminal penalties. That is as it should be.

I feel it would be appropriate to look again at the issue of no-fault evictions. Although it is right to say that in the overwhelming majority of cases, landlords behave appropriately and with a proper sense of their responsibility to their fellow citizens, it does cause me some unease that there remains scope in the legislation for landlords to act in a capricious way. The hon. Member for Westminster North has identified some chilling examples, and the quote that she read, while wholly unrepresentative of the broad mass of landlords, revealed that a landlord could seek to leave someone homeless over the Christmas period for vindictive reasons. That would be an act of appalling cruelty.

However, I wanted to make some other points, very gently. As the hon. Lady was right to mention and acknowledge, this is a balance, and it is important that as part of any examination of this matter, the Government should consider what the implications are for the pipeline of homes. I say that because there is a potential risk—probably a tolerable risk, but none the less a risk—that further measures could seek to interfere with that pipeline. For the reasons that the hon. Lady indicated, I suspect that risk is tolerable, and if the conditions were crafted appropriately to ensure that there was a genuinely good reason to issue a notice, that risk ought not to eventuate. It would be important to allow landlords to issue a notice if, for example, their financial circumstances had changed or they were selling up to move abroad.

Any measures would have to be drawn up with appropriate flexibility. However, as long as that could take place, as long as any examination proceeded with care, and as long as projections could satisfy us that those measures would not lead to an intolerable diminution in the pipeline of available homes, the hon. Lady has a point—a point that the Government would in conscience do well to consider. We should keep this matter under constant review, and I pay tribute to the hon. Lady for drawing this important issue to the attention of the House.

[Wera Hobhouse]

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.

[Lyn Brown]

This might be the time to do mine, too. Thank you, Mr Hollobone.

--- Later in debate ---

[Andy Slaughter]

I thought I was making one of my most conciliatory speeches in the past 13 years. I am sure that when the hon. Member for Cheltenham hears from our Front Bench, a lot more of the Rottweiler tendency will be on show.

[Wera Hobhouse]

Will the hon. Gentleman give way?

[Andy Slaughter]

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.

--- Later in debate ---

[Lyn Brown (West Ham) (Lab)]

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.

[Wera Hobhouse]

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.

[Lyn Brown]

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.

--- Later in debate ---

[Mrs Wheeler]

They will not go? Okay, we will find out.

The hon. Member for Bath (Wera Hobhouse) mentioned affordability. That issue is exactly the reason the Government introduced the £1 billion Build to Rent fund, and the £3.5 billion private rented sector guarantee scheme, to help support the building of thousands of extra homes specifically for private rent. We want Build to Rent to continue to grow and make a significant contribution to housing supply.

[Wera Hobhouse]

I fear that the Minister may have misunderstood what I meant. We need to build social homes for rent, because the private sector will just not build the affordable homes we need. Giving the private sector money to build homes for the private sector will not solve the crisis.

[Mrs Wheeler]

Fortunately, as I go on with my speech, the hon. Lady will hear even more good news.

We are going further, delivering the homes that the country requires. The Government are committed to building more affordable homes, supporting the different needs of a wide range of people. The Government are committed to increasing the supply of social affordable housing and have made £9 billion available through the affordable homes programme to March 2022, to deliver 250,000 new affordable homes on a wide range of tenures, including homes for social rent. Furthermore, we abolished the housing revenue account borrowing cap on 29 October. That will help to deliver a new generation of council homes. We expect it will help local authorities to double their building from around 5,000 to 10,000 homes per year by 2021-22.