Asked by: George Howarth (Labour - Knowsley)
Question to the Department for Levelling Up, Housing & Communities:
To ask the Secretary of State for Levelling Up, Housing and Communities, what assessment he has made of the impact of the covid-19 outbreak on the buy-to-let sector.
Answered by Christopher Pincher
Mortgage arrears continued to fall to near historic lows from July to September 2021, with government support for household incomes through the Coronavirus Job Retention Scheme (CJRS) remaining in place until the end of September as well as mortgage payment holidays. According to publicly available information from UK Finance, which represents over 300 firms across the banking and finance industry, there were a total of 5,670 buy-to-let mortgages in arrears of 2.5 per cent or more of the outstanding balance from July to September 2021. This is a decrease of six per cent compared with April to June of the same year. In terms of possessions, 320 buy-to-let mortgaged properties were taken into possession from July to September 2021, which is significantly down on the same period in 2019 prior to the pandemic when 800 mortgage possessions took place.
Asked by: Baroness Ritchie of Downpatrick (Labour - Life peer)
Question to the Department for Levelling Up, Housing & Communities:
To ask Her Majesty's Government what assessment they have made of the security of tenants in the private rented sector, in particular those affected by (1) the end of the Coronavirus Job Retention Scheme, and (2) the reduction in Universal Credit payments.
Answered by Lord Greenhalgh
The Coronavirus Job Retention Scheme and Universal Credit uplift were important elements of the wider package of support measures introduced by the Government during the pandemic. These measures have effectively prevented a widespread build-up of rent arrears and prevented evictions, by supporting private renters to continue paying their rent.
This is evidenced by the latest published data from the English Housing Survey Household Resilience Study from April – May 2021, which suggested that the vast majority (93%) of private renters are up to date with their rent. Of the 7% (257,000 households) in arrears, 60% are in arrears of less than 1 month.
In 2020/21, there was over a 40% reduction in households owed a homelessness duty following the end of an assured shorthold tenancy, compared with 2019/20.
As emergency measures are lifted, support remains in place for renters through the welfare system. This includes maintained Local Housing Allowance rates at their increased level in cash terms for 2021/22, and for those who need additional support £140m in Discretionary Housing Payments funding, and the new £500 million Household Support Fund.
As our recovery gathers pace, the government is continuing to help people into work and increase their earning potential – the most sustainable route to financial security. We are investing billions through our Plan for Jobs and the Lifetime Skills Guarantee.
We will continue to monitor the impacts of COVID-19 upon renters and are committed to delivering a fairer and more effective rental market that works for both tenants and landlords. This includes repealing Section 21 of the Housing Act 1988 to improve security for tenants. We will set out our proposals for reform in due course.
Asked by: Virendra Sharma (Labour - Ealing, Southall)
Question to the Department for Levelling Up, Housing & Communities:
To ask the Secretary of State for Housing, Communities and Local Government, what steps he is taking to reduce the number of people living poverty related to housing costs.
Answered by Eddie Hughes
Individuals who are unable to afford their housing costs may be eligible for a range of support through the welfare system. We lifted Local Housing Allowance rates to the 30th percentile of local rents in April 2020, and in 2021/22 maintained them at their increased level in cash terms.
For those who require additional support Discretionary Housing Payments are available. We have made £140 million in Discretionary Housing Payments funding available for local authorities this financial year, to distribute for supporting renters with housing costs in the private and social rented sectors. This builds on the £180 million in payments made available last financial year.
Moreover, we have banned lettings fees paid by tenants and capped tenancy deposits through the Tenant Fees Act, which came into force on 1 June 2019 and reduced the upfront costs associated with moving in the private rented sector.
During the Coronavirus pandemic the Government has put in place an unprecedented financial package, which is supporting renters to sustain tenancies and to afford their housing costs. We have provided support for business to pay staff salaries through the Coronavirus Job Retention Scheme, which is in place until the end of September 2021. We also extended the £20 per week uplift in Universal Credit until September 2021 and provided a one-off payment of £500 to eligible Working Tax Credit claimants.
In the longer term we need to build more homes to tackle affordability. We have made strong progress towards our aim of building 300,000 homes a year by the mid-2020s – delivering around 244,000 last year, the highest in over 30 years. This is backed by £20 billion in investment, which includes over £12.2 billion for the Affordable Homes Programme – to deliver up to 180,000 affordable homes – the biggest funding commitment to affordable housing in over a decade. We have also made initial funding of £7.1 billon available for the National Home Building Fund to unlock up to 860,000 homes over the lifetime of the projects through the provision of infrastructure, regenerating brownfield sites, and diversifying the market.
Furthermore, our £9 billion Shared Ownership and Affordable Homes Programme, running to 2023, will deliver approximately 250,000 new affordable homes. We are also pushing forward with our planning reforms to establish a simpler, faster and more predictable system and ensure that the right homes are built in the right places where they are needed.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Levelling Up, Housing & Communities:
To ask Her Majesty's Government what plans they have to introduce a system of (1) means-tested grants, or (2) interest-free loans, to repay arrears in order to prevent an increase in homelessness.
Answered by Lord Greenhalgh
The UK Government has provided an unprecedented package of financial support which is available to tenants.
We have extended the Coronavirus Job Retention Scheme and £20 per week uplift in Universal Credit until the end of September helping renters to continue paying their rent. Local housing allowance rates have been maintained at their increased level in cash terms in 2021/22, meaning claimants renting in the private rented sector continue to benefit from the significant increase in the local housing allowance rates applied in April 2020. For those who require additional support, Discretionary Housing Payments (DHP) are available. For 2021-22 the Government has made £140 million available in DHP funding, building on the £180 million provided last year.
Renters will continue to benefit from longer notice periods, giving them more time to make alternative arrangements. As of 1 June, until at least 30 September, notice periods will be at least 4 months except in the most egregious cases.
We are also providing local authorities with £310 million through the Homelessness Prevention Grant. This funding represents a £47 million increase on the previous year’s funding and can be used to offer financial support for people to find a new home, to work with landlords to prevent evictions, and to ensure families have a roof over their head.
We do not wish to encourage more debt and have prioritised non-repayable support. We believe the best way to support people in need is through the existing welfare system, and this is what our extensive package of economic support is doing.
We continue to monitor the effectiveness of other examples of support, such as those from the devolved administrations in the UK, and note that uptake for loan support has been relatively low in Scotland and Wales.
Asked by: Stephen Morgan (Labour - Portsmouth South)
Question to the Department for Levelling Up, Housing & Communities:
To ask the Secretary of State for Housing, Communities and Local Government, what steps he is taking to ensure that early intervention support is available for tenants experiencing difficulties in meeting the cost of their rent.
Answered by Eddie Hughes
The UK Government has provided an unprecedented package of financial support during the pandemic, which is available to tenants.
The Coronavirus Job Retention Scheme and £20 per week uplift in Universal Credit are in place until the end of September helping renters to continue paying their rent. Local housing allowance rates have been maintained at their increased level in cash terms in 2021/22, meaning claimants renting in the private rented sector continue to benefit from the significant increase in the local housing allowance rates applied in April 2020.
For those who require additional support, Discretionary Housing Payments (DHP) are available. For 2021-22 the Government has made £140 million available in DHP funding, building on the £180m provided last year.
To help those at risk of homelessness we are providing local authorities with £310 million through the Homelessness Prevention Grant. This funding represents a £47 million increase on the previous year's funding and can be used to offer financial support for people to find a new home, to work with landlords to prevent evictions, and to ensure families have a roof over their head. Tenants in need of additional support should speak to their local council for more information.
Renters also continue to benefit from longer notice periods, giving them more time to make alternative arrangements. As of 1 June, until at least 30 September, notice periods must be at least 4 months except in the most egregious cases. Bailiffs have been asked not to carry out an eviction if anyone living in the property has Covid-19 symptoms or is self-isolating.
Asked by: Stephen Morgan (Labour - Portsmouth South)
Question to the Department for Levelling Up, Housing & Communities:
To ask the Secretary of State for Housing, Communities and Local Government, if his Department will bring forward policy proposals to support tenants with rent arrears whose income was reduced as a result of the covid-19 outbreak.
Answered by Eddie Hughes
The UK Government has provided an unprecedented package of financial support during the pandemic, which is available to tenants.
The Coronavirus Job Retention Scheme and £20 per week uplift in Universal Credit are in place until the end of September helping renters to continue paying their rent. Local housing allowance rates have been maintained at their increased level in cash terms in 2021/22, meaning claimants renting in the private rented sector continue to benefit from the significant increase in the local housing allowance rates applied in April 2020.
For those who require additional support, Discretionary Housing Payments (DHP) are available. For 2021-22 the Government has made £140 million available in DHP funding, building on the £180 million provided last year.
Renters also continue to benefit from longer notice periods, giving them more time to make alternative arrangements. As of 1 June, until at least 30 September, notice periods must be at least 4 months except in the most egregious cases. Bailiffs have been asked not to carry out an eviction if anyone living in the property has Covid-19 symptoms or is self-isolating.
Asked by: Steve McCabe (Labour - Birmingham, Selly Oak)
Question to the Department for Levelling Up, Housing & Communities:
To ask the Secretary of State for Housing, Communities and Local Government, what guidance has been given to private landlords and estate agents with tenants who are having to self-isolate with covid-19 after the end date of their tenancy.
Answered by Eddie Hughes
We have strongly urged accommodation providers to be flexible in extending tenancies and delaying moves if tenants are isolating due to COVID-19. However, under The Health Protection (Coronavirus, Restrictions) (Self-Isolation) (England) if someone is legally obliged to move, they are allowed to do so even if isolating.
The Government advice on home moving during the coronavirus (COVID-19) outbreak can be found here: https://www.gov.uk/government/publications/covid-19-and-renting-guidance-for-landlords-tenants-and-local-authorities/coronavirus-covid-19-guidance-for-landlords-and-tenants.
Further information on how landlords can support tenants struggling as a direct result of the COVID-19 pandemic through delay seeking repossession of your property can be found in our possession action process guide for private landlords here: https://www.gov.uk/government/publications/understanding-the-possession-action-process-guidance-for-landlords-and-tenants/understanding-the-possession-action-process-a-guide-for-private-landlords-in-england-and-wales.
Asked by: Baroness Ritchie of Downpatrick (Labour - Life peer)
Question to the Department for Levelling Up, Housing & Communities:
To ask Her Majesty's Government what steps they will take to introduce a new tenant hardship loan scheme to support private sector tenants.
Answered by Lord Greenhalgh
The UK Government has provided an unprecedented package of financial support which is available to tenants.
We have targeted our interventions as non-repayable forms of support, which offer a sustainable form of support for vulnerable renters, and do not encourage more debt.
We have extended the Coronavirus Job Retention Scheme and £20 per week uplift in Universal Credit until the end of September, helping renters to continue paying their rent. Local housing allowance rates have been maintained at their increased level in cash terms in 2021/22, meaning claimants renting in the private rented sector continue to benefit from the significant increase in the local housing allowance rates applied in April 2020. For those who require additional support, Discretionary Housing Payments (DHP) are available. For 2021-22 the Government has made £140 million available in DHP funding, building on the £180 million provided last year.
Renters will continue to benefit from longer notice periods, giving them more time to make alternative arrangements. As of 1 June, until at least 30 September, notice periods will be at least 4 months except in the most egregious cases.
We continue to monitor the effectiveness of other examples of support, such as those from the devolved administrations in the UK, and note that uptake for loan support has been relatively low in Scotland and Wales.
Asked by: Lucy Powell (Labour (Co-op) - Manchester Central)
Question to the Department for Levelling Up, Housing & Communities:
To ask the Secretary of State for Housing, Communities and Local Government, with reference to the oral contribution of the Parliamentary Under-Secretary of State for Housing, Communities and Local Government on Monday 14 June, Official Report, col 4, that over nine out of 10 people are not in rent arrears at all; what recent estimate he has made of the number and proportion of people in rent arrears.
Answered by Eddie Hughes
The latest published data from the English Housing Survey Household Resilience Study from November – December 2020, suggests that the vast majority (91%) of private renters are up to date with their rent. Of the 9% (353,000 households) in arrears, two thirds are in arrears of less than 2 months.
The UK Government has provided an unprecedented package of financial support which is available to tenants.
The Coronavirus Job Retention Scheme and £20 per week uplift in Universal Credit are in place until the end of September helping renters to continue paying their rent. Local housing allowance rates have been maintained at their increased level in cash terms in 2021/22, meaning claimants renting in the private rented sector continue to benefit from the significant increase in the local housing allowance rates applied in April 2020. For those who require additional support, Discretionary Housing Payments (DHP) are available. For 2021-22 the Government has made £140 million available in DHP funding, building on the £180 million provided last year.
Renters will continue to benefit from longer notice periods, giving them more time to make alternative arrangements. As of 1 June, until at least 30 September, notice periods will be at least 4 months except in the most egregious cases.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Levelling Up, Housing & Communities:
To ask Her Majesty's Government what assessment they have made of the number of families at risk of eviction; and what steps they are taking to support them.
Answered by Lord Greenhalgh
The Government does not publish data on the number of families who are at risk of eviction.
The Government continues to provide support for all tenants, including families. A significant package of financial support is available to tenants to help them pay their rent. Local Housing Allowance rates were increased in April 2020 to the 30th percentile of market rents. In 2020/21 rates have been frozen in cash terms meaning claimants renting in the private rented sector will continue to benefit from the significant increase applied in April 2020. We have also made £140 million in Discretionary Housing Payments funding available, for local authorities to distribute to renters who require additional support. This is in addition to the wider support available through the Coronavirus Job Retention Scheme and £20 weekly uplift to Universal Credit, which are in place until the end of September.
Tenants continue to benefit from longer notice periods of four months in most cases, giving them more time to make alternative arrangements where needed. New arrangements have also been introduced to protect tenants where a possession claim is made to the court. These include requiring landlords to provide information about how their tenant and their dependents have been affected by the pandemic, and a review stage to enable tenants to access legal advice. A new mediation pilot integrated into the court process is supporting landlords and renters who face court procedures and potential eviction to resolve issues and to help sustain tenancies where possible.
Evictions must be scheduled with a minimum of 14 days’ notice and will not be carried out if bailiffs are made aware that a member of the household has Covid-19 symptoms or is self-isolating. In certain circumstances, tenants are able to apply to suspend an eviction, for example if a tenant missed the court hearing for a good reason and there would have had a good case for the possession order not to have been granted had they attended.