PARLIAMENTARY DEBATE
End of Eviction Moratorium - 23 September 2020 (Commons/Commons Chamber)
Debate Detail
However, we must strike a balance so that landlords are able to access justice alongside measures to protect the vulnerable. That is vital to the long-term health of the private rented sector. We have worked with the judiciary to put in place new court arrangements that seek to ensure appropriate support for all parties within the current statutory framework. The judiciary will look to prioritise the most serious cases, including antisocial behaviour, fraud and egregious rent arrears. New court rules also require landlords to reactivate any claim they have made before 3 August, and to provide information to the court on the effect of the covid-19 pandemic on the tenant and their dependants. A court would be likely to take a very dim view of any landlord who tried to circumvent this requirement or mislead the court by not disclosing relevant information where known.
To help to keep people in their homes over the winter, we have changed the law, increasing notice periods to six months in all but the most serious cases. Tenants now served notice will not be required to move over the winter, while landlords will be empowered to take action where necessary—for example, when a tenant’s antisocial behaviour severely affects their neighbours’ quality of life. To further support renters, guidance has been issued to bailiffs by my right hon. and learned Friend the Lord Chancellor to ensure that possession orders are not enforced in areas where lockdown restrictions are in place or over the Christmas period, except in the most serious circumstances.
Our package strikes a fair balance, supporting landlords to act in the most serious cases while keeping the public, including renters, safe. Comprehensive guidance has been published for landlords and tenants to explain these new arrangements and the possession process in courts. The Government are clear that all these measures are to protect renters over this period. They are kept under constant review in the light of evidence on public health, and we are prepared to take further measures as they are needed to protect landlords and tenants alike.
The ban on possession proceedings has given many private renters protection against the economic impact of coronavirus; at least the roof over their heads could not be taken away. That protection ended on Sunday, and now 55,000 households are in immediate danger of losing their homes. They are the 55,000 served with eviction notices between March and August. Their landlords were not required to give six months’ notice, so courts could be processing their eviction orders as I speak. In addition, by the way, asylum seekers who fled to Britain for sanctuary will receive eviction notices with immediate effect. For context, in the same period last year, just 21,000 eviction notices were served. The scale of the hardship that is now being unleashed is unprecedented and no one is ready for it. Shelter estimates that a colossal 322,000 private renters are newly in arrears since the pandemic began, so things will get worse even more quickly. Unless he acts now, the Secretary of State will break his promise made to this place on 18 March that
“no renter who has lost income due to coronavirus will be forced out of their home”.
The Minister insists there are new measures to provide protection. That is not so. The new civil procedure rules require landlords seeking possession to describe the effect of the pandemic on their tenants’ circumstances, but judges have zero authority to take those circumstances into account. In practice, it provides no protection. We recognise, too, that some small landlords will be unable to pay their mortgages or put food on their tables, so I remind the Minister of his promise to landlords that none should face unmanageable debt. The Minister believed the eviction moratorium was justified as the pandemic took hold in spring, but as we battle a second wave in the harsh depths of winter, are not such measures justified still?
I do not ask the Minister to kick the can down the road. Instead, I ask for an extension to the eviction moratorium, so that the underlying problems can be solved. The 55,000 at risk of homelessness today cannot afford to pay their rent now, they are not likely to have the money in a few months’ time, and they are not going to have enough money for a deposit on a new place if they are evicted; so, very briefly, my four suggestions are these.
First, let us enact a further six-month moratorium on the bulk of evictions starting today, but this time do not waste the six months. Secondly, let us amend section 8 evictions to give judges discretion over tenants who are in need. Thirdly, the Minister should, as his manifesto promised, fast-track legislation to repeal the section 21 provisions for no-fault evictions. Throughout the crisis, the Government have swiftly moved through legislation when they have needed to and there is nothing more urgent than preventing avoidable homelessness. Finally, the Minister should provide a comprehensive package of financial support for those in arrears, so that when the moratorium does end, we do not see the appalling misery of mass homelessness, whether that is in the Lakes or in London.
The British people are united in their decency and in their belief that the virus should not bring families to their knees and dump them on the street. The Minister has the power to prevent a pandemic of homelessness. I beg him to use that power, and take the actions I have outlined.
The hon. Gentleman quoted some figures. I can tell him that the most recent figures suggest that 3,022 applications have been made to the courts for evictions. That is 89% down on the same period last year. The fact of the matter is that landlords are acting responsibly and talking to their tenants to avoid such actions. Such a low figure for notices made is also due to the unprecedented measures we have introduced. We will continue to keep our policies under review. We will act fairly to landlords and tenants alike.
Does my right hon. Friend agree that this is about achieving an appropriate balance between the unprecedented protection that was rightly provided by this Government and supported by many landlords and the right of landlords, many of whom rely on rents for their livelihood, to protect their properties in the face of egregious behaviour?
In March, as we all know, the Secretary of State promised that
“no renter who has lost income due to coronavirus will be forced out of their home, nor will any landlord face unmanageable debts.”
The Government have reneged on that promise. They have failed to change the law to prevent automatic evictions. The courts might take a dim view, but with section 21 still on the statute book despite the Government saying they would get rid of it, the courts will have no choice. The Government have failed to prevent financial hardship—whatever the Minister says, many people are struggling with rent—and failed to deal with arrears, with the number of people in arrears having built up since the start of the crisis to over 300,000.
The Welsh Labour Government have a plan to prevent evictions and homelessness, but as with testing, this Government had summer to develop their plan and wasted it. They now choose to withdraw the protection of the evictions ban exactly when it is most needed. There have been last-minute chaotic announcements, creating a complex and confusing situation. Will the Minister confirm that the extension of notice periods will not help those who were served notice before 29 August? What steps are the Government taking to help tenants and landlords to navigate this complex situation? Why do lockdown regulations for Newcastle and Gateshead have no rules barring bailiffs from enforcing evictions? What are the Government doing to prevent illegal evictions, which are reportedly up by 50%? Why will they not stick to their commitment to remove section 21 and automatic evictions? Are they trying to collect any data that gives an accurate picture of the problem?
We are likely to see a rise in evictions and homelessness because of this Government’s incompetence. The Government must act now to prevent a wave of evictions just as covid rises this winter, and honour their promise to landlords and renters.
The hon. Lady says the Welsh Government have a plan. Well, we would all like to know what it is. They have announced some form of help, but not told us when it starts or what the amount is. We have made the rules in lockdown areas very clear. The Lord Chancellor has written to the association of bailiffs to make the position clear, and further guidance will be issued. We will continue to keep our measures under review, but we will also continue to support landlords and renters alike through this crisis.
There are 2.5 million landlords in this country. Most have just one property, often indebted, and for retired landlords it can form the backbone of their retirement income. Good landlords repair properties, get them back into use and provide millions of properties that would otherwise fall to the public and quasi sectors. Sadly, however, landlords are too often demonised. Does my right hon. Friend agree that it is right and fair that we allow courts to exercise due discretion and sensitivity, as they always do, to decide on the correct pathways from now on?
We have heard from colleagues about the urgency of the situation in England, which I can see, as an observer in these proceedings, clearly needs urgent action. I urge the Minister to reflect on that.
As a result of SNP Government action, in Scotland there is a ban on eviction until March 2021. The Scottish Government have also introduced a £10 million tenant hardship loan fund, as well as a further £3 million in additional funding for discretionary housing payments. I therefore urge the Minister, once again, to look north to Scotland to see what protecting tenants looks like.
I also want to raise some issues with the Minister about support for asylum seekers on accommodation. Will he agree that no one refused asylum or those with insecure status should be made street homeless, given the public health emergency? Will he further commit that the Government will not follow through on their decision to subject vulnerable asylum seekers to evictions and street homelessness without the explicit consent of the affected local authority and public health director?
The Prime Minister’s announcement yesterday is a sage reminder of the precarious situation we find ourselves in as we head into a second wave. The last thing that people need is for the Government to pull the rug from under their feet. I very much urge the Minister to act now to protect people when they need our help most.
Secondly, with regard to the issue of discretion, will the Minister confirm that, as long as landlords have talked to their tenants and presented their financial information to the courts, when applying for a section 21 notice or possession on ground 8, of rent arrears, the courts have no discretion at all to reject those applications? Will he further consider those points, do what the Housing, Communities and Local Government Committee has asked and strengthen the pre-action protocol to give the courts more discretion?
The hon. Gentleman will know that the courts do have discretion to prioritise the cases before them. He will also know that, if landlords do not provide the right information to the courts in pursuit of their section 21 application, the courts have the discretion to adjourn the case and push it to the end of the queue. I am quite sure that Sir Terence Etherton and Mr Justice Knowles will look carefully at landlords who fail to comply with their duties. Our approach has always been to be fair—fair to those who have lost out as a result of the epidemic, and also fair to landlords, particularly smaller landlords, who need their incomes.
It is absolutely right that we should be fair to tenants affected by the covid crisis, and the hon. Member for Westmorland and Lonsdale (Tim Farron), who secured the urgent question, is right to say that we might consider giving the courts discretion over the nature of arrears. But it also has to be right that we should be fair to the neighbours of those guilty of antisocial behaviour, fair to those affected by domestic abuse and fair to landlords who were affected by arrears pre-covid, and that should be the immediate focus of the courts’ attentions.
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