All 2 Clive Betts contributions to the Renters (Reform) Bill 2022-23

Read Bill Ministerial Extracts

Mon 23rd Oct 2023
Wed 24th Apr 2024

Renters (Reform) Bill

Clive Betts Excerpts
2nd reading
Monday 23rd October 2023

(7 months, 1 week ago)

Commons Chamber
Read Full debate Renters (Reform) Bill 2022-23 Read Hansard Text Read Debate Ministerial Extracts
Michael Gove Portrait Michael Gove
- Hansard - - - Excerpts

First, we will be clear that landlords cannot have blanket bans of the kind that the hon. Lady rightly draws to the House’s attention. Secondly, colleagues will declare interests, but landlords are good things. We need landlords to provide homes. It is nothing to be ashamed of to be in the business of providing a safe, warm and decent home for someone, and there is nothing wrong with people who have saved and work hard investing in property. You do not need to be Margaret Thatcher to believe that that is right.

Clive Betts Portrait Mr Clive Betts (Sheffield South East) (Lab)
- Hansard - -

The Levelling Up, Housing and Communities Committee raised the need for an effective and efficient court system to deal with such matters. Evictions will now have to go to court because they will not be automatic under section 21. Also, many more tenants may go to court over landlords refusing to do repairs, because they will no longer fear retaliatory evictions.

Officials in the Department have suggested that the delays in implementing the Bill came about because of the need to reform the courts, and that that is down to the Select Committee. As I am sure the Secretary of State is aware, the Select Committee actually recommended a specialist housing court—we did that several years ago. If the Secretary of State had agreed to that at the time, there would no longer be any need for delay. The court would be up and running, and be effective and efficient in dealing with cases in the future.

Michael Gove Portrait Michael Gove
- Hansard - - - Excerpts

I am grateful to the Chair of the Select Committee, but the view of the Ministry of Justice, His Majesty’s Courts and Tribunals Service and others involved in the court system is that the creation of a specialist housing court would divert resources from the effort to make the existing system work better. But good people can disagree on that point.

--- Later in debate ---
Angela Rayner Portrait Angela Rayner
- Hansard - - - Excerpts

It is absolutely right that we get into these challenges, because I do not think people feel that the current situation provides redress for the challenges they face. I hope that in Committee, the Secretary of State will listen to points made by Members across the House to ensure that people get the redress and support that they need, and that we strengthen tenants’ rights in this area.

Clive Betts Portrait Mr Betts
- Hansard - -

The Bill does not really deal with the issue of affordability at all. One of the big issues is the freezing of the local housing allowance: some 90% of properties in the private rented sector are not affordable with the amount of LHA that is payable. The Select Committee recommended that we go back to the 30% figure, as was previously the case, so could we push for that to happen? Currently, many people simply cannot afford anything at all in the private rented sector.

Angela Rayner Portrait Angela Rayner
- Hansard - - - Excerpts

We have to get into that issue, but we also have to deal with the root cause, which is that we do not have enough adequate social housing in this country. We do not have enough housing, and that is because of 13 years of the Tories’ failure to build the housing that we need and to challenge Members on their Back Benches. The Prime Minister has failed to challenge those on his Back Benches who have delayed house building in this country when we need it so desperately.

The Secretary of State mentioned the hon. Member for Walsall North (Eddie Hughes) and the White Paper, but I am disappointed that many of the proposals in the Government’s White Paper have since been dropped. The Secretary of State said that he is open-minded, and I am glad about that, because the Bill is silent on proposals to make blanket bans on renting to families with children or those in receipt of benefits illegal. That sort of unacceptable practice must be stamped out, and I hope he will work with us to make sure the Bill does so. In the White Paper, the Government also promised to introduce the decent homes standard to give renters safer, better-value homes and remove the blight of poor-quality homes in local communities. That standard is missing from the Bill, but I did hear what the Secretary of State said in his opening remarks. I gently say to him that we cannot miss an opportunity to give private renters the protection—the long-term security and better rights and conditions—that they deserve.

--- Later in debate ---
Clive Betts Portrait Mr Clive Betts (Sheffield South East) (Lab)
- View Speech - Hansard - -

First, I put on record that I am a vice-president of the Local Government Association.

Having considered the White Paper and then the Bill, the Select Committee welcomes in principle the proposal from the Government to abolish section 21. We heard evidence in a number of sessions from organisations such as Shelter, looking at the interests of tenants, and from the National Residential Landlords Association, and they all accepted that this was the right way to go and engaged constructively with the Select Committee on that.

People’s homes can be taken away from them just like that when they have paid their rent and observed their tenancy conditions, and in principle that simply cannot be right. When a home is taken away, people have to move somewhere else, and their children have to uproot themselves from their school and be taken to another school. Members of the family who work may have to find another job somewhere else, because their home has moved and they can no longer get to their place of employment. That simply is not right in this day and age.

We recognise as a Committee—I made this point in an intervention—that there will be added work for the justice system, because evictions will now require a decision from the courts and more tenants may feel empowered to go to the courts. I am really disappointed that the Secretary of State is not going to indicate when he thinks the reforms to the court system will be in place to allow the legislation to be enacted. I think we need assurances today about when that will be. That cannot be an excuse for delaying something that has already been delayed for far too long.

I want to point out one or two other issues. I welcome the Secretary of State’s welcome for the work that the Select Committee has done, even though his response was a little late; I accept his apology for that. We said very clearly in our report that enforcement by local authorities will be absolutely key in making these changes work. There has to be proper funding for local authorities, as the Local Government Association has said today, to enable that work to be carried out properly. We want assurances from the Secretary of State on that as well.

One of the really good ideas is the property portal, so that tenants and all of us know who the landlords are. We have suggested some changes and some improvements, on which I think the Secretary of State will come back to us, to make sure that the property portal is comprehensive. It should cover things such as when the property last had a gas safety certificate and when the electrical systems in the house were properly inspected, and information of that kind, including whether it complies with the decent homes standard. All those things are important, and tenants should be able to access that quickly. The registers should be updated and digitised, which we are encouraging the Secretary of State to do. We hope he will come back positively on that.

The cost for tenants is important. We welcome the Secretary of State’s saying that rent increases cannot take place more than once a year, but we have concerns about the overload on the tribunal system and the way that those arguments will be played out, often with the landlords having a great advantage. We are not quite sure why the Secretary of State is saying that a tenancy agreement could not have a yearly update of rents in line with inflation, with no need for argument. That is actually the case in many rent agreements now. While it has been difficult in the last couple of years with hyperinflation, historically—with inflation at about 2%—that has not been an issue and it gives some certainty to tenants. We are not sure, and we have not had an explanation, why the Government have ruled that out completely.

Coming back to the point about tenants on benefits, why can we not have a ban on landlords automatically prohibiting tenants on benefits from renting? Surely the Secretary of State should do that, and should indicate very quickly that he is prepared to accept that as an amendment to the Bill.

Munira Wilson Portrait Munira Wilson
- Hansard - - - Excerpts

I strongly support the point that the hon. Gentleman has just made about the importance of the Government outlawing these blanket bans on renting in the private sector by those who are in receipt of benefits. I have been seeing a double whammy in that, in a constituency such as mine in Twickenham, rents have gone up by over 12% in the past year and, as he said, local housing allowance has not gone up, so people are evicted and banned from renting if they are in receipt of benefits when they try to find a new place. I pay tribute to the work of Citizens Advice Richmond, which has been running a campaign on that. We need to see the ban on such practice in place soon.

Clive Betts Portrait Mr Betts
- Hansard - -

I completely agree with those points, and I hope the Secretary of State responds positively to them. I think the situation is of real concern, and there is no reason why the ban cannot be enacted.

I have already made the point about local housing allowance. It is not part of the Secretary of State’s Department, but it is part of Government policy. It is always going to be a challenge for tenants to pay their rent in the private rented sector given the rise in rents recently, but people on the lowest incomes and on benefits are now being excluded from most properties because they simply cannot afford it, because their local housing allowance has been frozen. The LHA needs to be lifted. Even if the Secretary of State cannot say so today, I hope he is encouraging those behind the scenes who can make the changes to make them in a proper and timely way.

I have a couple of other points. Student housing is different. The difference in student housing has been recognised where it is purpose-built student housing in that it will be exempt from the ban on periodic tenancies. That is entirely sensible. Recently, we have seen some real pressures on student accommodation in some university cities. Last year, Manchester students were actually being encouraged to live in Liverpool, because there was not enough housing in Manchester for them. That is just one of a number of examples in relation to protecting the student market, including non-purpose-built accommodation.

Michael Gove Portrait Michael Gove
- Hansard - - - Excerpts

Briefly, I wish to declare my interest. As the parent of a daughter who is currently at Manchester University, I know exactly what the hon. Gentleman means. We will be doing everything we can.

--- Later in debate ---
Clive Betts Portrait Mr Betts
- Hansard - -

I recognise that the Secretary of State has responded to the Committee’s report, and while not allowing a complete reversal to periodic tenancies for non-purpose built student accommodation, landlords will have the right to terminate the tenancy in line with the university year—I think that is the basis of the proposal he is suggesting. That might well be a good compromise to take things forward, and I am sure the details of that will be tested further in Committee.

On the proposals for the ombudsman, the suggestion in an intervention from my right hon. Friend the Member for East Ham (Sir Stephen Timms) about having one housing ombudsman, and incorporating the private sector role into the social housing ombudsman role, is very sensible. Why do we need two separate schemes for letting agents? Why can we not have just one ombudsman covering the whole of that area? At least everyone could understand it, rather than having to think, “Which bit do I go to in order to get this grievance raised?” I hope the Secretary of State will reflect on that point, which was simply made, to ensure that the process of redressing grievances works better.

Members of the Committee welcome the basic principle of the changes proposed by the Secretary of State, and we want them to be implemented as quickly as possible. We hope he will continue to listen to those recommendations that he has not yet indicated a willingness to accept.

--- Later in debate ---
Rachel Maclean Portrait The Minister of State, Department for Levelling Up, Housing and Communities (Rachel Maclean)
- View Speech - Hansard - - - Excerpts

It is a huge pleasure to deliver the closing speech today on the Second Reading of the Government’s Renters (Reform) Bill, and I begin by thanking Members across the House for their valuable, thoughtful and knowledgeable contributions to the debate. I have enjoyed and noted the contributions from my hon. Friend the Member for Dover (Mrs Elphicke), the hon. Member for Sheffield South East (Mr Betts)—the Chair of the Select Committee —my right hon. Friend the Member for Calder Valley (Craig Whittaker), the hon. Member for Westminster North (Ms Buck), my hon. Friend the Member for Milton Keynes North (Ben Everitt), whom I thank for all his work across a range of all-party parliamentary groups, the hon. Member for Liverpool, Riverside (Kim Johnson), my hon. Friend the Member for Cheadle (Mary Robinson), the hon. Member for Sheffield Central (Paul Blomfield)—I would be very happy to meet him and his APPG—and my hon. Friend the Member for North Norfolk (Duncan Baker), who will know about all the work we are doing to help address the second home issue in his constituency. He has spoken to me about that on a number of occasions.

I also thank the hon. Member for North Shropshire (Helen Morgan) for the support from the Liberal Democrat Front Bench. I declare an interest similar to that of my right hon. Friend the Member for Gainsborough (Sir Edward Leigh), as I have four children in their 20s who are renting in London. I know at first hand of the issues that they and their friends face, and that is why I am so convinced that this Bill is the right thing to do for the next generations of our children and grandchildren.

Clive Betts Portrait Mr Betts
- Hansard - -

The Minister’s children are in their 20s, but we want to make sure that they are not in their 30s before the Bill actually comes into effect, so will she give us a clear time when the courts will be ready for the Bill to be active in the Government’s view?

Rachel Maclean Portrait Rachel Maclean
- Hansard - - - Excerpts

I will come on to that precise point, if the hon. Member will allow me.

I want to thank the hon. Member for Battersea (Marsha De Cordova), my hon. Friend the Member for Poole (Sir Robert Syms), the hon. Member for Liverpool, West Derby (Ian Byrne) and my hon. Friend the Member for Don Valley (Nick Fletcher), whom I will be happy to meet again, as requested. I also thank the hon. Member for Coventry South (Zarah Sultana), my hon. Friend the Member for Guildford (Angela Richardson) and the hon. Member for Dulwich and West Norwood (Helen Hayes). I am deeply concerned about the case she has raised with me and will continue to work with her. I thank my hon. Friend the Member for Totnes (Anthony Mangnall), the hon. Members for Stretford and Urmston (Andrew Western), for Brighton, Kemptown (Lloyd Russell-Moyle), for Blaydon (Liz Twist), for Brighton, Pavilion (Caroline Lucas) and for Putney (Fleur Anderson), and the right hon. Member for Hayes and Harlington (John McDonnell).

It is right to say at this point that we are committed to honouring the manifesto commitment that we made in 2019 to create a private rented sector that works for everyone and to level up housing quality in this country. I am grateful to all hon. and right hon. Members who continue to engage constructively with us on the provisions in the Bill so that we can deliver the change needed to create a fairer rental market for both tenants and landlords. Of course, I echo the sentiment of my right hon. Friend the Secretary of State, who said in his opening remarks that we will continue to work closely with Members to further hone and refine this legislation as it is put on the statute book.

Renters (Reform) Bill

Clive Betts Excerpts
Clive Betts Portrait Mr Clive Betts (Sheffield South East) (Lab)
- Hansard - -

Will the Minister assure us that proper energy efficiency standards will be contained in the decent homes standard? Otherwise, tenants will still be living in damp and cold homes because they will be unable to afford to heat them.

Jacob Young Portrait Jacob Young
- Hansard - - - Excerpts

I commit to working with the Chair of the Levelling Up, Housing and Communities Committee, and indeed with all Members of the House, to ensure that the decent homes standard provides for decent homes of the kind that he describes.

This is the first time we have applied the decent homes standard to the private rented sector, and we have to get it right. In order to target the minority of unscrupulous landlords, in Committee we also gave stronger powers to local councils, and we strengthened rent repayment orders. That will help to ensure effective and proportionate enforcement of the new system.

Let me turn to the Government amendments that we have tabled on Report. They respond to concerns from Members, constituents, and tenant and landlord groups, ensuring security for tenants while giving confidence to good landlords and supporting the private rented market. Several Members from across the House have played a direct role in helping us to ensure that the Bill works as effectively as possible for all those who live and work in the private rented sector. I of course include in that my hon. Friends the Members for Totnes (Anthony Mangnall) and for Northampton South (Andrew Lewer) for their continued engagement and constructive dialogue on the measures in the Bill.

--- Later in debate ---
Jacob Young Portrait Jacob Young
- Hansard - - - Excerpts

My hon. and learned Friend is absolutely right. We have committed to making the assessment, so we will ensure that the relevant funding is in place. I have said that we have invested £1.2 million for HM Courts and Tribunals Service to deliver a new end-to-end online possession process, but I am pleased also to confirm to him today that we are investing a further £11 million this financial year to deliver a new digital system.

Clive Betts Portrait Mr Betts
- Hansard - -

The Minister has tried to blame the Levelling Up, Housing and Communities Committee for this delay by saying that we noted that there was a problem in the courts, which would need to be ready to deal with the extra work caused by the abolition of section 21. However, the Government have had five years to sort the courts out and get them working properly. Surely that has been planned for right from the last election. On the Select Committee asking for improvements to the courts, I just point out that we asked for a specialist housing court—a bit like a small claims court—that could process things more quickly. We did not ask for that in our report last year; we asked for it in 2018, and the Government rejected it.

Jacob Young Portrait Jacob Young
- Hansard - - - Excerpts

I think I have been quite clear that it is important that we see that the courts are ready for these reforms. The Under-Secretary of State for Justice, my hon. Friend the Member for Finchley and Golders Green (Mike Freer), is here on the Front Bench with me. He and the MOJ are working at pace to ensure that the courts are ready for the reforms we are introducing. The hon. Member for Sheffield South East (Mr Betts) asks about a specialist housing court. We do not believe that that is the best way to improve the court process for possession—a view shared by the judiciary who responded to our call for evidence.

--- Later in debate ---
Rosie Winterton Portrait Madam Deputy Speaker (Dame Rosie Winterton)
- Hansard - - - Excerpts

Order. Before I call the next speaker, I inform the House that I will be giving priority to those Members who have amendments down, so that they can speak to them before we hear from others. I call Chair of the Levelling Up, Housing and Communities Committee, Clive Betts.

Clive Betts Portrait Mr Betts
- View Speech - Hansard - -

It is disappointing that we are having to focus primarily on the Government back-pedalling on the timetable for the abolition of section 21. The Levelling Up, Housing and Communities Committee looked at this a year ago and concluded unanimously that the principle of the Government’s intention was right. We had some reservations and caveats, and we raised concerns and suggested detail changes, but nevertheless we agreed on the principle. Generally speaking, there is agreement across the House that it is the right thing to do.

In the meantime, people are living in uncertainty in private rented housing. That is why we thought it was the right thing to do. That is what the measure is for: to give people greater certainty about where they will be living in a year’s time. It is not merely that; it is also so that they know, if they do not have a car, that they can get on the bus to their place of work in the morning—if the landlord evicts them and they have to move home, will they be able to get to that job in the future? It is also about children at school: will those children be able to get to the same school if they are evicted from their home and have to find a new property? That is the sort of family certainty that the abolition of section 21 will introduce. So many families are living in uncertainty—not just housing uncertainty but other uncertainty—while we await that abolition. The Minister needs to get on with it and give us some clear time commitments on when it will happen.

We have just discussed the problem of the courts. Of course, covid has affected lots of public services, but I say to the Minister that it is not a surprise. If we look at how long it was taking local authorities to get court hearings to deal with antisocial behaviour cases before covid, we see even then that those ran into months. It has been a problem in the courts for many years. That is why the Committee has suggested—it has been suggested before—a housing court system. I know that Ministers do not want it and that the Ministry of Justice does not want it, but it seemed to us a way of resolving what are often simple or quick problems. A small claims court format could do it in many cases without the need for lawyers to be introduced. I am sorry, but I have no conviction that, with several months of looking at this, several years of contemplation and plans for action, the courts will be any quicker in two or three years than they are now. The court system has delays, and they are likely to remain, so we need to look a bit beyond the existing system to resolve these problems. Obviously, Ministers have set their minds against that.

I turn to the other main problem that we highlighted on implementation: local authorities and their staff. We know that local authorities are desperately short of staff for enforcement in the private rented sector. Once section 21 goes, tenants who are currently frightened—even those living in appalling damp properties—to make complaints against their landlords, because they are concerned they would be evicted as soon as a complaint is made, will feel emboldened to make that complaint, and if their complaint is not listened to, they will be emboldened to go to their local authority and ask for help. Local authorities will get more requests for help, and they have not got the people to deal with that.

Will the Minister assure us that he is starting to talk to the Local Government Association about the new burdens that will be placed on local authorities—this is a new burden that we are imposing on them, albeit a good one—and that there is some agreement on the resource that will be needed? Resources do not produce extra staff overnight, so local authorities will need advance warning so that we have the staff in place to respond quickly.

Anthony Mangnall Portrait Anthony Mangnall (Totnes) (Con)
- Hansard - - - Excerpts

I apologise for interrupting the hon. Gentleman. Given the important point he is making about redress for tenants and who they might go to, would he add any comment on consumer protection for unfair trading, which is one of the remedies for those who have difficulties with either the standard and quality of their property or the landlord, as well as those who have been mis-sold for a rental period?

Clive Betts Portrait Mr Betts
- Hansard - -

I think the reality is that local authorities are generally short of resources right through, as the Committee’s recent report on local authority funding—again, it was unanimously agreed—showed. Because of the demands of social care on local authority budgets, other services are often cut even more than the mainstream. We have previously looked at trading standards and consumer protection, which are an important element—the hon. Member is absolutely right—and I hope that they will be factored in when we have the new burdens discussions.

There are some things that the Minister could resolve fairly quickly. He referred to the important role that the ombudsman can play in resolving disputes. There is sometimes a bit of a conflict between whether someone goes to the ombudsman or to the courts—sometimes, the ombudsman will not deal with a case if it is in the courts. It would be helpful to clarify those issues. But why does he not just decide that the housing ombudsman, who currently deals with social housing issues, will also deal with private sector housing? He should make that decision. Again, if the ombudsman is to have that responsibility, it needs to gear up by starting to recruit more staff and getting in resources to be able to do it. It is a simple decision. He has not ruled it out, but he has not ruled it in. Can we not just do it? It seems obvious. Why set up another body, which would have to start from scratch, when the ombudsman has the skills to do it? Those skills are slightly different in some cases, but why not let it get on with that, and tell it now that it will have that job to do?

I have a couple of other points. The property portal is a really welcome development. We know that when someone is trying to track down a landlord—it is often a local authority, which wants to serve a notice on them—suddenly, the ownership of the property moves, and a different member of the family becomes an owner, or a different company is set up. To know who owns the property, information will have to be given to the property portal, along with all other information about the property. That is a really important step forward, as well as making sure that the portals are digitised so that the information can be kept up to date simply.

I welcome the Minister saying that selective licensing and the property portal are not the same thing, with the property portal to be there for all properties. Selective licensing—it is in the name—will be there for some properties. When there is a review of selective licensing and the relationship with the property portal, will the proposals come back to the House for consideration at some point? I want reassurance on that. Many of us support selective licensing, which we see operating against the worst landlords and the worst properties, and we hope that there will not be a diminution of those powers and responsibilities that would weaken what it can achieve.

Jacob Young Portrait Jacob Young
- Hansard - - - Excerpts

I can certainly commit to working with the hon. Member and his Committee when we are at the point of making a decision on where we go after such a review. I completely agree that selective licensing has its role—it is not overtaken by the property portal—but we must ensure that the two work together.

Clive Betts Portrait Mr Betts
- Hansard - -

That is a helpful assurance, which I accept, and I think he has already given assurance of similar collaboration on the decent homes standard, which is appreciated.

Finally, I come specifically to some complicated amendments that I have tabled—I admit that they even confuse me on occasions—which are about the powers that social landlords have when they come to regenerate areas. The Committee has heard some pretty awful examples of poor properties in the social housing sector, and we have been critical. However, often it is not an individual property that is the problem, but properties in deck-access blocks built in the ’60s, ’70s or ’80s. The property has reached the end of its life and people do not like living there: it might have damp or other problems, such as antisocial behaviour. The management costs are high and the cost of regeneration, making it fit for purpose and bringing it up to decent homes standards, is so great that it is not worth spending the money. In some cases demolition and rebuild is needed, and in others substantial regeneration and improvement is needed, and that means the tenants have to move out.

In those cases, social landlords need to be certain that they have the power to require tenants to move, because in a block of properties of 100 residents, 95 of them will probably be terribly enthusiastic about moving out, particularly if they are going to get a new or refurbished home, but the other five might dig their heels in and try to stick it out, holding up the whole scheme. The Minister believes that social landlords have the power to do that under existing legislation. I have tabled amendment 52 and the related amendments because the National Housing Federation is concerned that social landlords think they have powers, but they do not exist where the initial tenancy with their secure tenant was set up by a nomination from a local authority. It is a complicated legal issue, but an important one.

--- Later in debate ---
Jacob Young Portrait Jacob Young
- Hansard - - - Excerpts

The hon. Gentleman makes legitimate points, and I am more than happy to meet him and the National Housing Federation.

Clive Betts Portrait Mr Betts
- Hansard - -

I thank the Minister for that response. On that collaborative point, I will end my contribution.

Natalie Elphicke Portrait Mrs Natalie Elphicke (Dover) (Con)
- View Speech - Hansard - - - Excerpts

I am very pleased to follow the Chair of the Levelling Up, Housing and Communities Committee, on which I sit. He expressed very well the importance of the section 21 reforms, in particular to families and to renters who are so reliant on them.

My view is that the Bill does not go far enough in dealing with the fundamental challenges of the private rented sector, which is no longer a flex or transitionary tenure but the main tenure for millions of people for much, if not all, of their lives. There has been a long-term structural shift away from social renting and home ownership into an expanded private rented sector. That shift needs to be addressed by building more homes—affordable homes and for first-time buyers—and by finding a new balance that reflects the new reality for millions of people in our country.

Sadly, the original principle of the Bill, which was to create a fair and responsible new rented sector, has been undermined by the Government’s amendments. That change of position undermines not just the Bill but the very manifesto commitment on which the Conservative Government were elected in 2019.

Turning to the amendments and new clauses that stand in my name, new clause 39 would require a landlord to make a relocation payment to the tenant if the tenant is evicted within two years of the start of the tenancy, other than on exempted grounds such as antisocial or criminal behaviour. Evidence from Shelter and Generation Rent shows that unrecoverable costs—the wasted cost to the renter of an unwanted move—can be between £700 and £1,700. My new clause proposes that a payment would be made by the landlord in recognition of those unrecoverable costs to the tenant. Being evicted places a great emotional strain on tenants, who find themselves in insecure housing. It should not place them under a financial strain as well.

Amendment 257 would amend ground 12—possession due to a failure to carry out an obligation of the tenancy—in schedule 2 to the Housing Act 1988, setting out the grounds for possession. That provision will gain much greater importance following these changes, for it is the catch-all provision for evictions. The amendment is intended to address the risk of being served a notice for eviction for trivial matters, such as hanging up washing outside, displaying a poster on a wall, or a teenager putting up a poster with Blu Tack. Those are real examples written into existing tenancy agreements by letting agencies that are members of their relevant professional bodies. Amendment 257 would provide that ground 12 could be used only for material breaches, not for Blu Tack.

The Minister has written to me to say that there were landlords who wanted to make the ground 12 position mandatory. These are landlords who want to be able to serve notice and evict tenants for using Blu Tack. In my book, if you are to lose your home it should be for a serious reason, not for Blu Tack or hanging the washing outside or any other trivial thing. All the more so, because we know that the majority of evictions take place when notices are given to the tenant without court applications, let alone court repossession orders.

The Law Society has raised the issue of the scarcity of legal advice available to tenants across the country. We have heard already today that the Government have not yet produced even working drafts of what the new forms might be for the new eviction grounds. That also matters, because at the moment the court forms require the ground to be set out in the document. They do not require, for example, for that to specify whether it is in fact a discretionary or other ground for the courts. So this does impact directly on tenants’ understanding and ability to challenge their potential eviction. As such, the Government’s position, which is to allow ground 12—the Blu Tack ground—unamended, is to invite every landlord to invoke spurious and unfair reasons for evictions. This is apparently not the intent of the Bill. I am grateful to the Minister for his engagement with me on that ground. I ask him to reconsider that position and see what more can be done to ensure that ground 12 applies only in relation to serious matters. That seems much more reasonable, and fair to landlords and tenants alike.

On Government new clause 30, when I spoke to major landlords recently, they confirmed that they are not yet ready to digitise. They are not yet ready to put in place and work with the very provisions for which they have so strongly advocated. I understand that it might take some more than two years to put their own systems in place to engage with the new measures they have asked for. Meanwhile, and after all this time—nearly five years—the Government have no detailed plans about what these court changes might be. In November, in Committee, the Minister denied that this was a delaying tactic. However, since then the Ministry of Justice has published its digitisation and reform programme all the way through to 2025. There is absolutely no reference—not even an indicative reference—to this reform programme relating to repossessions. I asked the House of Commons Library for assistance, but it too has been unable to find any specific reference to the changes that may come up in the court process. So I am afraid that the truth is that new clause 30 is a delaying tactic to benefit landlords.

As has been mentioned, the Levelling Up, Housing and Communities Committee has written to the Minister on the implementation of these measures. It has been noted by the Committee that court guidance is already in place to deal with repossession claims in a timely manner. They are contained already in civil procedure rules 55.5. Of course, the courts can always be improved—indeed, it is most welcome that there is a commitment that they should be so—but it should be noted that the Ministry of Justice’s data shows that last year the target set out for repossession has, in fact, been met. The courts’ performance in landlord repossession cases stands in marked contrast, in the recovery since covid, to many other court backlogs.

That was confirmed in written evidence to the Justice Committee. I am grateful to the Chair of the Justice Committee, my hon. and learned Friend the Member for Bromley and Chislehurst (Sir Robert Neill)—he is not currently in his place—for whom I have the greatest respect. I note that in the written evidence to that Committee, the MOJ confirmed, just in September, that 95% of courts were meeting that target. I understand that the much larger number of weeks to which my hon. and learned Friend referred may relate to personal injury and other matters that were brought before the Committee, but I will discuss that with him later, given that he is not currently in the Chamber.

These are important reforms and it is important for the court processes to work in the right way, but they are working within their current targets, in marked contrast to other court backlogs. That is why new clause 30 is not necessary, and is properly considered to be a delaying tactic.

This is a Bill that the 2019 Conservative manifesto promised would benefit tenants, but it has become a Bill in which the balance too often favours the landlords, particularly if it includes new clause 30, which could indefinitely delay the abolition of section 21 no-fault evictions. That would be nothing short of a betrayal of the promise that was made in 2019, and for that reason I am unable to support the new clause.

--- Later in debate ---
Anthony Mangnall Portrait Anthony Mangnall
- Hansard - - - Excerpts

I come at it from a different angle: we are heaping so many rules and regulations on people, and making things so difficult, they are leaving the market as a result. This was one of the pioneering policies of Thatcher, bringing in the idea of the free market in property, and ensuring that millions of people across the country could realise the social value of having a buy-to-let property on a long-term basis. The hon. Lady will not agree with me; I do not think that we agree on very much. That is okay; it is good to be able to debate the issue, especially in this Chamber.

We must be honest about this: removing fixed-term tenancies is essentially the state telling individuals what they can and cannot do with their own private properties. It is conceivable to remove section 21 while retaining fixed-term tenancies. I have said that the Conservatives have long prided ourselves on being the party of free markets, and we should keep that in mind when we vote later. We are sending completely the wrong message, with dire consequences for future levels of housing supply. We are making an enormous mistake, which will reduce long-term lets in favour of short-term lets and result in many properties being taken off the rental market. I would hate to be back here, having to repeat the figures that I gave at the start of my remarks—in 2019, there were eight people for every one property; now there are 25—and say that the number is going up and up. I fear that, as a consequence of the Bill, that will happen.

Clive Betts Portrait Mr Betts
- Hansard - -

The hon. Gentleman seems to be in favour of abolishing section 21, but then giving landlords the right to bring in fixed-term tenancies, which end with a section 21 notice. If the landlord chose, therefore, section 21 would not be abolished, would it? It would be a figment of our imagination here, because in practice it would never be delivered with his proposal.