Section 21 Evictions

Debate between Kevin Hollinrake and Matthew Pennycook

Tuesday 25th October 2022 Westminster Hall

[Matthew Pennycook (Greenwich and Woolwich) (Lab)]

It is a pleasure, Ms Nokes, to serve with you in the Chair.

This has been an important and timely debate because, as we have heard in the many excellent contributions this afternoon, the problems inherent in a sector that for far too many renters has always been characterised by insecurity, high rents and poor conditions, have become far more acute over recent months, as those renting privately struggle to cope with the impact of high inflation and rising prices.

I start by congratulating my hon. Friend the Member for Liverpool, Walton (Dan Carden) on securing the debate and on the characteristically powerful way in which he opened it. He always speaks with strength and clarity on behalf of his constituents and he did so again today, making a powerful case that overhauling the private rented sector in Liverpool and across the country is a matter of the utmost urgency.

I also thank my hon. Friends the Members for West Ham (Ms Brown), for Wirral West (Margaret Greenwood), for York Central (Rachael Maskell) and for Hammersmith (Andy Slaughter), as well as the hon. Members for Strangford (Jim Shannon) and for Bath (Wera Hobhouse), for their excellent contributions. Although there are common problems and solutions, I am always mindful of the fact that there are different “geographies” of renting and challenges that are specific to certain parts of the country. The debate usefully highlighted that point.

Doubtless it was not the choice of my hon. Friend the Member for Liverpool, Walton, but when I read the title of this debate late last week it struck me as somewhat odd, given its implicit suggestion that the merits of ending section 21 evictions are still essentially being contested. While there are, of course, those who remain resolutely opposed to reform of any kind, the reality is that there is now a broad political consensus on the need to ban these so-called no-fault evictions. It is obvious why such a consensus exists. As things stand, and as we have heard again today, landlords can evict tenants, after giving as little as two months’ notice, at any point after their fixed-term tenancy has come to an end. They do not have to give a reason for doing so, or even have one.

As a result, large numbers of private renters live day to day in the knowledge that they could be uprooted with little notice and minimal justification, if any. With the threat of summary evictions hanging over them, a significant proportion of those people concentrated at the lower end of the private rental market, who have little or no purchasing power, have to put up with appalling conditions for fear that a complaint will lead to an instant retaliatory eviction. Far too many tenants are evicted each year using a section 21 notice, which is why it is a leading cause of homelessness in England. Abolishing section 21 no-fault evictions is therefore long overdue and will give private renters much-needed security in their homes.

The available evidence also suggests that scrapping section 21 is likely to provide private renters with greater certainty and control over their lives without any corresponding detrimental consequences—unintended or otherwise—or disruption. I draw the attention of the hon. Member for Thirsk and Malton (Kevin Hollinrake) to research carried out by Shelter into the impact of the effective abolition of no-fault evictions in Scotland, following the introduction of new private residential tenancy agreements there in 2017. It found that the measure had no discernible impact on either the size or functioning of the private rented sector there, or on increased levels of homelessness.

[Kevin Hollinrake]

I add my thanks to the hon. Member for Liverpool, Walton (Dan Carden) for bringing forward the debate. He raised some good points at the start of his speech, which we should consider.

The hon. Member for Greenwich and Woolwich (Matthew Pennycook) might be interested to know that, in the past year, UK rents have risen fastest in Scotland. If he was including me among the people who do not want any reform, then he should not: I absolutely do want to see reform. I would like to see property rental standards that landlords must adhere to, and reforms of the section 21 process, but just not the abolition we are talking about today.

[Matthew Pennycook]

I deliberately did not assign to the hon. Gentleman a blanket position of “no reform”, but I think that, on this point, he is fundamentally wrong. We need reform, on section 21 and more widely; I will come on to that point.

That research for Shelter is telling because the predictions made by landlord groups in Scotland prior to the introduction of PRT agreements, including that they would kill the sector entirely, have ultimately not come to pass. We should have that at the forefront of our minds when vested interests in the English sector warn of the dire consequences of renters reform.

We in the Opposition still appreciate that good landlords may still harbour concerns about how reform will impact them. We recognise that when section 21 evictions are finally abolished, landlords will need recourse to robust and effective grounds for possession in circumstances where there are good reasons for taking a property back—for example, anti-social or criminal behaviour. We also share the sector’s concern about how ongoing delays in court proceedings could impact on a landlord’s ability to make use of such grounds. However, it is a welcome sign that most landlords and landlord associations now appreciate that greater security and better rights and conditions for tenants are the future of the lettings sector.

When it comes to reforming the private rented sector, scrapping section 21 evictions is obviously not the end of the matter. Among a wide range of necessary measures, we need action on standards to address the shameful fact that one in five private rented homes does not meet the decent homes standard, and one in 10 has a category 1 hazard posing a risk of serious harm. We need changes to landlord-to-tenant notice periods and a national register of landlords. We must make it illegal for landlords and agents to refuse to let to renters claiming benefits, and we need effective measures to address unreasonable within-tenancy rises.

Those go alongside other reforms that are desperately needed. As my hon. Friend the Member for York Central will know, we have argued for many months in the Levelling-up and Regeneration Bill Committee that the Government must act with far more urgency on the growing short-term and holiday lets sector. That is why Labour has made clear that, in Government, we will introduce a new renters’ charter, a new statutory decent homes standard, and take action on short-term and holiday lets.

Thankfully, there is significant consensus across the Chamber on the need to reform the sector more fundamentally, and a number of the measures that I have just outlined were in the White Paper published by the Government earlier this year. The problem is that, as things stand, not only do we not have any firm parliamentary timeline for a renters reform Bill, but, given the disarray within Government, we do not even have the certainty that one will ultimately come forward in this Parliament or, if it eventually does, that it will contain all the proposals set out in the White Paper. As such, I would like to use the opportunity presented by this debate to ask the Minister two simple questions to which private renters following our proceedings will expect answers.

First—as many hon. Members have asked today, and as I have asked many times without receiving a satisfactory answer—when do the Government plan to finally introduce a renters reform Bill? It was in the Conservative party manifesto, so presumably the Government intend to have it secure Royal Assent before the end of this Parliament. However, the Minister must appreciate that private renters facing a difficult winter cannot wait until 2024 for the Government to act. If they introduced emergency legislation, we would support it, but private renters deserve at least some assurance today that the Government will make that a priority.

Secondly, can the Minister confirm that if and when it is finally published, the promised renters reform Bill will contain all 12 of the proposed reforms set out in the White Paper? The last piece of legislation that fundamentally altered the relationship between landlord and tenant in England was the Housing Act 1988, but, as my hon. Friend the Member for Hammersmith rightly made clear in incredible detail, the private rented sector has changed beyond recognition in the more than three decades since that legislation was put on the statute book. It is simply no longer possible to regard its role as primarily a residual tenure for those temporarily unable to access owner occupation or social housing.

Some 11 million people now rent from a private landlord. As well as the young and mobile, the sector now houses many older people and families with young children, for whom greater security and certainty is essential to a flourishing life. At the end of the day, that is what we need to be thinking about here—not the price of housing or the commodification elements involved in the sector. To ensure that private renters get a fair deal, we in this place need to transform how the private rented sector is regulated and level the playing field between landlords and tenants.

As hon. members have said, it is now well over three years since the Conservative Administration of the right hon. Member for Maidenhead (Mrs May) promised to abolish section 21 no-fault evictions. In that time, over 45,000 households have been threatened with homelessness as a result of section 21 evictions, and the figures released so far this year suggest that possession claims resulting from them are increasing markedly as the cost of living crisis intensifies. It is high time that the Government stopped talking a good game about renters reform and got on with legislating for it, and the Minister needs to make it clear this afternoon that they will do so.

European Union (Withdrawal) Bill

Debate between Kevin Hollinrake and Matthew Pennycook

Tuesday 12th June 2018 Commons Chamber

[Matthew Pennycook]

I disagree with the hon. Gentleman. Crashing out of the European Union without a deal is exactly what this amendment is designed to prevent. [Interruption.] Yes, it is.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

Will the hon. Gentleman give way?

European Free Trade Association

Debate between Kevin Hollinrake and Matthew Pennycook

Wednesday 7th February 2018 Westminster Hall

[Matthew Pennycook]

In a sense, the hon. Gentleman reinforces my point, which is that the realistic debate that we should be having is about the EEA/EFTA option. I do not think that the other options are particularly practical or desirable, for a variety of reasons, so that option—the EEA/EFTA one—is what we should concentrate on.

When it comes to the EEA/EFTA model, the Opposition recognise that it undoubtedly has a range of advantages.

[Kevin Hollinrake]

Earlier in his remarks, the hon. Gentleman mentioned the customs union. Is it the Opposition’s policy that we must remain in the customs union?

[Matthew Pennycook]

The Opposition’s policy is that a full customs union with the EU remains on the table; it should be an option that we explore, and I will come to the reasons why.

Despite the advantages that EFTA provides, it also has some inherent limitations. One of the most serious, which we have to grapple with if we are going to seriously consider and debate the advantages of the EEA/EFTA model, is what it would mean for the border in Northern Ireland. Unless that model is complemented with a customs union or customs arrangement of some kind, I do not necessarily think that EFTA alone would solve the problem in Northern Ireland.

That is because the agreements that the EFTA members have struck with third countries involve the collective dropping of tariffs. I do not think that those agreements can be supplemented with a customs union or customs arrangement in a way that would solve the problem in Northern Ireland. Earlier, the right hon. Member for Meriden (Dame Caroline Spelman) mentioned agriculture. There are issues within EFTA where there is explicit freedom to diverge, which I think makes the Northern Ireland border situation complicated, and it is certainly not clear that it would be solved by straight-up EFTA membership.

In addition, there are the concerns that have been raised about freedom of movement and payments into the EU budget. Neither of those issues is insurmountable, but we need to have a really honest debate about how we would reconcile the concerns that were raised in the referendum, and that undoubtedly lay behind the vote in the referendum, and the economic conditions that are required in the country going forward.

There are also very practical reasons why the EEA/EFTA option could be challenging. It is clear to me that the majority of the legal opinion on this shows—Professor Baudenbacher would say this himself—that the UK ceases to be a member of the EEA when we leave the EU. We cease to be a contracting party; article 1.26 of the EEA agreement says that very clearly. It is not clear—this needs further explanation—whether we could seamlessly join EFTA in a way that allows us to remain a member of the EEA agreement continuously. As a number of hon. Members have said, there are also real questions about whether the EFTA states—in particular, Norway—would be happy to have us join.

Housing and Planning Bill (Tenth sitting)

Debate between Kevin Hollinrake and Matthew Pennycook

Tuesday 1st December 2015 Public Bill Committees

[Kevin Hollinrake]

Part 4 of the Bill aims to address the simple problem of supply and demand, which of course controls the housing market. We are simply not building enough homes. The United Kingdom needs 230,000 homes a year. We have seen huge improvements over the past five years: 88,000 homes were started in the depths of the housing recession and there were 136,000 housing starts in England in 2015—a 56% increase. Planning permission consents numbered more than 240,000, so there has clearly been great progress along the track towards building more homes.

[Matthew Pennycook]

Is the hon. Gentleman at all concerned by the Office for Budget Responsibility’s downward revision of its estimate for new homes to 185,000? The estimate is down 34,400 since the election.

[Kevin Hollinrake]

There is no doubt that, in my constituency alone, we have seen a 100% increase in the amount of building in 2015 versus 2014. If the hon. Gentleman looks at his figures, I am sure he will see a similar increase in his constituency. Has he looked at his figures? There is no doubt that the data on the direction of travel in my constituency and many others like it are very clear—there is a 56% increase. Planning consents are increasing, too, but there is more to be done. The Bill is about releasing more land, particularly brownfield land, and expediting the whole planning process to ensure that local authorities properly staff their planning departments. The Bill allows planning in principle, giving developers more certainty about the land they are acquiring so that they can build properties on that land.

The other key thing that we need to address in the housing market is affordability, and of course those challenges are about lack of supply, which we also hope to address with some of the measures in the Bill. Owner-occupation has fallen in recent years, largely due to the recession, and it is something that we desperately want to address. I was lucky enough to buy a home in my early 20s, and I imagine that most people in this room own their own home. Why should we lock people out of that opportunity to own their own home? The Bill contains provisions on starter homes and, as in this clause, on voluntary agreement on right to buy. It is absolutely right to use our public assets more efficiently and effectively, and to release them to allow more building. Opposition Members have asked several times whether the affected homes will be replaced, and time and again we have seen evidence showing that the answer is yes.

--- Later in debate ---

[Kevin Hollinrake]

Absolutely. Many of the provisions in the Bill that we have discussed, such as planning in principle for starter homes, will help to solve that problem.

[Matthew Pennycook]

The hon. Gentleman mentioned Riverside Housing, which said in its written submission that

“one for one replacement will be very challenging”.

Does he think that that is wrong and that the organisation will ultimately be able to provide one-for-one replacement, or are we talking about replacement in different areas, across different tenures?

[Kevin Hollinrake]

Challenging does not mean impossible. There are great challenges in the housing market and we need to rise to those challenges. As for one-for-one replacement, I feel that replacement is the wrong term: it should be an addition. It is an additional home, because the people who are buying that home were previously renting, and were locked out of the housing market with no prospect of getting on to the housing ladder. They are buying that home and will still live in that home. They will benefit from the place where they have lived, and most of them will live in that home for many years to come.

Housing and Planning Bill (Third sitting)

Debate between Kevin Hollinrake and Matthew Pennycook

Tuesday 17th November 2015 Public Bill Committees

[Matthew Pennycook]

Q 225 We know that effective place making requires decent infrastructure. Do you have concerns, if starter homes are exempt from the community infrastructure levy, that the necessary infrastructure to build sustainable communities will not be there?

Mike Kiely: Almost certainly. It seems an odd public policy to take money away from necessary infrastructure and subsidise a five-year reduction, and then that individual gets the benefit of that public subsidy. When you set your CIL, there is always a huge gap between the moneys that you can bring in through section 106 and CIL and the necessary infrastructure bill. It is always a challenge to provide the infrastructure, and we need to try and get as much money as we can into the public purse to deliver that supportive infrastructure. This will clearly reduce that, and will mean we are less able to provide the schools, highway improvements or whatever that facilitate the functioning of communities. It will be harder for us to do that.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

Q 226 Ms Alafat, you mentioned in your submission the need for local planning and development teams to have more resources. Do you not feel that the changes contained in the Bill on the planning system—to require a local plan by 2017, to make time timely decisions, and on planning in principle—will effectively ensure that local authorities properly provide the resources for their planning departments and prioritise that to ensure economic development?

Terrie Alafat: As Trudi has already mentioned, the reality is that local authority planning departments have been under significant pressure already. It is worth thinking about the implementation of this, given how important planning is, to try to make certain that we have the right resources at local level, but also the right skills. I think that is an important implementation issue. In terms of the Housing and Planning Bill, there are other very good measures being taken—for example, in the private rented sector—that require local authorities to do more on enforcement, but we need to look at the resourcing of that as well.