Source · Select Committees · Housing, Communities and Local Government Committee
Recommendation 4
4
We call on the Government to publish an exit plan for the private rented sector...
Recommendation
We call on the Government to publish an exit plan for the private rented sector from national and local restrictions. Now the Government has published its roadmap for how to exit national restrictions, hopefully for the final time, it should set out how it intends for the sector to transition out of the pandemic.
Government Response
Acknowledged
HM Government
Acknowledged
Protecting renters from eviction The Government has introduced an unprecedented set of measures to prevent people from losing their homes as a result of the COVID-19 pandemic. Measures taken included a six month stay on possession proceedings, restrictions on bailiff enforcement and a requirement for landlords to give tenants longer notice periods before starting possession proceedings in most circumstances. New court rules require landlords to set out any information they are aware of in relation to how their tenant, or any dependant of their tenant, has been affected by the coronavirus pandemic when bringing a possession claim to court. A new review date, four weeks before the substantive hearing, has been introduced, which enables tenants to access advice earlier. The data shows that our package of support has, and is, preventing evictions. The Ministry of Justice reported that applications to the courts for possession by private and social landlords between January and March 2021 were down 74% compared to the same quarter in 2020. And only 812 repossessions were recorded between April 2020 and end March 2021 compared to 29,347 over the same period in 2019-202. It has been necessary to be responsive to the evolving public health situation and make important decisions at pace. We recognise that this resulted in a number of extensions to the COVID-19 measures to protect renters. We needed to respond to the public health context and the legislative powers related to preventing the transmission of the virus. It was not possible to say what the public health advice might be significantly into the future. We have kept the situation under constant review and responded in a way that is fair to tenants and landlords and ensures the ongoing stability of the private rented sector. Definition of substantial rent arrears In January 2021, we redefined the definition of substantial rent arrears to rent arrears of more than six months within the regulations restricting bailiff enforcement to balance the impact of the ongoing restrictions on landlords with the need to continue to protect tenants. This is important to the ongoing health and stability of the private rented sector. Many landlords have mortgages on their properties and although mortgage holidays have been available, in the longer-term their situation could become untenable, disrupting the market. It is not helpful to either the tenant or the landlord for the tenant to remain in a property that they cannot afford, accruing more arrears. The English Housing Survey Household Resilience Study (Wave 2) found that in November- December 2020, the vast majority of private renters (91%) were up to date with rent payments and that two-thirds of those who were in arrears have fallen less than two months behind in their payments. The majority of tenants would therefore be protected by the restrictions on bailiff enforcement. Even where an exemption does apply, bailiffs will not carry out an eviction if they are made aware that anyone living in the property has COVID-19 symptoms, is self-isolating or has been identified as Clinically Extremely Vulnerable. Tenants are also able to apply to suspend an eviction where they have grounds to do so. Transition out of the pandemic Moving forward, our primary consideration remains to mitigate the ongoing risk to public health of COVID-19 transmission and reduce pressure on public services, while preparing the sector for long-term reform. In response to the improving public health situation, and the rollout of the vaccination programme, we will begin to lift emergency measures from 1 June 2021. As a first step, we will lift the ban on bailiff enforcement when the current regulations expire on 31 May 2021. Given the requirement in most cases to provide 14 days’ notice of the enforcement of an eviction, evictions are not expected to resume until mid-June, except in the most egregious cases. The restrictions on bailiff enforcement were necessary to protect public health at the height of the pandemic but they could only ever be temporary. Preventing landlords from enforcing evictions is not the best way to support renters or the rental market. It is right for landlords to be able to access justice, particularly in cases where warrants pre-date the pandemic and landlords have been waiting many months to enforce a possession order. We also want to ensure that local authorities are engaging with those tenants who need support earlier in the process than when the bailiff knocks on the door. That is why we are supporting tenants at risk of homelessness to receive the support they need as early as possible. As set out above, we have provided over £750m to tackle homelessness and rough sleeping in 2021-22. Tenants will continue to benefit from longer notice periods, giving them more time to make alternative arrangements. We will keep these protections in place until 30 September 2021 but will begin tapering down measures from 1 June 2021 so t