asked Her Majesty’s Government:
What action they propose to take to address retaliatory eviction in the private rented sector for housing.
My Lords, this Government firmly believe that tenants should be able to exercise their legitimate right to ask their landlord to carry out repairs to their property without fear of eviction. On 23 January, we announced an independent review of the private rented sector, which will look at security of tenure.
My Lords, I am grateful to my noble friend for that Answer, as far as it goes. Is she aware that I raised this matter 12 years ago from the opposition Front Bench? Private shorthold tenants can be expelled under Section 21 of the Housing Act 1988 because they ask for improvements to their property, even though under health and safety regulations they are entitled to do so. We have had 11 years of a Labour Government. Can my noble friend not do better?
My Lords, I understand my noble friend’s frustration; he has indeed championed the issue. I am absolutely sympathetic to those tenants who face what we call retaliatory eviction by unscrupulous landlords. The point was that the CAB did not come forward with this report until mid-year 2007, and we acted immediately. The then Minister, Yvette Cooper, was inspired to set up the review by Julie Rugg, because it enables us to look at the context of the issue. The CAB welcomed the review. We have to understand the scale of the problem. It is not at all clear how many people are affected. We also need to avoid unintended consequences. We need a thriving private rented sector and we need to keep good landlords in the market. That is why a systematic review is important. This is not about avoiding action; it is about getting it right.
My Lords, I declare an interest as a landlord. I welcome the Minister’s previous answer, but does she agree that the CAB recommendation to amend Section 21 of the Housing Act may well be to throw the baby out with the bathwater, especially as local authorities already have perfectly good existing powers to serve enforcement notices on owners to require them to remedy any serious repairs under the housing health and safety rating system?
My Lords, the noble Earl is right. Local authorities have those powers and we want them to use them. Part of the problem that was identified in the report is that tenants are evicted before they get a chance to see the local authority taking action. That is why we need to look at the problem, but we need to do so in the context of the condition of the private rented sector as a whole, which, although it is getting better, is still not as good as it should be.
My Lords, does the Minister accept that those of us who are keen to see a growth in private renting have desisted from talking about regulation for the past 12 years or so because we have worried that investment might dry up? In light of the fact that some £120 billion has now swamped the buy-to-let market and there are now more than 500,000 private landlords of very variable quality, perhaps the time has now come for some regulation for this sector.
My Lords, the point about rent and tenancy regulation is always to get the balance right between the rights of the landlord and the rights of the tenant. Since 1988 and the Housing Act, we have seen an increase in the private rented sector from 9 per cent to 12 per cent of the market, which is a good thing. Nevertheless, it is time that we looked conscientiously and comprehensively at this sector to see how it can be improved.
My Lords, does not retaliatory eviction by landlords constitute harassment, which is a criminal offence?
My Lords, in certain circumstances that may be the case. However, the law is quite clear that Section 21 can be used after the assured tenancy has expired, as long as the notice is served correctly.
My Lords, does the Minister agree—I am sure that she will—that the CAB is to be congratulated on what is as ever a succinct and helpful report, which includes the comment:
“Responsible landlords get no benefit from retaliatory evictions and accredited landlords have no need for them”?
Does she also agree that lessons might be taken from employment law, where an employee cannot be dismissed for trying to enforce his statutory rights? Perhaps that example could be built on in this sector.
My Lords, the CAB—particularly Debbie Crew, for whom I understand this was something of a personal crusade—is to be congratulated on the way in which this has been brought to our attention. The parallel with employment law and the law against unfair dismissal is not particularly helpful and we would be reluctant to pursue it. Again, however, Julie Rugg is looking at the whole thing and may well look at that as well.
My Lords, does the Minister remember the time when regulation was such—I declare an interest, having let property for 40 years or more—that no one was willing to let anything, and the Wilson Government imposed an absolute rent freeze, which did untold damage? Although I support the points made by the noble Lord, Lord Best, who is very well informed on this, we must be careful about what we do to ensure fairness to both parties.
My Lords, it is in everyone’s interests to get the balance right between the rights of the landlord and the rights of the tenant. That is certainly what we have been trying to do in recent years.
My Lords, are not many student tenants compromised into doing their own repairs? Is the tenant deposit scheme proving to be of any help in this area?
My Lords, I am pleased to say that the tenant deposit scheme has been a huge success. In fact, it is exactly a year since we introduced it. One million deposits have been protected in that time, which means that £885 million of cash has been safeguarded by the scheme. Many of those tenants will be students. There are areas of the country in which students are congregated and it is worth saying that, although students bring enormous economic and social benefits to those areas, we are looking at what we might do with interested local authorities and universities to identify ways in which we can ease some of the pressures in those areas.
My Lords, some of the tenants whom we are talking about will inevitably be on housing benefit. The noble Baroness will remember that the Government have a pilot scheme for removing or reducing housing benefit for those tenants who lose their occupancy because of anti-social behaviour. Can she update us on that?
My Lords, I am afraid that I cannot. It is a good question, but I shall have to write to the noble Lord.