My Lords, I have several declarations to make: I am a vice-president of the Local Government Association, chair of Heart of Medway Housing Association and a non-executive director of MHS Homes Ltd. Noble Lords will be further aware that my wife is my noble friend Lady Kennedy of Cradley, who is the director of Generation Rent.
In moving this regret amendment today, I make it clear that I do so as the official Opposition spokesperson for housing and local government, and not in a personal or any other capacity. I also welcome the noble Lord, Lord Wolfson; I have not had a chance to speak to him yet, but I have seen him in the Chamber and I am sure we will speak outside. I wish him well in his responsibilities.
From the start of the pandemic, the Government have made numerous announcements and promises. One such area is the private rented sector, where the Government’s mishandling of the situation has failed
tenants and landlords. On 26 March last year, the right honourable Member for Newark in the other place, Mr Robert Jenrick, went on record saying
“no one should lose their home as a result of the coronavirus epidemic”.
These regulations confirm that that promise is broken: tenants across the UK are struggling to make ends meet right now; certain sections of the economy have had no help whatever; redundancies will be at record levels across huge sections of the economy when the furlough scheme ends; we are in the worst recession for 300 years and the economy is expected to shrink by 11.3%. The Chancellor of the Exchequer is on record as saying that the fiscal damage will be “lasting”, and the Office for Budget Responsibility predicted that unemployment will rise in 2021 to 7.6% of the entire workforce, or 2.6 million people.
These regulations satisfy no one. On the one hand, they extend the ban on enforcement of eviction orders which has been granted by the courts until 21 February, but they also expand the exemptions from the ban, meaning that tenants with more than six months’ arrears could be evicted. Citizens advice bureaux estimate that close to 500,000 renters are in arrears and are now at risk of a Covid-19 eviction because of the ban being lifted. Already, more than 174,000 private tenants have been threatened with eviction by their landlord or letting agent. Even at the start of the pandemic, nearly two-thirds of private tenants had no savings, on top of the 45% of private renters who have lost income since March.
We are asking the Government to stick to their word: that no one will lose their home because of coronavirus. In the months that preceded this debate, the right measures could have been put in place to ensure that the Government’s promise was honoured. They could have brought in the right support for struggling tenants that would have benefited both tenants and landlords, with changes to the universal credit system and an uplifted local housing allowance. They could also have announced a credible plan to deal with rent arrears. Instead, they leapt from crisis to crisis and wasted months, and tenants now face the same predicament they faced at the beginning of the pandemic.
Measures that could have been looked at include the setting up of a Covid-19 hardship fund to help support those in receipt of benefits who are struggling, or an increase in local housing allowance, but instead the Government proposed a freeze in cash terms from April 2021. All that achieves is that tenants in higher-rent areas get less support than those in lower-rent areas. The shared accommodation rate should have been suspended for at least 12 months, as called for by the Social Security Advisory Committee. The housing benefit cap should be scrapped and the £20 monthly uplift to universal credit kept. Those measures and similar ones would in most cases have the support of both landlords and tenants. Neither good landlords nor good tenants who find themselves in real difficulties should be penalised because of the pandemic.
Looking at the measures called for by landlord trade bodies and by tenant organisations, what is striking is the similarities between them. It is also worth noting that the BMA and others have warned of a potential rise in Covid infections if the Government force people into homelessness or overcrowded accommodation,
the consequences of which would extend far beyond those directly involved. Look at the tragedy that lifting the lockdown measures over Christmas brought to families—this is a deadly virus, and measures that do not respect that fact and protect people accordingly will have deadly consequences.
I intend to test the opinion of the House on the regret amendment in my name. It is another plea to the Government to get a grip on the situation. People are really suffering, both landlords and tenants. They are really scared about their future. Landlords and tenants need help to get through this nightmare. We all need to get back on our feet and on the road to recovery. We all desperately want to see that.
There is a second regret amendment, in the name of the noble Baroness, Lady Grender. I have great respect for her. She has considerable knowledge and experience of these matters. The House would do well to listen to her. I make it clear that I would have no problem voting for her amendment and fully endorse its aims.
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