Labour demands eviction ban for renters with coronavirus

Labour is today calling on the government to ban evictions for people who fall behind on their rent due to coronavirus.

John Healey, Shadow Housing Secretary, is publishing draft legislation which Labour is urging the government to adopt immediately.

The new law would mean any non-payment of rent due to coronavirus would not count as legal grounds for eviction. It would cover the more than 20 million people – eight and a half million households – who rent their homes from private, council or housing association landlords, including three million households with children.

The move would bar landlords from evicting tenants who are off work and not getting paid due to coronavirus, by changing the legal basis on which landlords can seize possession of a rented property to exclude arrears which have built up due to the effects of the coronavirus pandemic.

It would initially cover any arrears that accumulate between 1 March 2020 and 1 September 2020, with the option to be extended as necessary.

Two thirds of private renters and more than eight in 10 social renters have no savings, according to government data.

It follows Labour’s call at the weekend for emergency financial protection for people affected by the coronavirus, including rent deferrals and mortgage holidays, higher statutory sick pay, and income protection for insecure, low-paid and self-employed workers.

John Healey MP said:

“The coronavirus pandemic requires a rapid response from the government to protect families.

“Our current threadbare legal safety net means renters are vulnerable to eviction if they get ill and fall behind on their rent. The fear of being evicted may also mean workers are reluctant stay off work and self-isolate.

“Our emergency legislation would protect renters from eviction and we urge the government to work with us to adopt it and implement it at the earliest opportunity.

“This is an essential first step in public reassurance, giving people confidence they can follow official health advice in responding to coronavirus without putting their home at risk.”

Ends

Notes

Data on the number of households who rent their home are available here: https://www.gov.uk/government/statistics/english-housing-survey-2018-to-2019-headline-report

Data on the number and proportion of rented households without any savings area available here: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/817546/EHS_Social_rented_report_chapter_2.xlsx

The text of the draft legislation is below. It has been drawn up in conjunction with leading housing lawyers Justin Bates and Giles Peaker.

LANDLORD AND TENANT (TEMPORARY PROVISIONS) BILL 2020

Coronavirus emergency rent relief

1) This Section applies where:

(a) a person (“A”) is:

(i) a protected or statutory tenant within the meaning of the Rent Act 1977;

(ii) a secure tenant within the meaning of the Housing Act 1985; or,

(iii) an assured tenant within the meaning of the Housing Act 1988.

And

(b) A is under a contractual obligation to pay rent to a landlord under the aforementioned tenancy

And

(c) A has failed to pay rent that was lawfully due between 1 March 2020 and 1 September 2020

And

(d) That failure to pay rent was, in any way, related to the effects of the coronavirus disease

2) If the conditions in the previous clause are met, then the rent specified in sub-clause (c) is not to be treated as lawfully due for the purposes of:

(a) Schedule 15, Case 1, Rent Act 1977;

(b) Schedule 2, Ground 1, Housing Act 1985; or,

(c) Schedule 2, Grounds 8, 10, or 11, Housing Act 1988.

3) No court proceedings for a money judgment in respect of any arrears within the meaning of clause 1 may be brought before 1 December 2021.

4) The Secretary of State may, by Order, amend clause 1(c) to specify a later date than 1 September 2020 and may amend the date in subsection (3) to specify a later date than 1 December 2021.

5) In this Act, coronavirus disease means COVID-19

Labour Leader Jeremy Corbyn wrote to the Prime Minister at the weekend to request a meeting to discuss emergency financial security measures, including:

• There must be full sick pay and lost earnings protection from day one for all workers including insecure workers, low paid workers, and the self-employed, during self-isolation and illness, with consideration given to government funding of sick pay compensation in order to share the burdens with business (and not just in relation to SMEs and for a temporary 14-day period, which is the current government position).
• Statutory sick pay should be raised in line with the amounts paid in other European countries with similar economies.
• Rent and mortgage payment deferment options should be made available, so that landlords cannot evict tenants, and mortgage companies cannot take action against mortgagees in these circumstances. The government should work with banks and other mortgage lenders to offer mortgage payment holidays.
• The government should remove the requirement to present for Universal Credit interviews in all cases, immediately suspend sanctions and the claimant agreement, and immediately and sharply reduce the wait time of five weeks for the first payment.
• Support must be given for local authorities working with foodbanks in the purchase and distribution of food stocks.