Part of the debate – in the Senedd at 6:45 pm on 7 March 2018.
There are 460,000 people living in Wales in the private rented sector, and I believe that they should not be in constant fear of being evicted without good reason. They need to be able to sleep easy in their homes. When we talk about people living in the private rented sector, we're not just talking about young people who want the freedom to up sticks and move at short notice. We're now talking about families who need a solid base so that they can get their children into schools and single parents who need to find local work. The private rented sector has changed enormously, and now it is widespread and many families need it. Imagine the disruption and cost of having to move at the landlord's whim. Imagine you've just painted the children's bedroom and they're enjoying their new school, imagine you've just finally found a good part-time job that fits in with school hours, and then the landlord decides to evict you, which they can do without giving a reason.
Assured shorthold contracts can be either fixed periods or periodic rolling contracts from month to month. A landlord cannot bring section 21 possession proceedings during the first six months of the tenancy or during a fixed contractual term. Where the fixed term is about to expire or the tenancy is periodic, section 21 allows a landlord to serve a two-month notice to quit. If the tenant does not vacate, so long as the notice is correct, a court must order possession. No reason for requiring possession has to be given. Whether the tenant is at fault is not investigated, and there is no weighing up of the tenant's need against the landlord's. And, lest we forget, we are speaking of people's homes, described in the case of Uratemp Ventures Limited against Collins as where a person
'lives and to which he returns and which forms the centre of his existence.'
This inequality of bargaining power has led to significant abuse and severe hardships. Landlords have been able to serve notice capriciously without restraint by the court, with tenants made homeless at short notice with all the attendant costs and distress this causes. In a recent Shelter Cymru survey, 22 per cent said that having to move had pushed them into debt—credit card, overdraft, pay-day loan, bank loan—and the average cost of moving was £1,100-plus.
Originally, maybe this private rented sector was seen as a vehicle for young single professionals or childless couples, but, increasingly, as well as housing families with children, it's older people and people with vulnerabilities who are in the private rented sector. The Housing (Wales) Act 2014 allows local authorities to discharge their homelessness duty via an assured shorthold, but this minimum security of tenure can result in a housing merry-go-round, with children and their education or vulnerable adults needing a close support network becoming the victims. For parents employed in part-time jobs, it becomes a nightmare, and not only because of the logistics of delivering and collecting children to from school. This causes stress on relationships and contributes to family break-up. Stable housing is fundamental to improving well-being and its fundamental to relationships and self-development. It's at the heart of family life, allowing people to integrate and become part of a community, build social relationships, build a sense of identity and plan and envision their future. And, of course, there is evidence that section 21 disproportionately impacts women, who are more likely to have dependent children, rely on means-tested benefits, have rolling monthly contracts, experience poor housing conditions and fear revenge eviction if they complain.
Now, does it have to be like this? Quite simply, no. For most of the twentieth century, private sector tenants enjoyed significantly greater security of tenure. Will ending section 21 result in landlords being unable to easily regain possession of their property? Again, no. Landlords can recover possession via section 8 of the 1988 Act, whether within a fixed term or not, provided they can establish a ground, for example where anti-social behaviour or rent arrears or damage to property are alleged. And, even under the rent Acts, landlords have been able to recover possession of premises for use for themselves or their sons and daughters so long as that's a reality, not a pretence. In Scotland, where the equivalent of section 21 has been repealed, landlords who need to sell up are able to recover possession to facilitate a sale. In terms of justice and fairness, is it not infinitely preferable that the landlord must establish a ground, that the tenant has a chance to defend himself or herself against allegations, and that the court brings to bear its independent judgment?
Now, will landlords baulk at a change and invest elsewhere? That was the warning issued when plans for Rent Smart Wales were introduced, but it didn't happen. Between 2013 and 2014, until 2015-16, the sector actually grew by almost 7,000 dwellings. Greater security of tenure does not restrict a landlord's ability to earn a reasonable return. Moreover, as the Residential Landlords Association observed, landlords themselves do not want to see tenancy end as empty properties mean lost rent and increased costs for themselves. In Shelter Cymru's recent survey, 64 per cent of tenants said that, with a five-year tenancy, they would be more likely to make home improvements themselves. Greater security for tenants would promote a more professional approach.
In Wales, the Renting Homes (Wales) Act 2016 will shortly replace assured shortholds with a standard contract. Instead of section 21, we shall have section 173, but, broadly, with restrictions on landlords in default on tenancy information or security or deposit requirements, the section 21 regime above is replicated in the 2016 Act, except for a new retaliation defence under section 217. This gives the court a discretion to refuse an order where the tenant can show that the landlord served the notice to quit to avoid repairing or fitness for human habitation obligations, but this is a narrow defence to be raised when proceedings are under way, with the burden of proof on the tenant.
So, to conclude, tenants want more security. They end up having to move when they don't want to. Moving home is costly. Lack of security of tenure is undermining family life, children's education and networks of support. Absence of security of tenure means that tenants don't get a fair hearing in court. There is no evidence that a change will lead to the private rented sector drying up.
In the last 12 months, tenants' demands have become increasingly louder. Scotland have made the change and, in England, Labour has recognised that the minimum six months' security of tenure afforded by section 21 is wholly inadequate, and pledged in the last general election to raise this to three years, and I don't see the issue resting there. I do believe that this Assembly will have to address this inequality, and I very much hope that Wales will go ahead and get rid of section 21, because we do have, actually, the power to do this. If tenants are left in this state of insecurity and we have the power, surely we have the duty to move ahead and take this action. So, thank you very much, Deputy Presiding Officer, for hearing my case. I now hand over to my colleagues.