No-fault Evictions

2. Questions to the Minister for Housing and Local Government – in the Senedd on 17 July 2019.

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Photo of Michelle Brown Michelle Brown Independent

(Translated)

8. What assessment has the Minister made of the effect that removing the ability for landlords to enact no-fault evictions would have on the rental sector? OAQ54284

Photo of Julie James Julie James Labour 3:07, 17 July 2019

We'll be implementing the Renting Homes (Wales) Act 2016 during this term of Government, and I'm also consulting on proposals to extend the minimum notice period under section 173 of that Act.

Photo of Michelle Brown Michelle Brown Independent

Thank you for that answer. In April this year, the First Minister said that he wanted to remove no-fault evictions when new occupation contracts are in force, and you've already mentioned that you've introduced a consultation to extend the period a landlord needs to give tenants to quit from two months to six. So, can you tell me, and those who live in a rented home, and people who are looking for or who want to rent out their own home—and thus add to the available housing stock in the rented sector—whether you really disagree with the First Minister's policy of banning no-fault evictions, or are you just waiting until there's sufficient Assembly time to bring in a ban that will damage the rental market and leave many more families in emergency accommodation?

Photo of Julie James Julie James Labour 3:08, 17 July 2019

Well, neither of those options, because the Member has entirely forgotten that this Assembly has already passed into law the Renting Homes (Wales) Act 2016. It's a very radical Act, which I'm very proud of. We have not been in a position to implement that Act, unfortunately, because of some arcane issues, which I won't go into because of the time, around the IT systems in the courts, but we have solved that problem now and we are now consulting on the last piece of the jigsaw to bring that Act into force. I'll just remind the Member that it brings in mandatory occupation contracts, making renting more transparent. It introduces the requirement for a dwelling to be fit for human habitation, which I'm particularly proud of, and the benches behind me were very keen on seeing as well. It includes specific requirements for smoke and carbon monoxide alarms and electrical safety testing. It provides protection against retaliatory evictions, which is when a landlord evicts a tenant in response to a request for repairs or maintenance. It has a number of other things around the length of the contract and so on, which I won't go into, at the risk of incurring the Llywydd's wrath. We are now consulting on extending the period for ending periodic contracts in Wales, because the shorthold assured tenancies that she mentions will no longer exist in Wales once this Act has gone into force, so we will have mandatory two-year tenancies. So, these restrictions are in a completely different set of legal arrangements to the section 21 notice that she is talking about in the Housing Act 1988. Llywydd, here in Wales, we have moved a long way from there, and we have rebalanced the power relationship between landlords and tenants, and in implementing this Act we will be putting right many of the wrongs that the old housing Act had. We've consulted extensively with the—[Interruption.] We have consulted extensively with the Residential Landlords Association and they are very happy with these arrangements.

Photo of Elin Jones Elin Jones Plaid Cymru 3:10, 17 July 2019

And the final question goes to David Melding.

Photo of David Melding David Melding Conservative

Perhaps I can bring a little calm consensus to this matter. It is important that we strike the right balance here—that we don't put off potential landlords and existing landlords and ladies from making available housing for rent. But we do need a rebalance as well, and the UK Government has been part of a similar approach. I do urge you to remember what Richard Lambert said—who is the CEO of the National Landlords Association—and it's very apposite, given what you said about the 2016 Act. There, they ensured that the core procedures were reformed in Scotland—sorry, he was referring to Scotland, where they'd ensured that the core processes were put in place, and therefore tenant and landlord knew the recourse that they had should they have to use the court system. I think that that is a good lesson, because this system does have to work effectively and be fair to both sides.

Photo of Julie James Julie James Labour 3:11, 17 July 2019

Yes, indeed, and of course it goes alongside our Renting Homes (Fees etc.) (Wales) Act 2019, which we've only very recently passed through the Assembly, which sets Rent Smart Wales out as the organisation that 'polices' it for Wales. We did of course look carefully at the experience in Scotland as well, and there is an issue about local authority capacity to police the systems there. But I'm very sure, Llywydd, that this system will introduce a completely different set of arrangements in Wales, which this Assembly passed through because it was very visionary in doing so. Our new arrangements and the consultation on section 173 will make sure that we don't have any loopholes where tenants can be evicted on a short turnover. The fees Act prevents them from being recharged the fees. We have the security deposits arrangements. There are a whole series of other things that I urge Members to renew their acquaintance with in that Act that protect tenants from the kinds of things that section 21 is being used for in the old housing Act.