4. Statement by the Minister for Housing and Local Government: Improving Security of Tenure

Part of the debate – in the Senedd at 3:50 pm on 17 September 2019.

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Photo of Julie James Julie James Labour 3:50, 17 September 2019

So, on that last one, there were severe difficulties with the court's IT system, which we've been discussing with them. The proposal across England and Wales is that the whole of the IT system will be renewed. It was due to be renewed 'within two years' about three years ago, and we were waiting on that renewal. But we've decided not to wait and to actually implement the IT changes at our own expense ourselves in advance of the whole court system being changed, as I think it seems pretty clear that it's going to take a lot longer than was originally planned, for a variety of reasons that I won't rehearse.

In terms of the section 21 and section 173 issue, it's important to remember that, once we have implemented the Renting Homes (Wales) Act, the Housing Act will no longer be in force in Wales, so section 21 will no longer be in force in Wales. So, it replaces in its entirety the Housing Act. So, we'll only have section 173, and that will limit the grounds of no-fault eviction to pretty narrow grounds. We have provisions in the Renting Homes (Wales) Act to prevent retaliatory evictions, so, if you've asked for a property to be improved and then the landlord suddenly discovers they want to sell the house, the court will be able to take that into account. Rent Smart Wales will also be able to take it into account in considering whether a landlord is a fit-and-proper person, and we intend to monitor that.

Forgive me, Deputy Presiding Officer—I didn't answer Leanne Wood's last question, which I intended to do, which is of course we will be monitoring it. We very much want this to work, and so I said in my statement that we will be carefully monitoring the changes, and, if they are not effective in the way we think they will be, then of course we will be looking to see what else we can do to strengthen it. So, I just want to make that point as well.

Bear in mind we've also passed the Renting Homes (Fees etc.) (Wales) Bill, so you can no longer charge a whole series of arbitrary fees for, first of all, getting into your home, and then for doing a whole series of other things that we've rehearsed. We also have—. The new renting homes Bill, when it's implemented, will change the—a shorthold assured tenancy, for example, will change to a minimum period of 12 months.

At this point, Deputy Presiding Officer, can I just correct the record? I said in response to a question from Michelle Brown on 17 July 2019 that the proposal, if implemented, would give a two-year security of tenure—I misspoke; it's actually a one-year security of tenure, so I just wanted to correct that—and a minimum notice period of six months; you cannot implement this within the first six months of any tenancy. So, I just wanted to correct the record there, because it has been drawn to my attention that I inadvertently said two years instead of one. But this will mean that people have the longest notice period of any jurisdiction in the UK, and, as I repeatedly say, you cannot eliminate them completely, because the vast majority of landlords in Wales only own one other property, and frequently it's when two people have got together and made a couple and they rent out the other home, and, if they split back up again, you cannot expect the person who has the house to be homeless because they've rented it out.

What we don't want is for renting properties to become prohibitive for landlords and so we just dry the market up. So, you have a human right to possess your own home if you need it for yourself. So, we would not be able to do that. So, the sector will tell you that it's a handy moniker, 'end no-fault evictions', but it's not possible to do that in its entirety, and what we're seeking to do here is to do as much as you absolutely can to provide the security of tenure that people need. So, you will not get retaliatory evictions, you'll be able to ask for repairs, you'll be able to get them done, you will not be subject to a two-month notice period if the landlord decides to sell, you will have at least six months—and, if you're a new tenant, longer than that, because you can't do it in the first six months—to find a new home, because I totally accept the point you made about children's schooling and care arrangements and all the rest of it. So, what we're trying to do is give people security, but also enough time to plan if they do find themselves in those circumstances.

Then conversely, Deputy Presiding Officer, I just want to make this point as well, just from the landlord's point of view, of course if the tenant breaches their contract then all of the usual possession routes are still open to them. So, if you have a tenant that's actually behaving very poorly, then all the usual possession routes are open.