Why Shelter Cymru has launched a new campaign on private renting
There is a single clause in the Renting Homes Bill that neatly encapsulates what is fundamentally out of whack in today’s private rented sector.
Section 126 is only relevant for those renters who happen to have a monthly periodic tenancy. Our research suggests that may be around four in ten private tenant households. The clause describes what a landlord should do to vary the terms of a contract of this type.
It’s actually quite striking to see it in black and white – the Bill states that the landlord must inform the tenant that unless she or he consents to the variation, the landlord will issue notice seeking possession.
In other words: agree to everything, or you’re homeless.
The ability of private landlords to unilaterally vary the contract bypasses an important principle of common law that a contract cannot be varied except with the consent of both parties. Almost a third of Shelter Cymru’s casework comes from the private rented sector. For a long time we have identified the insecurity of most private tenancies as a key factor holding back efforts to improve conditions.
The existence of the ‘no fault’ possession ground keeps tenants quiet: it stops them standing up for themselves; and it means that many landlords never have to truly face up to the need to improve their stock, because most tenants would rather move to escape poor conditions than stay and fight a battle they know they are likely to lose.
A further unintended consequence is that the no-fault ground takes away tenants’ right to defend themselves in court.
We know that many landlords use the Section 21 no-fault ground inappropriately, when the real reason they want to regain possession is because there may be some alleged non-compliance with the tenancy agreement such as anti-social behaviour.
Landlords say this is because there is inconsistency in the way the courts handle discretionary possession – but let’s face it, which landlord would voluntarily put him or herself through the uncertainty of a Section 8 possession, with the nuisance of having to get judicial consent, when it’s so much easier to keep tenants under the shadow of a no-fault action?
The national Landlords Association actually advises landlords not to offer fixed terms if they can get away with it. Their website’s Q&A states that ‘in almost all cases it is better to allow the tenancy to become a statutory periodic tenancy… The advantage is that you can, at any time serve a Section 21 Notice. This is a real advantage for a landlord, should a tenant become difficult.’
THE RENTING HOMES BILL
At Shelter Cymru we welcome the ethos of the Renting Homes Bill in trying to create a simpler, more consistent framework for tenancies. We agree that the old system creates many unintended consequences.
We believe that the new law should be fit for purpose, and that grounds for possession should be used as they are intended – but we foresee that the ‘landlord’s notice’ ground, as currently drafted in the Bill, will make it more difficult to achieve the Bill’s other aims around improving the stock.
We welcome the inclusion of protection from ‘revenge evictions’, but we also see that this is a sticking- plaster solution that’s only necessary because of lack of security of tenure. The proposed protection won’t be failsafe, because it depends entirely on how confident tenants are to exercise their rights in court. Improved security of tenure would mean that retaliatory eviction protection would no longer be necessary.
We also believe strongly that more private renters need to have their views heard. There have been far too few private renters’ voices in the debates on Welsh housing legislation to date.
This is why we have launched the Make Renting Right campaign.
MAKE RENTING RIGHT
With the support of many prominent organisations and individuals, we are asking the Welsh Assembly not to make a bad situation worse by getting rid of the six-month moratorium. Instead we are calling for secure tenancies for all, giving tenants the right to stay as long as they need, if they fulfil their tenancy obligations.
Renters should be able to make a house a home, by having the right to keep pets and decorate however they choose, returning accommodation to its previous state when they leave.
They should be able to live in homes that are safe, protected by mandatory electrical safety testing and carbon monoxide alarms. If things go wrong, they should have the assurance that local environmental health teams have enough resources to carry out enforcement.
The campaign’s eight asks are a manifesto for positive change that will bring Wales’s PRS out of the dark ages and into a future where tenants and landlords can work together in genuine partnership, without having to resort to threats as per Section 126 of the Bill.
Please visit www.sheltercymru.org.uk to find out more about Make Renting Right, sign up as a supporter or write to your Assembly Members to make your own voice heard.