After putting their lives on the line during the Covid19 pandemic, key workers living in Lambeth were shocked to discover Notting Hill Genesis’ intention to implement an enormous rent rise from 1st June.
Residents living in discounted accommodation in Brixton Water Lane under a fixed term tenancy were facing the prospect of substantial rent rises when their tenancies are renewed. In the middle of lockdown tenants of Notting Hill Genesis’ received a notice dated 5th May advising that the Housing Association were set to charge and extra £90, for a 1 bed flat, £120 a month for a two-bedroom flat and £150 for a three bedroom property. Those who cannot afford the new rents under the renewed tenancies will have to consider finding cheaper accommodation.
After Tulse Hill ward councillors got in touch with me, I immediately wrote to Notting Hill Genesis and received a call the next day from the Group Director of Housing confirming that they had got the timing wrong and agreeing to suspend the rent increases for three months whilst they engage with residents to determine their financial circumstances.
Although we have won a reprieve from rent rises, it is only for three months. So, the threat of them remains. Whilst it is important to acknowledge that housing providers need to raise rents (Notting Hill have had a rent freeze for five years), any rent rises should be small and incremental over a period of years. So many people have experienced or are facing Covid-related unemployment or wage cuts and are already struggling to pay rent. Housing Association tenants’ finances are likely to be even more precarious in three months given predicted downturn in the economy.
Rent rises at the levels proposed is wholly inappropriate and blind to the economic realities of most renters in intermediate accommodation.
This unfortunately is not an isolated incident. Other housing associations in Lambeth have notified tenants of their intention to implement substantial rent rises. This is a kick in the teeth to all those key workers who have put their lives on the line during this pandemic. Placing them and their family at risk of becoming homeless. It is an unethical step, especially from a housing association who are meant to provide affordable/intermediate housing for those residents who are unlikely to get council housing and cannot afford the high rents in the private rented sector.
I am in the process of arranging a meeting with those housing associations operating in Lambeth to discuss proposed rent rises and the use of fixed term tenancies. I will be writing to the government demanding more protection for renters against unjustifiable rent increases and working closely with our MPs, the GLA, London Councils and, of course, local councillors on this matter.
A request to all councillors – you need to be alert to the threat of substantial rent increases in your wards. If you know of any Housing Association (or other landlords) in your ward planning to implement substantial rent increases, please let me know.
Jennifer Brathwaite jbrathwaite@lambeth.gov.uk 07805 943813
Month: May 2020
Government Must Act Now to Protect Tenants
Almost a third of Londoners live in private rented accommodation. With the forecast of the worst recession in 300 years and unprecedented levels of unemployment looming, renters will face a deluge of eviction proceedings when the temporary ban on evictions is lifted on 25th June. The government needs to act now, extend the suspension of evictions and introduce long terms measures to protect renters.
RIGHT TO A LONGER EVICTION NOTICE
As it now stands, a landlord who wishes to end a tenancy must give all renters a minimum of three month’s written notice that they want to end the tenancy and seek possession of the premises (the previous minimum notice period was two months). The landlord will then have to wait for the three months to pass before starting possession proceedings in the courts. Currently the requirement for longer notices applies to the 30th September 2020 but it may be extended in the future.Tenants are effectively only getting an extra month’s grace which in these precarious economic times is totally inadequate.
SUSPENSION OF COURT PROCEEDINGS
From 27 March 2020, all housing possession proceedings going through the courts are suspended until at least 25 June 2020 (this suspension might be extended beyond this date). During this period, no court can hear possession cases or make an order for possession, neither can bailiffs evict tenants. The landlord is still, however, able to serve a notice seeking possession as mentioned above.
The Government has failed on its promise to protect renters
At first glance these emergency measures come as a welcome relief to renters. On closer inspection, however, the new rules are lightweight and do not provide the reassurance orprotection tenants need in these financially precarious times.The government has failed to deliver on its promise to protect renters.
An extra month’s notice is not enough. What are you meant to do in that extra time? As former shadow Housing secretary John Healey said, it “just gives [renters] some extra time to pack their bags”. Landlords are still able to serve a possession notice during this crisis which will add to pressures renters are already facing.
The rules also offer no protection to those in temporary accommodation or to lodgers. Many are familiar with the sad case of Rajesh Jayaseelan, the Uber driver who died from Covid-19 after he was illegally locked out of the house he shared with his landlord who feared he might bring the virus into the house. I fear that this is not an unusual experience for lodgers.
There is no help to deal with the accrual of rent arrears. The new rules do not address the problem that a large proportion of tenants now face – not being able to pay the rent. The Government does not have an exit plan for renters who will be building up rent arrears during this crisis. Neither does it provide any protection for renters who face substantial rent rises. Government guidance merely suggest that tenants talk to their landlordsand agree a rent repayment schedule or agree a rent reduction. In cases of illness or financial hardship due to covid-19leading to rent arrears, the government has asked landlords not to issue a possession notice. This is sadly only voluntary and has no legal force. Whilst some landlords may be sympathetic to a tenant’s plight, most, I suspect will not be.
Unless a landlord agrees to a reduction in rent, many tenants will accumulate rent arears without the means of paying it off. The London Renters Union launched a campaign on 15th Maydemanding the government freeze rents to stop renters building up big rent debts.
The threat of eviction remains. The 90-day suspension of possession proceedings in the courts is merely a pause. Once the suspension is lifted, normal service will resume in June and there will be a tsunami of possession cases in the courts. Most tenants who have accrued arrears during the covid-19crisis will face possession proceedings and the courts will have little discretion to save them from eviction; provided the landlord establishes (at least 3 months’) rent arears, the courts must grant a possession order. Worse still, even where there are no arrears, a landlord can obtain a section 21 “no fault”possession order once the tenancy comes to an end.
WHAT THE GOVERNMENT URGENTLY NEEDS TO DO
• Immediately increase welfare support for renters -suspend the Benefit Cap, restore Local Housing Allowance (LHA) rates to median market rents, and cover any shortfall in rental payments of private tenants unable to pay them due to COVID-19 – including those with no recourse to public funds.
• Extend the suspension of court possession proceedings by the further 3 months
• Make Section 8 discretionary for Covid-19 arrears– Once the suspension of court proceedings is lifted, give the courts discretion not to grant a possession order under section 8 (currently the courts have to grant a possession order if there are 3 or more months arrears) making it difficult for landlords to evict a tenant for Covid-19 related arrears.
• Scrap so-called ‘no fault’ section 21 evictions, the leading cause of family homelessness. This will transform the lives of renters making it impossible for landlords to evict tenants for no reason once the contract comes to an end. The government needs to commit to and accelerate its promise to abolish no fault evictions and provide genuine security to renters.
• Build more social housing – The fundamental cause of high rents and tenants stuck in poor quality homes is the paucity of properties available to rent at affordable levels. Sign Shelter’s petition demanding that the government builds the social housing we need
• Better funding for legal advice – Due to the lack of legal aid, there is still a dearth of free legal housing advice. Allowing landlords to flout the law and force tenant’s out without due process.
The financial stress that most private renters are under is due to the long-term failure of a series of Tory governments to invest in building social and truly affordable housing to rent or buy. We need a government who is able and willing to deal with the immediate challenges the coronavirus pandemic brings and who is committed to seriously investing in a radical nation-wide house building programme on a massivescale. The government has left this most important issue in the hands of private developers, tinkering at the edges with schemes designed to keep house prices and rents high.
INFORMATION ON LAMBETH’S HOUSING SERVICES
Homeless or at risk of homelessness– Lambeth’s Housing Options Adviser.
Telephone: 020 7926 4200 Email: housingoptions@lambeth.gov.uk
Lambeth’s council tenants or residents living in temporary accommodation in financial difficulties Housing Support Team – Telephone: 0207 926 6399 Email:@lambeth.gov.uk
jennybrathwaite 