My Lords, I refer the House to my relevant registered interests as a vice-president of the Local Government Association, chair of the Heart of Medway housing association and a non-executive director at MHS Homes. Furthermore, my wife, the noble Baroness, Lady Kennedy of Cradley, is director of Generation Rent, which is the voice of private tenants.
I support the regulations as far as they go, but they are not the solution to the problem. They merely delay, rather than prevent, evictions of tenants. Landlords can serve an eviction notice and the courts remain open, but no possession orders can be enforced until 25 January, as the noble Baroness, Lady Scott of Bybrook, said. However, that still leaves people in the terrifying situation of being made homeless in the new year, possibly with no job or with the risk of losing their job.
The Government have it in their power to support both landlords and tenants while at the same time avoiding the disaster of homelessness for people in what we all know will be the worse economic conditions in the new year. They can also avoid the huge cost to the country of people being made homeless. I have carefully read the briefing note from the National Residential Landlords Association and I agree with it on the need to increase local housing allowance to cover the average rent in any given area, not just the bottom 30% of average rents. There are literally hundreds of constituencies where the local housing allowance does not cover the average rent paid in that constituency. That is a huge problem and there are no winners, neither landlords nor tenants—everyone a loser. For me, this seems an obvious thing that the Government need to do.
I also agree with the call to boost the discretionary housing payment available to local authorities, along with suspending the shared accommodation rate for 12 months, enabling those under 35 to claim benefits for living alone. However, I am not convinced that interest-free loans to cover rent are the solution. I can see the advantage for landlords, but whatever solution we come up with must benefit both landlords and tenants to get us through this crisis. Tenants being saddled with more debt does not seem to me to be the way forward. The solution must be a combination of the measures that I have outlined, which have large support across the housing sector. Could the noble Baroness, Lady Scott of Bybrook, tell the House what protections will be made available to tenants living under tier 2 and tier 3 restrictions from 11 January, when the regulations expire?
The Government have the power to make considerable progress to deal with the issue properly and for the long term. What happens after 11 January? What happens if there is a third wave of Covid-19, which is a risk, as we have heard from the medical profession? After the festive season, when people are meeting people indoors, which they have not done for many months, there is a real risk of another wave. What happens then? I fear that we will be back on this issue again in the new year with additional measures. I just wish that we had had had those long-term measures put in place so that we would not have to come back repeatedly every few months. That is to the benefit of nobody, so I look forward to the noble Baroness’s response.
2.28 pm