Security of Tenure and Prevention of Evictions: Assessment of Flemish Policy Instruments

Bernard Hubeau – University of AntwerpDiederik Vermeir – University of Antwerp

Brussels-capital Region (1,100,000 inhabitants)

Flemish Region (6,300,000 inhabitants)

Walloon Region(3,500,000 inhabitants)

Evictions in the PRS

• Mostly in Private Rented Sector (80%) • 2014: 13,000 – 15,000 requests of evictions• Strong increase reported

o 2005: 100/weeko 2014: 250-300/week

• Main cause: rent arrears (90%)o Wrong assessment of the consequences of default paymentso Large share of the available budgeto …

• No centralized data on enforced evictions

Role of the PRS

• Role of the PRS in policy termso Focus on homeownership - Weakening PRS o Growing concern, but until now no general reorientation of policy

• Role of the PRS in meeting social needso Serving 3 groups of +/- equal size

o Starters, on the way to homeownershipo Low housing quality / weak socio-economic profile of tenantso Older persons that moved to an appartment

o Increasing share of vulnerable groups: low income, unemployed, unfit for work, singles, single-parents with children

o Increasing problems with affordability, esp. for the lowest income groupso Evolution of market rents 2005-2013: general increase of 8% – 18% for the lowest income

group – 17% for the unemployed – 24% for the disabled

Size of the PRS

19471949

19511953

19551957

19591961

19631965

19671969

19611963

19651967

19691971

19731975

19771979

19811983

19851987

19891991

19931995

19961998

20002002

20042006

0

10

20

30

40

50

60

70

80 % private tenants % social tenants % tenants % homeowners

Figure 1: Tenure, Flemish region, 1947-2005

Sources: * Descamps (1997), **Goossens et al. (1997), ° FOD Economie [Federal Economy Department] - ADSEI, SEE 2001, °°Heylen et al. (2007).

Security of tenure: general framework

• Article 23 of the Belgian Constitutiono All branches of government are responsible, each within the limits of their

power (e.g. Flemish Housing Code)o The possibility of the tenant to remain in the dwelling as long as he or she

wishes – in a broader sense: connected to housing conditions

• European and International Housing rightso Not formally protected by the ECHR, but ‘a protectable interest’o Balance of interests is required (ECtHR, 13/05/08, McCann vs. UK; ECtHR,

11/01/01, Lunari vs. Italy)

• Effectiveness on the ground?• Policies of security of tenure?

Security of Tenure: Tenancy law

• House Rental Act (1991)• Security of tenure as one of the predominant features

o Duration: 9 years – Short term lease: restrictedo Termination with a notice period

o Notice period of 6 months, limited to specific circumstances

o Termination due to violation of contractual duties o Has to be requested at the Justice of the Peace (cfr. McCann vs UK)

• A balanced regulation?o Mechanisms to guarantee a fair return on investment

o Initial rent: no regulation – During the lease: costs of living + Review at court

• Results on the groundo Tenants’ perspective: 53% short term contractso Landlords’ associations: income is too low + Eviction procedures

Prevention of eviction: procedural law

• Act on the Humanization of evictions (1998): • Specific procedure for evictions

o Standstill period of one month (can be shortened or prolonged)o Information requirements (remaining goods, actual date of

eviction)o Public Centre of Social Welfare (PCSW): obligation to support the

tenant in the most fitting mannero both prevention (mediation, legal aid) and management (resettlement, financial

support)o Notify PCSW’s as soon as possible to enhance their ability to offer assistance

• Assistance by the PCSWo Any eviction requested at the Justice of the Peace: notificationo Respect for individual autonomy

Assistance by the PCSW

• An effective policy instrument to prevent evictions?o Sector of PCSW’s: ‘has not led to a decrease of evictions’o Not informed about the remainder of the procedure (after the

request) in 57% of the cases – other cases: 90% actual evictions

• Possible explanationso Lack of staff and resources: how assistance is offered -> previously

known (51%)?o Assistance is only offered when an eviction was already requested at

the Justice of the Peace o PCSW’s are not informed about the remainder of the

procedure/enforcement of the eviction

Fund to Prevent Evictions

• Recent initiative: 2014• Objectives

o Prevention of evictions: assistance with reimbursement of rent arrearso Strengthen the attractiveness of the PRS for investorso Encourage landlords to conduct an agreement with weaker profiles

• Procedureo Linked to request of evictions due to rent arrearso Guarantee actual execution of repayment plan imposed by the Justice of

the Peaceo cover the difference between the imposed and the actual reimbursement, if the tenant

fails to comply to the plano Voluntary basis: initiative needed by the landlordo Important additional requirements: housing quality standards, due dates,

max. coverage (€2,700)

Fund to Prevent Evictions

• An effective policy instrument to prevent evictions?o Started on January 1th 2014o Only 330 landlords applied (245 effectively affiliated) – initial target of

18,000o Only to 2 landlords notified the fund about an eviction procedure (1

refused)

• Possible explanationso Court of Auditors: ‘Absence of a communication campaign’o Landlords’ organizations: ‘too complicated, lots of due dates, multiple

administrative steps’o Other recommendations: tenants are protected differently + better to

intervene at an earlier stage

Conclusion

• Weakening PRS, further stressed by the crisis• Growing concensus concerning the need for a supply and

demand-side PRS policy• Security of tenure and prevention of evictions can be of the

essence in those policies• Striking increase of evictions: existing preventive instruments

seem to be insufficient• Main issues in the short term: data on evictions, an earlier

intervention, development of good practices, fine-tune with the profile of tenants and landlords, enhance communication

Questions?