Introduction

The Renters’ Rights Bill is moving closer to becoming law, introducing significant changes to eviction rules, particularly for cases involving rent arrears. The proposed increase in the eviction threshold from two months to three, along with a mandatory four-week notice period, raises concerns about its potential impact on landlords and the wider housing sector. The bigger question is are these reforms the government transferring the burden of housing those who wont pay as opposed to cant pay onto the private sector?

Three months rent arrears and four weeks notice before landlords can seek a possession order

One of the major concerns about the change of the eviction threshold from two months to three, along with a mandatory four-week notice period is the likelihood of higher rent arrears balances. With tenants remaining in arrears longer, landlords may face greater financial losses when seeking possession orders. Recovering substantial rent arrears can be difficult, as tenants often have multiple outstanding debts, making enforcement a complex and time-consuming process.

Money judgement or eviction: how will rent arrears be collected post the Renters Rights Bill?

One aspect that implementation of the Renters Rights Bill is likely to deliver is a rise in County Court Judgments (CCJs) and smaller money claims is expected as landlords look for quicker legal routes to recover unpaid rent. These claims, intended to bypass the lengthy possession order process, will place additional pressure on an already stretched court system. Without increased resources, the surge in small claims cases could result in significant backlogs, delaying outcomes for landlords and tenants.

Bailiff or eviction: how will rent arrears be collected post the Renters Rights Bill?

Another pressing issue is the capacity of the courts and the availability of county court bailiffs. In many urban areas, delays in evictions are already widespread, with some landlords waiting over a year for bailiff appointments. This extended waiting period increases financial strain and exacerbates rent arrears as tenants remain in properties without making payments. One potential solution is facilitating the faster transfer of possession orders to the High Court. The current waiting time for a Writ of Possession from the High Court is around two to three weeks, significantly shorter than the county court process. Or, private bailiff firms can handle more cases, which could reduce eviction delays and help landlords recover their properties more efficiently.

The implications of these changes extend beyond landlords and tenants. The broader housing market may see shifts in landlord behaviour. The sell up and private rented sector landlord exodus is likely to continue. Some landlords may decide to reduce their property portfolios or exit the rental market altogether due to the increased risks and financial burdens associated with delayed evictions. This could lead to a reduced supply of rental properties, potentially driving up rents and making it harder for tenants to find affordable housing.

Post the Renters Rights Bill: Will tenancy types change?

An increasing trend among landlords is the use of informal tenancy arrangements to avoid the restrictions associated with Assured Shorthold Tenancies (ASTs). These include temporary contracts and lodger agreements, which offer greater flexibility but come with challenges when eviction becomes necessary. The rise in evictions of excluded occupiers highlights the complexities involved in informal agreements, often requiring additional legal actions if initial eviction attempts fail.

What is the impact of the Renters Rights Bill on social housing?

The Renters Rights Bill's potential impact on local authority housing services cannot be overlooked. As eviction delays increase, more tenants may remain in precarious living situations for extended periods, creating additional demand for council assistance. Local authorities, already struggling with limited housing resources, could face mounting pressure to provide emergency accommodation and support for those affected by prolonged eviction proceedings.

While the Renters’ Rights Bill aims to enhance tenant security, it also presents several challenges that must be addressed before implementation. A streamlined eviction process, improved court capacity, increased reliance on private bailiffs, and clear legal guidance on informal tenancy agreements are essential to creating a fairer and more efficient housing system. Ensuring adequate legal protections for both tenants and landlords will be crucial in preventing unintended consequences that could destabilise the rental sector.

FAQs

1. How will the Renters’ Rights Bill affect eviction timelines?

The bill extends the rent arrears threshold to three months and introduces a mandatory four-week notice period, which could lengthen the eviction process for landlords.

2. What impact will Renters’ Rights Bill changes have on the court system?

A rise in small claims and CCJs is expected, placing additional strain on courts already dealing with significant backlogs. Delays in processing eviction cases may worsen unless additional resources are allocated.

3. Can landlords speed up the eviction process under the new rules in the Renters’ Rights Bill ?

Transferring possession orders to the High Court and using private bailiff firms could help expedite evictions, reducing financial losses for landlords. However, access to these options may depend on specific legal circumstances and court approvals.