The Renters Reform Bill and Court Delays

The Renters (Reform) Bill aims to introduce new safeguards for tenants by providing more security and empowering them to challenge poor practice and unfair rent increases without fear of eviction. In doing so, it is likely to increase pressure on the court system.

The Bill will abolish section 21 evictions and landlords must instead use section 8 grounds for possession. Landlords will need to go to court and prove that the relevant ground applies. This will significantly increase the workload of the courts as possession claims under section 8 take more time to deal with and may involve multiple and lengthy hearings especially if the case is disputed. Given the current delay in dealing with possession hearings, there are concerns about the court’s ability to handle an influx of additional cases.

The Bill will limit rent increases to once per year and empower tenants to challenge unreasonable rent increases through the First-tier Tribunal. The reform aims to protect tenants against the use of rent increases as a backdoor means of eviction and makes changes to the Tribunal system to support tenants in challenging unreasonable rent increases by ensuring that the Tribunal will not increase rent beyond what the landlord initially proposed, so tenants never pay more than what the landlord demanded. Furthermore, any new rent determined by the Tribunal will apply from the date of the Tribunal determination and not back dated to the date the section 13 notice expired, which will no doubt encourage more tenants to appeal reasonable market rent increases simply to delay payment. It is expected that the Tribunal will hear many more challenges once the Bill comes in effect as Section 13 will become the only way landlords can increase rent for existing tenants.

The Government is hoping that legal action will be a last resort and is making provision for the ombudsman to provide landlord-initiated mediation, enabling disputes to be resolved before they escalate to court. However, it recognises that where a dispute cannot be resolved, the involvement of the court or tribunal will be necessary and is preparing the county court for the changes. It is also working towards digitising the possession process so that it is more efficient and easier to use. It is not clear what additional reforms are being made to the Tribunal system to deal the expected significant increase in its workload.

Once the Bill becomes law, it will become clear whether the system is coping and if there are longer delays in resolving disputes.

Our specialist property dispute solicitors advise both landlords and tenants on navigating complex rental law changes. If you are concerned about how the Renters Reform Bill could affect your tenancy, rental income, or dispute resolution, our experienced team can guide you through your options. Call 0330 822 3451 or request a callback.