Landlords are being warned they could face lengthy delays when trying to evict tenants who fall behind on rent, under new government proposals.

The Labour party’s Renters’ Rights Bill aims to give tenants breathing room by increasing the allowed arrears period from two to three months before landlords can issue an eviction notice.

This change is expected to extend the already lengthy process of repossessing a property. Currently, it takes an average of seven months following the eviction notice for court proceedings and enforcement action to be completed.

The National Residential Landlords Association (NRLA) has criticised the proposed extension, arguing that it will lead to further delays and financial strain on landlords.

Ben Beadle, Chief Executive of the NRLA, emphasised the importance of addressing rent arrears early on. He stated: “Preventing rent arrears from building in the first place should be the priority for landlords and government, not allowing them to build yet further. Landlords should be making every effort to help tenants get on top of debts as early on as possible.”

Beadle also highlighted the discrepancy between the government’s approach to rent arrears and other forms of debt, saying: “In no other walk of life would the government allow consumer debts to build for months on end with all the damage that can cause to their credit ratings.”

The NRLA is urging the government to adopt a balanced approach that protects both tenants and landlords. Their recommendations include:

For Tenants and Landlords:

• Early Intervention: Making it mandatory for landlords and letting agents to engage with tenants at the first sign of arrears to find solutions. The NRLA proposes using its “golden rules,” previously endorsed by the government during the COVID-19 pandemic, as a framework for these discussions.

For Landlords:

• Housing Benefit Stability: Ensuring housing benefit rates are tied to market rents throughout the parliamentary term to provide landlords with financial predictability.
• Timely Repossession: Maintaining the current two-month arrears threshold for landlords to initiate repossession proceedings, preventing debts from spiraling out of control.

The NRLA’s stance reflects the concerns of many landlords who rely on rental income and need effective mechanisms to address non-payment. The debate over the Renters’ Rights Bill highlights the ongoing challenge of balancing the needs of tenants facing financial hardship with the rights of landlords to manage their properties effectively.