The Renters Reform Bill seeks to bring about major changes to the rental market, with the central reform being the ban on “no-fault” evictions, commonly known as Section 21 evictions. This type of eviction allows landlords to end a tenancy without giving a reason, provided they give the tenant adequate notice. The aim of the bill is to offer more security and rights to renters.
Law Society’s Concerns on Delays
Delays and Court System Reforms
The government has been quite clear about its stance: the abolishment of Section 21 evictions will only come into effect once there are solutions to the existing inefficiencies in the court system. However, the Law Society has voiced concerns over this approach.
Nick Emmerson, the president of the Law Society, highlighted the disconnect between the government’s actions and their stated priorities. He pointed out that while the government claims to be focusing on court reforms, in March 2023, the HM Courts & Tribunals Service (HMCTS) decided to halt work on key reforms, making their commitment questionable.
Other HMCTS Priorities
In their statement, the HMCTS laid out other areas they would be focusing on instead. These include reforms related to employment, immigration, social security, child support tribunals, and the development of the Video Hearing Service. It’s worth noting that digital reform work on adoption and possession was put on pause, likely contributing to the delays in the Renters Reform Bill.
The Impact on Landlords and Tenants
Laura Southgate, a partner in the Property Disputes team at Cripps, summarized the mixed feelings of landlords and tenants regarding this delay. On one hand, tenants are understandably frustrated as the promise of greater rental security remains unfulfilled. On the other, landlords, especially those concerned about the court system’s capacity to handle the proposed changes, view this delay as a relief.
Landlords, especially the smaller ones, have shown increasing anxiety about the bill. This concern is evident in the rising number of Section 21 notices served in recent times. Their primary concern? The ability to repossess their property if a tenant defaults, say, by not paying rent. The court process for possession claims and subsequent eviction can be drawn-out, sometimes stretching for months due to the overstretched nature of the system.
Looking Ahead: The Future of the Rental Market
The proposed changes in the Renters Reform Bill could reshape the rental landscape in the UK. It’s crucial for the government to address these concerns holistically. A misstep could result in an unintended outcome, such as landlords exiting the market, leading to a more significant housing shortage.