Letting agents and landlords are bracing for a surge in rent disputes when the Renters’ Rights Bill (RRB) comes into force next spring, according to Steve Richmond, General Manager of Reapit UK&I, a leading proptech firm. Richmond warns that the impending legislation could trigger a massive increase in cases, adding pressure to an already strained court system.
Reapit’s recent research reveals a significant rise in rent-related challenges, with cases brought before England’s Residential Property Tribunals jumping by nearly 89% in the last four years. The number of disputes increased from 483 to 921, even before the Bill has taken effect.
Once enacted, the RRB will make Section 13 the sole mechanism for landlords to raise rents, which can only occur once a year. Tenants served with a rent increase notice will have the right to challenge it, potentially leading to millions of cases flooding the tribunal system annually.
Strained System
Richmond expressed concerns about the readiness of the court system, which is currently undergoing a problematic digitisation process. He stressed the need for urgent reforms and increased funding to prevent chaos once the Bill is implemented.
“The Renters’ Rights Bill introduces significant changes but also adds more pressure to an already overstretched system,” said Richmond. “Without ramping up funding for our courts and tribunals, frustrations will grow for both tenants and landlords.”
He further highlighted that the government has yet to publish an impact assessment detailing the potential costs to courts and tribunals. This oversight, Richmond suggests, could have serious repercussions for the private rental sector (PRS).
Unintended Consequences
“If landlords lose confidence in the tribunal system’s ability to handle rent disputes and evictions fairly and efficiently, we’re concerned about the unintended consequences,” Richmond added.
The fear is that lengthy delays could leave both tenants and landlords in limbo, reducing tenant satisfaction and pushing landlords to leave the rental market. Such an exodus would come at a time when more housing is critically needed in the PRS.
As the spring deadline approaches, the call for increased investment in the judicial system becomes ever more urgent, with industry insiders warning that failure to act could lead to prolonged uncertainty for millions of renters and property owners alike.