A legal firm says that when the Renters Rights Bill becomes law it may trigger so many possession cases that courts will have to change the way they deal with cases to cope with demand.
Online legal platform Lawhive says that under the Bill – which had its second reading in the Commons yesterday – landlords are required to provide justifiable reasons for eviction.
A statement from Lawhive says: “The courts will likely face an influx of possession claims. The need to establish robust grounds could lead to more protracted and contested cases, slowing down the eviction process.
“The courts may need to adapt by streamlining procedures or increasing resources to manage the expected surge. However, this could still result in delays and increased costs for both parties, potentially exacerbating housing shortages as properties remain tied up in legal disputes.”
The platform also points to other significant legal problems which may emerge rapidly once the Bill becomes law next year.
On proposed restrictions to rent rises, it says:“The proposed cap on in-tenancy rent increases could raise potential legal conflicts, especially concerning contract law and market pricing. Landlords may argue that the cap interferes with their ability to set rents at market rates, potentially leading to challenges based on contractual freedom. The cap will need to be justified as a reasonable measure to protect tenants, without unduly infringing on landlords’ rights to negotiate terms freely.”
And on banning Section 21, it says: “The ban … fundamentally alters the balance of power between landlords and tenants. While this move is designed to provide greater security for tenants, it may inadvertently lead to an increase in disputes. Without the ability to evict without cause, landlords may become more stringent in their tenancy agreements and more likely to pursue legal action to regain possession when issues arise. This could increase the burden on courts, which would need to handle a surge in possession claims where landlords are required to demonstrate ‘robust grounds’ for eviction.”
Lawhive also suggests the Bill will have to be amended to make clear other legal points – for example, what constitutes a ‘serious hazard’ in terms of damp and mould, have clear guidelines to prevent discrimination while protecting landlords from undue financial risk, and whether there would be controls on landlords pre-emptively resisting rents ahead of new tenancies.
This article is taken from Landlord Today