0:03 AM, 17th October 2024, About An hour ago
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The English tribunal system is already overburdened and ill-equipped to handle the potential surge in new claims stemming from the Renters’ Rights Bill, research reveals.
Proptech company Reapit says that between 2019 and 2023, the number of fair or market rent cases before England’s Residential Property Tribunals increased by nearly 89%, from 483 to 921.
These cases arise when tenants contest a Section 13 rent rise notice.
However, once the Bill becomes law, Section 13 will be the sole method landlords can use to raise rents, which can only occur annually.
Reapit’s general manager, Steve Richmond, said: “Without ramping up funding for our courts and tribunals, frustrations will grow for both tenants and landlords.
“The Renters’ Rights Bill brings significant changes but adds more pressure to an already strained system.
“We’re also concerned the government hasn’t fully considered the added costs to courts and tribunals, as no impact assessment has been published.
“When making a fair or market rent judgement, a tribunal will often ask to view the property. This adds additional time and cost to the proceedings.
“Instead, evidence such as photos and videos submitted digitally should be used to make the decision to reduce costs.”
By the end of last March, the number of open cases at the tribunals was more than 8,000 — that’s a 144% rise since 2019 and highlights the rising tribunal caseload.
The latest English Housing Survey reports that there are 4.6 million households in the private rented sector (PRS).
Under the Renters’ Rights Bill, any tenant served with a Section 13 notice could challenge the rent hike in a tribunal, potentially leading to millions of additional cases annually.
Despite concerns raised about court and tribunal services during the second reading of the Bill, the government is pressing forward.
The Minister of State for Housing and Planning, Matthew Pennycook, explained during the debate that he was not prepared to wait until the courts improve to reform the PRS.
Deputy Prime Minister and Secretary of State for Housing, Angela Rayner, acknowledged the ‘huge pressures on the court system’ and announced plans to work with the Ministry of Justice to digitise the county court possession process.
Mr Richmond said: “We also think the government should publish a database of market rents, so tenants can check if their rents are close to market rates before they apply to a tribunal.
“It will also mean all tribunals are working from the same data.
“If landlords lack confidence in the court and tribunal system to handle rent appeals and evictions quickly and fairly, we are concerned about the unintended consequences.”
He adds: “We need the government to address the court and tribunal backlog because lengthy delays will burden both landlords and tenants with months of uncertainty.
“This could lead to a drop in tenant satisfaction, and we fear landlords may exit the sector.
“This would happen at a time when more homes are urgently needed in the PRS.”
However, the Committee of Public Accounts has expressed concerns about the reforms and its 2023 report pointed to slow progress on digitisation.
It also warned of major challenges in integrating systems across courts and tribunals.
According to the report, the way HM Courts and Tribunals Service had implemented part of the digitisation process ‘increased the burden on courts and staff already under significant pressure’.
There was also a ‘failure to engage sufficiently with staff and stakeholders’.
The project has also faced escalating costs – which have raced past £1 billion – and raised concerns about whether the original goals for efficiency and accessibility can still be met.
