15th
Oct 2024
A leading online legal firm warns that the Renters Rights Bill becomes law may result in a surge of possession cases prompting courts to change their processes to handle the increased demand.
The online legal platform says that under the proposed regulations which went through its Second Reading in the Commons last Wednesday. landlords will have to provide valid reasons for repossessing their properties.
A statement from the online legal platform states: “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 says there will be other major legal issues which may come to light once the Bill is passed into law next year.
Regarding the proposed restrictions on rent increases, 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.”
Commenting 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.”
The firm also suggests that the Bill will need to be amended to clarify several legal pointsdefining what constitutes a 'serious hazard' in terms of damp and mould, establishing clear guidelines to prevent discrimination while safeguarding landlords from undue financial risk, and determining whether there will be controls on landlords raising rents for new tenancies.
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