22nd
Aug 2023
An industry trade body has written to the government demanding it to drastically reform the court system to ensure it does not grind to a halt in the wake of Section 21 eviction powers being abolished.
It is expected that the Renters Reform Bill’s progress will start again when Parliament resumes in September, the government has promised to scrap Section 21 possession notices but at the same time intends extending possession grounds though Section 8 notices.
However many believe that the extension of grounds could in itself cause major delays which an industry body’s chief executive has pointed out in his letter to Justice Secretary Alex Chalk.
The chief executive writes: “As you will know, a third of all possession cases are Section 21 notices which are ‘accelerated’ claims that bypass the courts system. Therefore, the removal of Section 21 will mean more cases going through the courts.
“Consequently, there is concern that without increasing capacity in the court system, once the changes come into force, letting agent agents and their landlords will not know how long they will be expected to wait for a hearing and ultimately possession of their property.
“To improve access to justice for both landlords, letting agents and tenants, it is imperative that the removal of Section 21 takes place alongside essential court reform. While court procedures are a last resort, the reforms set out in the Bill will mean that where landlords want their property back, they will now have to go to court, but without improving capacity in the court system these proceedings will be lengthy and expensive.
“Currently, our members are unclear as to what progress the UK Government has made to improve capacity in the court system and digitise the process.”
The chief executive hammers home the point that there must be a better dispute resolution service for property and housing so landlords have access to an efficient, cost effective and fast justice system that is so important to a successful lettings sector.
He continues: “While embedding alternative and more preventative approaches to dispute resolution can potentially help more tenants stay in their homes and continue rent payments to more landlords, there will inevitably be situations where recovering possession of a property via the court system is the only viable option. However, the current system does not currently provide a reliable route to justice for landlords in these circumstances.”
The chief executive admits the majority of tenancies are ended by tenants, but landlords must be assured that their property can be repossessed swiftly if the tenant has fallen behind with rent, caused damage to the property, or if the landlord’s circumstances have changed.
“Through adequately resourcing and reforming the existing courts system this will speed up the system, increase expertise in the decision-making process and ensure greater consistency with reduced costs” he adds.
He highlights the point that landlords and lettings agents must be given more than six months’ notice of changes as recommended in the Bill and says a pilot scheme should be set up followed by a thorough assessment of the effects of the changes.
“Additionally, if changes are introduced, after a pilot scheme, the sector must be given at least a minimum of 12 months before the legislation comes into force. During this time, landlords and letting agents will be able to familiarise themselves with the changes and the UK Government will be given sufficient time in order to conduct a full communications campaign to inform those working and living in the private rented sector.”
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