7th
Mar 2023
Justice For Tenants organisation, a not-for-profit business, encourages tenants to use Rent Repayment Orders against landlords, has now furiously responded to a recent Supreme Court decision.
Two weeks ago the Supreme Court issued its ruling of the Rakusen v Jepsen case.
The plaintiff, landlord Mr Rakusen, made an agreement to let out a flat to a rent to rent company, however his rented property should have been licenced which the company had failed to do so.
Upon finding the flat was unlicensed the former tenants applied for a Rent Repayment Order against the unfortunate landlord Mr Rakusen instead of the rent to rent company. During the tenancy the landlord did not receive one single payment from the tenants.
Rent-to-rent companies offer a service to landlords to take over all responsibilities of the property and at the initial tribunal the ruling was that the Rent Repayment Order could be taken out against the landlord.
However, the Court of Appeal overturned the original judgement and ruled in Rakusen’s favour.
Two weeks ago the Supreme Court ruled that all rent-to-rent companies who have the responsibility of running a landlord’s property and should they fail to carry out their duties correctly resulting in a legal challenge by tenants against the landlord, they cannot expect landlords to pay for their legal failings and must be held accountable on all fronts.
The Justice For Tenants organisation has issued a highly critical and somewhat outspoken response which says: “If the law doesn’t change, it is not a case of if we will have another Awaab Ishak in the Private Rented Sector, or when we will have another Awaab, but how many and how often. If the government does not amend the legislation, those most affected by this cost-of-living crisis will pay the ultimate price for their struggle. They will pay with their lives and health through fires in death-trap properties and breathing problems from untreated damp and mould.
“This decision creates a blueprint for property owners who want to maximise their profit, cram as many tenants as can fit into inhuman conditions and extract extra rent from desperate humans who need a place to call home. Unfortunately, two-thirds of councils lack the resources to prosecute a single landlord each year, and the only realistic protection available to tenants is applying for a Rent Repayment Order.
“With this Supreme Court ruling, rogue landlords can sidestep the law and tar the reputation of all landlords."
The organisation says the Supreme Court’s ruling has effectively created a “criminal blueprint” for rogues to take advantage of, as landlords can set up a company without assets and proceed to rent their property to the bogus company, renting out rooms or the whole property.
The campaign says: “The tenant can only sue the company with no assets, which will not pay any court award, eating up the limited resources of the taxpayer-funded court system. The landlord can avoid putting in safety measures and ignore the law, knowing they have made an intelligent business decision, because there is almost no risk that anything will happen to them.”
Justice For Tenants now demands the government to change what it calls “this broken legislation” and says: “If the law is not amended, we must remember this moment. We must remember it when families appear on the news to share memories of their children who died when studying at university in a property run by this arrangement. We must remember it when another story breaks about a child dying from breathing in toxic mould that no one fixed because no one cared. We must remember that there was an opportunity to change the law and protect the most vulnerable.”
News Archive »