A senior figure at PropTech company has raised alarm over a potential rise in County Court Judgments (CCJs) against tenants, driven by upcoming changes in housing legislation.

The Renters Rights Bill set to pass into law this autumn will eliminate Section 21 ‘no fault’ evictions. This shift will require landlords to pursue formal legal routes and present clear grounds for evicting tenants, often involving a court order.

The Managing Director of Insurance, believes the reform could unintentionally encourage tenants to withhold or delay rent payments. Without Section 21 mechanisms in place, he fears some renters may mistakenly assume enforcement will be more difficult, exposing them to the risk of legal action and CCJs

As court action replaces Section 21 evictions, some tenants may mistakenly stop paying rent risking serious financial consequences.

He says this will be a massive mistake and states: “If tenants allow themselves to fall into arrears with their landlord – it will catch up with them. Currently, when a Section 21 is used to evict a tenant, no further action is typically taken. However, the new rules means far more cases could end up in court.

“Should this happen and some rental payments have been missed or withheld, tenants might find that a “charge” has been made against their name in the form of a CCJ. If they don’t have the cash available to settle their debt quickly and in full, a CCJ could stay on their credit record for up to 6 years. This can be seriously damaging to credit scores affecting their ability to secure everything from renting a new property, applying for a mortgage, or securing a mobile phone contract.

“The new rules mean tenants risk sleepwalking into CCJs that could follow them for years – even for relatively small debts. And, because tenancy notice periods will now be longer, the average amount owed in arrears could also spike – meaning tenants face higher debt burdens. More formal court action equals more judgments on record. It’s critical that tenants understand this risk now and engage early with landlords to avoid unnecessary escalation.”