As the Renters’ Rights Bill moves toward legislation, significant changes loom over the eviction process, especially in terms of rent arrears. 

The government’s proposed increase in the threshold for eviction under rent arrears from two months to three months, coupled with the requirement for a four-week notice period, introduces challenges for landlords and the wider housing sector. However, before this bill is enacted, several key considerations must be addressed to prevent further strain on an already overburdened system and ensure the fair treatment of all parties involved.

One of the most pressing concerns is the potential increase in rent arrears balances that will result from these changes. With the threshold extended, more tenants will be in arrears for longer periods, leading to larger balances coming through on possession orders. 

As a bailiff company, we are acutely aware of how challenging it can be to trace the whereabouts of the tenants and then recover large rent arrears balances as in most cases, rent arrears are not the only debt the tenant may have, making it harder to recover the debt through enforcement. This is likely to lead to an uptick in smaller money claims and County Court Judgments (CCJs), as landlords seek quicker access to the courts to secure judgments rather than endure the lengthy possession order process.

This shift toward smaller claims and faster court action could have unintended consequences, placing additional strain on an already overloaded judicial system. The speed at which landlords are now able to make money claims, means that the courts will have to handle a significant increase in cases. The resulting backlog will only worsen if additional court resources are not allocated to meet the surge in cases in both the small claims court and the county court.

Moreover, the issue of court capacity must be addressed. There are simply not enough county court bailiffs to service the growing eviction demand, especially in urban areas. The backlog of cases can result in lengthy delays between possession orders being made and actual evictions occurring. 

We have been instructed by many landlords who have been waiting over 12 months for a bailiff eviction date through the County Court in London, all the while rent arrears are increasing due to no eviction taking place. A solution here could be to allow more possession orders to be given permission to be transferred to the High Court immediately following the granting of the possession order. 

Current wait time to obtain a Writ of Possession from the High Court is between 2-3 weeks. This would significantly reduce the timeline for eviction, minimising the chances of further rent arrears accumulating. Private bailiff firms, such as West Country Bailiffs, have the resources and capacity to handle more cases through the High Court under a Writ of Possession. By utilising private firms more efficiently, landlords could see quicker resolutions, reducing the financial strain caused by prolonged arrears and minimising the risk of tenants increasing their rent arrears.

Another factor contributing to the growing complexity of the eviction process is the rise in informal tenancy arrangements. Many landlords, in an effort to avoid the restrictions of Assured Shorthold Tenancies (ASTs), are increasingly opting for informal agreements outside the standard contracts. These include temporary contracts, lodger agreements, and other arrangements that lack the protections afforded under ASTs. We have seen a large uptick in landlords coming to us for eviction services for excluded occupiers.  

While these arrangements can benefit landlords seeking more flexibility, they also increase the number of excluded occupier evictions, particularly for non-payment or refusal to leave. In many cases, the legal process surrounding these evictions can be less clear-cut, resulting in confusion, additional court actions if an eviction under common law isn’t successful, and complications for both parties involved.

In conclusion, while the Renters’ Rights Bill promises to provide greater security for tenants, there are several hurdles that must be addressed before its full enactment to give landlords more protection and security. To ensure the Renters’ Rights Bill is effective, a more streamlined process, enhanced court capacity, more use of the High Court and Private Bailiff firms for eviction and clarity on informal tenancy rights are needed for a fairer, more efficient system.

By Jon Spinks, Managing Director, West Country Bailiffs.