Reapit is worried that the new rules on rent increases will see tenants, landlords and agents tied up in a Tribunal system ill-equipped to deal with a rise in case work.
Agents are facing a massive increase in rent rise challenges once the Renters’ Rights Bill becomes law in the spring of next year, warns Reapit’s Steve Richmond (main image)
Even before the RRB becomes law, proptech company Reapit’s research found that over the number of fair or market rent cases brought before England’s Residential Property Tribunals has increased by almost 89%, from 483 to 921 over the last four years.
Once it does become law, Section 13 will be the only method landlords can use to raise rents, which can only happen once a year. Any English tenant served with the notice can challenge the rent hike, potentially leading to millions more cases going to tribunal each year.
Frustrations will grow for both tenants and landlords.”
It is likely to lead to huge delays in an already overstretched court system which is in the midst of a digitisation process that is proving problematic.
Steve Richmond, General Manager of Reapit UK&I, stressed the need for more investment and reform to expand court capacity before the Bill becomes law, saying: “Without ramping up funding for our courts and tribunals, frustrations will grow for both tenants and landlords.
Strained system
“The Renters’ Rights Bill brings significant changes but adds more pressure to an already strained system.
“We’re also concerned the government hasn’t fully considered the added costs to courts and tribunals, as no impact assessment has been published.
He adds: “If landlords lack confidence in the court and tribunal system to handle rent appeals and evictions quickly and fairly, we are concerned about the unintended consequences.
“We need the government to address the court and tribunal backlog because lengthy delays will burden both landlords and tenants with months of uncertainty. This could lead to a drop in tenant satisfaction, and we fear landlords may exit the sector.
“This would happen at a time when more homes are urgently needed in the PRS.”
