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‘No-fault’ eviction reforms risk overwhelming court system, warn MPs

A house and a hand, no fault evictions, court backlogs
A house and a hand, no fault evictions, court backlogs

Impending rental reforms risk “overwhelming” eviction courts unless a chronic backlog of cases are cleared, a group of MPs has warned.

The Government has been told it must fix delays in the court system by fast-tracking landlord possession claims before abolishing “no-fault” evictions.

The cross-party Levelling Up, Housing and Communities committee of MPs warned it was “not clear whether the Government fully appreciated” the extent to which an unreformed courts system could undermine its tenancy reforms.

It comes ahead of plans to ban Section 21 evictions, which allow landlords to remove tenants without reason, a flagship policy of a Government white paper on private rental sector drawn up last summer.

Known as “no-fault” evictions, they are used as a way to routinely end tenancies without going through the courts, which are paralysed by delays. Without Section 21 evictions, landlords will be forced to rely on Section 8 of the Housing Act 1988, which requires a court hearing.

The threat of this change has already forced investors to sell up amid a backdrop of rising buy-to-let mortgage rates, following years of punishing tax changes.

Landlords have repeatedly warned relying on Section 8 evictions would mean chronic court delays when trying to evict anti-social tenants or those in serious rental arrears – a concern shared by the Levelling Up, Housing and Communities committee in a report published today.

Clive Betts, chairman of the committee, said: “The Government should remedy the blight of unfair evictions and insecurity of tenure experienced by too many tenants today.

“But from our inquiry, it’s not clear it fully appreciates that a creaking and unreformed courts system in England risks undermining their own tenancy reforms, including the welcome commitment to ban ‘no-fault’ evictions.

“For landlords and tenants, it’s vital the Government now finds a practical way forward to enable courts to fast-track claims.”

The group of MPs has called for a specialist housing court – a proposal previously rejected by the Government – and asked for all possession claims in respect of rent arrears and anti-social behaviour to be fast-tracked by the courts.

They also warned that student landlords should be exempt from certain rule changes as part of the private rental sector overhaul, to prevent university students from being locked out of the rental market.

The Government’s proposals will move all tenants onto a system of periodic tenancies and abolish fixed-term tenancies, but the student private rented sector relies on 12-month contracts linked to the academic year.

The committee said: “Abolishing fixed-term contracts risks making letting to students considerably less attractive to private landlords, and could ultimately push up rents or reduce the availability of student rental properties, at a time when the market in many university towns and cities is already very tight.”

It instead called on the Government to keep fixed-term tenancies in the student housing sector, but require student landlords to sign a code of conduct.

Chris Norris, of the National Residential Landlords Association, said the trade body “warmly welcomed” most of the committee’s report.

Mr Norris said: “The NRLA has never been against reform of the sector, but it has to be fair and workable for both tenants and landlords.

“The committee is right to call for court reform to underpin the ending of Section 21, changes in plans for student tenancies and ensuring cases of anti-social behaviour are prioritised by the courts.”

A Government spokesman said: “This government is absolutely committed to delivering a fairer deal for renters and welcome the work of the committee in this area.

“We will bring forward a Renters Reform Bill in this Parliament, abolishing ‘no fault evictions’ so that all tenants – including university students – have greater security in their homes and are empowered to challenge poor conditions and unreasonable rent rises.

“We are investing a significant amount of funding to improve waiting times in the civil courts, opening extra courtrooms and recruiting more judges, and will continue to engage with stakeholders across the private rented sector.”