Don’t just scrap Section 21 - reform the court system too

A lettings industry trade body has written to the government urging fundamental reform of the court system to prevent it grinding to a standstill if Section 21 eviction powers are scrapped.

In the Renters Reform Bill, likely to resume progress through Parliament next month, the government has pledged to abolish Section 21 possession notices while on the other hand looking at extended grounds-based approaches for possession via a Section 8 notice. 

There is a fear that those measures, alone, will lead to delays at Propertymark chief executive Nathan Emerson has written to Justice Secretary Alex Chalk to vent his concern. 

Emerson writes: “As you will know, a third of all possession cases are Section 21 notices which are ‘accelerated’ claims that bypass the courts system. Therefore, the removal of Section 21 will mean more cases going through the courts. 

“Consequently, there is concern that without increasing capacity in the court system, once the changes come into force, letting agent agents and their landlords will not know how long they will be expected to wait for a hearing and ultimately possession of their property. 

“To improve access to justice for both landlords, letting agents and tenants, it is imperative that the removal of Section 21 takes place alongside essential court reform. While court procedures are a last resort, the reforms set out in the Bill will mean that where landlords want their property back, they will now have to go to court, but without improving capacity in the court system these proceedings will be lengthy and expensive. 

“Currently, our members are unclear as to what progress the UK Government have made to improve capacity in the court system and digitise the process.”

Emerson spells out that there should be a better dispute resolution service for housing and property disputes because the ability for landlords to access a swift, efficient, and cost-effective justice system is a key component of a successful lettings industry. 

And he continues: “While embedding alternative and more preventative approaches to dispute resolution can potentially help more tenants stay in their homes and continue rent payments to more landlords, there will inevitably be situations where recovering possession of a property via the court system is the only viable option. However, the current system does not currently provide a reliable route to justice for landlords in these circumstances.”

The chief executive states that while most tenancies are actually ended by the tenant, landlords need to be confident that a property can be recovered quickly if the tenant has caused damage, stopped paying rent or if the landlord’s circumstances change. 

“Through adequately resourcing and reforming the existing courts system this will speed up the system, increase expertise in the decision-making process and ensure greater consistency with reduced costs” he adds.

Emerson spells out that agents and landlords alike will need more than the six months notice of change suggested in the Renters Reform Bill. Instead, he calls for a pilot scheme followed by a period of assessment.

“Additionally, if changes are introduced, after a pilot scheme, the sector must be given at least a minimum of 12 months before the legislation comes into force. During this time, landlords and letting agents will be able to familiarise themselves with the changes and the UK Government will be given sufficient time in order to conduct a full communications campaign to inform those working and living in the private rented sector.”

You can see the full letter here.