The English tribunal system is already overburdened and unequipped to handle the potential influx of new claims from the Renters’ Rights Bill, claims Reapit.
The PropTech points out that between 2019 and 2023, the number of fair or market rent cases before England’s Residential Property Tribunals increased by almost 89%, from 483 to 921. These cases arise when tenants challenge a Section 13 rent notice. Once the Renters’ Rights Bill becomes law, Section 13 will be the only method landlords can use to raise rents, which can only happen once a year.
Moreover, as of 31 March 2024, open cases at England’s Residential Property Tribunals exceeded 8,000 – a 144% rise since 2019, highlighting the sharp increase in tribunal caseload.
The latest English Housing Survey reports there are 4.6 million households in the PRS. Under the Renters’ Rights Bill, any English tenant served with a Section 13 notice could challenge the rent hike in tribunal, potentially leading to millions of additional cases annually.
Despite concerns being raised about court and tribunal services during the second reading of the Renters’ Rights Bill, the government is pushing forward, despite deputy PM and housing secretary Angela Rayner acknowledging the “huge pressures on the court system”.
However, the Committee of Public Accounts has raised concerns about these reforms. Its 2023 report pointed to slow progress on digitisation and major challenges in integrating systems across courts and tribunals.
According to the report, the way HM Courts and Tribunals Service had rolled out part of the digitisation process “increased the burden on courts and staff already under significant pressure” due to a “failure to engage sufficiently with staff and stakeholders”.
The programme has also faced escalating costs, now exceeding £1bn, which has raised concerns about whether the original goals for efficiency and accessibility can still be met.
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.
He said: “Without ramping up funding for our courts and tribunals, frustrations will grow for both tenants and landlords. 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.
“When making a fair or market rent judgement, a tribunal will often ask to view the property. This adds additional time and cost to the proceedings. Instead, evidence such as photos and videos submitted digitally should be used to make the decision to reduce costs. We also think the government should publish a database of market rents, so tenants can check if their rents are close to market rates before they apply to a tribunal. It will also mean all tribunals are working from the same data.
“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.”