Several measures suggested to alleviate the pressure
The English tribunal system is ill-prepared to handle the potential surge in cases expected from the Renters’ Rights Bill, according to research by proptech firm Reapit.
Between 2019 and 2023, fair or market rent cases before England’s Residential Property Tribunals increased by nearly 89%, rising from 483 to 921. These cases are triggered when tenants contest a Section 13 rent notice, a mechanism landlords use to raise rents. Under the Renters’ Rights Bill, Section 13 will become the sole method for rent increases, limited to once per year.
As of March 2024, open cases at Residential Property Tribunals had surpassed 8,000, a 144% increase from 2019, reflecting the growing burden on the system. With 4.6 million households in the private rented sector (PRS), there are concerns that millions of tenants could challenge rent increases through tribunals, potentially leading to a significant rise in case numbers.
Despite warnings about the court system’s ability to manage additional caseloads, the government is pushing forward with the Renters’ Rights Bill. Minister of State for Housing and Planning Matthew Pennycook stated during a parliamentary debate that reforms to the PRS could not wait for improvements in the court system.
Deputy Prime Minister and Housing Secretary Angela Rayner acknowledged the pressure on the courts, revealing plans to digitise the county court possession process in collaboration with the Ministry of Justice. However, a 2023 report from the Committee of Public Accounts criticised the slow pace of digitisation and the challenges in coordinating technology upgrades across courts and tribunals.
The report highlighted that the rollout of digitisation by HM Courts and Tribunals Service had increased pressure on already overworked staff, partly due to insufficient engagement with key stakeholders. Furthermore, the programme’s costs have now surpassed £1 billion, raising concerns about whether its goals for efficiency and accessibility will be met.
Steve Richmond (pictured), general manager of Reapit UK&I, called for more investment in the courts and tribunal system before the Renters’ Rights Bill becomes law. He warned that without increased funding, frustrations would grow for both tenants and landlords.
“The Renters’ Rights Bill brings significant changes but adds more pressure to an already strained system,” Richmond said. “We’re also concerned the government hasn’t fully considered the added costs to courts and tribunals, as no impact assessment has been published.”
Richmond suggested several measures to alleviate the pressure, including using digital evidence such as photos and videos to speed up rent judgement cases, and publishing a database of market rents to give tenants clarity before submitting claims.
He cautioned that delays in handling rent appeals and evictions could lead landlords to exit the market, at a time when housing supply in the PRS is already under strain. This could further exacerbate the housing shortage and diminish tenant satisfaction.
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