A high-profile PropTech firm wants the government to include investment in the civil court system in next week’s Budget.
The call comes as figures from the Ministry of Justice show that the median time for landlords to progress from claim to repossession has risen to 27.4 weeks, up from 24.4 weeks a year ago. The number of properties repossessed by landlords has also increased by 9% over the past 12 months.
With the Renters Rights Act introducing the biggest changes to the sector in decades, beginning on May 1 next year with the removal of Section 21, Reapit warns that without action to increase court capacity, timelines could lengthen further, creating uncertainty for the industry and risking continued investment in the private rented sector.
From May evictions can only take place if a tenant has breached a ground under Section 8 of the Housing Act of 1988 and the new provisions under the Renters’ Rights Act, which must be argued before a court.
Neil Cobbold, commercial director at Reapit, says: “Agents are on the front line of these reforms, but the best agents are already being proactive in protecting their landlords by avoiding evictions. One of the biggest causes of evictions are tenant arrears, and managing that risk starts with tenant vetting, clear automated client accounting and arrears chasing, and having the time to build relationships with tenants, so they know who to turn to if they have issues paying the rent.
“But if these measures fail and an eviction is necessary, we need speedy action from the government to address worsening court delays. When landlords cannot regain possession quickly, it creates financial strain and reduces their confidence in the rental market. Longer timelines also affect tenants who may be stuck in unsuitable situations.
“With the Renters Rights Act being implemented from May next year, we will see more eviction cases in court as Section 21 will no longer be an option. Agents, landlords and tenants need confidence that the system can handle this, which requires urgent investment in court capacity.”