Government needs to prevent rent debts, not let them grow
Ministers need to do more to prevent tenants building rent arrears, not allow them to get bigger as currently planned.
The call comes as the Government’s Renters’ Rights Bill proposes increasing the amount of arrears a tenant can build from two to three months of rent before landlords can serve notice to repossess a property.
In addition, the Bill seeks to double the notice period landlords must give in such cases, before waiting an average of seven months for the courts to process and enforce such claims.
The National Residential Landlords Association (NRLA) is warning that allowing tenants to build yet more arrears will make it impossible for many to pay them off. It will damage tenants’ credit ratings, limiting their ability to access housing and other services in the future.
To ensure fair treatment for both tenants and landlords, the NRLA is calling for:
• Landlords, and letting agents, to be required to work with tenants at the first sign of rent arrears building to tackle them early on. The Government and the courts should adopt the NRLA’s ready-made ‘golden rules’ as the blueprint to help such discussions. These were cited as best practice by the Government to help tenants with rent arrears during the COVID-19 pandemic.
• Certainty for tenants and landlords by keeping housing benefit rates linked to market rents for the duration of this Parliament.
• Confidence for responsible landlords that they can swiftly repossess properties where arrears build to two months of rent as at present, rather than allowing them to build indefinitely.
Ben Beadle, Chief Executive of the National Residential Landlords Association said:
“Preventing rent arrears from building in the first place should be the priority for landlords and government, not allowing them to build yet further. Landlords should be making every effort to help tenants get on top of debts as early on as possible.
“However, landlords should rightly expect that they can swiftly regain possession of the properties they rent when tenants reach two months of arrears as at present. In no other walk of life would the Government allow consumer debts to build for months on end with all the damage that can cause to their credit ratings.”
-ENDS-
Notes
• The Renters’ Rights Bill (which MPs will debate for the first time on Wednesday) proposes that when section 21, ‘no explanation’ repossessions are ended landlords will have to wait 3 months before they can serve note to a tenant to repossess a property. This is up from 2 months at present. It also increases the period of notice needed to be given to a tenant for rent arrears from 2 to 4 weeks.
• The NRLA proposes that:
- At the first sign of a tenant beginning to get behind on their rent payments, the landlord/letting agent would be required to seek to work with the tenant to prevent them increasing, using the NRLA’s ‘Golden Rules’ to assist with discussions. This was cited as best practice by the Government during the COVID-19 pandemic.
- The landlord or tenant should be able to access a mediation service to help with discussions to tackle rent arrears if needed before arrears build to two months’ worth of rent.
- A landlord could serve notice to repossess a property where arrears built to two months’ worth of rent.
- Where the case needed to be considered by the courts, it would be a mandatory ground for possession provided:
- The landlord (or the letting agent acting on their behalf) could evidence, in writing, that they had sought to enter meaningful discussions to help the tenants avoid the rent arrears building in good faith, even if the tenant had not responded in kind.
- The landlord had not refused an unreasonable proposition by the tenant to help address their rent arrears. A tenant would need to document, with the assistance of suitable support services if needed, where they had made a suggestion as to how they could repay rent arrears.
- A fast-track system to repossess a property should be in force where a tenant has not abided by the terms of an agreement.
• According to the latest Government data, in the second quarter of 2024 it took an average (mean) time of 31.7 weeks between the courts issuing a claim by a private landlord for possession to it actually happening. The data can be found in table 6 here. At the top of the sheet where it says, “Possession Type” on the drop-down menu next to it just click “Private_Landlord”.
• Further information about the NRLA can be found at www.nrla.org.uk. It posts on X @NRLAssociation.
• The NRLA’s press office can be contacted by emailing [email protected] or by calling 0300 131 6363.
