Renters’ Rights Bill won’t become law until the autumn
9 months ago | 8 comments
Renters’ Rights Bill could lead to a surge in tenant CCJs
9:28 AM, 21st July 2025, 9 months ago
16
A leading lettings professional has raised concerns about a potential increase in County Court Judgments (CCJs) for tenants as the Renters’ Rights Bill nears enactment.
The legislation aims to improve tenant protections but may inadvertently expose renters to significant financial risks.
The law will abolish Section 21 ‘no fault’ evictions and instead landlords must provide clear grounds for eviction.
These will usually require court approval, and that could see a rise in renters ending up with a County Court Judgment (CCJ) against their name.
Delayed or missed rent payments
Oli Sherlock, the managing director of insurance at Goodlord, said: “Because no-fault evictions will no longer be possible, we’re worried that tenants will fall into a trap of thinking that they can get away with delaying or missing rental payments.
“Similarly, if their landlord is pursuing their eviction through the courts, tenants might be tempted to pause their rental payments whilst the eviction process takes place.
“This would be a huge mistake.”
He added: “If tenants allow themselves to fall into arrears with their landlord – it will catch up with them.”
More tenants in court
Mr Sherlock warns that the new rules could see more cases ending up in court.
He said: “Should this happen, and some rental payments have been missed or withheld, tenants might find that a ‘charge’ has been made against their name in the form of a CCJ.
“If they don’t have the cash available to settle their debt quickly and in full, a CCJ could stay on their credit record for up to six years.”
A CCJ will affect credit scores and potentially a tenant’s ability to buy or rent a home, and even get a mobile phone contract.
CCJs for tenants
Mr Sherlock said: “The new rules mean tenants risk sleepwalking into CCJs that could follow them for years – even for relatively small debts.
“And, because tenancy notice periods will now be longer, the average amount owed in arrears could also spike – meaning tenants face higher debt burdens.
“More formal court action equals more judgments on record.”
He added: “It’s critical that tenants understand this risk now and engage early with landlords to avoid unnecessary escalation.”
Tags:
County Court Judgment, credit score impact, Landlord Disputes, No fault Evictions, renters rights bill, tenant CCJs, Tenant Rights UK, UK Rental Laws
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Member Since December 2023 - Comments: 1581
10:01 AM, 21st July 2025, About 9 months ago
It will lead to landlords using Section 8 where they may have previously opted for the less burdensome Section 21, even when the tenant had rent arrears or took part in antisocial behaviour or had damaged the property.
This will mean more tenants will be identified as intentionally homeless and the Council will not be duty bound to accommodate them.
The result will be less pressure on Councils to supply temporary accommodation. The unfortunate former tenants will be forced to live in cars, caravans, with friends or on the streets.
I expect crime to increase as a result.
Member Since September 2015 - Comments: 1013
10:21 AM, 21st July 2025, About 9 months ago
The threat of a CCJ will also put pressure on the slightly wayward tenants (as opposed to to full-blown rogue tenants) to behave better and pay their rent on time. A CCJ will as pointed out above have wider consequences for the tenants concerned.
Member Since February 2017 - Comments: 57
10:42 AM, 21st July 2025, About 9 months ago
Reply to the comment left by Gromit at 21/07/2025 – 10:21
As landlords we will need to make tenants aware of this CCJ risk at the earliest point in any non-payment or anti-social behaviour situation. Most tenants will not be aware of the added risks to them. So a standard wording or letter, perhaps drafted by Property118 to explain the implications both from CCJ’s and from council rejection, would be needed to get this across early.
Member Since November 2019 - Comments: 153
11:40 AM, 21st July 2025, About 9 months ago
I have never received any Money Back from a court order. Or managed to obtain an attachment of earnings.
Member Since May 2015 - Comments: 2197 - Articles: 2
11:49 AM, 21st July 2025, About 9 months ago
Reply to the comment left by Northernpleb at 21/07/2025 – 11:40
You are in very good company. Tenants who have nothing, save a benefit claim, are not at all worried about owing money,
Member Since October 2013 - Comments: 1639 - Articles: 3
1:48 PM, 21st July 2025, About 9 months ago
Reply to the comment left by TheMaluka at 21/07/2025 – 11:49
I agree to some extent. I experienced it myself and was left with a £20k debt owed by a tenant who could not care less because he was going to prison. I wrote him explaining the potential implications of having a CCJ against his name and didn’t get so much as an acknowledgement.
However, he will be an exception in the grand scheme of the PRS.
If most tenants apparently don’t understand their rental contract (don’t bother to read it, more like!), how do you get across the implications of a CCJ? I guess they all need a smartphone, renewed on credit as soon as the latest £1000 apple is launched. Well, CCJ = no credit = no new apple! They’ll buy clothes on credit. They’ll have store cards, and credit cards which they’ll use for everything (because they have only 61% of their pay left after rent!). Life is about having access to credit and having debts, but not CCJ debts!
Member Since January 2016 - Comments: 473
2:14 PM, 21st July 2025, About 9 months ago
I suspect the bar for being able to obtain CCJ will be much higher. If nothing else the Courts will take longer to do anything.
As for having a CCJ, it means everything being on a meter or pre-pay or very high credit interest. Less of an issue if that’s already your lifestyle. Galling of you are used to easy credit and consequently find your lifestyle downgraded.
Member Since September 2018 - Comments: 3514 - Articles: 5
4:33 PM, 21st July 2025, About 9 months ago
Just means that LL’s are going to be wary of taking on benefit tenants. The combo if this and the RRB implications means T who is dependant on state funding is not going to be able to access the private sector rental market at all.
Increased risk of anything = avoidance.
The PRS is under no legal or moral obligation to house those dependant on state assistance and this is going to become glaringly obvious very soon…
Member Since September 2018 - Comments: 3514 - Articles: 5
4:34 PM, 21st July 2025, About 9 months ago
Reply to the comment left by TheMaluka at 21/07/2025 – 11:49
true…but making them aware the councils also wont have any obligation to house them either will be more of a concern I would have thought…
Member Since September 2018 - Comments: 3514 - Articles: 5
5:07 PM, 21st July 2025, About 9 months ago
Reply to the comment left by NewYorkie at 21/07/2025 – 13:48
only today there are reports of how to stop anyone getting credit off the hoof and definitely as easy as people can get it now…
The screws are tightening. A CCJ will have a major implication on this.
I tend to scan through tenants bank statements for the codes when payments are made before even referencing is paid for to try and narrow an application down…Klarna, finance payments, credit companies all have their own references…if they are already using these and now coming to me for a rental….it’s going to be a no from me….