Renters’ Rights Bill sparks rent arrears fear

Renters’ Rights Bill sparks rent arrears fear

0:04 AM, 20th February 2025, About 3 months ago 5

Text Size

There will be another rise in tenant rent arrears due to the Renters’ Reform Bill after a jump in numbers over the past year, FCC Paragon says.

The tenant referencing firm’s analysis reveals an estimated 235,837 PRS households in England struggled with rent payments during 2023/24, that’s a 3.2% rise from the previous year.

The English Housing Survey indicates 5.3% of England’s renters are currently, or have been, behind on rent, peaking at 9.3% in Yorkshire and the Humber.

London holds the highest volume of affected properties, representing a quarter of all arrears cases.

PRS is facing ‘serious consequences’

The firm’s managing director, Bekki Leaves, said: “Whilst the Renters’ Rights Bill may have been designed with the best intentions, the rental sector is facing some very serious consequences, and we anticipate a continued spike in rental arrears to be one of them.

“The move to periodic tenancies, the abolition of Section 21 and preventing tenants from offering more cash upfront to offset income concerns will all contribute to an increased level of vulnerability on the side of landlords.”

She says that comprehensive tenant referencing is now crucial – and this can’t be done by digital referencing platforms.

Ms Leaves adds: “The risk is too great and requires the expertise of experienced and dedicated staff members to leave no stone unturned.”

Risk of rising rent arrears

FCC Paragon says that while the Renters’ Rights Bill will strengthen tenant rights, there is a real risk of rising rent arrears in the PRS.

This concern stems from the predicted burden on the court system following the abolition of Section 21 ‘no-fault’ evictions.

The firm says that reduced landlord protections on unpaid rent, coupled with an already strained court system, make thorough tenant vetting a critical undertaking.


Share This Article


Comments

Reluctant Landlord

Become a Member

If you login or become a member you can view this members profile, comments and posts!

Sign Up

9:19 AM, 20th February 2025, About 3 months ago

what is the cost of the average rent guarantee insurance? Are LL's baking an amount in for this in the rent as standard when working out the rental charge even before they start advertising?

moneymanager

Become a Member

If you login or become a member you can view this members profile, comments and posts!

Sign Up

10:40 AM, 20th February 2025, About 3 months ago

Regarding prepayment, does anyone know of a problem in asking a tenant to place the funds that they would have paid the landlord into an account of theirs solely for that purpose, not exactly an escrow but the next best thing.

Cider Drinker

Become a Member

If you login or become a member you can view this members profile, comments and posts!

Sign Up

11:19 AM, 20th February 2025, About 3 months ago

Rent arrears will increase. The risk of rent arrears will fuel higher rents. Higher rents will increase the risk of rent arrears.

I would rather sell up than squeeze my tenants so hard that they struggle to live there lives.

Shaheen Hamadani

Become a Member

If you login or become a member you can view this members profile, comments and posts!

Sign Up

19:14 PM, 20th February 2025, About 3 months ago

basically if a landlord self manages their property. get the contract made at an estate agent office for £90 the agent will collect the electricity certificate, epc, gas safety certificate, draw up the contract. when the contract is signed by tenant and landlord the first month is paid as cash. tenants references employment ccjs must be checked. the tenant can pay the next rent into the bank.. tenants who do not pay... will find it difficult to ever get a mortgage car loan etc there are consequences

Phil rosenberg

Become a Member

If you login or become a member you can view this members profile, comments and posts!

Sign Up

0:12 AM, 21st February 2025, About 3 months ago

Reply to the comment left by moneymanager at 20/02/2025 - 10:40
I'm certain that would be somewhere in the region of illegal to unenforceable.

Leave Comments

In order to post comments you will need to Sign In or Sign Up for a FREE Membership

or

Don't have an account? Sign Up

Landlord Automated Assistant Read More