The Renters\u2019 Rights Bill could result in more tenants being handed CCJs due to the elimination of Section 21 evictions, software company Goodlord has warned.<\/p>\n
It\u2019s expected for more landlords to challenge their tenants in court once the \u2018no fault\u2019 eviction route is gone, while there are worries some tenants could look to take advantage of the regulatory change.<\/p>\n
Oli Sherlock, managing director of insurance at Goodlord, said: \u201cBecause no-fault evictions will no longer be possible, we\u2019re 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.\u00a0This would be a huge mistake.<\/p>\n
\u201cIf tenants allow yourselves to fall into arrears with their landlord \u2013 it will catch up with them. Currently, when a Section 21 is used to evict a tenant, no further action is typically taken. However, the new rules means far more cases could end up in court.\u201d<\/p>\n<\/p>\n
He added: \u201cShould this happen and some rental payments have been missed or withheld, tenants might find that a \u201ccharge\u201d has been made against their name in the form of a CCJ. If they don\u2019t have the cash available to settle their debt quickly and in full, a CCJ could stay on their credit record for up to 6 years.<\/p>\n
\u201cThis can be seriously damaging to credit scores \u2013 affecting their ability to secure everything from renting a new property, applying for a mortgage, or securing a mobile phone contract.<\/p>\n
\u201cThe new rules mean tenants risk sleepwalking into CCJs that could follow them for years \u2013 even for relatively small debts. And, because tenancy notice periods will now be longer, the average amount owed in arrears could also spike \u2013 meaning tenants face higher debt burdens.<\/p>\n
\u201cMore formal court action equals more judgments on record. It\u2019s critical that tenants understand this risk now and engage early with landlords to avoid unnecessary escalation.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
The Renters\u2019 Rights Bill could result in more tenants being handed CCJs due to the elimination of Section 21 evictions, software company Goodlord has warned. It\u2019s expected for more landlords to challenge their tenants in court once the \u2018no fault\u2019 eviction route is gone, while there are worries some tenants could look to take advantage […]<\/p>\n","protected":false},"author":1,"featured_media":1865,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2],"tags":[],"class_list":["post-1864","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-second-home"],"yoast_head":"\n