The UK's court system is bracing for an influx of cases following the implementation of the Renters' Rights Act, which brings significant changes to the private rental sector. Landlords are now facing higher costs as new fees for possession claims come into effect this week, with charges rising from £404 to £415 and bailiff fees increasing from £148 to £152.
The Ministry of Justice attributes these increases to annual inflation-linked price rises, which will also affect 80 other fees across the Residential Property Division of the Property Chamber of the First-tier Tribunal. The government claims that additional revenue generated by these fee hikes will fund improvements to the justice system, including digitisation plans expected to be completed by spring 2027.
However, many in the industry are sounding alarm bells about the court system's ability to cope with a surge in cases. Propertymark has previously warned of the potential for delays and backlogs, while Megan Eighteen, President of ARLA Propertymark, has expressed 'deep concerns' about the system's capacity.
The removal of 'no-fault' evictions under Section 21 is expected to shift many cases into more complex hearings under Section 8, placing a significant burden on an already struggling system. Delays are currently commonplace in England, with waiting times stretching up to 29 weeks in some areas and as long as 40 weeks in London.
According to official statements, the government is confident that the justice system can manage the implications of the Renters' Rights Act. Fees for tenants wishing to challenge a rent increase remain frozen at £47, but concerns persist about the potential strain on resources and the court's ability to handle an increased workload.