A prominent lettings professional has voiced concerns that the impending Renters’ Rights Bill could lead to an increase in County Court Judgments (CCJs) for tenants. While the legislation aims to enhance tenant protections, it may unintentionally expose renters to considerable financial risks.

The Bill will eliminate Section 21 ‘no fault’ evictions, mandating that landlords must instead provide clear grounds for eviction. These new grounds will typically require court approval, which could result in more renters receiving a CCJ against their name.

Oli Sherlock, managing director of insurance at Goodlord, expressed worry that the abolition of no-fault evictions might lead tenants to believe they can delay or miss rent payments without consequence. He also cautioned against tenants pausing rental payments during an eviction process, calling it a “huge mistake”. Sherlock emphasized that if tenants fall into arrears, “it will catch up with them”.

Sherlock warns that the new regulations could lead to more cases being heard in court. Should this occur, and rent payments have been missed or withheld, tenants might find a ‘charge’ in the form of a CCJ made against their name. If tenants cannot quickly settle their debt in full, a CCJ could remain on their credit record for up to six years. A CCJ can negatively impact credit scores, potentially hindering a tenant’s ability to buy or rent a home, or even secure a mobile phone contract.

Sherlock stated that the new rules mean tenants risk “sleepwalking into CCJs that could follow them for years – even for relatively small debts”.  He added that longer tenancy notice periods could also lead to a spike in the average amount owed in arrears, burdening tenants with higher debts. More formal court action, he notes, “equals more judgments on record”. He stresses the importance for tenants to “understand this risk now and engage early with landlords to avoid unnecessary escalation”.