Ministers must take stronger action to prevent tenants from accumulating rent arrears instead of allowing them to grow further, according to the National Residential Landlords Association (NRLA).
The Government’s Renters’ Rights Bill proposed an increase in the amount of arrears tenants can build from two to three months before landlords can issue a notice to repossess a property.
The Bill also seeks to double the notice period landlords must provide, leading to an average delay of seven months for courts to process and enforce repossession claims.
The NRLA warned that allowing tenants to build more arrears risks making it impossible for many to clear their debts and could damage their credit ratings, hindering access to housing and services in the future.
To ensure fair treatment for both tenants and landlords, the NRLA called for several steps.
First, landlords and letting agents should be required to work with tenants at the first sign of rent arrears to address them early on.
The NRLA said Government and the courts should adopt the already established ‘golden rules’ for these discussions, which were recognised as best practice during the pandemic.
Second, the NRLA advocated for certainty for both tenants and landlords by keeping housing benefit rates linked to market rents for the duration of the Parliament.
The NRLA also said landlords should feel confident that they can swiftly repossess properties when tenants have accrued two months of arrears, as is currently the case.
Ben Beadle, chief executive of the NRLA, said: “Preventing rent arrears from building in the first place should be the priority for landlords and government, not allowing them to build yet further.
“Landlords should be making every effort to help tenants get on top of debts as early on as possible.
“However, landlords should rightly expect that they can swiftly regain possession of the properties they rent when tenants reach two months of arrears as at present.
“In no other walk of life would the Government allow consumer debts to build for months on end with all the damage that can cause to their credit ratings.”
