As the long-awaited Renters’ Rights Bill edges closer to becoming law, it’s drawing both praise and concern across the lettings sector. While many of the proposed changes aim to give renters greater security, one significant shift, the abolition of ‘no fault’ evictions, could carry serious, unintended financial consequences for tenants.

What’s Changing?

At the heart of the reform is the end of Section 21 evictions. Until now, landlords have been able to serve a Section 21 notice to reclaim their property without providing a reason. The new rules will change that. Under the proposed law, landlords must present a valid reason for ending a tenancy and, in most cases, go through the courts to do so.

On the surface, this might seem like a win for renters, more transparency and fewer abrupt evictions. But industry experts warn that the reality could be far more complex.

The Risk of Rising CCJs

Oli Sherlock, Managing Director of Insurance at leading rental platform Goodlord, warns that the shift to court-based eviction processes could lead to an uptick in County Court Judgments (CCJs) issued against tenants who fall into arrears.

“Because no-fault evictions will no longer be possible, we’re worried tenants will fall into a trap of thinking they can delay or skip payments without serious consequences,” Sherlock said. “But if rent isn’t paid and landlords take legal action, a CCJ could be issued, something that follows you for years.”

Currently, a Section 21 notice doesn’t usually result in further legal action, it's a swift way to end a tenancy. But under the new framework, any arrears will be assessed in court, potentially resulting in judgments that remain on a tenant’s credit file for up to six years.

What Does a CCJ Mean?

A County Court Judgment can significantly damage a tenant’s credit rating, making it difficult to:

• Rent another property

• Secure a mortgage

• Take out a loan

• Even get a mobile phone contract

And because the eviction process will now involve longer notice periods, tenants who delay rent payments could accrue larger debts before a resolution is reached, further compounding the financial damage.

Expert Advice for Tenants

To avoid costly mistakes, Sherlock recommends tenants take these three steps immediately:

• Always pay your rent on time, even during disputes or ongoing eviction proceedings.

• If your financial circumstances change, speak to your landlord or letting agent as early as possible. There may be flexible options such as payment plans available.

• Respond promptly to any court communications to reduce the risk and impact of a CCJ.

The Bottom Line

The Renters’ Reform Bill is designed to make renting fairer, but understanding your responsibilities as a tenant is more important than ever. Rent arrears will now be far more likely to end up in court, and the effects of a CCJ can be long-lasting and serious.

Worried about how the upcoming changes might affect your tenancy? At Boydens, we’re here to help. Whether you’re a tenant or a landlord, our local lettings experts are happy to talk you through your rights, responsibilities, and options under the new law.

👉 Get in touch with your nearest Boydens office today for clear, professional advice tailored to your situation.