"The new rules mean tenants risk sleepwalking into CCJs that could follow them for years - even for relatively small debts"
- Oli Sherlock - Goodlord
With the Renters’ Rights Bill expected to pass into law in the coming weeks, a lettings expert has raised concerns that the legislation could result in a rise in County Court Judgments (CCJs) against tenants.
Although the changes are largely seen as positive for renters, one major shift, the abolition of ‘no fault evictions’, could have unintended consequences. Currently, landlords are able to use “Section 21” notices to end tenancies without citing a reason. Under the new law, landlords will need to give a specific reason for evicting a tenant, and in most cases, will have to seek a court order to do so.
Oli Sherlock, managing director of insurance at rental platform Goodlord, warned that tenants might underestimate the seriousness of falling into arrears under the new system.
“Because no-fault evictions will no longer be possible, we’re worried that tenants will fall into a trap of thinking that they can get away with delaying or missing rental payments,” said Sherlock. "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. This would be a huge mistake.”
He explained that where previously no further action was typically taken following a Section 21 eviction, the new court-based process is likely to expose more renters to legal judgments if arrears build up.
“If tenants allow themselves to fall into arrears with their landlord, it will catch up with them,” Sherlock continued. “Currently, when a Section 21 is used to evict a tenant, no further action is typically taken. However, the new rules mean far more cases could end up in court.”
This creates the possibility of CCJs being issued against tenants who fall behind on payments during court proceedings. These judgments can remain on a person’s credit file for up to six years, affecting future applications for tenancies, mortgages, or even mobile phone contracts.
“Should this happen and some rental payments have been missed or withheld, tenants might find that a ‘charge’ has been made against their name in the form of a CCJ,” Sherlock noted. “If they don’t 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. This can be seriously damaging to credit scores - affecting their ability to secure everything from renting a new property, applying for a mortgage, or securing a mobile phone contract.”
He added that extended notice periods could lead to larger debts, compounding the financial risks tenants face under the new rules.
“The new rules mean tenants risk sleepwalking into CCJs that could follow them for years - even for relatively small debts,” he explained. “And, because tenancy notice periods will now be longer, the average amount owed in arrears could also spike - meaning tenants face higher debt burdens. More formal court action equals more judgments on record. It’s critical that tenants understand this risk now and engage early with landlords to avoid unnecessary escalation.”
Sherlock offered three key pieces of advice to tenants ahead of the law’s implementation:
Always maintain rental payments, even during disputes with landlords
If a change in financial circumstances affects affordability, contact the landlord or letting agent quickly to explore options such as a payment plan
Respond promptly to court rulings to reduce the long-term impact of a CCJ on credit records
