The Renters’ Rights Bill: Why Tenants Could Face a Surge in CCJs—and What to Do About It
The Renters’ Rights Bill—heralded as a turning point for tenant protections in England and Wales—may come with a worrying unintended consequence: a surge in County Court Judgments (CCJs) against tenants.
While the Bill seeks to strengthen renter rights by abolishing Section 21 'no-fault' evictions and tightening rules for landlord behaviour, legal experts and lettings professionals are warning that the new system could result in more tenants being taken to court—often without understanding the serious long-term financial risks involved.
CCJs could become the hidden cost of protection.
What Is the Renters’ Rights Bill?
At its core, the Renters’ Rights Bill is designed to rebalance the power dynamic between tenants and landlords. The most headline-grabbing change is the abolition of Section 21, which currently allows landlords to evict tenants with just two months’ notice without needing to give a reason.
Under the new law, landlords will have to cite a valid reason for eviction, such as rent arrears, anti-social behaviour, or the landlord's intention to sell or move back into the property. Most importantly, these grounds will now typically require court approval.
While this is seen as a victory for renters' security, it also introduces new procedural hurdles—and this is where trouble begins.
Court-Backed Evictions Could Backfire on Tenants
According to Oli Sherlock, Managing Director of Insurance at proptech firm Goodlord, the requirement for court involvement in eviction cases might inadvertently drive up the number of CCJs issued against tenants.
“Because no-fault evictions will no longer be possible,” says Sherlock, “we’re worried that tenants will fall into a trap of thinking they can get away with delaying or missing rental payments—especially if their landlord is already going through the courts to evict them.”
It’s a trap that’s easy to fall into. Tenants may assume that once an eviction process begins, they no longer need to continue paying rent, particularly if they believe they will soon be leaving the property. But this assumption is legally and financially dangerous.
What Happens If You Miss Rent During an Eviction?
If you withhold rent—even during an ongoing eviction case—a landlord can (and often will) pursue court action for rent arrears. This typically involves:
- Filing a money claim in the County Court
- Securing a judgment against you if you fail to pay or respond
- The court recording this debt as a County Court Judgment (CCJ)
If a CCJ is issued and not satisfied (paid in full) within one calendar month, it will remain on your credit file for six years—impacting your ability to:
- Rent another property
- Get a mortgage
- Apply for credit cards or loans
- Even secure a mobile phone contract
A Perfect Storm: Longer Notice Periods, Larger Arrears
Ironically, the Bill’s provisions meant to protect tenants could increase financial damage if those protections aren’t fully understood.
Sherlock explains:
“Because tenancy notice periods will now be longer, the average amount owed in arrears could spike—meaning tenants face higher debt burdens and a higher risk of a CCJ.”
Let’s break that down with a hypothetical example:
- Under current rules, a tenant might be evicted within two months.
- Under the new system, that timeline could stretch to four or even six months, depending on court backlogs.
- If rent is £1,000/month and the tenant stops paying, they could owe £4,000 to £6,000 by the time they’re legally required to leave.
That’s more than enough to trigger formal legal action and a subsequent CCJ.
Why Tenants Are at Greater Risk Than They Realise
There’s a common misconception that only people who “refuse to pay” or “disappear” end up with CCJs. But in reality, a CCJ can be issued even when:
- The tenant genuinely can’t afford to pay rent due to redundancy or illness
- A dispute over repairs leads to a rent strike
- Court paperwork is sent to the wrong address or ignored
The legal process is relatively simple for landlords. If a tenant misses rent payments and doesn't respond to court paperwork, the landlord can request a default judgment—essentially winning the case automatically.
Once granted, the CCJ is uploaded to the public Register of Judgments, and credit reference agencies pick it up within weeks.
How a CCJ Affects Your Future
Even if the CCJ is for a relatively small amount (say, £800), the consequences can be long-lasting and deeply disruptive. Here’s what a CCJ can affect:
- Private rentals: Landlords and letting agents often check CCJ records during background checks.
- Mortgages: Many lenders flat-out reject applications from anyone with a CCJ.
- Job applications: Some employers—especially in finance or law—consider creditworthiness as part of vetting.
- Utilities and mobile phone plans: You may be required to pay deposits or be refused service.
How to Avoid a CCJ as a Tenant
1. Communicate Early and Often
If you're struggling to pay rent, tell your landlord as early as possible. Under the new law, landlords are encouraged to work with tenants and explore alternatives like payment plans or mediation before going to court.
2. Keep Paying Rent (If You Can)
Never assume that an eviction process frees you from rent obligations. As long as your tenancy legally continues, so do your rental responsibilities. Even paying some rent shows goodwill and may prevent legal escalation.
3. Engage With Court Papers Immediately
If you receive a claim form, do not ignore it. You usually have 14 days to respond. Missing the deadline could result in a default judgment, even if you have a valid defence.
4. Seek Advice Quickly
Organisations like Citizens Advice, Shelter, and Parachute Law can help you:
- Understand your rights
- Draft responses to court claims
- Negotiate with landlords
What If You Already Have a CCJ?
If you’ve been issued a CCJ and feel it was unfair or served without proper notice, you might be able to have it set aside.
To do this:
- File Form N244 with the County Court that issued the judgment
- Explain why you didn’t respond (e.g. incorrect address, illness)
- Provide evidence of your situation and defence (if applicable)
If successful, the CCJ will be removed from the register and your credit file.
What Should Landlords Do?
It’s not just tenants who need to tread carefully. Landlords are also being advised to document arrears thoroughly and try alternative dispute resolution before launching court proceedings.
Landlords who misuse the new rules or fail to engage with tenants risk delays, legal costs, and reputational damage—especially if courts begin to penalise “trigger-happy” litigants.
What’s Next?
As the Renters’ Rights Bill progresses toward enactment, all parties—landlords, tenants, and agents—must prepare for a more formalised, court-driven tenancy system.
This may reduce abuses of power and improve accountability, but it will also mean more paper trails, more hearings, and more judgments—both fair and unfair.
For tenants, the key message is clear: don’t sleepwalk into debt or judgments.
Final Word: Awareness Is Your Best Defence
The Renters’ Rights Bill brings new protections, but also new responsibilities. For tenants, this includes:
- Staying on top of rent even during disputes
- Taking legal paperwork seriously
- Getting help before court action escalates
A single CCJ can follow you for years—but with the right awareness and action, you can avoid it entirely.
If you're unsure how the Renters’ Rights Bill will affect you, or if you're facing court action already, reach out to a legal advisor who specialises in housing law. At Parachute Law, our tenant support team is ready to guide you through any stage—from negotiations to court defence or CCJ removal.
Get in touch today—your financial future shouldn’t be wrecked by someone else’s incompetence.
Need help with a CCJ?
Parachute Law specialises in removing CCJs—even after they’ve been paid.
Call us: 0207 183 4547
Or email: thelegalteam@parachutelaw.co.uk
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