A new mediation pilot will be introduced next month with a view to supporting landlords and renters who face court procedures and potential eviction, the government has announced.
The new service will offer mediation as part of the possession process to try and help landlords and tenants reach a mutual agreement and keep people in their homes.
Helping to resolve disputes through mediation will enable courts to prioritise urgent cases, supporting landlords and tenants to resolve issues quickly without the need for a formal hearing.
The mediation pilot will work within the existing court arrangements in England and Wales.
Isobel Thomson, chief executive officer at safeagent, said: “As we continue to battle the pandemic, it is right that government look for ways to support those who need it most. The announcement of the mediation pilot is a welcome move, formalising what many of our agents have been successfully doing since the start of the outbreak, supporting landlords and their tenants experiencing financial hardship.
“By working with both parties and helping agree payment plans, agents have played a crucial role in ensuring tenancies are maintained.”
Around half a million private tenants in the UK are behind with their rent, according to research by Citizens Advice.
The average amount owed is more than £700, the charity says, and about a quarter of private renters in arrears have been threatened with eviction or cancellation of the their tenancy agreement by their landlord, the charity claims.
Thomson added: “While there is help for tenants, it is no less important that we also consider landlords who themselves may be suffering. If they go under who will house their tenants?
“We want to see support for every part of the sector – landlords and tenants – to ensure that the important role the PRS plays in providing a home to 20% of households in England is able to continue.”
I have learned many lessons from the Banks and Solicitors over the last 35 years, lesson number one is that if they touch anything to do with you they then charge you. I think that is perfectly fair as “Time is money” So if a landlord is going to be pulled in to mediation for a tenants financial circumstances then they should be compensated for this time and administration involvement. What would a Solicitor charge for this kind of involvement response? Perhaps an initial fee of £400 per case and then 10% of the rent every month after while the case in in arrears and mediation. This would obviously have to be met by the Government or whomever monitors the mediation on behalf of the tenant. Its important to show respect for the landlord and I think that this would be fair. Its no good saying that all cost should be absorbed in the rent charged as the tenants who pay in full will now be subsidising the tenants in financial difficulty.
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Sounds a positive move in principle, but the size of the backlog of eviction cases means this is only paying lip-service to the problem. The pilot needs to target those cases where a s.8 has been served and legal proceedings have commenced. If a court hearing can be avoided, it will allow another deserving landlord an earlier opportunity. With a tenant who has refused to pay rent since March 2020 for no reason, and who I have offered to clear his debt in full, I would be more than happy to participate in this, but I know he won’t.
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