Landlords let down by a broken legal system
Landlords let down by a broken legal system.
It’s comforting to think that the UK has a well-established and effective judicial system. If we are wronged we can turn to the courts. But unfortunately for landlords, the system isn’t working. Courts are clogged, there are insufficient judges and cases are taking months to be heard.
It would be easy to assume that the pandemic is at the root of the issue, but the problem predates Covid-19. The Ministry of Justice had its budget cut, and at the beginning of 2020, we were already hearing stories of court delays, last-minute cancellations, shortages of both judges and a lack of county-court bailiffs.
It has got worse. Much, much worse. So much so that landlords hardly have any reliable solution if they have a non-paying tenant. The press and housing charities spread their messages of disreputable landlords and make scant, if any, mention that there are some tenants fully able to pay but deliberately exploiting the clogged legal system.
The situation varies around the country, but the capital is perhaps the worst affected. Some of our landlord clients are waiting up to eight months for a hearing. Clerkenwell & Shoreditch, Barnet, Chelmsford, Central London, Willesden and Stratford Housing Court are all badly affected.
Imagine the frustration of waiting month after month for a hearing and then, when possession is granted, having several more months of grief as you wait for a court-appointed bailiff. It’s no wonder landlords are worried. Their income has taken a massive hit, they may be in real financial difficulties themselves, but they remain at the mercy of an underfunded system.
What, we ask, will it be like when the Government achieves its stated aim of abolishing Section 21, and every eviction requires a court hearing? Frankly, it doesn’t bear thinking about.
We know all about the issues. Every day we have landlords venting their frustration on us. But there is very little we can do. Sometimes the landlord has made an error in the prescribed information or has failed to sort out a maintenance issue with the property. However minor, these things can be enough to stop proceedings in their tracks. For the landlord hoping to regain possession, find a new tenant, settle the debts he’s accrued or catch up on buy-to-let mortgage payments, the misery goes on.
It’s understandable that landlords may feel there is nothing they can do, but that’s a passive approach. I believe that landlords can – and should – be proactive about protecting their interests. One simple step is to take out Rent and Legal protection cover which can guarantee rental income is still paid and legal costs are covered should the tenant default,
If you’re a landlord, my advice is that you should:
- Be scrupulous with letting admin and all your responsibilities.
- Minimise the financial risks of rent arrears with a Rent Protection policy.
- If problems arise, don’t delay. Address them as soon as possible.
- Raise awareness of the issue and campaign for an effective system which protects the rights of both landlords and tenants.
Get help with rent arrears here.
Get Rent Protection Insurance here.