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CORONAVIRUS UPDATE

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TODAY'S OTHER NEWS

New tenancy mediation service launched by the PRS

Property Redress Scheme (PRS) has launched a tenancy mediation service for residential and commercial landlords, or their appointed letting agent, and tenants, with a view to helping find a resolution over issues which have arisen during a tenancy.  

The service has long been in the planning pipeline but has been brought forward to support landlords and tenants struggling with the impact of the Covid-19 pandemic. 

With existing court cases suspended, the government is urging landlords and tenants to come to agreements. 

This is likely to continue in the future as the Ministry of Housing, Communities and Local Government is working with the master of the rolls to strengthen pre-action protocol requirements and extend this to possession claims in the private rented sector. 

This will put the onus on all parties to negotiate and reach an agreement, rather than go to court.

Sean Hooker, head of redress for the PRS, said: “I am really excited about this new service from the Property Redress Scheme. We have had the idea for a while following confirmation that the government intends to change the way courts work and extend redress in the property sector. However, the unfortunate events with Coronavirus have encouraged us to accelerate access to the service. 

“Mediation is a voluntary, without prejudice and confidential process, which allows disputes to be resolved much quicker and with less cost than court. As a landlord, it also enables you to demonstrate to the court that you have attempted to resolve your issues before coming to them.  

“As an approved redress scheme, with extensive experience in housing matters, we are well placed to provide the expert help and assistance needed for successful outcomes.”

The PRS is also preparing for the government’s planned removal of the Section 21 possession process. The company believes that there will be even greater need for end of tenancy mediation to allow parties to move on without the need to go to court. 

Should landlords have problems with future possession claims, using the mediation service will demonstrate landlords’ readiness to engage with tenants through Alternative Dispute Resolution (ADR), which PRS is authorised to provide under the ADR Regulations 2015.

Paul Shamplina, founder of Landlord Action and brand ambassador for Hamilton Fraser, commented: “Our recent survey found that 74% of landlords have already been contacted by tenants who are struggling to pay rent due to reduced or terminated employment resulting from the pandemic.” 

PRS mediation is a telephone-based service where the initial instruction comes from the landlord. On logging a case, an independent mediator will contact the tenant to ascertain whether they are happy to liaise with the mediator, and then discuss the issues raised with a view to coming to an agreement on either paying a reduced rent, deferred rent or settlement amount, with agreed ending of the tenancy.

Shampolina added: “With the reality that life will not return to ‘normal’ for some time, the most sensible solution is mediation, particularly as landlords will be unlikely to be able to gain possession of their properties for six to nine months or more. 

“Safe in the knowledge that the professional mediators at PRS are completely impartial, the service will help tenants and landlords have  engagement, help them to reach a fair agreement.”

  • Daniela Provvedi

    Well, this sounds too good to be true.
    A new service helping us Landlords for a change. Sorry for being sceptical but there must be a catch. Is there a cost? Nothing good is for free, lets face it....

    Daniela Provvedi

    Thought so. I wasn't being sceptical for nothing. This is a comment I read in Landlord Zone:-

    The service provides a three step approach, with each cost only being incurred if the case proceeds to the next stage. Cases will only progress past instruction stage if both parties agree to mediate. In our experience where this happens the settlement rate is over 70%. If the matter does not proceed to a full mediation or settlement the landlord will have complied with the soon to be released pre action protocol without paying the full amount. If it does proceed hopefully the savings to a landlord in preventing lost rent, court fees and the associated time and stress will prove excellent value based on the cost of the service. Full details of costs can be found on tenancymediation.theprs.co.uk. Even if the full cost is incurred the vast majority of cases will not exceed £540 (inc vat). This includes the instruction, mediation and a drafted settlement agreement.
    Kind regards
    Tim Frome
    PRS MD

     
  • icon

    Hi
    our solicitor has just filed a section 21 with the courts. Tenant has not paid and has made no attempt to pay anything since Nov 2019, no attempt to contact the managing agent either.
    Would this mediation service be of any use to us as we would like the tenants out and have already incurred costs. Our situation started before Coronavirus was an issue but has clearly fallen at a good time for the tenant.

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