– What It May Mean for Landlords
Government proposals for mediation and dispute resolution
The Government has indicated that it intends to strengthen and expand mediation services between landlords and tenants in order to prevent avoidable evictions.
This may involve encouraging or requiring landlords and tenants to attempt dispute resolution before possession proceedings are pursued through the courts.
PIMS Technical Observation
At present it is not entirely clear whether mediation or Ombudsman investigation will become a formal stage in the eviction process. If it does, it could potentially delay the ability of landlords to proceed directly to possession proceedings.
Many landlords will already attempt payment plans or behavioural agreements before serving a notice. In practice, these arrangements often fail, which is why formal eviction procedures are eventually used.
A new Ombudsman covering private landlords
The reforms propose a new Ombudsman covering the private rented sector.
The intention is that tenants will be able to raise complaints through the Ombudsman rather than relying solely on local authority enforcement.
In theory this could provide an alternative dispute resolution mechanism before matters escalate into enforcement or litigation.
PIMS Practical View
While the Ombudsman may provide an additional route for resolving complaints, the practical impact will depend on the scope of its powers and how complaints interact with possession proceedings.
At present it remains unclear whether an Ombudsman complaint could delay or interrupt eviction proceedings while a dispute is being investigated.
If this becomes the case, it may create additional opportunities for tenants to delay possession proceedings by raising complaints before or during eviction action.
Mediation and arbitration in the eviction process
The Government has stated that mediation will be strengthened as part of the new framework for managing disputes between landlords and tenants.
This raises several practical questions that remain unanswered:
- Will mediation be required before a landlord can begin possession proceedings?
- Will Ombudsman investigations need to conclude before an eviction claim can proceed?
- Will courts expect landlords to demonstrate attempts at mediation before granting possession?
These details are not yet fully defined within the proposed framework.
PIMS Assessment
The concept of mediation is not new within the housing sector. However, many landlords will already have attempted informal resolution long before a notice is served.
If mediation becomes a formal procedural requirement, it may increase the time required before a landlord can regain possession of their property.
Potential impact on possession proceedings
Landlords should be aware that the combination of mediation services, Ombudsman involvement and the removal of Section 21 possession may change the balance of eviction proceedings.
Where possession claims rely solely on Section 8 grounds, tenants may raise additional disputes or counterclaims that extend the overall timescale of a case.
For landlords already familiar with defended possession cases, this may not represent a new concept, but it may increase the number of disputes entering the system.
PIMS View
PIMS considers that the effectiveness of the Ombudsman system will depend largely on the practical powers granted to it and how it interacts with the court system.
If the Ombudsman becomes an additional stage before court proceedings, landlords may experience longer timelines when seeking possession.
More clarity will emerge as the final regulations and operational framework are published.
Questions landlords should now be asking
- Is my tenancy agreement ready for the post-Section 21 framework?
- Do I have proper rent records, service records and compliance records?
- Could my documentation withstand tenant or solicitor challenge?
- If possession becomes defended, do I have the evidence ready now?
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