It is clear, however, after speaking with its members, that increased use of alternative dispute resolution could help prevent many more cases from reaching the court system.
In the response, Propertymark welcomed a push for dispute resolution to be embedded into agents and landlords’ daily practice as it can offer incentives to avoid the costly and lengthy court process.
However, if the UK Government plan to ramp up the use of dispute resolution efforts as an alternative to court action, Propertymark says it must be focused upstream to help resolve disputes earlier as waiting until cases reach court is simply too late. The trade body also said it would be vital to ensure that all potential parties know what it is, and for it to be easily accessible.
Incentives to dispute resolution include a quick and impartial resolution, a reduced cost to a landlord compared to the costs of a court hearing, and for a tenant, the possibility of remaining in their home and the possibility of the landlord offsetting arrears in return for vacant possession.
Faye Greaves, Policy Officer at Propertymark comments: “Dispute resolution is not always appropriate and suitable, but when it is, letting agents play a key role in preventing and resolving disputes to help keep tenants in their homes and the rent flowing for landlords.
“The UK Government has a unique opportunity through their Renters’ Reforms agenda to strengthen and promote alternative dispute resolution for landlords and tenants, and to restore confidence in the justice system.”
Propertymark points out how an internal complaint handling process can be a powerful mechanism to help prevent a dispute from escalating and letting agents be at the heart of ensuring that the process runs smoothly.
However, as a complaint progresses, agents may not be best placed to try and resolve conflict.
To tackle this, Propertymark has highlighted that a UK Government-funded third-party service would supplement the great work that agents are already doing and would make sure tenants and landlords always have access to the advice they need.
