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  • Writer's pictureElliot Leigh

Free legal advice for tenants, at a £15k cost for landlords?

Updated: Aug 10, 2023

It was announced on the 1st August that landlords could face issues when it comes to evictions, with court battles not only becoming more expensive (at a whooping £15k), but also becoming harder to win. But how different is the process of eviction if you’re leasing your property through a Guaranteed Rent scheme? Read on to learn more.

Free advice for tenants

As of 1st August 2023, if a tenant is facing eviction or repossession through the courts, instead of getting legal advice on the day of their hearing, tenants are now entitled to free early legal advice. This includes advice on housing, debt, welfare issues – all of which can be issued in advance allowing tenant to prepare before the day of their court appearance. This replaces the Housing Possession Court Duty Service which only offers ‘on the day’ emergency advice and advocacy.

A £15,000 headache for landlords

While a huge bonus for tenants who can now prepare for court well in advance, the change comes at a cost for landlords – with fears that loss of their claim could cost £15,000 in legal fees. With tenants at an advantage by preparing in advance, it’s more than likely that the court hearing could take a full day – hence the hike in potential cost. Could this dissuade landlords from taking legal action altogether?

'All part of our wider work to prevent homelessness’

Minister for Housing and Homelessness, Felicity Buchan, says: “I want to ensure we are giving households all the help and support they need to stay in their homes.

“That is why we are spending £1 billion through the Homelessness Prevention Grant which can be used to work with landlords to prevent evictions. At the same time our Renters (Reform) Bill will give tenants more security in their homes by abolishing Section-21 ‘no fault’ evictions.

“This new service allows us to go even further and ensure tenants are getting the right legal help and support – all part of our wider work to prevent homelessness.”

How does a property on a Guaranteed Rent scheme differ?

When you lease your property via the Elliot Leigh Guaranteed Rent scheme, as your property is passed on to councils to house social tenants, the process for eviction differs. The council has their own less-complicated system to evict tenants, as their tenancy agreements differ to tenants in the PRS.

Rent arrears and evictions are common concerns for landlords. This has never been more true than now, as the cost of living crisis increases the risk of rent arrears and the Renters Reform Bill confirms the abolition of Section 21, making evicting tenants even more challenging and costly.

Leigh Young, director of Elliot Leigh says: “The challenges of costly evictions, rent arrears and abolition of section 21 are significantly reduced with the Elliot Leigh Guaranteed Rent scheme. Landlords don’t have to worry about the costs associated with eviction processes.

In addition, since our Guaranteed Rent scheme offer lease agreements and not ASTs (Assured Shorthold Tenancies), we will not be impacted by the abolition of Section 21. This offers landlords peace of mind and a reliable income stream without the headaches of chasing overdue rent or dealing with legal proceedings."

Our support for landlords

The Elliot Leigh Guaranteed Rent scheme is designed to provide a hassle-free property management service for landlords. This means landlords won't have to deal with evictions, void periods, repair and maintenance, collecting rent and more. Instead they have peace of mind alongside the added bonus of guaranteed rent every month.

If you are a landlord who is interested in joining the Guaranteed Rent scheme but are possibly concerned about changes within the industry, get in touch with us today and one of our friendly experts will be here to help.

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