The recent launch of the Housing Loss Prevention Advice Service (HLPAS), offering free legal advice to anyone at risk of losing their home, has ignited concerns within the landlord community over delayed repossessions and spiraling costs.
The service, which came into operation on August 1st, is available from the moment a landlord or mortgage lender issues a notice to repossess. It includes representation in court and advocacy by registered providers.
The initiative aims to combat homelessness, a serious and growing issue. However, landlords are expressing worries that legitimate claims for repossession may take longer to complete, thereby incurring higher costs. There are also concerns that current backlogs in the courts may exacerbate.
Sim Sekhon, MD of LegalforLandlords and a landlord himself, said “Currently, it feels like the landlord’s interests are always the lowest priority. This change sounds worthy but, no doubt, it will delay the entire legal process.”
The concerns are not limited to Sekhon, as many landlords have been grappling with financial hardships due to an unbalanced legal system, where “difficult” tenants can exploit every concession and loophole. The new HLPAS system, arriving at a time when some landlords are considering exiting the sector, might be seen as the final straw.
Some landlords feel further squeezed by recent actions, such as councils in Brent and Harrow offering to pay rent arrears of tenants if landlords agree to halt eviction processes. Sekhon emphasised the stress that landlords face, being financially squeezed by significant rent arrears and being expected to continue housing tenants who may be unable or unwilling to pay their agreed rent.
While the new service is still in its infancy, providers of the HLPAS, including housing charities, legal firms, and Citizens Advice, can offer assistance on housing, debt, and welfare benefits. There is potential that the early legal advice could prompt a review of debts and welfare benefits, leading to a satisfactory outcome for landlords.
However, even the Law Society of England and Wales has raised a concern: are there enough legal practitioners available to handle the work? Sekhon believes this problem illustrates the Housing Department’s lack of foresight.
He said: “When the existing system doesn’t work for landlords, it’s no surprise that many want to leave the sector. Repossession is their only option, but with the advent of HPLAS that becomes even harder.”
