Good news for tenants looking at arbitration
Good news for tenants looking at arbitration
TENANTS reluctant to go to arbitration on rents and other tenancy issues because of the cost involved may benefit from a new insurance policy negotiated by the Tenant Farmers Association.
TFA chairman Reg Haydon says cost has been one of the main deterrents to arbitration in the past, often greatly outweighing any rent reduction.
Launching the policy in London this week, he cited a recent case where a widow had won a 10% reduction worth £1800 a year, only to see it wiped out by costs of £5000.
Individual tenants, facing a landlords team of barrister, solicitor, land agent and witnesses, could risk a massive bill, says Mr Haydon.
For most tenants, rent is the biggest fixed cost, he adds. The TFA has seen reductions of 20%-38% this autumn, mainly on livestock holdings.
"Although many tenants have been able to negotiate reasonable rent reductions with their landlords as incomes decline, there remains a hard core of landlords, often advised by national firms of land agent who appear to reluctant to listen to the reasonable arguments of their tenants," says Mr Haydon.
"Were not saying we want a fight. But if they want a fight, were ready."
TFA land agent Stuart Kirkwood adds: "The terrible thing is that just when tenants should be going for a reduction, they are in the weakest position because they havent got the money to do it."
The policy, underwritten by DAS Legal Insurance, also incorporates expenses covered by most standard legal expenses insurance, for a flat premium of £250. This includes employment disputes – a rapidly expanding area – and tax investigation costs.
Policy holders must follow the requirements concerning notification of claims but can still use one of the TFAs 50 nominated land agents to pursue negotiations with landlords.
They will also have access to a 24-hour legal advice line. *