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Landlords Potentially Facing £Thousands In Costs As Evictions Risk Being Dismissed.

Reasons to choose Wilson Browne

A well-known, heavily advertised chain of estate agents have been widely reported as potentially leaving Landlord customers facing thousands of pounds in costs as hundreds of evictions running through the courts risk being dismissed.

The agent in question failed to properly serve documents to tenants regarding the government’s deposit protection scheme, meaning landlords, and subsequently, the estate agent, must pay up to three times the deposit as recompense.

The Telegraph revealed the online estate agent’s error this week and estimated the firm’s liability at £30m. To add to their woes any Section 21, or so-called “no-fault” eviction notice issued by a landlord using the agent cannot pass through the courts. This is because when a landlord serves a Section 21 notice, they must declare the tenant’s deposit has been properly registered…which in many cases they can’t do.

Thousands of tenants already evicted (in relation to the beleaguered estate agent) via Section 21 notices were invalid, so tenants can also claim back up to three times their deposit.

The Daily Telegraph reported that “This must also be paid for any time the lease was renewed and proper documentation was not served”, which means that  a tenant could be further compensated for any breaches.

The same business also faces other issues such as customers’ transactions being disrupted after a hacking incident at an associated law firm.

There is potential for affected landlords to seek recompense under breach of contract and/or grounds for a professional negligence claim. Wilson Browne Solicitors have a team specialising in cases such as this and regularly act for landlords needing advice.

(Please note, we act for landlords and are unable to act for tenants)

Speak to our commercial property law team on 0800 088 6004 for a free initial discussion to see how we can help landlord.

Hayley Mauro

Posted:

Hayley Mauro

Partner

Hayley is Partner and Solicitor in our Commercial Litigation and Employment teams. She is an expert in all aspects of Dispute Resolution and in negotiating sensible outcomes to the most complex commercial disputes. Hayley also advises on Employment Law issues.