Letting agents face equivalent fines if they market a property for a landlord who is not an Ombudsman member. Consequently, letting agents must verify the ombudsman membership of each landlord.
What is the Landlord Redress Scheme?
In addition to the existing schemes for tenant and landlord complaints about letting agents (The Property Ombudsman and the Property Redress Scheme), a new ombudsman for landlords will be introduced. Letting agents are legally required to join these government-approved schemes, which provide binding redress through adjudicator-led decisions.
How does it work when using a letting agent?
When a landlord uses a letting agent for property management, tenants have multiple avenues for complaints. If the letting agent breaches their scheme's rules, the tenant can complain to the letting agent's redress scheme. Additionally, if the landlord violates their legal obligations, the tenant can complain to the PRS Ombudsman.
If a letting agent fails to respond promptly or appropriately, the tenant should first complain to the agent. If dissatisfied with the outcome or if the agent doesn't respond within eight weeks, the tenant can escalate the complaint to the agent's redress scheme. Since the landlord will also be in breach of their statutory duties in such cases, the tenant can also complain to the PRS Ombudsman.
Essentially, even when a letting agent is involved, a tenant retains the right to complain to the PRS Landlord Ombudsman. This is because a landlord cannot use the letting agent's inaction as a defence; the landlord remains ultimately responsible for fulfilling their statutory obligations, including repairs and safety regulations.
Consequently, both the redress scheme and the PRS Landlord Ombudsman may have overlapping jurisdiction for the same issue, such as a failure to repair a boiler in a timely manner.
In certain situations, the PRS Ombudsman will be the only option for tenants. For example, if a landlord rejects a request to keep a pet.
What happens if a landlord ignores the ombudsman’s decision?
Penalties can be applied to the landlord if they refuse to take the ombudsman’s guidance.
They could include:
- Expelled from the Ombudsman scheme, preventing them from legally renting properties.
- Pursued through the courts, allowing the ombudsman’s rulings to be legally enforced.
- Served a Rent Repayment Order (RRO) which allows tenants to claim up to two years’ rent.
Will landlords be able to complain to the ombudsman about tenants?
No, it is being created to protect tenant rights, and only tenants will be able to bring complaints under the scheme.
When will the ombudsman come into law?
The Report Stage for the Renters’ Rights Bill in the House of Lords is now scheduled for July 1. On the same day, a Third Reading is expected in the Lords, after which the Bill will return to the House of Commons, following tradition.
While theoretically the Commons and Lords could engage in prolonged back-and-forth if there are significant disagreements, it is being reported that both major parties have relatively few points of contention regarding the Bill. This means it is almost certain to receive Royal Assent and become law before the Commons' summer recess on July 22.
During the committee stage of the House of Lords, Baroness Taylor said: “We intend for the details of the scheme to be published with significant lead-in time and to be piloted before landlords are required to be members.”
Final thoughts
The Housing Ombudsman Service has long served as a critical pillar of support for social housing tenants, offering an independent and cost-free avenue for resolving disputes with landlords. With the impending implementation of the Renters’ Rights Bill, the remit of the Housing Ombudsman is set to encompass the private rented sector. This marks a significant step towards levelling the playing field for all tenants.
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