Note: Articles on the Renters’ Rights Bill will be continuously updated as details emerge
Last updated 11 October 2024
The Renters’ Rights Bill retains the introduction of a new landlord ombudsman that was proposed in the previous government’s Renters (Reform) Bill.
All private landlords in England with assured or regulated tenancies will be required by law to join a Private Rented Sector Ombudsman, including those who use a managing agent. There will be an annual fee for membership, which has not yet been confirmed, although the Government has said it will work with the ombudsman service “to make sure it is proportionate and good value”.
The intention is that this system will be aligned with registration on the Private Rented Sector Database, so landlords only have to submit their information once.
The creation of this ombudsman is aimed at supporting quicker and cheaper resolution when there are disputes – preventing them escalating to costly court proceedings by providing fair, impartial and binding resolution, to both landlords and tenants, and reducing the need to go to court.
The ombudsman will be expected to resolve consumer disputes on a number of matters, including whether it is reasonable for a landlord to prevent a tenant keeping a pet at the property.
It will also be able to offer tenancy mediation to landlords and tenants to resolve disputes when initiated by landlords. This is a service already offered by the Property Redress Scheme’s Tenancy Mediation Service, which may be able to link directly with the new ombudsman.
Membership of the new ombudsman will be a legal requirement for landlords, and the Bill includes robust enforcement measures to enable local councils to be able to take action against landlords who fail to join. This will include civil penalties of up to £7,000 for initial breaches and up to £40,000 or criminal prosecution for continuing or repeated breaches. In addition, tenants will be able to seek rent repayment orders against their landlord if the landlord commits an offence by persistently failing to join the ombudsman service.
The new ombudsman for landlords will be in addition to the two schemes that exist to handle complaints by tenants and landlords about letting agents – The Property Ombudsman and the Property Redress Scheme. These government-approved schemes arbitrate complaints and offer binding redress. They are compulsory for agents to join if they want to trade legally, and agents must comply with each scheme’s adjudicator-led decisions.
Sean Hooker, Head of Redress at the Property Redress Scheme, said, “We agree with the principle of a single route for tenants to access effective and affordable complaint resolution.”
“However, I cannot see how trying to solve the issue of consumer confusion, by introducing yet another ombudsman, is practical or will benefit anyone. Instead, integrating landlord redress and plugging the gaps - such as rent to rent - into the existing process is the way forward, incorporating mediation but having a single, accessible entry point, with assistance, guidance and signposting.”
- Sean Hooker, Head of Redress and Ombudsman Office at The Property Redress Scheme
Sean, who has had a lot of input with the Government on the introduction of landlord redress and the form landlord registration will take, believes these are positive changes that will help address the gap in dispute resolution for tenants whose landlords do not use an agent, or where the issues fall under the obligations of the landlord and not their agent. He also highlights that the final details of exactly what will be put in place have yet to be revealed and the Government is still working on the model.
“We at the Property Redress Scheme will work with them to help develop a joined-up and easily accessible system that helps raise standards in the sector and provides the reassurance and protection to the tenant that is needed.”
- Sean Hooker, Head of Redress and Ombudsman Office at The Property Redress Scheme
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