Landlords to be legally required to join a redress scheme

The Housing Secretary James Brokenshire has announced that landlords will be legally required to join a landlord redress scheme, or face a £5,000 fine.

The new ‘Housing Complaints Resolution Service‘ will be a single housing complaints service for all residents, including renters and homeowners. The Government say it will make it easier for people to claim compensation when it is owed. It intends to work with key stakeholders to establish this, and a Redress Reform Working Group will be established.

Currently landlords in the private rented sector do not have to register with a complaints system.

However under the plans announced today, it will become a legal requirement for landlords in the private rented sector to join a redress scheme, or they could face a fine of up to £5,000 for failing to do so.

No firm date has been set for this, and we will update members when we know more.

Speaking about the plans, Communities Secretary James Brokenshire today said:

“The proposals I have announced today will help ensure all residents are able to access help when they need it, so disputes can be resolved faster, and people can get compensation where it’s owed”.

The new measures that the Government has announced today form part of the government response to the consultation Strengthening consumer redress in the housing market,

In this, the Government has outlined that in the long term it has the “ambition” that there should be a single Code of Practice on complaint handling across all of housing.

Since 1st October 2014, it has been a requirement for all letting and managing agents in England to become a member of a redress scheme.