Landlords now legally required to join a redress scheme

Article Posted -
24 Jan 2019

The Communities Secretary James Brokenshire has today announced that private landlords will be legally required to become members of a redress scheme – with a fine of up to £5,000 if they fail to do so.

Currently, landlords have no such obligation to register with a complaints system.

The brand new ‘Housing Complaints Resolution Service’ will be developed with a new Redress Reform Working Group made up of representatives from across the sector, working with the industry and consumers to make it easier for people to claim compensation.

Speaking on the new 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.”.

This new measure mirrors changes made to the lettings sector, where from the 1st October 2014, it became a requirement for all letting and managing agents in England to become a member of a redress scheme.

These new measures will form part of the government response to the consultation Strengthening consumer redress in the housing market. The consultation looked at a range of issues including:

  • how the current complaints and redress landscape works
  • whether streamlining redress in housing could help improve delivery of services
  • how the ‘in-house’ complaints process and other practices and processes in redress could be improved
  • how any gaps in housing redress could be filled, with a particular focus on purchasers of new build homes and private rented sector tenants

Meera Chindooroy, Policy and Public Affairs Manager at the National Landlords Association (NLA), says:

“It comes as no surprise that private landlords will, as letting agents already must, become members of a redress scheme. The fine of up to £5,000 for failing to do so is in line with what letting agents are charged, which, for once, signals consistency in Government policy.

“It will be interesting to see how the Housing Complaints Resolution Service is developed, how they intend to enforce membership, and whether it will increase the costs of running a lettings business.”

No date has been set for the introduction of the new rules. Members will be updated when the implementation date is announced via the e-newsletter. Click here to subscribe. 

 

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Comments

Submitted by 145845 on 8 February 2019 - 1:25pm

As usual, everyone is getting tarred and therefore rather than deal with those individual landlords causing problems, the government decide to push more hardship and financial burden on us landlords.

To clarify, I have already paid my taxes at source when I purchased my property, in addition, I pay tax on all income received from my tenant, so any additional costs to me (however they are masked), will result in an increase in rent for my tenant, as I am not funding the governments giveaway of the social housing by reducing my income on my families investment.

Submitted by 090317 on 25 January 2019 - 3:02pm

Does this imply that active members of a Landord Association (such as hr NLA) would have to also pay a membership to join the redress scheme (£110) or has the NLA been in discussions with the Redress Reform working group in order to negotiate a reduce fee?

Submitted by 085031 on 25 January 2019 - 1:09pm

And are we expected to join one now and then join the newly created ‘Housing Complaints Resolution Service" comes into effect?
and if yes which redress scheme to NLA recommend?

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