Letting Agents Property Redress Scheme

Row of small wooden houses in various sizes and colours, white, blue, green, yellow and reds

From 1 October 2014 new legislation was introduced, requiring all lettings agents and property managers in England to join one of two Government-approved redress schemes.  The new legislation was brought into force to protect renters from the poor service delivered by some letting agents and property managers.

The redress scheme means that tenants and landlords with agents in the private rented sector, and leaseholders and freeholders dealing with property managers in the residential sector, will be able to complain to an independent person about the service they have received.

The two redress schemes as of 7 August 2018 are:

  1. Property Redress Scheme
  2. The Property Ombudsman

Penalties

Failure to join the scheme can lead to:

  • A fine of up to £5,000 (for lettings agency work or property management work in England)
  • A fine of £1,000 and the potential for a formal warning or prohibition order (for estate agency work in the UK)
  • Possible revocation of your licence (for lettings agency work or property management work in Wales)

Further information is provided by GOV.UK -  Lettings agents and property managers: redress schemes