What is the Property Redress Scheme?
Property Redress, formerly known as the Property Redress Scheme, is an independent redress provider that reviews complaints about property professionals, including letting agents, estate agents and property managers.
Under the Renters’ Rights Act, the government intends to introduce a separate ombudsman for the private rented sector. This will give tenants a route to raise complaints directly about private landlords, including issues linked to property standards, repairs and service levels.
The redress scheme and the landlord ombudsman both provide an alternative to court action, allowing disputes to be reviewed independently. The main difference is that existing redress schemes focus mainly on property professionals, while the new ombudsman will focus on landlords in the private rented sector.
The requirement for private landlords to register with the landlord ombudsman is not yet fully in force and is expected to be rolled out toward the end of 2026.
Who is the redress scheme targeted at?
The redress scheme is targeted at professionals involved in the management, letting and sale of residential property. This includes:
- Letting agents
- Estate agents
- Property managers
In England, letting agents and estate agents are legally required to belong to a government-approved redress scheme. The scheme provides landlords, tenants, buyers, sellers and leaseholders with a route to raise complaints if a dispute cannot be resolved directly with the agent or property manager.
Property managers who oversee residential developments, blocks of flats or rented accommodation may also join a redress scheme to provide an independent complaints process for residents and clients.
Legal requirements for private landlords
In practice, landlords already using a redress scheme may find they need to:
- Transfer to an approved landlord ombudsman scheme.
- Update internal complaint procedures.
- Keep more detailed compliance and repair records.
- Respond to complaints within stricter timescales.
The reforms do not remove existing agent redress obligations. Letting agents will still need to belong to an approved redress scheme separately. The new landlord ombudsman system sits alongside those existing requirements rather than replacing them.
The role of property managers and letting agents
Since 1 October 2014, any agent or property manager in England has been legally required to belong to a government-approved redress scheme. Organisations such as The Property Ombudsman and the Property Redress Scheme handle complaints regarding the service provided by letting agents. These schemes ensure that if a letting agent breaches industry standards, a path to redress exists.
When a landlord employs a letting agent or property manager, the landlord must ensure the agent is a member of a letting agent redress scheme. If a letting agent fails to join, the local authority can issue a fine of up to £5,000. Furthermore, if a letting agent’s licence is revoked or their membership is terminated, they are legally barred from conducting property management work.
Landlords must distinguish between the agent’s redress scheme and the new landlord-specific scheme. Complaints regarding an agent’s service go to the agent’s redress scheme, but complaints regarding the landlord’s direct obligations or the physical condition of the property fall under the new landlord ombudsman. Both managing agents and landlords must remain compliant with their respective government-approved schemes to avoid legal complications.
Consequences of failing to join an approved redress scheme
The legal consequences for failing to join a government-approved redress scheme are significant. The government uses civil penalties to drive compliance across the private rented sector. Local authorities monitor the database of landlords to ensure all active property owners are registered members.
Potential sanctions for non-compliance include:
- Financial penalties: local authorities can impose a fine of up to £7,000 for a first-time failure to join the scheme.
- Increased fines: persistent or serious breaches may result in a fine of up to £30,000.
- Restrictions on possession: landlords are prohibited from serving possession notices if they are not active members of the redress scheme.
- Rent Repayment Orders: The First-tier Tribunal may order a refund of rent if the landlord has failed to comply with the legal requirement to join a scheme.
- Prosecution: in extreme cases, a landlord may face criminal prosecution in the courts.
Expulsion from a scheme damages a landlord’s reputation and business operations. National Trading Standards estate and letting agency team oversight ensures that those who fail to provide redress are identified and restricted from the market.
Differences between landlord and letting agent redress
The landlord redress scheme and the letting agent redress scheme serve different functions. The letting agent redress scheme deals with the professional conduct of the agent or property manager, such as the miscalculation of fees, poor communication or the mishandling of documents.
The landlord redress scheme focuses on the landlord’s statutory duties, including the physical state of the property and the landlord’s personal conduct. Even if a landlord uses an agent, the landlord remains responsible for their own membership. Managing agents must ensure their clients understand these differences to avoid triggers for complaints against both the agent for poor service and the landlord for underlying property issues.
How AST Assistance can help
The introduction of the Renters’ Rights Act and the planned rollout of a mandatory landlord ombudsman scheme is changing the regulatory landscape for landlords and managing agents. Landlords now face increased scrutiny around property standards, tenant rights, complaint handling and compliance obligations within the private rented sector.
AST Assistance provides guidance to landlords and managing agents on meeting their legal responsibilities and adapting to new regulatory requirements. Our team supports clients with tenancy disputes, possession matters, compliance concerns and wider property management issues linked to the evolving redress and ombudsman framework.
We assist landlords in understanding their obligations under government-approved schemes and help them respond to disputes involving repairs, property conditions and tenant complaints. Our experience in landlord and tenant law allows us to support clients through legal proceedings, tribunal matters and possession claims where required.
For landlords managing complex tenancies or preparing for the introduction of the mandatory ombudsman scheme, AST Assistance provides practical legal support focused on protecting property, rental income and compliance standards.
For advice on preparing for the obligatory landlord redress scheme, understanding tenant rights and meeting your legal responsibilities as a landlord, get in touch with AST Assistance. Call 01706 619 954, email info@ast-assistance.com, or fill in our online form and one of our team will be in touch at your convenience.
