It became a legal requirement on the 1st October 2014 for all letting agents and property management agents to belong to a Government approved redress scheme. This means that tenants, landlords, leaseholders and freeholders in the private rented sector will be able to complain to an independent organisation about the service they have received. The intention is that the requirement to belong to a redress scheme will help improve private rented sector standards. This requirement is enforced by local authorities who can impose a fine of up to £5000 where an agent or property manager who should have joined a scheme has not done so. The 3 schemes are:
Who does this apply to?
- Any individual or company who in the course of their business responds to instructions from a private rented sector landlord who wants to find a tenant to rent a property under a domestic tenancy.
- Any individual or company who in the course of their business responds to instructions from a tenant who wants to find a property to rent under a domestic tenancy.
- It does not apply to tied accommodation, student accommodation provided by higher and further education establishments and registered social landlords.
- A person or company who engages in property management work by responding to instructions from another person who wants to arrange services, repairs, maintenance, improvement, insurance or deal with any other aspect of the management of premises.
- The properties can be let under a long lease, assured tenancy or a protected tenancy.
- It does not apply to land registered as common hold land, premises that are wholly or mainly for the accommodation of students, council housing and registered social landlords.