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  • Property-a-holics

    Landlords now required to join redress scheme



    > Landlords now legally required to be part of a redress scheme.  £5K fine for non-compliance

    > Communities Secretary announces plans for new housing complaints service for entire housing market – ensuring both homeowners and tenants know where to go when things go wrong

    > Move builds on government reforms to create a housing market that works for everyone – no matter what type of home they live in

    > Dissatisfied homeowners and tenants will have simple and quick access to help when things go wrong, thanks to new plans announced today (24 January) by Communities Secretary Rt Hon James Brokenshire MP

    From broken boilers to cracks in the wall, the new Housing Complaints Resolution Service will potentially help millions by providing a straight-forward way of getting help when faced with unresolved disputes about problems with their home – such as repairs and maintenance.

    Unlike other sectors, such as financial services, the housing market has several different complaints bodies, with homeowners and tenants having to navigate their way through a complicated and bureaucratic system just to work out where to register a grievance.

    Establishing a single housing complaints service for all residents – no matter whether they rent or own their home – will prevent people from battling with their landlord or builder to resolve issues on their own and make it easier to claim compensation where it’s owed.

    Communities Secretary Rt Hon James Brokenshire MP, said:

    “Creating a housing market that works for everyone isn’t just about building homes - it’s about ensuring people can get the help they need when something goes wrong.

    “But all too often the process can be confusing and overly bureaucratic, leaving many homeowners and tenants feeling like there is nowhere to go in the event of problems with their home.

    “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.”

    Currently, the housing complaints system is confusing - there are multiple complaint bodies covering the housing market, and membership of redress schemes is compulsory for some tenures but not others.

    For example, in the private rented sector, there is currently no obligation for landlords to register with a complaints system – leaving thousands of renters without any course for redress.

    To combat this, the Communities Secretary 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.

    And to protect the interests of home-owners who buy new build homes, government has also reiterated its commitment to establishing a New Homes Ombudsman which will champion home buyers, protect their interests and hold developers to account.

    Legislation will be brought forward at the earliest possible opportunity to require all new developers to belong to the Ombudsman – giving homebuyers the confidence that when they get the keys to a new home they are getting the quality of build they expect.

    Developers will also have to belong to the new body by 2021 if they wish to participate in the government’s landmark Help to Buy scheme.The Housing Complaints Resolution Service will be developed with a new Redress Reform Working Group made up of representatives from across the sector, working with industry and consumers.

    This is part of on-going work by the government to make the property market fairer and more transparent for everyone.

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    Hi Vanessa,

    Thanks for this information, if you have the link or organisation detail where any landlord can go and register for the redress scheme.

    Thanks,

    Viral Shah

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    https://www.gov.uk/redress-scheme-estate-agencies

    Is this the relevant link I just googled redress scheme, the url states estate agencies? It mentions the £5000 fine too.

    Also looking at the two options for signing up, the cheapest option appears to be £110 + vat per year. Plus another £100 per complaint.

    Or for £200 + vat, they waive the complaint fees.

    As a landlord with only a few properties, the fees and legislation / potential new legislation, just start making this less and less worthwhile.

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    This is breaking news.  Estate and lettings agents have had a legal requirement to join a redress scheme for many years.  This now applies to landlords as well.

    ​Details are sketchy at present.  There may be a new tariff for landlords.  I will let this thread know as soon as PT receives further information.

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    This was first mentioned if my memory serves me well by Sajid Javid and a view I spoke to the Property redress scheme about a couple years ago. Its good news

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    It is good news. But do they have the resources to enforce against those landlords who do not join?

    Who will police this?

    As ever, the devil is in the detail and it is sadly lacking at present.

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    There are huge swathes of landlords who don't even bother with things like Gas Safety Cert and very little happens to most of them, this unfortunately will be no different.

    Hopefully tenants will use this service (those that are / or will be even aware of it that is) to highlight some of the bad landlords out there.  To that end I'm all for it, unfortunately it just seems that there is a never ending stream of new things you need to pay for as a landlord though.

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    It's not good news


    Yet another layer of red tape and sign-up fees, to what end? Providing another non-service....

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    The UK government has an annoying habit of refering to 'the country' when they mean 'England' and 'all landlords' when they mean 'AST landlords'.

    Maybe this time, Mr Brokenshire is being accurate. Is there any additional information?

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    A good teacher must know the rules; a good pupil, the exceptions.

    Martin H. Fischer

    Ok, he's doing it again...

    The policy proposals in this document primarily relate to England. Where proposed legislation has scope outside England, we will continue to engage and consult the devolved administrations to seek agreement.

    all Private Rented Sector landlords regardless of whether they employ an agent for full management services.​

    What exactly is the Private Rented Sector? Lodgers, Airbnb, holiday lets, serviced accommodation, etc? Is a tenant only someone who has a tenancy agreement or also someone who has permission to occupy?

    https://assets.publishing.service.gov.uk....pdf 

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    A good teacher must know the rules; a good pupil, the exceptions.

    Martin H. Fischer

    Hi Viral,

    We received this press communication direct from James Brokenshire's office and I published it immediately in full.

    I imagine the finer details will be forthcoming shortly and we will up-date this thread as we receive them.

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