New legislation has been introduced which means that from 1 October 2014 it is a legal requirement for lettings agents and property managers in England to join 1 of 3 government approved redress scheme
What is a Redress scheme?
A redress scheme seeks to remedy or set right an undesirable or unfair situation.
The three redress schemes approved by government are:
- The Property Ombudsman (www.tpos.co.uk)
- Ombudsman Services Property (www.ombudsman-services.org/property.html)
- Property Redress Scheme (www.theprs.co.uk)
Whilst the majority of lettings agents and property managers provide a good service there are a minority who offer a poor service and engage in unacceptable practices. This requirement will mean 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. Ultimately the requirement to belong to a redress scheme will help weed out bad agents and property managers and drive up standards.
The requirement will be enforced by local authorities who can impose a fine of up to £5,000 where an agent or property manager who should have joined a scheme has not done so. Is your Lettings or Estate Agent compliant?
Keywest is proud to have been governed by The Property Ombudsman for a number of years, well in advance of this becoming a legal requirement. We take our trading standards very seriously and work hard to ensure the service we provide all of our clients is to the highest standard achievable.
The Property Ombudsman (www.tpos.co.uk) offers a “free, fair and independent service for buyers, sellers, tenants and landlords of property in the UK”. By dealing with a member of the TPO, the public may be confident about the agent’s approach in its dealings with actual and potential buyers and sellers of residential property or lettings.
The legislation appears at first glance to be remarkably straightforward for brand new legislation. This is perhaps because it will be up to the schemes themselves to monitor complaints and provide redress within their rules. As such, all the legislation needs to do is ensure the correct people are caught and required to join.
