Creative Green Energy Services for Landlords
As of 1 October 2014, it became a legal requirement for all letting agents and property managers in England to belong to one of three Government-approved redress schemes. These are:
~ Property Redress Scheme (PRS)
~ The Property Ombudsman (TPO)a
What is the Redress Scheme
The service provided by these schemes allows tenants and landlords to complain to an independent person about the service they have received from a letting agent or property manager.
JUNE 2018: Formerly the Ombudsman Services Property provided a redress service, however they recently announced that they will no longer be handling complaints in the property sector.
Who Should Join a Redress Scheme
You are legally required to belong to a government-approved redress scheme if you engage in:
? lettings agency work in England and Wales
? property management work in England and Wales*
? estate agency work in the UK dealing with residential property
Why Do We Need A Redress Scheme
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.
What Are The Penalties For Not Signing Up:
Landlords and tenants will be able to check whether a prospective agent has signed up by visiting one of the scheme websites. Failure to join an approved scheme can lead to a fine of up to £5,000 being issued by a local authority, or, if the agent continues to breach their legal requirement, the agency could ultimately be closed down.
Legislation:
Letting Agency Work and Property Management Work (Approval and Designation of Schemes) (England) Order 2013, Estate Agents and Redress Act (CEARA) 2007
Proposed Legislation:
Landlords Redress Scheme: Communities Secretary James Brokenshire has 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. To date (05/05/2019) no date has been announced for the introduction of this new rule.
Sources: www.endsleigh.co.uk, https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/731549/Lettings_Agents_and_Property_Managers_redress_scheme.pdf
