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Residential Landlords Face Compulsory Ombudsman

Residential Landlords Face Compulsory Ombudsman

As the government looks to improve standards in the private rented sector, landlords will soon need to register with a compulsory redress scheme to solve tenant disputes. The announcement came at the recent Conservative Party Conference and while no details have yet been confirmed, it is expected that the new scheme will offer legally binding dispute resolution systems and will require members to adhere to a code of conduct.

At this stage, it is also unclear whether the government’s plans will involve extending the scope of an existing body or launching a new one. Currently, there are no fully-fledged ombudsman schemes for private landlords in the market but a number of voluntary redress and dispute resolution organisations are currently operating.

The Government's proposals are likely to be firmed up in November’s Budget speech, but in the meantime, we assess the redress schemes currently in existence.

The Housing Ombudsman Service (HOS)

The majority of members of HOS are social landlords such as housing associations, who must by law join and adhere to the HOS code of conduct. Private landlords can also become members if they choose to do so, though the HOS’s 2016-17 annual report showed only 71 ‘voluntary’ members. The HOS closed 15,877 cases in 2016-17, with the majority stemming from assured tenants raising concerns about repairs to their property.

The Property Ombudsman (TPO)

TPO oversees complaints by landlords and tenants against sales and lettings agents. According to its 2016 annual report, TPO dealt with 1,997 disputes in 2016. Of these, 56% were related to the lettings sector, and a total of £786,572 was paid out by agents as redress. Overall, 45% of complaints came from landlords and 51% from tenants, with property management, communication, complaints procedures and referencing the most common issues.

TPO welcomed the creation of an obligatory redress scheme for landlords, particularly in light of plans to ban letting fees – it warned the ban may cause less landlords to use managing agents, creating a ‘redress gap’.

National Landlords Association (NLA)

While the NLA isn’t a redress scheme, it does offer a code of practice that private landlords are expected to adhere to, which includes acting in a ‘fair, honest and respectable way’ towards tenants. If tenants have a problem with a landlord who is a member of the NLA, they can file a complaint to the body, who will seek to rectify the issue and suspend a landlord’s membership if need be. It’s important to point out that the NLA isn’t a governing body and can’t impose legally binding fines or restrictions. Membership is voluntary, though the NLA currently has over 65,000 members.

To discuss this or any other matter relating to residential landlord and tenant law please contact Kelly Henderson on 01325 466461 or email kelly.henderson@close-thornton.co.uk.

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