The Renters' Rights Bill: The Private Rented Sector Landlord Ombudsman

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The information in this article is based on the Renters' Rights Bill as currently proposed. While these measures are likely to come into effect, they are not yet law and are subject to change. The content provided is for informational purposes only and should not be considered as legal advice. Landlords are advised to regularly check for updates on the legislation and seek professional guidance to ensure compliance with any future legal requirements.

As part of the ongoing reforms under the Renters’ Rights Bill, the UK government is planning to introduce the Private Rented Sector Landlord Ombudsman to improve tenant-landlord dispute resolution. This change aims to ensure a fairer and more efficient system for handling tenant complaints against landlords.

What Is the Private Rented Sector Landlord Ombudsman?

The Private Rented Sector Landlord Ombudsman will be an independent, impartial body that will handle tenant complaints about their landlords. It is designed to:

  • Offer quick, fair, and binding resolutions to tenant complaints

  • Ensure tenants have access to a formal mechanism for resolving disputes, bringing the private rented sector in line with redress practices already established in social housing and for property agent services

What This Means for Landlords

Landlords will need to:

  • Register with the Ombudsman, regardless of whether their property is managed by an agent

  • Be aware that decisions made by the Ombudsman will be binding and landlords will be required to comply

  • Resolve tenant issues promptly to prevent escalation to the Ombudsman and avoid potential penalties

While this could lead to faster resolutions of disputes, it also means landlords will need to adopt clear and effective processes for addressing tenant concerns early on, to minimise complaints.

Tenant Complaints and Redress

Tenants will now be able to complain to the Redress Scheme from the moment they enquire about a property if they are not satisfied with the service they receive. The Ombudsman will have the authority to compel landlords to:

  • Apologise and provide an explanation to the tenant

  • Offer compensation to the tenant where appropriate

  • Stop doing the actions or behaviours that led to the complaint

This system will likely operate very similarly to The Property Ombudsman (TPO) and Redress Scheme for letting agents, but it will be specifically applied to landlords, ensuring that tenants have a clear avenue for addressing issues at any point during the rental process.

Costs and Keeping Information Up to Date

It is expected that there will be a charge to register though at this stage, the costs associated with registering for the Landlord Ombudsman are not known. However, landlords should be aware that they will need to ensure their information and responses are kept up to date to comply with any future requirements.

Penalties for failing to register include a fine of up to £7,000 and up to £40,000 for any repeated or subsequent breaches.

The introduction of the Private Rented Sector Landlord Ombudsman is intended to provide tenants with a fair and impartial route for addressing complaints, but landlords must ensure they are responsive to tenant issues to avoid formal complaints. With this system in place, landlords who act quickly and fairly will avoid escalation to the Ombudsman.

If you have any questions or need help navigating the proposed changes, feel free to reach out to our team for support.