Housing Ombudsman tipped to run new PRS landlord redress scheme

The government has confirmed that the existing Housing Ombudsman Service is expected to establish and operate the new PRS Ombudsman.

Under the Renters’ Rights Act, the private landlord ombudsman scheme will provide independent dispute resolution, which the government describes as “fair and impartial” and intended to give tenants access to redress outside the courts.

The government have also confirmed the Secretary of State will designate or approve a private landlord redress scheme.

Existing Housing Ombudsman service could operate service

In a parliamentary written question, Labour MP Becky Gittins asked: “What steps is the government taking to appoint a Private Rented Sector Landlord Ombudsman under the Renters’ Rights Act.”

In response, housing minister Matthew Pennycook said: “Regulations, came into force on 17 September 2026, allowing the Secretary of State to designate or approve a private landlord redress scheme which will provide private tenants with free and impartial access to redress.

“The government’s intention is that the existing Housing Ombudsman Service, which currently provides mandatory redress for social housing tenants, will set up and operate the service.

“The regulations in question do not require landlords to join a scheme immediately. The scheme will be prepared for designation, and the necessary digital and operational functionality will be developed before further regulations set out which landlords must join and when.”

Compensation above the £25,000 cap

As previously reported by Property118, the government has hinted tenants could be awarded compensation of £25,000 under the PRS Ombudsman Scheme.

Baroness Taylor of Stevenage suggested that tenants could seek compensation above the £25,000 cap by taking their case through the courts.

She said: “Regarding the compensation cap of £25,000, this has been designed to align with the established cap for mandatory property agent redress, helping to support consistency across the housing redress landscape.

“Tenants will still be able to seek a remedy through the courts if they believe a higher award is justified. We will keep the operation of the scheme, including the compensation cap, under review as part of our wider governance, monitoring and evaluation arrangements, with an initial review required within five years of the scheme being approved or designated.

“This will inform any future decisions on whether changes to the cap are necessary.”