Private landlords will be legally required to become members of a redress scheme

by Property 118

11:36 AM, 24th January 2019
About 3 weeks ago

Private landlords will be legally required to become members of a redress scheme

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Private landlords will be legally required to become members of a redress scheme

A new Housing Complaints Resolution Service has been announced for the entire housing market and for the first time ever, private landlords will be legally required to join a housing redress scheme. Click here to view the MHCLG release:

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.

James Brokenshire, Communities Secretary, has announced an overhaul of the ‘broken housing complaints system’ with plans for a new housing complaints service for the entire housing market ensuring both homeowners and tenants know where to go when things go wrong.

Dissatisfied homeowners and tenants will have simple and quick access to help when things go wrong, thanks to new plans announced today (24 January 2019) by Communities Secretary Rt Hon James Brokenshire MP.

From broken boilers to cracks in the wall, the new Housing Complaints Resolution Service will potentially help millions by providing a straight-forward way of getting help when faced with unresolved disputes about problems with their home – such as repairs and maintenance.

Unlike other sectors, such as financial services, the housing market has several different complaints bodies, with homeowners and tenants having to navigate their way through a complicated and bureaucratic system just to work out where to register a grievance.

Establishing a single housing complaints service for all residents – no matter whether they rent or own their home – will prevent people from battling with their landlord or builder to resolve issues on their own and make it easier to claim compensation where it’s owed.

Communities Secretary Rt Hon James Brokenshire MP, said:

“Creating a housing market that works for everyone isn’t just about building homes – it’s about ensuring people can get the help they need when something goes wrong.

“But all too often the process can be confusing and overly bureaucratic, leaving many homeowners and tenants feeling like there is nowhere to go in the event of problems with their home.

“The proposals I have announced today will help ensure all residents are able to access help when they need it, so disputes can be resolved faster, and people can get compensation where it’s owed.”

Currently, the housing complaints system is confusing – there are multiple complaint bodies covering the housing market, and membership of redress schemes is compulsory for some tenures but not others.

For example, in the private rented sector, there is currently no obligation for landlords to register with a complaints system – leaving thousands of renters without any course for redress.

To combat this, the Communities Secretary has today 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.

And to protect the interests of home-owners who buy new build homes, government has also reiterated its commitment to establishing a New Homes Ombudsman which will champion home buyers, protect their interests and hold developers to account.

Legislation will be brought forward at the earliest possible opportunity to require all new developers to belong to the Ombudsman – giving homebuyers the confidence that when they get the keys to a new home they are getting the quality of build they expect.

Developers will also have to belong to the new body by 2021 if they wish to participate in the government’s landmark Help to Buy scheme.

The Housing Complaints Resolution Service will be developed with a new Redress Reform Working Group made up of representatives from across the sector, working with industry and consumers.

This is part of on-going work by the government to make the property market fairer and more transparent for everyone.

Further information

These measures form part of the government response to the consultation Strengthening consumer redress in the housing market, which ran from 18 February to 16 April 2018, and received over 1,200 responses.

The consultation looked at a range of issues including:

  • how the current complaints and redress landscape works
  • whether streamlining redress in housing could help improve delivery of services
  • how the ‘in-house’ complaints process and other practices and processes in redress could be improved
  • how any gaps in housing redress could be filled, with a particular focus on purchasers of new build homes and private rented sector tenants

The policy proposals in this document primarily relate to England. Where proposed legislation has scope outside England with regard to devolved matters, we will continue to engage and consult the devolved administrations to seek agreement.

Redress for social housing residents is being considered separately. The response to the social housing green paper and the call for evidence for the review of social housing regulation are due to be published in spring 2019.

The government announced the proposal to create a New Homes Ombudsman service in October 2018. This response indicates how that service will sit in the wider redress landscape and the next steps of its implementation.

The Housing Complaints Resolution Service will provide a single point of access to resolve complaints for housing consumers, when ‘in-house’ complaint processes have been exhausted, through the current schemes providing alternative dispute resolution, while preserving the expertise of existing providers.

UPDATE

Please see the related article linked below. We have sourced a discount code for 50% off membership of the Property Redress Scheme.

Cost to landlords to join a COMPULSORY Redress Scheme?



Comments

Neil Patterson

11:57 AM, 24th January 2019
About 3 weeks ago

Just England for now:

"The policy proposals in this document primarily relate to England. Where proposed legislation has scope outside England with regard to devolved matters, we will continue to engage and consult the devolved administrations to seek agreement."

David Price

12:26 PM, 24th January 2019
About 3 weeks ago

The present government is more concerned with tax collection than housing, as it has admirably demonstrated. This redress scheme is being introduced to keep track of landlords and make sure they pay all the draconian taxes which have been imposed in the last few years. Yet another nail in the tenants coffin which will inevitably lead to rent rises and a scarcity of accommodation as landlords exit the PRS.

In the midst of a housing crisis yet another move to make the situation even worse.

Cynical?

Mark Alexander

12:37 PM, 24th January 2019
About 3 weeks ago

I just wish the Government would make their minds up.

My preference would be for one National scheme, similar to Rent Smart Wales, and then scrap all the others such as Landlord Registration in Scotland and especially the money grabbing scams operated by an increasing number of Council's under the badge of "Selective Licensing"!

russell branch

12:40 PM, 24th January 2019
About 3 weeks ago

This sort of news confirms that my decision to leave the UK and dispose of my rental property in London and the Midlands was the right one. A concerted attack by the elite on the little man who made more from rentals than they would like.

Will Taylor

12:44 PM, 24th January 2019
About 3 weeks ago

Question: how much will landlords have to pay to join this redress scheme?

Robert Mellors

12:46 PM, 24th January 2019
About 3 weeks ago

I'm sure there will be a fee for this, so something else that will inevitably force landlords to increase the rent, to the detriment of the tenants (and taxpayers funding Housing Benefit).
When will governments learn that the more costs and taxes they impose on landlords, the higher rents have to be set at to cover those costs?

Also, again, why a different set of rules for social housing providers (e.g. Councils)?

AJ

12:46 PM, 24th January 2019
About 3 weeks ago

Are you a private landlord if you properties are in a limited company ?

CrocadileBoy

12:55 PM, 24th January 2019
About 3 weeks ago

That’s great, I guess I shall be writing to all my tenants shortly telling them their rent will be increasing once again thanks to more government interference.
All those that had below market rents have seen large rent increases to cover the loss of mortgage interest relief etc
When will this government realise that they are not penalising landlords or helping tenants, only causing them further problems!

NW Landlord

12:55 PM, 24th January 2019
About 3 weeks ago

Relentless meddling I just can’t keek up and so disjointed all money making scams in my eyes

Mark Hunter

12:57 PM, 24th January 2019
About 3 weeks ago

I don't suppose this will also be a one stop place for Landlords to go when they need some help. We will still lose rent from non-payers, still have to go through a very drawn out possession procedure which is heavily weighted in favour of tenants (even when they are in arrears or damaging our property), and we will still be paying outrageous selective licencing fees to our local councils who are simply exercising powers they already had. I agree this will be used to keep tabs on all landlords to check they are paying the correct tax. Do you think politicians might have noticed there are more tenants who can vote than landlords by any chance?

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