Government signals enforcement may be funded via PRS Database fees
2 weeks ago | 9 comments
Tenants could claim £25,000 in compensation under PRS Ombudsman scheme
8:30 AM, 8th July 2026, 1 week ago
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The government hints tenants could be awarded compensation of £25,000 under the PRS Ombudsman Scheme.
Under the Renters’ Rights Act, the PRS Ombudsman scheme will provide quick, fair, impartial and binding resolution for tenants’ complaints about their landlord.
However, as previously reported by Property118, Peers have warned the scheme could drive landlords out of the market.
Compensation above the £25,000 cap
During a debate, 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.”
£7,000 fine for failing to register to PRS Database
As previously reported by Property118, ministers have also suggested the possibility of combining the PRS database registration process with Ombudsman registration. However, they have not confirmed whether landlords will be required to pay separate fees for each scheme.
Under the Renters’ Rights Act, all landlords will need to sign up for the database, which will include information about their properties that tenants can access.
If a landlord lets or advertises a property without it first being registered on the database, they can be issued with a civil penalty of up to £7,000 or a £40,000 fine if they provide fraudulent information to the database.
Tags:
£25, 000 compensation cap PRS Ombudsman, compensation for tenants, PRS database, PRS Ombudsman
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Member Since May 2022 - Comments: 103
9:50 AM, 8th July 2026, About 1 week ago
Quick, fair, impartial and binding resolution ….
Something landlords would love
Member Since October 2021 - Comments: 65
10:03 AM, 8th July 2026, About 7 days ago
Great, so compensation culture now moves into the PRS.
Please join the appropriate queue, on the left bona fide applicants to rent my property, on the left those who want to make a quick buck.
I’ve had the tenant from hell who destroyed my property then launched a dilapidation claim against me because I didn’t agree the repair claims were bona fide (was her dad producing fake invoices using struck off companies !.
No matter how you dress it up its horrendous cost, stress and expense so why the F isn’t there a rogue tenant database that we can use.
Fair and impartial aren’t words I would use ….
Member Since December 2023 - Comments: 1632
10:25 AM, 8th July 2026, About 7 days ago
Should this penalty not be linked to rental values?
I would be in prison if my tenants were awarded £25k of my money without justification.
Member Since October 2019 - Comments: 423
11:10 AM, 8th July 2026, About 7 days ago
So, a tenant can go from rental to rental claiming £25000 at a time to infinity! The word ‘billionaire’ springs to mind!
Member Since January 2023 - Comments: 166
11:34 AM, 8th July 2026, About 7 days ago
Would the Government pay to pay us compensation for.tenants who bog offending rent arrears and piles of trash
Member Since December 2025 - Comments: 2
11:41 AM, 8th July 2026, About 7 days ago
With 10 rental dwellings to manage, I am keeping 7 empty for now. Another will be empty today. I have a prospective new tenant already very keen to take the flat. The other 2 remaining tenants have been here for 10 years and 6 years. With my first NEW tenancy on the horizon I have been educating myself on the RRA and its impact. As a landlord of over 35 years, I have not come across the level of blind bureaucracy I am seeing with Sir Keir’s Government. Given all the major challenges the nation is facing, and my desire to contribute towards betterment, I have to state categorically that I am completely de-motivated at the senseless schemes being developed for the PRS industry.
Member Since January 2024 - Comments: 390
11:45 AM, 8th July 2026, About 7 days ago
I assume that, as it is fair, impartial and binding, there is a similar right for landlords to be awarded up to £25k compensation.
Member Since May 2024 - Comments: 146
12:08 PM, 8th July 2026, About 7 days ago
Is this the governments cunning plan to get the whiners who can’t/won’t save a £25k deposit for their own homes?
Member Since July 2013 - Comments: 759
12:16 PM, 8th July 2026, About 7 days ago
RRA was several steps too far – this proposal is a sure fire way to completely decimate the PRS unless a LL has a right of reply and can have a voice in the process. It’s not clear what matters are in scope for the Ombudsman to consider, but it doesn’t look promising for LLs.
If not, where is the alleged ‘level playing field’?
Member Since April 2018 - Comments: 500
12:52 PM, 8th July 2026, About 7 days ago
Reply to the comment left by Ray Guselli at 08/07/2026 – 09:50
But it wont be fair etc and how do they calculate these fines, pluck them out of the air.No doubt the Baroness will have £40k sitting about in her bank account but most landlords will not.
I have just heard how the age of first time house buyers has risen again and one person asked said even if she could get a mortgage (she is 47 on an above average salary) it is still cheaper to rent as she does not have to pay for boiler repairs etc. Perhaps the Baroness should be taking on board what a great deal tenants get and new landlords should be considering offering no kitchen appliances, costly to buy, repair and replace and no fines .Sadly they have to provide a boiler or will this be an item to be excluded in future.