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, 7 days 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 July 2013 - Comments: 362
8:40 PM, 8th July 2026, About 6 days ago
Will landlords be liable for tenants legal costs
Member Since October 2021 - Comments: 65
10:09 PM, 8th July 2026, About 6 days ago
Reply to the comment left by Neil Robb at 08/07/2026 – 20:40
If you lose… against the most likely to claim legal aided benefit tenant.
so how deep are your pockets
It is worrying, the no win no fee solicitors will be queuing up
Member Since January 2025 - Comments: 120
11:19 PM, 8th July 2026, About 6 days ago
Reply to the comment left by K Anon at 08/07/2026 – 22:09
… they are already cold-calling tenants, and have been doing so for some time. Private regulatory and compliance firms are now operating on a “no fine, no fee” basis, reportedly taking up to 90% of any fine recovered. The industry should understand what this means: enforcement has already become a commercial opportunity, and once this is embedded in the system, vested interests grow stronger and regulatory reform becomes much more difficult…
Member Since April 2018 - Comments: 500
10:07 AM, 9th July 2026, About 6 days ago
Reply to the comment left by Person Of The People at 08/07/2026 – 23:19
Are they just calling every number in UK or how are they finding tenanted properties? Isn’t it illegal to cold call from the UK to sell a service or are these loathsome creatures calling from outside the UK in which case they are nothing more than scammers.
Member Since January 2025 - Comments: 120
12:13 PM, 9th July 2026, About 6 days ago
… using overseas call factories and auto-diallers operating over near-zero-cost internet connections, AI bots can identify and filter likely targets before selling those leads to private UK-based service providers. The Housing Minister recently confirmed that AI will be used to link council tax, electoral roll, HMLR and other databases to identify properties where the registered proprietor is not in occupation.
Do not be surprised if this leads to a default fining process, with a fixed period allowed for appeal. That is how council tax bands were introduced. Local surveyors were employed to carry out drive-by valuations, after which owners were advised which band they had been placed in and given the option to submit evidence and appeal.
To trap second-home and holiday-home owners, councils first offered a discount because they worked out that this was cheaper than investigating every property. Owners stepped forward and registered their second or holiday homes, creating the register which was later used to charge a premium.
Member Since April 2018 - Comments: 500
12:56 PM, 9th July 2026, About 6 days ago
Reply to the comment left by Person Of The People at 09/07/2026 – 12:13
So a SCAM operation that should be investigated by the government, but of course it wont.