Buy-to-let landlords face a £5,000 fine if they don’t join a redress scheme


The government has announced it’s planning to launch a new Housing Complaints Resolution Service for tenants who’ve failed to resolve any issues directly with their landlord.   The scheme’s aim is to provide a single point of contact for tenants wanting to escalate disputes with their landlords to help solve these disputes, which the Government is hoping will improve standards in the private rented sector. 

The government believes that by bringing together the various resolution services already available, it will make it easier for tenants to gain redress.

Housing minister James Brokenshire says: ‘All too often the process of resolving disputes can be confusing and overly bureaucratic, leaving many tenants feeling like there is nowhere to go in the event of problems with their home.’

At the moment, being a member of a resolution service such as the Housing Ombudsman or the Property Redress Scheme is optional for landlords, but once the scheme is officially launched all landlords will be required to be members. It has not been made clear exactly when the rules will come into force, but when it does, it will be compulsory for buy-to-let landlords to join the redress scheme or potentially face a £5,000 fine.

Landlord Redress Scheme

Landlords make a stand against these new proposed regulations

This news has not been welcomed by landlords.   Little thought has been given to how the system will work in practice and the changes will result in higher costs for landlords claims the Residential Landlords Association (RLA).

Luckily, all landlords who currently use our Whitehornes ‘Managed Service’ are automatically covered as we are already members of the Property Redress Scheme and adhere to their code of conduct.

Landlords who are currently using our ‘Let Only’ services will have to sign up to one of the redress schemes to avoid the government enforced fine of £5000.  Alternatively, you can switch to our ‘Managed Service’ which will save you time, hassle and money.

If you would like to know more about the landlord redress scheme and our Managed Service, then please book your place at our Landlord Clinic being held on Thursday 13th June 2019 or alternatively give Beth our Lettings Manager a call to discuss.

At the clinic we will also be covering mortgage and legal advice for landlords, Assured Shorthold Tenancy (AST), right to rent checks, energy efficiency rules and taxation plus a host of other topics.