Landlords will have to register with a compulsory ombudsman redress scheme under new rules announced at the Conservative Party Conference.
While exact details are not yet clear, further information is expected to be revealed in the November Budget as the Government aims to raise standards in the private rented sector.
The announcement from Communities Secretary Sajid Javid came alongside proposed measures to create incentives for the availability of longer tenancies, while industry commentators believe the new redress scheme would make it easier to raise and resolve tenant disputes.
Currently, there are no legally binding redress schemes for private landlords although some voluntary schemes do exist.
Meanwhile, letting agents are required by law to sign up to one of three Government-approved redress schemes: The Property Ombudsman; The Property Redress Scheme and Ombudsman Services Property.
Here at Redrose, we work with The Property Ombudsman – which means that in the (rare) event there is a dispute, our tenants and landlords have complete confidence that they can access free, impartial and completely independent advice.
We’ve been happy to do so, too. A redress scheme means that tenants and landlords can complain to an independent person if they feel they are not happy with the service they have received.
While the vast majority of letting agents are good, ethical and responsible, there are a small minority who fail to meet the high standards we should all aspire to. The redress scheme requirement was introduced to weed out bad agents, and as such, we have seen it as a welcome initiative.
These new regulations for private landlords will not come into force just yet but it certainly pays to be prepared for the anticipated changes. The buy-to-let sector has faced huge changes over the past 12 months and, as we have seen, is becoming increasingly regulated.
Choosing to let through a reputable letting agent with years of experience helping landlords make the most of their property investment and keep on the right side of the regulatory framework, could ease the burden of managing these competing demands. Plus, a letting agent who abides by the spirit of the law and not just the letter of the law is always going to work in your best interests.
If you’re looking for a letting agent you can trust to handle your rental property so you don’t have to worry, get in touch with our team. To ask for a valuation, call us on 01257 547062 or click here to request a call back.