From 1 October 2014 new legislation was introduced for all lettings agents and property managers in England to join one of two Government-approved redress schemes. The reason for the new legislation was because while the majority of lettings agents and property managers provide a good service, a minority continue to offer a poor service.
The redress scheme means that tenants and landlords with agents in the private rented sector, and leaseholders and freeholders dealing with property managers in the residential sector, will be able to complain to an independent person about the service they have received.
The two redress schemes as of 7 August 2018 are:
Failure to join the scheme can lead to
- A fine of up to £5,000 (for lettings agency work or property management work in England)
- A fine of £1,000 and the potential for a formal warning or prohibition order (for estate agency work in the UK)
- Possible revocation of your licence (for lettings agency work or property management work in Wales)