Landlord redress scheme – private landlords
For more information, please contact:
Anna Bennett Partner 020 7880 4348 Email Anna
At Part 2 of Chapter 2, the Bill has allowed provision for a Landlord Redress Scheme (‘LRS’) for the purpose of providing for a complaint made against a private landlord by a tenant to be independently investigated and determined by an independent individual.
This will give the Secretary of State the power to appoint an individual to oversee, monitor and determine complaints made under the LRS, potentially in the form of the Property Ombudsman as previously mooted in the White Paper.
The regulations will require a person to be a member of the LRS before a dwelling can be marketed to create a residential tenancy. The regulations should set out the conditions to enable tenants to make complaints about non-compliance with the codes of practice for residential landlords, about the time periods allowed for scheme members to resolve complaints themselves, about the co-operation expected by landlords.
The regulations will also set out any fees in relation to the compulsory membership and the level of those fees. The LRS may, after determination of a complaint, require the landlord to:
- provide an apology or explanation;
- pay compensation, or
- take other such actions in the interests of the complainant that the individual may specify.
The Secretary of State should also set out details about enforcement, expulsion of membership and voluntary aspects of the LRS and, if a landlord fails to register with the relevant LRS then the LHA may impose a financial penalty of no more than £5,000. If the landlord is served with a final notice and continues to breach then a further fine of up to £30,000 may be imposed.
Decisions made under the LRS may be made enforceable by regulations as though they were a court order.
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