More protection for tenants

Ombudsman Services welcomes the Government’s announced amendment to the Enterprise and Regulatory Reform Bill which gives powers to require letting and managing agents in the private rented sector and managing agents in the residential leasehold sector to offer landlords, tenants, freeholders and leaseholders access to an approved redress scheme.

This is a significant step which will ensure consumers have access to free independent redress if things go wrong when engaging the services of a letting agent or managing agent.

Chief Ombudsman, Lewis Shand Smith said: “We support the amendment announced today. As the lettings and leasehold management business grows, the anomaly that estate agents are regulated and are required to belong to a redress scheme, while other agents are not, will become more obvious.

"This is not only confusing, but also means that tenants and prospective tenants risk receiving a poor service, and have no protection should something go wrong.

"Independent redress is a means of resolving complaints that is cheaper and quicker than the courts; it can help business to learn from their mistakes, and gives consumers confidence without imposing significant additional regulation on the sector.”