Propertymark has long campaigned for reform of redress in the housing market, emphasising that it is unclear to consumers who they should complain to, and the existing schemes are inconsistent in how they handle complaints.
The complexity of accessing redress
The new guide is designed to help residents with service charge disputes as well as health and safety concerns and complaints handling, by explaining where they can go to have different problems addressed.
It is a legal requirement for agents to belong to one of the two UK Government approved redress schemes, The Property Ombudsman or the Property Redress Scheme, both of which provide consumers with free, impartial dispute resolution services.
In addition, The Housing Ombudsman deals with disputes involving the tenants and leaseholders of social landlords, and the New Homes Ombudsman has jurisdiction over issues with new build properties.
Renters’ Rights Bill will add another layer
The Bill will introduce a new Landlord Ombudsman to deal specifically with tenants’ complaints about their landlord. All landlords will be required to join, regardless of whether they self-manage their property or use an agent.
Propertymark has raised concerns that this further complicates the situation for tenants, as it is not yet clear how a new Ombudsman would interact with the two existing redress schemes for agents, with local authorities, and with the courts and tribunals service.
Inconsistency across the sector
Because of the requirement to join a scheme, consumers reasonably assume that all agents will deal with matters in the same way and to the same timescales.
However, there is no statutory requirement for property agents to have a complaints procedure at all, and there are different approaches to handling complaints and how information is presented to customers across the sector. This causes confusion and frustration to consumers when they see little action taken after raising a complaint.
Streamlining dispute resolution
In 2021, the Ministry of Justice consulted on whether dispute resolution services such as mediation and conciliation could offer more effective routes to resolving disputes, helping to avoid time in court in England and Wales.
Responding, Propertymark underlined the powerful role of agents in early dispute resolution, underlining the importance of adequately trained staff with the right skills to make impartial judgements.
What early prevention measures can lettings agents take?
Agents can help prevent disputes from arising or escalating if they manage expectations clearly from the outset, in relation to landlord and tenant rights and obligations and the potential consequences of non-compliance. Highlighting the importance of reporting concerns at the earliest available opportunity and providing details of how to do this will also help. Keeping accurate written records of all contacts and conversations can help if a dispute that cannot be resolved escalates to legal action.
A professionally clear and concise inventory, can help minimise deposit disputes by ensuring that deposit deductions are made in a fair way. A comprehensive inventory, coupled with interim inspections and check out reports can highlight any breaches, helping to hold both tenants and landlords to account if the property is not maintained as set out in the agreement. Using a professional, qualified ARLA Inventories provider will improve agents’ chances of success in disputes about deposits.
