The Enterprise and Regulatory Reform Act 2013 and the Redress Schemes for Lettings Agency Work and Property Management Work (Requirement to belong to a scheme etc) (England) Order 2014 (SI 2014 No. 2359) came into effect on 1 October 2014.
The legislation requires that persons who engage in letting agency work and property management work ‘in the course of business’, belong to a redress scheme for dealing with complaints in connection with that work.
The requirement is to belong to one of the two Government approved schemes:
Property Redress Scheme www.theprs.co.uk
The Property Ombudsman www.tpos.co.uk
The legislation excludes some arrangements from this requirement. This list isn’t exhaustive and property managers should check the legislation to see if any exemptions apply:
It specifically includes:
It includes the following types of tenancy:
a) A dwelling-house let under a long lease - “long lease” includes leases granted for more than 21 years, leases granted under the right to buy, and shared ownership leases;
b) An assured tenancy under the Housing Act 1988; or
c) A protected tenancy under the Rent Act 1977.
The Council’s approach to enforcement of these requirements:
Maximum Penalty charge: £5000 per offence.
Government guidance is that this is the norm to charge and only in extenuating circumstances will a lower level of penalty be applied.
The penalty can be recovered on the order of the court, as if payable under a court order by any of the following: