The Property Redress Scheme

We are pleased to announce that our company has become members of an independent property redress scheme.

Property Redress Schemes were established to provide impartial ombudsman services for resolving disputes between landlords, tenants, and letting agents when issues arise regarding an agent’s service delivery. While these schemes have been in operation since 2014, many remain unfamiliar with their purpose and functions. Let us provide some helpful context to better inform all stakeholders.

There are two main schemes in the UK that administer these programs: 1) The Property Ombudsman and 2) The Property Redress Scheme. Currently, membership is mandatory only for letting agents. Operating without joining a scheme is illegal and subject to a £5,000 fine. However, some schemes like The Property Redress Scheme also accept associate members from related industries such as inventory clerks and removal companies.

If you have a complaint about your agent’s service, the schemes provide an alternative to civil litigation. They will review complaints and aim to facilitate dispute resolution through mediation. If issues cannot be solved, the ombudsman will issue a binding determination, which may include financial compensation up to £25,000. Remedies are not strictly financial though – apologies or corrective actions may also be required.

First, you must try resolving the issue directly with your agent. The schemes will not review complaints without this initial step. Then identify your agent’s scheme by checking materials like letterheads or websites. If they appear not to have joined a scheme, report them to Trading Standards for potential non-compliance.

The determination is not final and parties can still pursue legal action. For example, a landlord proceeded with a county court claim after their complaint was dismissed by their agent’s scheme and prevailed. Agents have a defined period to fulfill awards before facing potential expulsion and barred readmission until compliance. Non-membership also means operating unlawfully. While schemes review complaints, enforcing awards lies with local Trading Standards authorities. Most agents comply to maintain legal compliance, though occasional non-compliant agents leave some complainants uncompensated.

If you have any questions regarding the scheme, please contact us today at 0113 222 4537 or by email at info@valorproperties.co.uk.