Which agents must belong to a redress scheme
All letting agents carrying out lettings agency work or property management work in England must belong to a government-approved redress scheme under the Redress Schemes for Lettings Agency Work and Property Management Work (Requirement to Belong to a Scheme etc) (England) Order 2014. The two approved schemes are The Property Ombudsman (TPO) and The Property Redress Scheme (PRS).
- Who must be a member: any person or business that introduces a landlord to a prospective tenant, negotiates tenancy terms, or manages residential property in England — covers high street agents, online agents, and property management companies
- TPO is the larger scheme and used by the majority of UK letting agents including most ARLA Propertymark members; PRS is smaller but equally approved
- How to check membership: search at tpos.co.uk or theprs.co.uk. Agents must display scheme membership on their website, office, and stationery
- Penalty for non-membership: local authorities can impose a civil penalty of up to £5,000 per agent for operating without redress scheme membership. Report non-membership to the local authority trading standards or housing team
What landlords can complain about
The Ombudsman investigates complaints about the letting agent's conduct in carrying out lettings agency or property management work. Complaints must relate to a specific act or omission — not general dissatisfaction with service quality.
- Negligent referencing: agent failed to carry out proper tenant referencing, leading to placement of a tenant with undisclosed arrears history or false employment references
- Missing or delayed rent: agent collected rent but failed to forward it to the landlord, or consistently forwarded it late without explanation
- Compliance failures: agent failed to arrange gas safety checks, EICR, or smoke/CO alarm checks; failed to serve How to Rent guide, EPC, or gas safety record; failed to protect the deposit within 30 days
- Undisclosed or unauthorised fees: agent charged fees not disclosed in the management contract, or prohibited fees under the Tenant Fees Act 2019 that the agent attempted to pass to the landlord
- Failure to manage: agent failed to arrange repairs reported by the tenant; failed to carry out periodic inspections contracted for in the management agreement
The complaint process — from internal complaint to Ombudsman decision
The complaint has two stages: the agent's own internal complaints procedure, then the Ombudsman if unresolved. Timing requirements are important.
- Step 1 — formal written complaint to the agent: write to the agent's designated complaints handler; set out the complaint clearly, remedy sought, and deadline for response (8 weeks for a final response)
- Step 2 — if unresolved after 8 weeks: proceed directly to the Ombudsman without a final response, OR if the agent issues a final response the landlord is not satisfied with, submit to the Ombudsman within 12 months
- Step 3 — submit to TPO or PRS: online submission, free of charge. Include summary, remedy sought, all correspondence, and supporting evidence. Investigation typically takes 3-6 months
- Step 4 — Ombudsman decision: if upheld, the Ombudsman can require up to £25,000 compensation. Binding on the agent if the landlord accepts. Agents who refuse to implement can be expelled from the scheme — effectively a prohibition on operating as a letting agent in England
RICS-regulated agents and Client Money Protection for landlords
For landlords who deal with RICS-regulated managing agents (particularly for leasehold blocks), additional oversight frameworks apply. All letting agents in England are also required to hold Client Money Protection insurance.
- RICS-regulated managing agents: subject to the RICS Service Charge Residential Management Code and RICS professional conduct rules. Complaints about RICS members can go to RICS as well as TPO or PRS
- Leasehold service charge disputes: the First-tier Tribunal (Property Chamber) — not the Ombudsman — is the primary route for service charge reasonableness disputes, major works consultation failures, and management order applications
- Client Money Protection (CMP): mandatory for all letting agents in England under the Client Money Protection Schemes for Property Agents Regulations 2018. CMP protects rent held in the agent's client account if the agent becomes insolvent. Check agent CMP membership before instruction
- Before appointing a new agent: check TPO or PRS membership; check CMP cover; review management agreement for all fees and exit clauses; consider ARLA Propertymark or RICS membership as indicators of higher professional standards