The Renters' Rights Act 2025 creates a new mandatory Private Rented Sector (PRS) Ombudsman scheme for all private landlords in England. Membership will be compulsory, landlords who are not members of the scheme when it is operational will be committing an offence. The ombudsman will provide a free, impartial dispute resolution service for tenants, with the power to order remedies, compensation, and apologies. This is one of the most significant structural changes to the private rented sector since the introduction of deposit protection.
All private landlords in England will be required to join the PRS Ombudsman scheme. Letting a property without being a member when the scheme is operational will be a criminal offence, with civil penalties of up to �5,000. Local authorities will be responsible for enforcement.
What the PRS Ombudsman will do
- Provide a free, independent dispute resolution service for tenants, an alternative to court proceedings for non-possession disputes
- Investigate complaints about landlord conduct: failure to carry out repairs, harassment, failure to protect a deposit, failure to respond to maintenance requests, illegal eviction
- Make binding decisions: the ombudsman can order the landlord to take action, pay compensation (up to a specified cap), provide an apology, and/or pay the cost of investigation
- The scheme is free for tenants, funded by landlord membership fees
- Decisions are binding on the landlord if the tenant accepts them, if the landlord does not comply, the ombudsman can refer the matter to the local authority for enforcement
Mandatory membership, what landlords need to do
- All private landlords letting residential property in England must join the scheme, there are no exemptions for small landlords, accidental landlords, or properties let informally
- Landlords who use a managing agent: the agent is likely to handle scheme membership on the landlord's behalf, check with your agent before the scheme launches
- Registration: the government will announce the registration process and the approved scheme provider(s) before the scheme becomes operational
- Membership fee: the annual fee has not yet been confirmed, expected to be �50��150 per property based on comparable schemes
- Non-compliance: letting without scheme membership when the scheme is operational is an offence, local authorities will enforce with civil penalties up to �5,000
How the complaint process will work
- The tenant must first raise the complaint with the landlord and allow a reasonable time for the landlord to respond (typically 8 weeks), the ombudsman is a final escalation route, not a first resort
- The landlord will have an opportunity to respond to the complaint and provide evidence
- The ombudsman will review the evidence and make a determination, typically within 8�12 weeks of receiving the complaint
- Possible outcomes: no finding against the landlord, a finding with a requirement to take action, or a compensatory award
- If the landlord accepts the determination, it is binding, if they reject it, the tenant can still pursue the matter through the courts
Preparing for the PRS Ombudsman scheme
- Maintain a complete and organised tenancy file, the ombudsman will request documentation as part of any investigation
- Respond to all maintenance requests in writing and document completion, this is the primary evidence in repair complaints
- Ensure deposit protection is completed within 30 days and Prescribed Information is served, deposit complaints are a major category of ombudsman referrals
- Keep copies of all statutory compliance documents: Gas Safety Record, EICR, EPC, How to Rent guide, RRA Information Sheet
- Have a formal complaints process, even a simple written procedure ('we will acknowledge complaints within 5 working days and respond within 8 weeks') reduces ombudsman referrals and demonstrates good faith