The Enterprise and Regulatory Reform Act 2013 basically requires persons involved in two types of property work to be members of a redress scheme:
- lettings agency work; and
- property management work
A person who engages in lettings agency work must be a member of an approved redress scheme to deal with complaints in connection with that work made by a person who is, or has been, a prospective landlord or a prospective tenant. The scheme will apply to prospective tenancies which are assured (including assured shorthold tenancies), which are to be granted by a private sector landlord. Companies will not be able to seek redress under a redress scheme.
For the purposes of the Order, lettings agency work is defined as things done by any person in the course of a business in response to instructions from either a private rented sector landlord who wants to find a tenant, or a tenant who wants to find a property in the private rented sector.
A person who engages in property management work must be a member of a redress scheme to deal with complaints in connection with that work.
Unlike for lettings agency work, the Order does not define the type of complaints in relation to property management work that the redress schemes must consider.
Property management work is categorised as things done by a person in the course of a business in response to instructions from another person who wants to arrange services, repairs, maintenance, improvements, insurance, or to deal with any other aspect of the management of premises consisting of, or containing, a dwelling-house let under either a long lease, an assured tenancy or a protected tenancy.
A leaflet for Lettings Agents and Property Managers provides information about the requirement and who it applies to. It is designed to cover the most common situations but it cannot cover every scenario. It is your responsibility to ensure that you are a member of a scheme if you need to be.
Further information can be found on the GOV.UK website.