Redress schemes for complaints about property management

The two government approved redress schemes are:

• the Property Ombudsman
• Property Redress

The redress schemes are free, and so are accessible to those who may not be able to afford to pursue their complaints through the courts.

The main purpose of the redress schemes is to settle or resolve complaints against members in full and final settlement of that dispute.

In England, any person or organisation who does property management work under instruction from someone else must join a government-approved redress scheme.

In Wales, the rules only apply to residential tenancies, so joining a redress scheme is voluntary for leasehold property management work.

Local authorities can impose a fine where an organisation that should have joined a scheme has not done so.

There are some organisations that do not need to belong to a scheme, including:

• landlords – not explicitly excluded but are not generally covered by the definitions as they are not acting on instructions from someone else
• local authorities
• right to manage companies
• those authorised/licensed to carry out regulated activities under the Legal Services Act 2007

If you have a complaint about the running of your building by the managing agent or management company you should firstly deal with this through the company’s complaints process, or write to the manager if they do not have a process.

If you are not satisfied with the outcome, you can refer your complaint to whichever approved redress scheme your managing agent belongs to.

The complaints process should tell you which scheme they belong to. You could also ask the managing agent which scheme they belong to, or check the websites of the two schemes for their list of members:

• The Property Ombudsman
• Property Redress

There is no cost for you in having your complaint determined by the relevant redress scheme.

The scheme will consider whether it can deal with your complaint in the first instance. If they can deal with it and they decide that you have a valid complaint they can for example tell the property management company to pay you a financial award.

If you remain dissatisfied with the outcome your statutory rights are unaffected. Depending on what the issue is, you may be able to take the matter to the First-Tier Tribunal (Property Chamber).

A redress scheme can usually help with complaints about:

• requests for information from the managing agent
• communication from the managing agent
• how they have chased you for late payments
• how they have dealt with your complaint

They cannot help with:

• actions or decisions that your freeholder or landlord needs to take
• deciding if service charges are reasonable
• arranging repairs

Typical complaints accepted by the redress schemes in respect of unfair treatment by the member include, but are not limited to:

• poor or incompetent service
• rudeness or discourtesy
• not explaining matters
• not administering a transaction as efficiently as would be expected
• avoidable delays
• infringement of your legal rights
• failure to follow the rules set for agents under any relevant Code of Practice and membership obligations
• an apparent breach of obligations
• failure to follow proper procedures

You cannot use a redress scheme if:

• the agent is not registered with a redress scheme
• your complaint is being, or has been, dealt with by a court
• your complaint is outside the redress scheme’s timescales
• your complaint happened before the agent was registered with the scheme
• your complaint is considered malicious, frivolous or vexatious
• your complaint is already being dealt with by other complaints procedures

Reasons why you would contact a redress scheme

You can use the service if:

• you are complaining about a property company listed on the redress scheme’s website
• you are an actual or potential buyer or seller of a residential property who has a complaint about an estate agent that has provided, failed to provide, or is contracted to provide, a service to you
• you are an actual or potential buyer or seller of a residential property who has relied upon the services of an estate agent
• you have a complaint against a letting or a residential managing agent that has provided or is contracted to provide, a service to you
• you are representing a customer who meets the above conditions.

If a complaint is made against a scheme member and is upheld, then there are a number of actions that could be taken by the redress scheme provider:

• require the member to apologise or provide an explanation
• require the member to improve how they work or take steps to put things right
• order compensation – the amounts payable are capped at £25,000. If you wish to claim more you would need to apply to the courts rather than the redress scheme

The redress scheme can expel a member if they do not comply with a decision. The organisation would not be able to rejoin until they comply, and if no scheme will accept them as a member they could not then legally operate

The scheme’s decision is binding on you and the managing agent, but if you are unhappy with the decision you do not have to accept it. You can go to court instead.

The Leasehold Advisory Service (LEASE)

LEASE is able to provide initial advice in relation to residential landlord and tenant law.

Contact us.

Mediation

A court case can take months and even years to bring a dispute to an end. And the process can become very costly to both parties, adding to frustration and making relations even worse.

Mediation can be a swifter and less expensive way of sorting out issues. Private and confidential, it can bring to the table matters the parties may prefer to keep away from the courts.

Within an informal setting the parties can enter into a dialogue, exchanging views in a comfortable and less stressful environment.

Find out more about mediation.

Early neutral evaluation

Briefly, the process involves an independent expert expressing an opinion on the merits of the issues raised by the parties. That assessment is based on a short statement from each party and limited documentary evidence submitted to the evaluator.

The assessment is not binding but gives users an unbiased evaluation of the relative strengths of the parties’ cases, and a view on the outcome of the matter, should it proceed to tribunal, on the basis of what has been presented to the evaluator.

Tribunal or court

It is possible that your issue can only be dealt with by the First-tier Tribunal (Property Chamber) or the courts.

Find out about applying to the tribunal.