Legislation – Renters’ Rights Act 2025

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Part 2Residential landlords

Chapter 2Landlord redress schemes

Landlord redress schemes

64Landlord redress schemes

(1)

The Secretary of State may make regulations requiring a residential landlord to be a member of a landlord redress scheme.

(2)

A “landlord redress scheme” means a scheme—

(a)

which provides for a complaint made by or on behalf of a prospective, current or former residential tenant against a member of the scheme to be independently investigated and determined by an independent individual, and

(b)

which is—

(i)

approved by the Secretary of State for the purposes of regulations under subsection (1), or

(ii)

administered by or on behalf of the Secretary of State and designated by the Secretary of State for those purposes.

(3)

A scheme must not be approved or designated under subsection (2)(b) unless it satisfies the conditions set out in regulations made under section 65(1).

(4)

In subsection (2)(a) “prospective residential tenant” means a person who—

(a)

offers to become a residential tenant of a dwelling that is marketed for the purpose of creating a residential tenancy, or

(b)

with a view to deciding whether to become a residential tenant of a dwelling that is marketed for that purpose—

(i)

requests information about the dwelling from a person marketing it, or

(ii)

visits or requests to visit such a dwelling by arrangement with a person marketing it.

(5)

Regulations under subsection (1) may—

(a)

require a person to be a member of a landlord redress scheme before a dwelling is marketed for the purpose of creating a residential tenancy under which that person will be a residential landlord;

(b)

prohibit a person from marketing a dwelling for the purpose of creating a residential tenancy unless the person who will be a residential landlord if the tenancy is granted is a member of a landlord redress scheme;

(c)

require a person to remain a member of the scheme after ceasing to be a residential landlord, for a period specified in the regulations.

(6)

Regulations under subsection (1) may require a person—

(a)

to provide relevant property information to the administrator of a landlord redress scheme, on applying to become a member of the scheme;

(b)

at any time after becoming a member of a landlord redress scheme, to notify the administrator of the scheme of any change to relevant property information previously provided by the person as soon as reasonably practicable, or within a period, as specified in the regulations.

(7)

For the purposes of subsection (6), “relevant property information” means such information as may be specified in the regulations relating to—

(a)

any residential tenancy under which the person is the residential landlord;

(b)

any dwelling which is proposed to be marketed for the purpose of creating a residential tenancy under which the person will be the residential landlord.

(8)

Before making regulations under subsection (1), the Secretary of State must be satisfied that all persons who are to be required to be a member of a landlord redress scheme will be eligible to join such a scheme before being so required (subject to any provision in the scheme about expulsion, as to which see section 65(2)(l)).

(9)

Nothing in this Chapter prevents a landlord redress scheme from providing (subject to regulations under section 65)—

(a)

for membership to be open to persons who wish to join as voluntary members;

(b)

for the investigation or determination of any complaints under a voluntary jurisdiction;

(c)

for voluntary mediation services;

(d)

for the exclusion from investigation and determination under the scheme of any complaint in such cases or circumstances as may be specified in or determined under the scheme.

(10)

In subsection (9)—

“complaints under a voluntary jurisdiction” means complaints in relation to which there is no duty to be a member of a landlord redress scheme, where the members against whom the complaints are made have voluntarily accepted the jurisdiction of the scheme over those complaints;

“voluntary mediation services” means mediation, conciliation or similar processes provided at the request of a member in relation to complaints made—

(a)

against the member, or

(b)

by the member against another person;

“voluntary members” means members who are not subject to a duty to be a member of a landlord redress scheme.

65Approval and designation of landlord redress schemes

(1)

The Secretary of State must by regulations set out conditions which are to be satisfied for a scheme to be approved or designated under section 64(2)(b).

(2)

The conditions must include conditions requiring the scheme to include provision in accordance with the regulations—

(a)

for the appointment of an individual to be responsible for overseeing and monitoring the investigation and determination of complaints under the scheme,

(b)

about the terms and conditions of that individual and the termination of their appointment,

(c)

about the complaints that may be made under the scheme, which must include provision enabling the making of complaints about non-compliance with any codes of practice for residential landlords that are issued or approved by the Secretary of State,

(d)

about the time to be allowed for scheme members to resolve matters before a complaint is accepted under the scheme in relation to those matters,

(e)

about the circumstances in which a complaint may be rejected,

(f)

about co-operation (which may include the joint exercise of functions) of an individual who is investigating or determining a complaint with persons who have functions in relation to other kinds of complaint and with local housing authorities,

(g)

about the provision of information to the persons mentioned in paragraph (f) and the Secretary of State,

(h)

if members are required to pay fees in respect of compulsory aspects of the scheme, about the amount or amounts of those fees,

(i)

if there are voluntary aspects of the scheme—

(i)

for fees to be payable in respect of those aspects of the scheme, and

(ii)

about the amount or amounts of those fees,

(j)

for the individual determining a complaint to be able to require members to provide redress of the following types to the complainant—

(i)

providing an apology or explanation,

(ii)

paying compensation, and

(iii)

taking such other actions in the interests of the complainant as the individual determining the complaint may specify,

(k)

about the enforcement of the scheme and decisions made under the scheme,

(l)

for a person to be expelled from the scheme only—

(i)

in circumstances specified in the regulations,

(ii)

once steps to secure compliance that are specified in the regulations have been taken, and

(iii)

once the decision to expel the person has been reviewed by an independent person in accordance with the regulations,

(m)

for an expulsion to be revoked in circumstances specified in the regulations,

(n)

prohibiting a person from joining the scheme when the person has been expelled from another landlord redress scheme, except in circumstances specified in the regulations,

(o)

for circumstances in which the administration of the scheme is to be transferred to a different administrator, and

(p)

about the closure of the scheme by the administrator.

(3)

Conditions set out in regulations under subsection (1) may include conditions requiring the administrator or proposed administrator of a scheme to undertake to do things on an ongoing basis following approval or designation.

(4)

Fee conditions relating to—

(a)

fees payable in respect of compulsory aspects of the scheme may provide for the amount or amounts of the fees to be calculated by reference to such of the scheme costs as may be specified in the regulations, which may include scheme costs relating to the voluntary aspects of the scheme;

(b)

fees payable in respect of voluntary aspects of the scheme must provide for the amount or amounts of the fees to be calculated so that (taking one year with another) they are sufficient to meet such of the costs of the voluntary aspects of the scheme as may be specified in the regulations.

(5)

Conditions set out in regulations by virtue of subsection (2)(o) may require an approved scheme to provide for the administration of that scheme to be transferred to the Secretary of State or a person acting on behalf of the Secretary of State in circumstances specified in the regulations.

(6)

Where conditions set out in regulations by virtue of subsection (2)(o) require an approved scheme to include the provision mentioned in subsection (5), the regulations may provide for a scheme whose administration is transferred as mentioned in that subsection to be treated as a designated scheme instead of an approved one.

(7)

Subsections (2) to (6) do not limit the conditions that may be set out in regulations under subsection (1).

(8)

The Secretary of State may by regulations make further provision about the approval or designation of landlord redress schemes under section 64(2)(b), including provision—

(a)

about the number of redress schemes that may be approved or designated (which may be one or more);

(b)

about the making of applications for approval;

(c)

about the period for which an approval or designation is valid;

(d)

about the withdrawal of approval or revocation of designation.

(9)

Regulations under this section may—

(a)

confer functions (including functions involving the exercise of a discretion) on the Secretary of State, or authorise or require a scheme to do so;

(b)

provide for the delegation of such functions by the Secretary of State, or authorise or require a scheme to provide for that.

(10)

In this section—

“compulsory aspects”, in relation to a scheme, means aspects of the scheme relating to complaints in relation to which there is a duty to be a member of a landlord redress scheme;

“compulsory member”, in relation to a scheme, means a member of the scheme who is subject to a duty to be a member of a landlord redress scheme;

“costs of the voluntary aspects”, in relation to a scheme, means the scheme costs if, or to the extent that, they relate to the voluntary aspects of the scheme (including scheme costs that are attributed to the voluntary aspects of the scheme);

“fee condition” means a condition set out in regulations by virtue of subsection (2)(h) or (i)(ii);

“scheme costs”, in relation to a scheme, means the costs (whether or not connected with a fee-payer) that are incurred in or associated with, or likely to be incurred in or associated with—

(a)

the establishment and administration of the scheme (including the investigation and determination of complaints under the scheme);

(b)

the performance of any other functions under this Chapter;

(c)

the performance of any other functions under the scheme;

including such costs that are, or are likely to be incurred by—

(a)
the administrator of a redress scheme, or
(b)
the individual responsible for overseeing and monitoring the investigation and determination of complaints under the scheme,

in connection with enforcement by other persons of requirements imposed by or under this Chapter.

“voluntary aspects”, in relation to a scheme, means aspects of the scheme that relate to—

(a)

complaints under a voluntary jurisdiction,

(b)

voluntary mediation services, or

(c)

voluntary members;

and terms used in this definition have the meanings given by section 64(10).

66Financial penalties

(1)

A local housing authority may impose a financial penalty on a person if satisfied beyond reasonable doubt that the person has—

(a)

breached regulations under section 64(1), or

(b)

committed an offence under section 67.

(2)

The amount of a financial penalty imposed under this section is to be determined by the authority imposing it, but must not be more than—

(a)

£7,000, if it is imposed under subsection (1)(a), or

(b)

£40,000, if it is imposed under subsection (1)(b).

(3)

More than one penalty may be imposed in respect of the same conduct only if—

(a)

the conduct continues after the end of 28 days beginning with the day after that on which the final notice in respect of the previous penalty for the conduct was given to the person, unless the person appeals against that notice within that period, or

(b)

if the person appeals against that notice within that period, the conduct continues after the end of 28 days beginning with the day after that on which the appeal is finally determined, withdrawn or abandoned.

(4)

Subsection (3) does not enable a penalty to be imposed after the final notice in respect of the previous penalty has been withdrawn or quashed on appeal.

(5)

No financial penalty may be imposed in respect of any conduct amounting to an offence under section 67 if—

(a)

the person has been convicted of an offence under that section in respect of the conduct,

(b)

criminal proceedings for an offence under that section in respect of the conduct have been instituted against the person and the proceedings have not been concluded, or

(c)

criminal proceedings for an offence under that section in respect of the conduct have been concluded and the person has not been convicted.

(6)

The Secretary of State may give guidance to local housing authorities about the exercise of their functions under this section.

(7)

Local housing authorities must have regard to any guidance issued under subsection (6).

(8)

The Secretary of State may by regulations amend the amounts specified in subsection (2) to reflect changes in the value of money.

(9)

For the purposes of this section and section 67—

(a)

a financial penalty is imposed under this section on the date specified in the final notice as the date on which the notice is given, and

(b)

“final notice” has the meaning given by paragraph 6 of Schedule 5.

67Offences

(1)

A person commits an offence if—

(a)

a relevant penalty has been imposed on the person and the final notice imposing the penalty has not been withdrawn, and

(b)

the conduct in respect of which the penalty was imposed continues after the end of the period of 28 days beginning with—

(i)

the day after that on which the penalty was imposed on the person, or

(ii)

if the person appeals against the final notice in respect of the penalty within that period, the day after that on which the appeal is finally determined, withdrawn or abandoned.

(2)

A person commits an offence if—

(a)

a relevant penalty has been imposed on the person in respect of a breach of regulations under section 64(1) and the final notice imposing the penalty has not been withdrawn, and

(b)

the person engages in conduct which constitutes a different breach of such regulations within the period of five years beginning with the day on which the penalty was imposed.

(3)

A person commits an offence if—

(a)

either—

(i)

a relevant penalty has been imposed on the person in respect of an offence under this section and the final notice imposing the penalty has not been withdrawn, or

(ii)

the person has been convicted of such an offence, and

(b)

the person breaches regulations under section 64(1) within the period of five years beginning with the day on which the relevant penalty was imposed or the person was convicted.

(4)

In subsections (1) to (3) “relevant penalty” means a financial penalty which is imposed under section 66 where—

(a)

the period for bringing an appeal against the penalty under paragraph 10 of Schedule 5 has expired without an appeal being brought,

(b)

an appeal against the financial penalty under that paragraph has been withdrawn or abandoned, or

(c)

the final notice imposing the penalty has been confirmed or varied on appeal.

(5)

A person may not be convicted of an offence under subsection (2) or (3) if a financial penalty has been imposed under section 66 in respect of the same conduct.

(6)

A person guilty of an offence under this section is liable on summary conviction to a fine.

(7)

Where an offence under this section committed by a body corporate is proved to have been committed with the consent or connivance of, or to be attributable to any neglect on the part of, an officer of a body corporate, the officer as well as the body corporate commits the offence and is liable to be proceeded against and punished accordingly.

(8)

Where the affairs of a body corporate are managed by its members, subsection (6) applies in relation to the acts and defaults of a member in connection with the member’s functions of management as if the member were an officer of the body corporate.

68Decision under a landlord redress scheme may be made enforceable as if it were a court order

(1)

The Secretary of State may by regulations make provision for, or in connection with, authorising the administrator of a landlord redress scheme to apply to a court or tribunal for an order that a determination made under the scheme and accepted by the complainant in question be enforced as if it were an order of a court.

(2)

Before making the regulations, the Secretary of State must consult—

(a)

one or more bodies appearing to the Secretary of State to represent the interests of residential landlords,

(b)

one or more bodies appearing to the Secretary of State to represent the interests of residential tenants, and

(c)

such other persons as the Secretary of State considers appropriate.

69Landlord redress schemes: no Crown status

A person exercising functions under a landlord redress scheme (other than the Secretary of State) is not to be regarded as the servant or agent of the Crown or as enjoying any status, privilege or immunity of the Crown or as exempt from any tax, duty, rate, levy or other charge whatsoever, whether general or local, and any property held by such a person is not to be regarded as property of, or held on behalf of, the Crown.

Guidance

70Guidance for scheme administrator and local housing authority

(1)

The Secretary of State may from time to time issue or approve guidance for local housing authorities and the administrators of landlord redress schemes about cooperation between such local housing authorities and persons exercising functions under the schemes.

(2)

A local housing authority must have regard to any guidance issued or approved under this section.

(3)

The Secretary of State must exercise the powers in section 65 for the purpose of ensuring that the administrator of a redress scheme has regard to any guidance issued or approved under this section.

Interpretation

71Interpretation of Chapter 2

(1)

In this Chapter “landlord redress scheme” has the meaning given by section 64(2).

(2)

For the meanings of “residential landlord”, “residential tenancy” and “residential tenant” see section 63.