Legislation – Renters’ Rights Act 2025

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Part 2Residential landlords

Chapter 2Landlord redress schemes

Landlord redress schemes

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).