The New Landlord Ombudsman: What You Need to Know
The Renters’ Rights Act introduces a brand-new player into the rental sector: the Landlord Ombudsman. For the first time, all landlords - not just letting agents - will be legally required to join an ombudsman scheme. This change is designed to give tenants a clear route to resolve complaints, but it also brings new responsibilities for landlords..
A Property Ombudsman (redress scheme) provides a free, independent, and impartial dispute resolution service for consumers who have unresolved complaints against property agents in the UK. It operates under CTSI-approved Codes of Practice that members must follow, helping to raise industry standards.
🔵 The Current System
Until now, only letting agents have been required to join a redress scheme (such as The Property Ombudsman or the Property Redress Scheme). Independent landlords operating without an agent had no such obligation, leaving tenants with limited options if disputes couldn’t be resolved directly. This has meant:
🔸 Tenants often turned to local councils or the courts, which are time-consuming and costly.
🔸 Landlords faced inconsistent complaint processes depending on their setup.
🔸Genuine grievances sometimes escalated unnecessarily due to a lack of clear redress routes.
🔵 What’s Changing Under the Bill
The Renters’ Rights Bill establishes a mandatory national Ombudsman for the private rented sector - officially known as the Private Rented Sector Landlord Ombudsman Service. The key changes are:
All landlords must join
Every landlord in England will need to register with the Ombudsman, whether they self-manage or use an agent.
Single point of redress
The Ombudsman will provide one consistent route for tenants to raise complaints, covering issues like repairs, communication, or standards of service.
Free to tenants
Tenants won’t pay to raise complaints. The costs of running the Ombudsman will be covered by landlord membership fees (figures not yet announced at the time of writing).
Binding decisions
The Ombudsman will have the power to issue binding rulings on disputes, including requiring landlords to:
◆ Apologise or provide explanations
◆ Take corrective action (e.g. carry out repairs)
◆ Pay compensation (expected up to £25,000 in serious cases)
Linked to the new property portal
Landlords will likely need proof of Ombudsman membership to register on the new digital property portal - another legal requirement under the Bill (see separate blog at the end of this article).
🔵 What This Means for Landlords
The new Ombudsman fundamentally changes the landscape for landlord-tenant disputes. Here’s what landlords should expect:
Universal accountability
No matter how you let your property, you’ll need to be part of the scheme. Gone are the days when self-managing landlords could avoid external oversight.
More tenant complaints
With a free, simple route available, tenants may be more willing to escalate issues. Even small frustrations (delays, communication breakdowns) could reach the Ombudsman.
Financial and reputational risk
Compensation awards could reach significant sums. Decisions will be binding and may also affect a landlord’s reputation if non-compliance is recorded.
Less reliance on the courts, potentially!
While court action won’t disappear, it is hoped that many disputes will now be resolved through the Ombudsman, which is designed to be faster and cheaper for both sides.
Operational changes
Landlords will need stronger record-keeping, clearer communication, and documented processes to defend themselves if a complaint is raised.
🔵 How Landlords Can Prepare
Landlords who act early will be in the best position when the Ombudsman scheme goes live:
Stay updated on membership rules
Monitor government guidance on when and how to register or keep an eye on our regular blogs. Non-membership could lead to enforcement action and potential fines.
Review your complaint-handling process
Put in place a clear, written procedure for tenants to raise issues. Quick, professional responses may prevent complaints escalating to the Ombudsman.
Keep detailed records
Document all communications, repairs, inspections, and agreements. Evidence will be vital if a complaint arises.
Raise your standards
The Ombudsman will expect landlords to meet basic property and service standards. Proactive maintenance, timely repairs, and transparent communication will reduce risk.
Budget for membership fees and possible awards
Factor the annual membership fee into your running costs, along with contingency planning for possible compensation orders.
Consider professional management
For landlords with larger portfolios, using a managing agent may provide an extra layer of compliance and complaint-handling support.
🔵 Final Word
The introduction of a mandatory Landlord Ombudsman is one of the most significant shifts in the private rented sector in decades.
While it increases accountability and tenant rights, it also raises the bar for landlords. By joining the scheme, improving processes, and keeping clear records, landlords can not only stay compliant but also demonstrate professionalism - something that can help attract and retain good tenants.
If you would like to speak to our team on any aspect of the Renters' Rights Act or any other aspect of letting your property, please contact us on 01332 300190.
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