NRLA unveils new landlord redress pilot scheme

The National Residential Landlords' Association (NRLA) has unveiled a new, independent redress scheme to help tenants and landlords resolve a dispute.

The NRLA has teamed up with the Property Redress Scheme (PRS) and The Dispute Service (TDS) for the undertaking.

The scheme's launch comes after plans for a mandatory redress scheme that will see all landlords having to sign up were revealed by the Department for Levelling Up, Housing & Communities.

Effective and swift resolution of a dispute

The new redress scheme will enable landlords and tenants to access a service to facilitate an effective and swift resolution of a dispute.

Both landlords and tenants will be able to access the redress scheme which will see a case assessor encouraging both parties to resolve their problems.

The aim is to deliver a scheme that offers a fair resolution process on a range of issues affecting a tenancy.

The pilot offers all NRLA members - along with new members - access to the new dispute resolution service.

But landlords must sign up before 31st March 2022 for 12 months of free access.

'How important it is that an effective system of redress be established'

Ben Beadle, the chief executive of the NRLA, said: "For some time, we have stressed how important it is that an effective system of redress be established to resolve disputes between landlords and tenants.

"This pilot will give NRLA members the chance to demonstrate their commitment to excellent customer service and play a pivotal part in the development of a future, mandatory redress scheme in which both landlords and tenants can have confidence."

However, the scheme's places are limited and NRLA members are being encouraged to sign up quickly online.

The NRLA believes that their alternative dispute resolution could play a significant role in handling complaints between tenants and landlords.

Reduce the need for landlords to rely on costly court processes

They also point out that the new process will also reduce the need for landlords to rely on the time-consuming and costly court processes for resolving tenancy issues.

Not only will the new free redress scheme pilot offer NRLA members the benefits of accessing an independent dispute resolution service for no extra cost, but it will also give the landlords' organisation and its members a chance to shape directly any potential government legislation aimed at the sector for dispute resolution.

The managing director of Accommodation for Students, Simon Thompson, said: "The new dispute resolution scheme from the National Residential Landlords' Association deserves to be a success and all landlords should consider joining it.

"Landlords and agents are growing increasingly worried about the Renters' Reform Bill and here the private rental sector has a chance to put in place a resolution service that works and influence the potential legislation covering redress schemes."

There is more information on the new, independent resolution redress scheme on the National Residential Landlords' Association website.

April will set landlord licensing scheme record

Meanwhile, one PropTech firm says that April 2022 will be a record month for new landlord licensing schemes to start.

According to Kamma, there will be 11 new discretionary landlord licensing schemes being launched from 1 April.

They say that's the highest figure since landlord licensing schemes were unveiled in 2006.

And, by the end of the month, there will be 113 schemes running across the UK - and most of them will have different rules.

'20 have started in less than four months'

The chief executive of Kamma, Orla Shields, said: "So far in 2022, our data shows that nine new schemes have started and with the new schemes in April, that's 20 that have started in less than four months."

Landlords and letting agents face fines of up to £30,000 if they are found not to be complying with licensing and safety regulations.

And, under MEES energy efficiency regulations, landlords could be faced with an extra fine of £5,000 for each property they own.

The new record comes after the number of new schemes being launched saw an average of eight being unveiled every year between 2016 and 2018.

Benefits that landlord licensing schemes can bring

Kamma says that councils across the country are now realising the benefits that landlord licensing schemes can bring in terms of licence fees and improved living standards for tenants.

The 11 new additional and selective licensing schemes that are beginning in April cover local authorities, including Luton, Ealing, Lewisham, Liverpool, Durham and Charnwood.

The schemes will affect both landlords and letting agents that are operating rental properties in those local authority areas.