Letting agent redress schemes — What agents must know

All letting agents and property managers operating in England must be members of a government-approved redress scheme — a legal requirement under the Enterprise and Regulatory Reform Act 2013 that has been in force since 1 October 2014. Reviewed March 2026.

What the rule is

The Enterprise and Regulatory Reform Act 2013 (section 83–84) requires every person who engages in letting agency work or property management work in England to belong to a redress scheme that has been approved by the Secretary of State. There are currently two approved schemes:

• The Property Ombudsman (TPO) — the largest scheme, covering the majority of ARLA Propertymark and RICS members
• The Property Redress Scheme (PRS) — an alternative government-approved scheme

“Letting agency work” is broadly defined. It covers finding tenants for landlords, negotiating tenancy terms, carrying out property management on behalf of landlords or tenants, and any related activity carried out in the course of a business. Sole traders, partnerships, limited companies and large corporate agencies are all caught by the requirement.

When it applies

The obligation applies to any business or individual who carries out letting agency or property management work in England as part of a business — even if England is only part of a wider UK operation. There is no minimum turnover or transaction volume threshold. A single-person operation managing a handful of properties is just as much subject to the requirement as a national corporate agency.

The requirement does not apply to landlords managing their own properties directly; it applies to agents acting on behalf of others.

What landlords/agents must do

Agents must:

1. Apply for and maintain membership with either TPO or PRS before carrying out any letting agency or property management work
2. Pay the relevant membership fees (these vary by scheme and the number of offices/managed properties)
3. Comply with the scheme’s code of practice
4. Display their scheme membership clearly — on their website, in offices, and in correspondence (see also the display obligations under the Consumer Rights Act 2015)
5. Respond to any complaints raised through the scheme in accordance with the scheme’s timescales

Both schemes have a code of practice that sets standards for how agents must handle client money, communicate with clients, manage tenancies, and deal with disputes.

What evidence to keep

Agents should retain:

• Proof of current scheme membership (certificate, membership number, renewal confirmations)
• A record of any complaints received and the outcome
• Copies of the scheme’s code of practice versions applicable at the time of any complaint
• Evidence of how membership details are displayed on the website and in-office

Membership must be renewed annually. Agents should maintain a compliance calendar to avoid inadvertent lapses.

Common mistakes

Assuming trade body membership is enough. Membership of ARLA Propertymark, RICS, or NALS often includes redress scheme membership as part of the package, but agents must confirm this explicitly. The trade body membership and the redress scheme membership are separate even if bundled.

Not displaying membership correctly. The Consumer Rights Act 2015 requires agents to display on their website and in any office the name of any redress scheme they belong to. Failure to display is a separate civil penalty offence.

Lapsing on renewal. Schemes are annual. An agent who lets membership lapse — even briefly — has no protection from enforcement during the gap.

Assuming the rule only applies to ARLA/RICS agents. Independent agents, online-only agents, and hybrid models are equally caught by the obligation.

FAQ

What happens if an agent is not a member? A local authority trading standards officer can issue a fine of up to £5,000 per office where the agent operates without scheme membership. The fine is per office, so a multi-branch agency could face significant total penalties.

Who can make a complaint to the redress scheme? Both tenants and landlords (as clients of the agent) can bring complaints. The complaint must normally go through the agent’s internal complaints process first; if unresolved, the consumer can escalate to the ombudsman or redress scheme.

What can the redress scheme award? TPO can award compensation of up to £25,000. PRS can award up to £25,000. Awards are binding on the agent (as a condition of membership) but the complainant must accept the award in full and final settlement.

Does the requirement apply to agents managing commercial property? No — the obligation applies specifically to letting agency work relating to residential property in England.

Can an agent belong to both schemes? No. An agent must choose one approved scheme and cannot hold dual membership.