Lettings agents and property managers are required to belong to an approved redress scheme if they deal with residential property.
There are currently three approved redress schemes. Further information can be found at: Gov.uk
Links to the legislation and guidance are below:
What happens if a lettings agent or property manager doesn't join one of the redress schemes?
Local authorities can impose a fine of up to £5,000 where a lettings agent or property manager who should have joined a scheme has not done so.
The authority must give written notice of their intention to impose a penalty setting out the reasons and the amount of the penalty.
The lettings agent or property manager will have 28 days to make written representations or objections to the authority, starting from the day after the date the notice of intent was sent.
At the end of the 28 day period the enforcement authority must decide, having taken into account any representations received, whether to impose the fine and, if so, must issue a final notice to the lettings agent or property manager giving at least 28 days for payment to be made.
What happens if a lettings agent or property manager fails to join one of the redress schemes after the imposition of a fine?
The local authority can impose further penalties if a lettings agent or property manager fails to join a redress scheme despite already having had a penalty imposed.
There is no limit to the number of penalties that may be imposed on an individual lettings agent or property manager if they continue to fail to join a scheme