A redress scheme is basically a scheme that allows customers a way to move forward with any complaints against a company. If that customer doesn’t feel that the company is dealing with their complaint properly. The redress scheme operates to help resolve and settle the complaints as an alternative to using the courts and acts similar to a meditator.
Since 2008 it has been a legal requirement for all estate agents in the UK to be a member of the redress scheme and in 2014 it became a legal requirement for lettings agents and property managers.
This effectively means that anyone involved in selling, letting or managing properties on behalf of someone else must be a member of a redress scheme. As the definition is pretty broad so most people involved in property sales this includes sourcing, rent to rent and even if you just helping out a friend to manage their property falls under this legislation.
So now that you know whether or not you need to join a redress scheme there are a couple of options available to you:
- The Property Redress Scheme
- The Property Ombudsman
These both offer essentially the same service they just have different membership options between £100+vat- £200+vat pa. As long as you are providing a quality service you should never need to use the redress scheme but it is a legal requirement and there are financial penalties for not doing so. Main thing is that you are covered just in case something goes in a different direction than you thought.