Housing Ombudsman tipped to run new landlord redress scheme

Housing minister Matthew Pennycook has confirmed, in response to a parliamentary written question, that the government intends the existing Housing Ombudsman Service to establish and operate the new Private Rented Sector landlord ombudsman scheme. The Housing Ombudsman already runs mandatory redress for social housing tenants.

Regulations allowing the Secretary of State to designate or approve a private landlord redress scheme came into force on 17 September 2026. Pennycook's response makes clear these regulations do not require landlords to join a scheme immediately. The scheme will be prepared for designation first, with further regulations to follow setting out which landlords must join and when.

Separately, the government has previously indicated a compensation cap of £25,000 for the scheme, in line with the existing cap for mandatory property agent redress. Baroness Taylor of Stevenage has said tenants could still pursue higher compensation through the courts, and that the cap will be reviewed within five years of the scheme being designated or approved.

This affects private landlords in England. The Renters' Rights Act redress scheme does not apply in Wales, Scotland or Northern Ireland.

No landlord needs to join a scheme yet. The government says the necessary digital and operational functionality needs to be developed before further regulations confirm which landlords must join and when.

• No action is required yet; mandatory membership has not been confirmed or dated.
• Watch for further regulations announcing which landlords must join and when.
• If you're already in a dispute with a tenant, check with a solicitor about your options now, since the scheme isn't operating yet.
• Keep this separate from existing redress schemes for letting agents, which already have a £25,000 compensation cap.