What is a Property Redress Scheme?

Independent bodies are essential for most industries.

They uphold high standards that protect consumers.

In the estate agency sector, there are property redress schemes.

Read on to find out more about it.

What is a property redress scheme?

A property redress scheme in the UK deals with complaints about estate agents and letting agents.

(Consumers usually make these complaints.)

There are two main redress schemes in the UK:

The Property Ombudsman (TPO): A voluntary redress scheme. It has many reputable members but lacks regulatory authority and cannot take legal action
Property Redress Scheme (PRS): A government-approved redress scheme. It functions similarly to the TPO, resolving disputes and maintaining industry standards.

Do cash house buyers need to be a part of a property redress scheme?

Cash house buyers are companies or individuals that buy properties directly from sellers.

They are not the same as regular estate agents and aren’t regulated in the same way either.

However, cash house buyers can voluntarily join The Property Ombudsman.

Who needs to join a property redress scheme?

The UK government states that the following entities must be a part of a redress scheme:

Estate agents dealing with residential properties in the UK
A letting agent or property manager in England or Wales.

Consequences of not joining a property redress scheme

Companies that meet the criteria for joining a property redress scheme but don’t join one face:

A £5,000 fine
Potential revoking of their professional trading licence.

Who should contact the property redress schemes? (& why)

Consumers primarily contact property redress schemes. However, fellow industry professionals can contact them, too.

(They may want to enquire about specific regulations or report concerns about colleagues or competitors.)

Consumers should only contact the redress scheme with a complaint if they’ve first raised it with the estate agent themselves (and cannot reach an agreement).

In this case, the redress scheme investigates the complaint.

Filing a complaint with the property redress scheme doesn’t cost anything.

Common reasons to complain to the property redress scheme

You can complain to a property redress scheme if one of its members’ actions has affected you negatively.

A common reason is that an estate agent hasn’t done what they agreed to do in a contract.

For example, they’ve tried to increase their commission from what was previously agreed. Or they’re asking for payment when you agreed to a ‘no sale, no fee’ deal.

Another reason could be due to being treated unfairly. Discrimination is one example of this.

Or perhaps you felt that your needs were neglected in favour of another customer.

You can also complain because the company’s actions have caused you a loss. Perhaps they caused a sale to fall through.

You’ll need evidence to support this claim when making the complaint.

How to register a complaint with a property redress scheme

You can only register a complaint with the property redress scheme if you’ve tried to complain to the company directly first.

This organisation should’ve been given a chance to process your complaint in-house and deal with it. You thus can’t complain within the first 8 weeks.

If you’ve not received a response after 8 weeks, or are being turned away, you can complain to the property redress scheme.

You can only do this if the incident happened within the past 12 months.

At this point, you submit your complaint in writing to the property redress scheme. A solicitor can help you with this.

The scheme will then formally review and inform you of their decision.

(There might also be a ‘review request’ stage to confirm that they’ve got all the facts of the case correct.)

Is it compulsory to accept a property redress scheme’s decision?

Yes. If you’ve been unsuccessful, an independent case officer will usually write confirming the findings.

If you’ve been successful in your appeal, the estate agent must comply with it, too.

The property redress scheme will often advise on the action they should take. This might include any of the following:

A refund
An apology
An explanation.

How do I know if my estate agent is in a property redress scheme?

You can check the estate agent’s website. If a scheme is listed, double-check its list of associated agents to see if they appear.

You can also ask the estate agent directly. You should not use them if they don’t give you a clear answer.

Finally, you can search the Property Agent Checker from National Trading Standards.

Can I ask my estate agent to prove they’re in a property redress scheme?

Yes. Your estate agent is required to be part of one in the UK. If they refuse to show that they’re in one, it’s worth reporting them and walking away.