Communities Secretary Eric Pickles has now laid before Parliament an order for approval of the draft Redress Schemes for Lettings Agency Work and Property Management Work (Approval and Designation of Schemes) (England) Order 2013. Approval has been given.
The motion, moved by CLG minister Baroness Stowell, was agreed in Grand Committee, signalling the first legislative step towards implementing the requirement that all letting agents must belong to an approved ombudsman scheme.
In the short debate, concerns were expressed by peers, notably about whether multiple schemes would be approved to deal with redress.
Baroness Hayter, who has previously unsuccessfully tried to get letting agents recognised in law under the Estate Agents Act, also raised a number of concerns. In particular, she asked about client money protection.
Redress schemes will now be able to apply for approval to deal with complaints against letting and managing agents, with the requirement for all agents to belong to a recognised scheme due to be implemented in the New Year. However, the actual date has yet to be announced.
The order is here:
http://www.legislation.gov.uk/ukdsi/2013/9780111105122/contents
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Comments
It will be interesting to see what selection criteria the DCLG will use in granting suitability and 'approval' to Ombudsman 'wannabees'. Yet more opportunities for those peripheral self important letting players with grandiose commercial aspirations.
I don't agree with the approach at all. Anyway, there should only be one ombudsman for the rented property industry and he / she should be statutory. Remarkably, we have one in the form of Mike Biles (IHO) who reports to parliament through none other than, Eric Pickles.