It is a legal requirement for all letting agents and property managers in England to join one of three Government approved redress schemes.
Whilst the majority of lettings agents and property managers provide a good service there are a minority who offer poor service and engage in unacceptable practices. This requirement means that tenants and landlords with agents in the private rented sector and leaseholders and freeholders dealing with property managers in the residential sector will be able to complain to an independent person about the service they have received.
Ultimately the requirement to belong to a redress scheme will help weed out bad agents and property managers and drive up the standards.
The requirement is enforced by the authority who can impose a fine of up to £5000 where an agent or property manager who should have joined a scheme has not done so.