It is a legal requirement for all letting agents and property managers in England to join one of 3 Government approved redress schemes.
Whilst most lettings agents and property managers provide a good service. There is 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. Also 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.
The requirement to belong to a redress scheme will help weed out bad agents and property managers and drive up the standards.
There are more details on the Redress Scheme for Lettings and Property Managers on their webpage.
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.