Landlords will be required to maintain their membership with the Private Rented Sector Ombudsman even after they have exited the rental market, as the government moves to make the scheme mandatory. This decision, expected to come into effect around 2028, aims to ensure tenants have ongoing access to redress but has raised concerns among landlord groups about fairness and administrative burden.

Mandatory Ombudsman Membership for Landlords

The UK government has confirmed that landlords must remain signed up to the Private Rented Sector (PRS) Ombudsman scheme, not only while actively letting properties but also for a reasonable period after they have ceased being landlords. This requirement forms part of the wider reforms under the Renters’ Rights Act, with the Ombudsman scheme expected to become mandatory by 2028, following the introduction of the PRS Database in late 2026.

The government emphasises that the Ombudsman will independently and impartially investigate tenant complaints, providing a formal route for tenants to seek redress if landlords have acted unreasonably or unprofessionally. Landlords who are members must comply with the Ombudsman’s decisions, which can include directives to take or stop actions, issue apologies, or pay compensation.

Scope and Function of the Ombudsman Service

Only tenants will be able to submit complaints to the Ombudsman, as the service is designed to protect consumer rights within the private rented sector. The government has clarified that it would be inappropriate for landlords to seek binding decisions from the Ombudsman. However, it is exploring alternative dispute resolution options, such as landlord-initiated mediation, to support landlords in resolving disputes with tenants.

Tenants will have access to the Ombudsman via online platforms or telephone, with efforts to ensure accessibility for vulnerable groups. The service aims to provide a fair and transparent process for handling complaints, complementing existing mechanisms such as deposit protection schemes and agent redress services.

Continued Membership After Leaving the Rental Market

The government’s guidance states that landlords must maintain their Ombudsman membership for a reasonable period after they have stopped letting properties. This is to allow tenants the opportunity to seek redress for issues arising during the pre-letting phase or at the end of a tenancy, times when problems can still occur despite a landlord having exited the market.

However, the guidance does not specify the length of this post-tenancy membership period, leading to uncertainty among landlords. The Ministry of Housing, Communities and Local Government has been contacted for clarification on whether landlords will be required to pay fees during this time and how long the membership obligation will last.

Landlord Concerns Over Fairness and Administrative Burden

Landlord organisation iHowz has criticised the government’s approach, describing the ongoing membership requirement as an “exit tax” and “disproportionate and administratively unfair.” Peter Littlewood, iHowz’s chief executive, expressed concerns that landlords could be trapped in an indefinite obligation to maintain Ombudsman membership and pay associated fees even after they have ceased letting properties.

He highlighted that in most regulated industries, obligations end when business activities cease, except in cases involving ongoing enforcement or unresolved complaints. The lack of clarity on the duration of post-tenancy membership adds to landlords’ anxiety, particularly for those selling or transferring properties.

Mr Littlewood also noted that disputes at the pre-letting stage typically involve letting agents rather than landlords, and that end-of-tenancy issues are usually covered by existing deposit schemes and legal frameworks. He suggested that mandatory continued membership may duplicate existing protections and increase the regulatory burden on landlords, potentially accelerating exits from the sector and reducing housing supply.

Responsibilities of Landlords and Agents

The government guidance makes clear that landlords remain responsible for their own actions and the services they provide, even if a letting agent manages the property. Both landlords and agents are legally bound to their tenants and can be subject to complaints and redress through their respective Ombudsman or agent redress schemes.

Where both landlord and agent share responsibility for an issue, the PRS Landlord Ombudsman will have provisions to cooperate with agent redress schemes to conduct joint investigations and issue joint decisions where appropriate.

Next Steps and Implementation

While the government has yet to appoint an administrator for the Ombudsman scheme, this announcement is expected in due course. Landlords and agents should prepare for the introduction of mandatory Ombudsman membership and the associated compliance requirements.

Given the ongoing discussions and concerns raised, landlords are advised to stay informed about developments and seek guidance on their obligations under the Renters’ Rights Act and the PRS Ombudsman scheme.