A recent survey by Landbay has revealed that almost half of landlords are uncertain about the Government’s proposal to create a Private Rented Sector Ombudsman, as part of the Renters Reform Bill.
The Ombudsman’s primary aim would be to ensure that disputes between private renters and landlords are settled impartially, quickly, at a low cost, and without going to court. The government is proposing that all landlords would be legally required to join the Ombudsman.
According to Landbay’s research, 48% of landlords surveyed expressed uncertainty regarding the Ombudsman and requested more information about the proposal. Meanwhile, 42% agreed that the Ombudsman was a good idea, with only 10% opposing it.
Those in favor of the proposal stressed the importance of impartiality and a timely resolution of disputes rather than resorting to lengthy court cases. However, landlords against the creation of the Ombudsman expressed concerns that it might always side with the tenant and that it could be just a money-making scheme.
Some respondents who were unsure questioned whether an Ombudsman would indeed speed up dispute resolution. They raised concerns about the slowness of government-run departments and worried that adding another layer could exacerbate the issue.
The Renters Reform Bill had its first reading in the House of Commons in May, but it is not expected to become law until 2024 or possibly even 2025.
Paul Brett, managing director of intermediaries at Landbay, said:, “Our survey found uncertainty around the idea of a Private Rented Sector Ombudsman.
“On the positive side, it would be good if disputes could be quickly resolved without having to go to court, but there is some scepticism as to how quick this would be.
“It appears that more information is needed before such a scheme is created.”
