What we know about the PRS Landlord Ombudsman

The Renters Rights Act introduces one of the most significant changes to tenant-landlord relationships in decades - a mandatory ombudsman service for the entire private rented sector. By 2028, every landlord in England will be required to join the Private Rented Sector Landlord Ombudsman, regardless of whether they manage properties themselves or use letting agents. For tenants, this means free, binding dispute resolution without court proceedings. For landlords, it represents a new layer of accountability with substantial penalties for non-compliance.

The scheme is still taking shape, but the Government has provided enough detail through the Renters Rights Act, implementation roadmaps, and ministerial statements to understand what's coming. This guide explains everything we currently know about the PRS Landlord Ombudsman, when it will launch, how it will operate, and what landlords need to do to prepare.

What is an ombudsman and why does the PRS need one?

An ombudsman provides independent, impartial dispute resolution outside the court system. They investigate complaints, determine whether organisations acted reasonably, and have powers to order remedies including apologies, explanations, remedial action, and compensation.

The concept is well established across many sectors. The Housing Ombudsman already serves social housing tenants. Property agent ombudsman schemes like The Property Ombudsman and the Property Redress Scheme serve consumers who use estate and letting agents. These schemes operate at no cost to complainants, with member organisations funding the service.

The private rented sector has until now been the exception. Tenants in the PRS have had to rely on local authority enforcement or court proceedings to resolve disputes with landlords. Both routes present barriers, councils face resource constraints and prioritise the most serious cases, while courts are expensive, slow, and intimidating for many tenants.

The PRS Landlord Ombudsman aims to fill this gap by providing quick, fair, impartial and binding resolution for tenant complaints. According to the Government, this will bring tenant-landlord complaint resolution in line with established redress practices for social housing tenants and consumers of property agent services.

What the Renters Rights Act says

Chapter 2 of Part 1 of the Renters Rights Act establishes the legal framework for "landlord redress schemes" (the Act uses this plural term rather than "ombudsman", though the Government has confirmed its intention to approve only one scheme to act as ombudsman for the sector).

Section 62 defines a redress scheme as one which "provides for a complaint made by or on behalf of a prospective, current or former residential tenant against a member of the scheme to be independently investigated and determined by an independent individual."

The key word here is "independently". The ombudsman will operate at arm's length from both landlords and government, with complaints investigated and determined by people who have no connection to the parties involved.

The Act establishes that prospective tenants, current tenants, and former tenants can all make complaints. This broad scope means tenants can complain about issues that occurred before they moved in, during the tenancy, or even after they've left, provided the complaint relates to the landlord's conduct during their involvement with the property.

Who must join the ombudsman

All private landlords in England will be legally required to become members of the PRS Landlord Ombudsman. This obligation applies regardless of how many properties you own, how you manage them, or what type of tenancies you offer.

Crucially, using a letting agent does not exempt you from this requirement. Even if you outsource all property management to a professional agent, you must still register with the ombudsman. This is because many significant issues relating to housing quality or tenant treatment are ultimately the landlord's responsibility, not the agent's.

As Housing Minister Matthew Pennycook explained during parliamentary debate

"the fact that a landlord employs a managing agent does not mean that tenants do not need to be able to seek redress from their landlord."

He gave the example of structural issues causing damp and mould, these are landlord obligations regardless of who manages day-to-day operations.

The implications are straightforward. If you're a landlord in the private rented sector, you will need to join the ombudsman when it becomes mandatory. There are no exemptions for small landlords, accidental landlords, or those using professional management.

Overlapping jurisdiction with letting agent redress schemes

The relationship between the PRS Landlord Ombudsman and existing letting agent redress schemes creates an interesting dynamic. Tenants who use properties managed by letting agents will have two potential routes for complaints.

If the issue relates to the letting agent's conduct, for example, failing to respond promptly to maintenance requests, mishandling deposits, or providing poor service, tenants can complain to the agent's redress scheme (The Property Ombudsman, Property Redress Scheme, or Property Ombudsman Services).

If the issue relates to the landlord's statutory obligations, for example, failing to carry out repairs, breaching safety regulations, or refusing a reasonable pet request, tenants can complain to the PRS Landlord Ombudsman.

In practice, many situations involve both parties. Take a broken boiler in winter left unrepaired for weeks. The letting agent may have breached their code of practice by failing to respond promptly. The landlord has breached statutory repairing obligations under Section 11 of the Landlord and Tenant Act 1985 and potentially created a Category 1 hazard under the Housing Health and Safety Rating System.

In these cases, tenants could complain to both schemes. The Renters Rights Act includes provisions for cooperation between ombudsman schemes to conduct joint investigations and, where appropriate, issue joint decisions when both landlord and agent are at fault.

For landlords, the lesson is clear, you cannot delegate responsibility for statutory obligations to letting agents. Even if an agent's inaction caused the problem, you remain accountable through the ombudsman process.

What powers will the ombudsman have?

The PRS Landlord Ombudsman will have substantial powers to investigate complaints and order remedies. While full details await regulations, the Act and Government statements provide a clear picture.

• Investigation powers - The ombudsman will independently investigate tenant complaints. This means gathering evidence from both parties, reviewing documents, and making determinations based on whether the landlord acted reasonably and professionally.

• Remedial orders - If the ombudsman finds a landlord acted unreasonably or unprofessionally, they can order the landlord to take or cease taking specific actions, issue an apology or explanation, provide information, and award compensation to put things right.

• Binding decisions - These are not recommendations or suggestions. Ombudsman decisions will be legally binding on landlords. Failure to comply triggers enforcement action by local authorities.

• Mediation services - The Act makes provision for the ombudsman to provide landlord-initiated mediation, enabling disputes to be resolved before they escalate to court or formal complaint proceedings. This early intervention approach could prevent many complaints from developing into full investigations.

• Systemic change - Beyond individual cases, ombudsmen typically identify patterns across complaints and make recommendations to improve practices sector-wide. We can expect the PRS Landlord Ombudsman to publish annual reports highlighting common issues and best practice guidance.

Penalties for non-compliance

The consequences for failing to join the ombudsman are severe, reflecting the Government's determination to ensure universal coverage.

• Civil penalties - Local authorities can issue civil penalties of up to £7,000 if they are satisfied beyond reasonable doubt that a landlord has breached the requirement to join the ombudsman. For repeated or ongoing breaches, this increases to £40,000. These penalties sit alongside other enforcement powers councils can use against non-compliant landlords.

• Rent Repayment Orders - Failure to join the ombudsman is added to the list of offences that can trigger Rent Repayment Orders under Section 40 of the Housing and Planning Act 2016. Tenants can apply to the First-Tier Tribunal for an order requiring landlords to repay rent. Under the Renters Rights Act, these orders will extend to 24 months rather than the current 12 months, potentially doubling the financial exposure.

• Agent penalties - Letting agents face the same fines if they market properties where the landlord is not registered with the ombudsman. This creates strong incentive for agents to verify landlord membership before taking on management instructions. Agents who fail to check could find themselves liable for substantial penalties.

• Possession ground restrictions - The PRS Database, which launches before the ombudsman, will be required for landlords to use certain possession grounds. While the exact relationship between database registration and ombudsman membership is still being clarified, the Government has indicated these systems will interact, with non-compliant landlords potentially unable to regain possession even when they have valid grounds.

Timeline for implementation

Understanding when the ombudsman will launch is crucial for planning. The Government has published a clear phased implementation roadmap.

• Phase 1 - May 2026 - The core tenancy reforms come into force on 1 May 2026. Section 21 abolition, periodic tenancies, rent controls, and enhanced possession grounds all begin. The ombudsman is not yet mandatory at this stage.

• Phase 2 - Late 2026 to 2028 - This phase introduces the PRS infrastructure. The PRS Database rolls out from late 2026, with regional implementation continuing through 2027. Landlords will be required to register on the database before the ombudsman launches.

• Ombudsman development - 2026 to 2027 - During this period, the Secretary of State will appoint a scheme administrator to run the ombudsman service. The administrator will then need 12 to 18 months to scale up operations, develop processes, hire and train staff, and build the infrastructure needed to handle complaints from across the private rented sector.

• Mandatory membership - 2028 - The Government currently expects mandatory ombudsman membership to come into force in 2028, once they are confident the service is fully ready. Landlords will be given sufficient notice in advance of the requirement to join and sufficient time to make appropriate arrangements.

This timeline is subject to change, particularly the 2028 date for mandatory membership. However, the Government has committed to providing clear advance notice, so landlords will not face surprise deadlines.

Who will run the ombudsman service?

While no final decision has been confirmed, Housing Minister Matthew Pennycook stated during parliamentary debate that "we remain of the view that the existing Housing Ombudsman Service is best placed to deliver the new PRS redress service, providing streamlined, cross-tenure redress."

The Housing Ombudsman currently serves social housing tenants and leaseholders of registered providers. It has established infrastructure, experienced staff, and proven processes for investigating housing complaints. Extending its remit to include the private rented sector would create consistency across housing tenures and avoid duplicating administrative infrastructure.

However, the scale of expansion should not be underestimated. The Housing Ombudsman currently deals with around 30,000 complaints annually from the social sector. The private rented sector contains approximately 4.6 million households. Even if only a small percentage generate complaints, the volume could be substantial.

Resourcing will be critical. The Housing Ombudsman has publicly noted that complaint volumes have risen and staff recruitment and training take time. The 12 to 18 month scale-up period in the implementation roadmap reflects this reality. The service will need significant expansion to handle PRS complaints while maintaining quality standards.

The Government conducted Pre-Tender Market Engagement in February 2023, gathering ideas from interested parties about delivering the ombudsman service. This document revealed potential service levels including resolving 100% of non-complex cases within 90 days and providing conciliation and arbitration services to reduce disputes escalating to court.

Whether the new Labour Government continues with the same procurement process or starts afresh remains to be seen, but the Housing Ombudsman remains the frontrunner.

Costs for landlords

One of the most pressing questions for landlords is how much the ombudsman will cost. The Government has confirmed that landlords will fund the service through fees, but specific amounts have not yet been published.

The Renters Rights Act states that landlords will likely be required to pay a small annual fee per PRS property. The ombudsman service will set fees based on the costs of operating an effective service, with Government working with them to ensure fees are proportionate and good value.

For comparison, letting agent redress schemes charge annual membership fees to agents based on their turnover and number of offices. The schemes are largely self-funding through these fees. Social housing providers pay levies to fund the Housing Ombudsman based on their size.

Individual landlords should expect annual fees somewhere in the region of £25 to £75 per property, though this is speculative. The actual amount will depend on scheme design, complaint volumes, operating costs, and policy decisions about whether to charge flat fees or scaled fees based on portfolio size.

Whatever the fee structure, landlords will need to factor this into their operating budgets. For landlords with multiple properties, annual ombudsman fees across a portfolio will represent another incremental cost alongside licensing fees, insurance, safety certificates, and other compliance expenses.

The complaint process

While regulations will establish detailed procedures, we can anticipate the likely complaint process based on ombudsman best practice and Government statements.

Internal complaint first - Before approaching the ombudsman, tenants will almost certainly need to exhaust the landlord's internal complaint process. The Housing Ombudsman requires this for social housing complaints, typically involving a two-stage process. Landlords should expect to implement formal complaint procedures if they don't already have them.

Complaint to ombudsman - Once the landlord's complaint process is exhausted or if the landlord fails to respond within a reasonable timeframe, typically eight weeks, tenants can complain to the ombudsman. The service will be free for tenants.

Initial assessment - The ombudsman will assess whether the complaint falls within their jurisdiction, whether it has been referred prematurely, before exhausting internal procedures, and whether it has reasonable prospects of success.

Investigation - If accepted, the ombudsman will gather evidence from both parties. Landlords will need to provide documentation such as tenancy agreements, correspondence, maintenance records, compliance certificates, and any other relevant information. The ombudsman may also inspect properties, interview witnesses, and consult experts.

Determination - The ombudsman will make a determination based on whether the landlord acted reasonably and professionally. This will include findings of fact, conclusions about whether the landlord breached obligations, and orders for remedies if appropriate.

Publication - Based on Housing Ombudsman practice, determinations will likely be published online. The landlord will be identified but the tenant will not. This public accountability is a significant change for private landlords, who have not previously faced this level of scrutiny and transparency.

What tenants can complain about

The ombudsman's jurisdiction will be broad, covering most aspects of the landlord-tenant relationship. Based on the Act and Government guidance, tenants will likely be able to complain about the following.

Repairs and maintenance - Failure to carry out repairs within reasonable timeframes, ignoring maintenance requests, failing to meet repairing obligations under Section 11 of the Landlord and Tenant Act 1985.

Safety issues - Lack of valid Gas Safety Certificates, absent or faulty smoke and carbon monoxide alarms, electrical safety failures, properties that are not fit for human habitation.

Deposits - Failure to protect deposits properly, unreasonable deductions, not returning deposits within reasonable timeframes, ignoring fair wear and tear principles.

Discrimination - Refusing tenancies to benefit recipients, discriminating against families with children, unreasonable treatment of prospective tenants.

Pet refusals - The Renters Rights Act gives tenants the right to request permission to keep pets. Landlords must not unreasonably refuse. Tenants can escalate refusals to the ombudsman, who will determine whether the refusal was reasonable.

Harassment and illegal eviction - While criminal offences, tenants may also complain to the ombudsman about landlord behaviour that amounts to harassment or illegal eviction attempts.

Rent increases - Disputes about whether rent increases are reasonable, whether correct procedures were followed, whether increases were discriminatory.

Communication and conduct - Failure to respond to tenant communications, unreasonable behaviour, breaching quiet enjoyment, excessive property visits.

This list is not exhaustive. Essentially, any aspect of the landlord-tenant relationship where the landlord has obligations or where conduct could be judged as unreasonable or unprofessional may fall within ombudsman jurisdiction.

What landlords need to do now

Although mandatory membership is not required until 2028, preparing now will reduce pressure and demonstrate professionalism.

Implement complaint procedures - Develop clear, documented procedures for handling tenant complaints. Create a two-stage process, provide written acknowledgements, set response timeframes, keep records of all complaints and resolutions, and communicate procedures to tenants at the start of tenancies.

Improve record keeping - The ombudsman will require evidence. Maintain comprehensive records of all maintenance requests and actions taken, tenant communications, property inspections, safety certificates and renewal dates, compliance documentation, and tenancy agreements and notices. Tools like August centralise this documentation and create audit trails.

Review agent arrangements - If you use letting agents, clarify responsibility for different aspects of property management. Ensure your agreements specify who handles repairs, compliance, tenant communications, and complaints. Remember that even with agents, you remain accountable for statutory obligations.

Stay compliant - The best defence against complaints is meeting your obligations. Ensure properties are maintained to proper standards, safety certificates are current and renewed on time, repairs are carried out promptly, deposits are protected correctly, and tenants are treated fairly and professionally. Compliance checklists help track obligations across portfolios.

Budget for costs - Factor ombudsman fees into financial planning from 2028 onwards. Also consider potential costs of responding to complaints, including time, documentation preparation, and any compensation orders.

Monitor developments - The scheme details will evolve as regulations are published and the administrator is appointed. Subscribe to updates from the Government, landlord organisations, and professional bodies to stay informed about requirements and timelines.

Concerns and controversies

The introduction of the PRS Landlord Ombudsman has not been without opposition. Various concerns have been raised by landlord groups, industry bodies, and commentators.

Burden on compliant landlords - Many argue that responsible landlords who already provide good service and meet obligations will bear the cost of the scheme, while it aims to address poor practice by a minority. The National Residential Landlords Association (NRLA) and Propertymark have consistently argued that better targeted enforcement of existing rules would be more effective than creating new infrastructure.

Potential for vexatious complaints - Some worry that free access to the ombudsman with no risk of costs for tenants could encourage frivolous or malicious complaints. Ombudsman schemes typically have safeguards to filter out such cases, but the concern remains.

Capacity and delays - The Housing Ombudsman already faces challenges with complaint volumes and determination timescales. Adding the entire private rented sector raises questions about whether the service can maintain quality and reasonable response times. Delays in resolving complaints frustrate both tenants and landlords.

Publication of determinations - The prospect of having names published alongside adverse determinations troubles many landlords. This transparency is standard in social housing but represents a significant cultural shift for private landlords who have operated with more anonymity.

Overlapping enforcement - The ombudsman adds to an increasingly complex enforcement landscape. Landlords already face local authority enforcement, licensing schemes, possession proceedings, deposit protection adjudication, and courts. Multiple overlapping systems create confusion and compliance burden.

Cost implications - Particularly for smaller landlords operating on tight margins, the cumulative effect of new costs (ombudsman fees, database registration, licensing fees, increased compliance requirements) raises questions about financial viability and whether further landlords will exit the sector.

These concerns are legitimate and worth monitoring. However, the Government has made clear its commitment to the scheme, viewing it as essential to levelling the playing field between landlords and tenants and improving standards across the sector.

Opportunities for good landlords

While much of the focus has been on obligations and penalties, the ombudsman also creates potential advantages for professional landlords who operate to high standards.

Competitive differentiation - As the scheme matures and publishes complaint data, landlords with clean records will be able to demonstrate quality. Tenants may increasingly check ombudsman records when choosing properties, creating market advantage for those with no upheld complaints.

Early resolution - The mediation and early dispute resolution functions could help landlords resolve misunderstandings before they escalate. A neutral third party helping both parties find reasonable solutions may preserve relationships and reduce conflict.

Clear standards - Ombudsman determinations will establish clear expectations about reasonable landlord conduct. This removes ambiguity and provides practical guidance about what constitutes acceptable practice across various situations.

Tenant retention - Tenants who feel they have effective recourse if problems arise may be more willing to remain in properties long-term. The security of knowing complaints will be heard fairly could reduce turnover and associated costs.

Reduced court involvement - For landlords, avoiding court proceedings saves time, money, and stress. The ombudsman provides an alternative route for resolving disputes that would otherwise require county court applications.

Professionalisation - The scheme contributes to the ongoing professionalisation of the private rented sector. As marginal operators who cannot or will not meet standards exit the market, those who remain benefit from reduced competition and improved sector reputation.

The broader context

The PRS Landlord Ombudsman does not exist in isolation. It forms part of a comprehensive package of reforms fundamentally reshaping the private rented sector.

The Renters Rights Act abolishes Section 21 and moves all tenancies to periodic arrangements from 1 May 2026. This changes possession dynamics and removes landlords' ability to regain properties without grounds.

The PRS Database, launching from late 2026, will require all landlords to register properties and provide key information. This creates transparency and supports council enforcement.

Landlord licensing schemes continue expanding following the removal of the Secretary of State approval requirement in December 2024. At least sixteen major schemes launched in 2026, with more in consultation.

Awaab's Law will extend to the private rented sector, setting legally enforceable timeframes for landlords to remedy serious hazards. The Decent Homes Standard will apply from 2035, establishing minimum property condition requirements.

Taken together, these reforms create a far more regulated environment where landlords face greater accountability, transparency, and cost. The successful landlords in this environment will be those who embrace professionalisation rather than resist it.

Practical preparation steps

As 2028 approaches, landlords should take concrete steps to prepare for mandatory ombudsman membership.

Review and update documentation - Ensure tenancy agreements are compliant with the new regime from May 2026. Update inventory processes to create clear evidence of property condition at the start and end of tenancies. Standardise templates for maintenance requests, inspection reports, and rent increase notices.

Establish communication protocols - Create clear channels for tenants to raise issues. Respond promptly to all communications and maintain written records. Set reasonable timescales for addressing different types of requests and communicate these to tenants.

Invest in property standards - Address any property condition issues now rather than waiting for complaints. Ensure all safety certificates are current. Consider energy efficiency improvements to meet future standards.

Build contractor relationships - Develop reliable networks of qualified contractors who respond promptly to maintenance requests. Poor contractor performance often underlies tenant complaints about delays.

Consider professional management - For landlords who lack time or expertise to meet the administrative demands, professional property management may prove worthwhile despite the cost. Good agents should handle compliance tracking, maintenance coordination, and tenant communications effectively.

Use technology effectively - Platforms like August streamline compliance management through centralised document storage, automated renewal reminders, and tenant communication tools. These systems create the audit trails increasingly essential in a regulated environment.

Stay educated - Join landlord associations, attend training events, and follow regulatory developments. Understanding your obligations and best practice reduces complaint risk and improves tenant relationships.

Looking ahead

The PRS Landlord Ombudsman represents a fundamental shift in how landlord-tenant disputes are resolved. For the first time, tenants will have free access to binding redress without needing local authority intervention or court proceedings. For landlords, this means greater accountability and a new enforcement mechanism with teeth.

The details will continue evolving as regulations are published, the administrator is appointed, and operational procedures are developed. Landlords should monitor these developments closely and adjust their practices accordingly.

Success in the ombudsman era will belong to landlords who view compliance not as a burden but as a standard operating principle. Those who maintain properties well, communicate effectively, resolve issues promptly, and treat tenants professionally will have little to fear from the ombudsman and may even benefit from the competitive advantage it provides.

Conversely, landlords who cut corners, ignore complaints, delay repairs, or treat tenants poorly will face real consequences. The ombudsman will have powers to investigate, order remedies, and award compensation. Determinations will be published and enforceable. The costs of poor practice will increase significantly.

The direction of travel is clear. The private rented sector is becoming more regulated, more professional, and more accountable. The PRS Landlord Ombudsman is a central part of this transformation. Landlords who adapt will thrive; those who resist will struggle.

Disclaimer: This article is a guide and not intended to be relied upon as legal or professional advice, or as a substitute for it. August does not accept any liability for any errors, omissions or misstatements contained in this article. Always speak to a suitably qualified professional if you require specific advice or information.