Redress Scheme
A redress scheme is a formal arrangement through which consumers can seek compensation or resolution of disputes with businesses, typically in regulated sectors. Mandatory redress schemes exist in areas such as property (The Property Ombudsman), estate agents, and new build homes. Membership of an approved scheme is often a legal requirement for businesses operating in those sectors.
Mandatory membership of a property redress scheme has been required for all estate agents and letting agents in England since October 2014 under the Enterprise and Regulatory Reform Act 2013. Three government-approved schemes operate: The Property Ombudsman (TPO), the Property Redress Scheme (PRS), and the Housing Property Redress Scheme (HPRS). The New Homes Quality Board and its New Homes Ombudsman became operational in 2023, providing redress for buyers of newly built homes for the first time. Agents who operate without scheme membership face fines of up to £5,000 per offence enforced by local Trading Standards. When making a complaint, you must first exhaust the agent's own internal complaints process; only then can you refer to the scheme. Awards from TPO can reach £25,000 in exceptional cases.