From 1st October 2014 letting agents (high street and web-based) became legally bound to become a member of one of three redress schemes, known collectively as Ombudsman Schemes. These are:
- The Property Ombudsman
- Ombudsman Services Property: Please note that this organisation announced its withdrawal from complaints handling in the property sectors by press release on 6th February 2018
- Property Redress Scheme
With regard to resident management companies, (companies established by leaseholders) when they own the freehold and self-manage there is no such requirement to join an Ombudsman scheme. This is because under legal definition, property management work only arises where one person instructs another person to manage the premises and here, the freeholder and the management company are the same. Where a resident management company does not own the freehold and self-manages (rather than using a managing agent), this would also be excluded as the work is only in respect of their own premises and would not be operating in the normal course of business.