Landlords divided about a Private Rented Sector Ombudsman

Plans under the Renters (Reform) Bill to create a Private Rented Sector Ombudsman to help settle disputes between landlords and tenants has left buy-to-let investors divided as to whether it’s a good idea or not.

As part of the Renters (Reform) Bill the Government is proposing to create a Private Rented Sector Ombudsman which all landlords will be legally required to join.

SETTLED IMPARTIALLY

The aim of the Ombudsman is to ensure disputes between private renters and landlords are settled impartially, quickly, at a low cost and without going to court.

But research by buy-to-let lender Landbay reveals almost half of landlords (48%) were unsure whether the Ombudsman was a good idea while just over four out of 10 (42%) thought it was a good idea and one in 10 (10%) were against it.

Those landlords who were supportive of an Ombudsman scheme were keen to point out that it must be impartial and would welcome timely resolution of disputes rather than lengthy court cases.

Against the creation of a Private Rented Sector Ombudsman were the views that it would always side with the tenant and it was just a money-making scheme.

Responses from those who were unsure included questioning whether an Ombudsman would speed up resolving disputes. If so, it would be a good thing, however, respondents noted that government-run departments are very slow and adding another layer could worsen things.

UNCERTAINTY

Paul Brett main picture), Intermediary Managing Director at Landbay, says: “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 as scheme is created.”

The Renters (Reform) Bill had its first reading in the House of Commons in May but is not expected to pass into law until 2024 or even 2025.