Private Rented Sector Ombudsman

Lord Young of Cookham Excerpts

Thursday 18th January 2024 Lords Chamber

[Baroness Scott of Bybrook (Con)]

The noble Baroness asked a number of questions. First, we have sought extensive procurement and legal advice on this, and we are confident that the approach we are taking is in line with procurement regulations. I can only reiterate that this work is still in its very early stages, and no decisions have been made. Of course, we will talk to stakeholders throughout the whole of the process. If the noble Baroness or any other noble Lord would like to meet me and my team, I am happy to do so as we go forward.

Secondly, the question on the interaction between schemes is very interesting. We envisage that, where a complaint covers both landlords and letting agents, the separate schemes will work together to triage the complaint effectively and, if necessary, have a joint investigation. Importantly, we want to make sure that, where it is not clear which scheme a tenant should complain to, there is no wrong access point. We will work together to make sure that the tenant gets the service that they require.

[Lord Young of Cookham (Con)]

My Lords, I too welcome the Bill’s proposal to establish a private rented sector ombudsman service. There will be an opportunity when the Bill reaches your Lordships’ House to discuss the issues raised by the noble Baroness, Lady Warwick, as to where this service should best be provided. What powers will the ombudsman have to enforce his or her findings? Who will bear the cost?

[Baroness Scott of Bybrook (Con)]

I thank my noble friend. He is absolutely right: the Bill will come to this House shortly and I am sure we will have many more debates on this issue. As far as powers are concerned, the Bill says that the ombudsman’s enforcement powers will be to expel the landlord from membership of the organisation unless they deal with their obligations and then rejoin, and they will be liable for civil and, in the worst cases, legal penalties if they continue to operate without that membership. Those are quite strong powers that will back up local authorities’ powers. On the scheme’s funding, it will be a landlord membership scheme, as is the Housing Ombudsman scheme. Membership of that scheme is at £5.75 per unit.