Renters' Rights Act: The new Private Rented Sector Ombudsman
As part of the ongoing implementation of the Renters’ Rights Act, a new landlord ombudsman service will be introduced to support private landlords and tenants in resolving disputes at the end of 2026. This service is designed to make conflict resolution faster, fairer, and more accessible, while reducing the need for costly court proceedings. By addressing issues such as tenancy agreements, property maintenance concerns, and deposit disputes, the service provides a streamlined process to resolve conflicts without the need for prolonged legal action.
The role of the Private Rented Sector Ombudsman
The Private Rented Sector Ombudsman is an impartial service created to mediate and settle disputes. Its core mission is to deliver fair, binding decisions, offering a faster and more affordable alternative to the often lengthy and expensive court process.
A crucial detail of this legislation is that registration will be mandatory for all private landlords in England with assured or regulated tenancies. This applies whether you manage your properties yourself or use a letting agent. To streamline the process, the government plans to link the Ombudsman registration with the new national Private Rented Sector Database, creating a single portal for landlords to manage their compliance obligations.
What will the ombudsman cover?
The Ombudsman will have the authority to rule on a variety of common tenancy issues. Its decisions will be legally binding, meaning both landlords and tenants must follow the final resolution.
One key area it will oversee is tenant requests, such as the right to keep a pet. If a landlord denies such a request, the Ombudsman can review the case and determine if the refusal was reasonable. The service will also offer mediation to help landlords and tenants resolve disputes collaboratively, making sure fair and practical solutions for both parties.
Mandatory registration and penalties
The government has made it clear that joining the Ombudsman scheme is not optional. It is a legal duty, and local authorities will have robust powers to enforce compliance. Landlords who fail to register will face serious consequences.
The penalties for non-compliance include:
- Civil fines: A landlord can be fined up to £7,000 for an initial failure to register with the scheme
- Higher penalties: For repeated offences or persistent non-compliance, the fines can increase to £40,000. In the most serious cases, criminal prosecution is also a possibility
Furthermore, tenants will have the right to seek a rent repayment order if their landlord commits an offence by continuously failing to join the scheme.
A fee will be required for membership. The Government has confirmed that the cost will be determined in consultation with industry stakeholders to make sure it is fair and proportionate.
How to prepare
The establishment of a mandatory Ombudsman is a clear indicator of The Government’s commitment to increasing accountability within the rental market. While the scheme is not yet live, proactive landlords can start preparing now.
- Formalise your procedures: Review and document your process for handling tenant complaints. Resolving issues directly is always the best first step
- Maintain diligent records: Keep thorough records of all tenant communications, property inspections, and signed agreements. This documentation is invaluable in any dispute
- Stay updated: Keep a close eye on industry news and government announcements for the latest information on the Ombudsman scheme, including registration dates and fees
Protect yourself and stay compliant
With regulation in the private rented sector continuing to tighten, making sure your deposits are protected correctly is more important than ever. Using a government-authorised deposit protection scheme like mydeposits not only helps you meet your legal obligations but also reduces the risk of disputes escalating to the Ombudsman or the courts. Join mydeposits today for secure deposit protection and expert support.