The Property Redress Scheme

The Property Redress Scheme

How does the Property Redress Scheme work?

All property agents and professionals carrying out estate, lettings and property management work in the property industry have a legal responsibility to join an authorised redress scheme and signpost this to their customer.

By joining the Property Redress Scheme (PRS), businesses can comply quickly and easily with this requirement. The PRS is authorised by the government to offer an escalated complaints process to those wanting to make a complaint caused by the acts or omissions of one of our agent members.

This is an alternative to the formal legal process. There is no cost to consumers to raise a complaint with the PRS. Both parties are also responsible for the costs of preparing their case and the PRS will not make any award for these.

All UKALA letting agent members are automatically enrolled to the PRS as part of their UKALA membership.

On what grounds can a consumer complain to the Property Redress Scheme?

To raise a complaint, you must be a consumer or directly affected by the actions of a member of the PRS.
Your complaint(s) must be about things which you claim a member has done, or not done, which have:

  • effectively not fulfilled their legal or contractual responsibilities to you
  • affected or breached your rights
  • caused you a loss by not acting in line with any code of practice they have signed up to
  • treated you unfairly

Examples of unfair treatment include:

  • poor or incompetent service
  • rudeness or discourtesy
  • a lack of clear explanation
  • not completing a transaction efficiently or as reasonably expected
  • avoidable delays in delivering agreed or expected service(s)

When making a decision the PRS will consider any terms of business agreed by both parties, all relevant laws and, where appropriate, any code of practice the member has agreed to. The test they apply is:
“Did the member provide the service reasonably expected by an average consumer?”

What are the Property Redress Scheme criteria for acceptance of a complaint?

Before you raise a complaint with the PRS, you must send your detailed concerns, in writing, to the member and allow them to complete their internal complaints process. For the PRS to consider your complaint, your last communication about your concerns must be within the last 12 months

You must clearly explain the specific reasons for your concerns and the solution you are looking for.

You must try to resolve your concerns directly with the member and allow them up to eight weeks
to do this.

The PRS may accept your complaint before the full eight weeks have passed if:

  • the issue requires urgent resolution
  • the member is not responding to any of your communications within a reasonable time
  • you have received a final response from the member and remain unhappy

What happens if a complaint is accepted by the Property Redress Scheme?

There are three steps to the PRS complaints process:

  • an initial review at the early resolution stage, where a case assessor offers both parties the opportunity to be involved in reaching a mutually agreeable conclusion.
  • a formal decision where early resolution has been unsuccessful. This process involves an independent case officer assessing all the evidence presented and making a formal, written, decision.
  • a review request stage, to ensure that there has been no error in fact, law and administration, which has led to an incorrect decision.

If the PRS decision is accepted by the consumer, it is binding and the agent must comply with it. The decision can include one or more of the following:

  • a meaningful apology
  • an explanation
  • practical action to minimise any loss
  • repayment of actual loss and/or costs you have incurred
  • a payment, where appropriate, for distress and inconvenience
  • other appropriate action suggested by the complainant or decided by us

If an agent does not comply with the PRS decision they will be given a warning and required to pay a penalty charge. Continuing to not comply with the decision can lead to the agent’s membership of the PRS being terminated.

If an agent is expelled, the PRS will inform the other Government authorised consumer redress scheme, Trading Standards, the relevant local authority and any trade association which the agent has joined. They will not be able to re-join a redress scheme until they comply with the decision.

Where a member has been formally expelled from a redress scheme and has not been able to join another redress scheme, if they continue to trade, they would be doing so illegally. Trading Standards are the lead authority in enforcing this legislation and will investigate these matters. Members can be fined up to £5000 for any breach.

How long is the whole complaint process expected to last?

Complaints are, on average completed in less than 40 days from the time the PRS receives them.

For further information, please visit the PRS website: www.theprs.co.uk

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