As part of Gove’s Renters’ Reform Bill announcements, a new Property Ombudsman will help settle disputes between landlords and tenants. However, recent research reveals landlords are split on whether or not this Ombudsman will benefit you or the sector.
As the initial buzz surrounding the long-awaited Renters’ Reform Bill begins to quieten, landlords are now reviewing what some key announcements could mean for their property investment journeys.
Amongst these announcements is the new Private Rented Sector Ombudsman. According to the latest research from one of the key specialist buy to let lenders, landlords are split over whether this Ombudsman will benefit the buy to let market, or cause more challenges.
What is the new Private Rented Sector Ombudsman?
The Ombudsman will ensure that disputes between tenants and landlords are resolved impartially without taking the case to court. This should help settle conflicts more quickly and save both parties money.
Under the Renters’ Reform Bill, all landlords will be legally required to join the Ombudsman.
How do landlords feel about the new Private Rented Sector Ombudsman?
According to the latest research, almost half of landlords (48%) are unsure whether the Ombudsman is a good idea. Just 42% support it, and 10% are against it completely.
Those in favour of the Ombudsman welcome the prospect of disputes being resolved much more quickly over lengthy, expensive court cases, but stressed how important it was that it remains impartial.
Conversely, those against the Ombudsman felt strongly that it would likely always side with the tenant and be yet another money-making scheme.
Furthermore, many doubted whether an Ombudsman would successfully speed up dispute resolution. Some landlords raised concerns that the government-run departments are slow as is, and another layer may worsen the current issues the sector faces.
It’s worth pointing out that very few details surround how the new Ombudsman will be funded at this stage. Therefore, we don’t yet know how much you’ll need to pay to join. The devil will really be in the details here, so we will let you know more once we hear.
In the meantime, if you have any property finance enquiries you would like to discuss, then get in touch with our expert brokers on 0345 345 6788 or submit an enquiry here.
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