Every estate agent and letting agent in the UK is legally required to belong to a government-approved redress scheme. This requirement has been in place since October 2014 for sales agents and since October 2014 for letting and property management agents under the Enterprise and Regulatory Reform Act 2013 and the Redress Schemes for Lettings Agency Work and Property Management Work (Requirement to Belong to a Scheme etc.) (England) Order 2014.
There are currently two approved schemes: The Property Ombudsman (TPO) and the Property Redress Scheme (PRS).
Why Membership Is Required
Redress schemes provide consumers with a free, independent alternative to court action when they have a complaint about an estate or letting agent. If you operate without membership, you face a fine of up to £5,000 from your local authority Trading Standards team.
The Property Ombudsman (TPO)
TPO is the longer-established scheme and has the larger market share. Key features include:
- Covers sales, lettings, commercial, and auctions
- Agents must comply with the TPO Code of Practice
- Can award compensation of up to £25,000 per case
- Annual membership fees based on the number of offices and whether you handle sales, lettings, or both
- TPO decisions are binding on the agent but not the consumer — the consumer can still pursue court action if unsatisfied
Property Redress Scheme (PRS)
PRS is the newer alternative. Key features include:
- Covers sales, lettings, and property management
- Agents must comply with the PRS Code of Practice
- Can award compensation of up to £25,000 per case
- Generally lower annual fees than TPO, particularly for smaller agencies
- Offers a simpler, faster complaints process
Which Should You Choose?
Both schemes fulfil the legal requirement. Practical considerations include:
- Cost — PRS tends to be cheaper for single-office independent agents. Compare current fee schedules directly, as they are updated annually
- Reputation — TPO is better known among consumers, which some agents see as adding credibility
- Code of Practice — both codes cover similar ground but differ in some details. Read both before deciding
- Existing membership — if you are already a member of a professional body like Propertymark (ARLA/NAEA), check whether your membership includes or discounts one scheme
You only need to belong to one scheme, not both. You can switch schemes at renewal if you wish.
What Agents Must Do
- Display your redress scheme membership prominently in your office and on your website
- Include your membership details in your terms of business
- Follow the scheme's Code of Practice in all dealings
- Co-operate fully with any complaints investigation
- Comply with any awards or directions made against you
Membership of a redress scheme is a legal requirement. If you are setting up a new agency, join a scheme before you begin trading. Details of current fees, codes of practice, and application processes are available on the TPO and PRS websites.