What this law is
A property redress scheme is an independent ombudsman that investigates complaints against estate agents, letting agents, and property managers. There are currently two government-approved schemes: The Property Ombudsman (TPO) and the Property Redress Scheme (PRS).
Membership is mandatory under the Consumers, Estate Agents and Redress Act 2007 and later regulations. An agent who is not registered with one of the two is operating illegally.
Each scheme can look at complaints about service failures, breaches of their code of practice, breaches of the CPRs and the Estate Agents Act, unfair contracts, and mishandling of offers or deposits.
Why it exists
Going to court is expensive and slow. Parliament decided consumers needed a cheaper, faster way to resolve complaints — without lawyers, without hearings, and without fees. The schemes handle tens of thousands of cases every year.
What it means for you
- You can complain for free. Scheme decisions are binding on the agent — if they are ordered to refund or compensate you, they have to pay.
- You must complain to the agent first. Put it in writing, give them 8 weeks to respond, and keep copies.
- If the agent does not respond or does not resolve the issue to your satisfaction, escalate to whichever scheme the agent is registered with. Both schemes publish their member lists on their websites.
- Possible awards include: a refund of fees, compensation for distress or inconvenience, compensation for financial loss, and an order requiring the agent to fix the problem.
Red flags to watch for
- ⚠The agent's website does not display the logo of TPO or the PRS. Every registered agent must display the logo.
- ⚠The agent refuses to tell you which scheme they belong to. This is itself a breach.
- ⚠Vague or abusive replies to your written complaint — these will work in your favour at the ombudsman stage.
How to use it
- 1Write a clear, dated complaint letter or email to the agent. Set out the facts, what went wrong, and what you want them to do.
- 2Wait for their final response, known as the "final viewpoint" or "deadlock letter". If 8 weeks pass with no resolution, you can skip ahead.
- 3Submit the complaint online to TPO (tpos.co.uk) or PRS (theprs.co.uk) with all your evidence.
- 4The ombudsman reviews the case in writing. Most decisions come within 4–6 months. Maximum awards are typically £25,000 (TPO) and £25,000 (PRS).
Key terms, translated
- Redress scheme
- An independent body that rules on complaints between consumers and businesses, for free, with decisions binding on the business.
- The Property Ombudsman (TPO)
- The larger of the two schemes. Free for consumers. Covers most large agents. Binding awards up to £25,000.
- Property Redress Scheme (PRS)
- The other government-approved scheme. Also free, also binding.
- Final viewpoint / deadlock
- The agent's formal final response to your complaint. Once you have it, you can take the case to the ombudsman.
Official source
This guide is a plain-English summary, not legal advice. For the original text, always go to the official source.
The Property Ombudsman (TPO)Frequently asked questions
Is there a fee to use a redress scheme?
No. Consumers pay nothing. The schemes are funded by membership fees from agents.
How long do I have to complain?
Usually 12 months from the agent's final response. Do not sit on a complaint — escalate as soon as you have the deadlock letter.
What happens if the agent ignores the ombudsman's decision?
They can be expelled from the scheme, which means they can no longer legally operate as an estate agent. They can also be reported to Trading Standards.
Can I take the agent to court instead?
Yes, but most people use the scheme first. You can still go to court if the ombudsman's decision does not satisfy you — the scheme route does not remove your legal rights.