Landlord Licensing & the New Ombudsman Scheme - What You Must Do to Stay Legal

The UK’s rental market is entering a new chapter. With the introduction of the Renters Reform Bill, the Government is setting in motion a comprehensive legal overhaul aimed at improving standards, increasing transparency, and ensuring tenant protection across the board.

At the heart of this reform is a major new requirement - every private landlord in England will be legally required to join a national landlord ombudsman scheme, even if they only let out a single property. For many landlords, this is the first time they’ll be held directly accountable to an independent complaints body.

This shift is part of a broader move to professionalise the sector. It affects all landlords - individuals, companies, and portfolio owners alike - and failing to comply could result in fines, legal setbacks, or restrictions on your ability to manage tenancies.

Here’s what the new ombudsman scheme means for you, and what steps you should take now to stay compliant.

What Is the National Landlord Ombudsman Scheme?

Until now, only letting agents were legally required to belong to a government-approved redress scheme. Individual landlords could operate without direct oversight, leaving tenants with few options for resolving disputes short of legal action.

The new landlord ombudsman scheme changes that. Once in place, every private landlord in England will need to:

• Register with the ombudsman

• Pay an annual membership fee

• Engage with any tenant complaints brought to the scheme

• Accept and comply with binding decisions made by the ombudsman

The ombudsman will be empowered to:

• Investigate tenant complaints

• Order landlords to carry out repairs or remedial works

• Require landlords to issue formal apologies or pay compensation

• Publish records of landlords who fail to comply

This scheme will give tenants a low-cost, accessible, and legally supported way to raise complaints without going to court - and it places new duties on landlords to respond quickly and fairly.

Who Will Be Affected?

There are no exemptions. This scheme will apply to:

• Landlords letting a single property

• HMO and multi-unit landlords

• Landlords who use letting agents (you are still personally responsible)

• Property companies, trusts, and institutional landlords

Even landlords who have never faced a complaint must register. As tenant awareness grows, it’s expected that more tenants will use the scheme to raise issues ranging from slow repairs to poor communication.

What Will It Cost?

While the Government hasn’t confirmed the exact annual fee, it’s expected to be less than £100 per year per landlord, in line with the costs for letting agent redress schemes.

However, the cost of non-compliance is far higher. Landlords who fail to register could face:

• Civil penalties issued by local authorities

• Ineligibility to serve eviction notices (such as Section 8)

• Listing on the Government’s rogue landlord database

• Legal action or compensation claims from tenants

Registration with the ombudsman will likely become a prerequisite for using the national Property Portal, making it central to your legal status as a landlord.

How Does This Link to Licensing and the Property Portal?

The ombudsman scheme doesn’t stand alone - it’s part of a new, joined-up compliance framework under the Renters Reform Bill.

This includes:

• The digital Property Portal, where all landlords must register and upload compliance documents

• The extension of the Decent Homes Standard to all private rentals

• Tighter enforcement powers for local councils

• Greater legal scrutiny and documentation requirements across every tenancy

In short, landlord licensing is no longer local and reactive - it’s becoming national, standardised, and proactive.

If you’re not correctly registered across the new systems, your ability to manage, let, or repossess your properties may be compromised.

Preparing for the Ombudsman - What You Need to Do Now

The ombudsman scheme is not yet live, but the Government has confirmed its rollout under the Renters Reform Bill. When it goes live, landlords will be expected to comply from day one.

Here’s how to get ready now:

1. Audit Your Complaint Handling Process

• Do you respond to tenant issues in writing?

• Is there a consistent process for documenting complaints?

• Would you be able to evidence how a past issue was handled?

Formalising how you deal with tenant concerns will help protect you under the new scheme.

2. Organise and Digitise Your Documents

You’ll need to prove compliance quickly if a complaint is made. Ensure you can access:

• Tenancy agreements

• Gas and electrical certificates

• Inspection reports

• Evidence of repairs and communication

At Letlilo, we store all this in one secure digital dashboard for our landlords.

3. Monitor Government Updates or Use a Trusted Property Manager

Staying informed is key - the rollout will come with deadlines. Working with a management partner like Letlilo means we’ll handle registration for you and keep your portfolio up to date as new rules are announced.

4. Maintain High Standards

Many complaints stem from:

• Delayed repairs

• Unclear communication

• Missed inspections

• Poor housing conditions

Stay proactive. Ensure properties are safe, well-maintained, and that tenants receive fast, professional responses.

5. Budget for Compliance

While the fee may seem small, landlords should also plan for:

• Any remedial work that may be ordered

• Time spent on dispute resolution

• Legal support or advisory costs if cases escalate

Letlilo helps landlords forecast these costs and stay protected through strategic compliance planning.

Letlilo - Compliance Without the Complexity

Landlords today face a level of regulation once reserved for large companies. The difference is that many landlords don’t have compliance officers or legal teams - which is where Letlilo comes in.

We offer compliance-first, portfolio-ready property management, including:

• Registration with the Property Portal and ombudsman scheme

• Digital record-keeping and document tracking

• Complaint handling and tenant communication

• Legal notice preparation and eviction support

• Maintenance, inspection, and compliance scheduling

• Regular updates and strategic advisory

We remove the guesswork and reduce the risk - giving landlords peace of mind and space to grow their portfolios.

Book a Free Landlord Compliance Consultation

The new ombudsman scheme signals a shift in how landlords are regulated - and how tenants can hold them accountable.

Don’t wait for the rules to come into force before preparing. Take action now and ensure you’re not caught out when the system goes live.

Book your free 15-minute landlord consultation
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