Subsection (1) gives the Secretary of State power, by regulations, to require residential landlords as defined in Section 63 to join a landlord redress scheme. Subsection (2)(b) defines such a scheme as one that is created and administered by a third party and approved by the Secretary of State, or administered by or on behalf of the Secretary of State and designated by the Secretary of State as a landlord redress scheme.
	Subsection (2)(a) sets out that an approved or designated scheme must provide for the independent investigation and determination of complaints by prospective, current, and former tenants of residential landlords, or their representatives. Subsection (3) provides that a landlord redress scheme must not be approved or designated unless the scheme meets the conditions set out in regulations made under section 65, subsection (1).
	Subsection (4) defines a prospective residential tenant as someone who requests information about a home being marketed as a private rented sector property; visits, or requests to visit, a marketed property; or who makes an offer to rent a marketed property. Simply viewing information about a marketed property – e.g., online – is not sufficient for a person to be considered a prospective residential tenant.
	To allow for eligible tenants to raise their complaints – as defined under subsection (2)(a) – subsection (5)(a) outlines that regulations made under subsection (1) can require residential landlords to be members of a scheme from the point that they market their property to prospective tenants. Subsection (5)(b) also allows for regulations which may prohibit someone – which may be a letting agent or another person – from marketing a property where the intention is to create a relevant tenancy, but the landlord is not a member of an approved or designated redress scheme. What constitutes marketing a property for the purpose of creating a residential tenancy is defined in section 99. Subsection (5)(c) sets out that the length of time that former residential landlords must remain members of an approved scheme must be in regulations.
	Subsections (6) and (7) enable the Secretary of State to make regulations setting out what information landlords (including prospective landlords) must provide when signing up to the Ombudsman. Regulations may also require landlords to update this information on an ongoing basis.
	Subsection (8) makes clear that prior to making regulations requiring residential landlords (as defined in section 63) to be members of an approved or designated redress scheme, the Secretary of State must make sure that residential landlords are eligible to join the scheme. This is so the requirement to be a member would only be triggered by regulation once the relevant redress scheme was established.
	Subsections (9) and (10) clarify and define what activities an approved or designated redress scheme can undertake beyond providing mandatory redress for prospective, current, and former tenants of residential landlords as defined under section 63 This includes being able to offer redress to consumers and tenants of those who voluntarily join the scheme but have no legal obligation to do so. These subsections also allow for the scheme to specify types of complaints it will not investigate or determine. It also allows for an approved scheme to offer a mediation service so that the scheme can act as mediator to work toward mutual resolution of disagreements that residential landlords may have with their tenants. This mediation service would be different to redress in that tenants would have to voluntarily take part, and the scheme would not seek to, nor could it, issue a binding decision which a tenant would have to adhere to.
Part 2: Residential landlord Chapter 2: Landlord Redress Schemes Section 64: Landlord redress schemes Effect