Section 72 amends Schedule 2 of the Housing Act 1996 to prevent residential landlords within the meaning of section 63 from being voluntary members of a government-approved social landlord redress scheme in relation to their private rented sector activities. It also stops social landlords who let property in the private rented sector from being required to be members of a social redress scheme in respect of their private rented sector housing activities and prevents such a scheme from dealing with complaints about private rented sector activities unless permitted by the Secretary of State. "Private rented sector activities" are defined as activities carried on by a person as a residential landlord within the meaning given by section 63 of the Act. Any approved social landlord redress scheme would still be able to accept persons in respect of non-private rented sector activities as voluntary members, and deal with complaints about these members.
	Subsection (3)(a) allows for complaints in relation to social landlords’ private rented sector activities to be considered under an approved social landlord redress scheme if agreed in writing by the Secretary of State.
	Section 72 also contains an update to paragraph 10 in Schedule 2 of the Housing Act 1996. Updated paragraphs 10, subparagraph (1) and (2) make the Secretary of State responsible by default for appointing the Ombudsman for social housing where the scheme is administered by a body corporate, as well as deciding their terms of appointment. Some or all of these functions may be delegated to the body corporate under paragraph 10, subparagraph (5), with the Secretary of State specifying the extent to which functions are delegated and any conditions to which it is subject under paragraph 10, subparagraph (6).
	Where the approved scheme employs the Housing Ombudsman, paragraph 10, subparagraph (3) makes clear that the terms of employment must be consistent with any terms of appointment set by the Secretary of State, and that the Secretary of State may remove them from post and instruct the body corporate to cease their employment as the Housing Ombudsman. Existing provisions for the Housing Ombudsman Service to be set up as a corporation sole remain unaffected under subsection (4).
	Subsection (3)(b) adds a new paragraph 7A to specify that a scheme must provide for enforcement of directions under paragraph 10(3) of the same schedule. This means that, where a Secretary of State has removed the Ombudsman, the scheme administrator must cease to employ them as the Ombudsman, if directed by the Secretary of State to do so.
Part 2: Residential landlord Chapter 2: Landlord Redress Schemes Section 72: Housing activities under social rented sector scheme Effect