Changes to fee structure for Residential Leasehold Management from January 2022

Published on Thursday, 02 December 2021.

For new applications and renewals from January 2022 a revised fee structure will apply for Residential Leasehold Management (RLM).

TPO’s 2020 Annual Report highlighted that enquiry and complaint volumes have grown significantly since 2018 with RLM complaints in 2020 now 242% higher and making up around 23% of the Ombudsman’s total casework. Analysing these volumes further, when set against RLM membership income the analysis showed that the current bandings and fair usage structure were not sustainable moving forwards. As a not-for-profit Ombudsman, full cost recovery and continued investment in the Scheme is crucial to its sustainability. Furthermore, underpinning our principles of fairness and transparency, TPO ensures that there is no cross-subsidy between the different types of TPO membership. This means that fees for all TPO members are proportionate to the Ombudsman’s work and the running costs of the scheme. Going forwards, all RLM Members will be asked to confirm the number of units they are managing on application and renewal by selecting the correct fee band in relation to their size. Our enquiry service will continue to guide consumers through the complaints process or signpost where a complaint is outside terms of reference. All casework will be chargeable, meaning only those agents that receive complaints that are accepted by TPO will pay case fees. Wherever possible, the Ombudsman’s casework staff will look to resolve issues through its facilitated early resolution process with the benefit of qualifying for a lower casework fee than if a full Ombudsman review is required. The new fee structure for RLM agents will come into force on 1 January 2022. For more information, including frequently asked questions, click here. You can see a full list of our fees here.

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