Housing Ombudsman’s 2026-27 Business Plan: What London Landlords Must Do Now to Prepare

A surge in complaints and a call for change

The Housing Ombudsman has revealed a striking 500% increase in complaints over the past five years, reflecting growing tenant dissatisfaction and scrutiny in the private rented sector. In response, the Ombudsman is consulting on its 2026-27 Business Plan, aiming to improve complaint resolution times and overall service efficiency. This development is crucial for London landlords who face increasing regulatory and reputational risks.

What the Business Plan means for landlords

Key proposals include:

• Increase in membership fees: From 1 April 2026, landlords and letting agents can expect their annual Housing Ombudsman membership fee to rise from £8.03 to £10.56 per home. For portfolio landlords, this means a noticeable increase in operating costs.
• Stricter complaint handling timelines: The Ombudsman intends to enforce faster resolutions, which puts pressure on landlords to improve internal complaint processes to avoid escalation.
• Focus on complaint handling efficiency: Landlords are expected to demonstrate compliance with the Ombudsman’s Complaint Handling Code, highlighting the need for robust procedures and training.

Why this matters across landlord profiles

• Single-unit landlords and accidental landlords will need to review their informal complaint responses and may require external support to meet the new standards.
• HMO and multi-unit portfolio landlords face greater financial impact from the fee increase and must prioritise efficient, standardised complaint management to manage volume and complexity.

Practical steps to take now

1. Review and enhance your complaint handling process: Audit your current procedures against the Ombudsman’s Complaint Handling Code. Ensure you record complaints systematically, respond promptly, and resolve issues before escalation.

2. Plan your budgets for 2026-27: Incorporate the anticipated fee increase into your financial forecasts. For example, a landlord with 10 units should budget an additional £25 per year for Ombudsman fees.

3. Engage with the consultation: The Ombudsman welcomes landlord feedback. Use this opportunity to raise concerns or support for the proposals by visiting their official consultation page before the deadline.

4. Train your team and agents: Ensure everyone involved in tenant relations understands complaint handling standards and escalation protocols.

5. Monitor Ombudsman investigation outcomes: Use these insights to identify common pitfalls and areas for improvement in your practice.

6. Utilise the Ombudsman’s Centre for Learning: This resource offers free guidance and tools to strengthen complaint handling and tenant communication.

Looking ahead: embedding trust and compliance

Improved complaint handling not only helps avoid costly escalations but also builds tenant trust and protects your reputation in London’s competitive rental market. Faster resolutions align with broader regulatory trends emphasizing tenant rights and service quality.

How Rentals & Sales can support you

Our specialist team offers tailored portfolio reviews and compliance audits to identify gaps in your complaint handling procedures. We can help you implement effective strategies, train your teams, and optimise your budgeting for upcoming fee changes. Reach out to schedule a consultation and ensure your operations are robust ahead of 2026.

Compliance disclaimer: This article provides general guidance and should not replace professional legal advice. Landlords should consult relevant authorities or legal experts to address specific compliance questions.