Letting agents expelled over unpaid landlord awards

The Property Ombudsman has expelled six letting agents after they failed to pay landlord clients, and a tenant, the compensation it ordered to be paid following upheld complaints.

The decision came after a review by the scheme’s compliance committee, which found each business had breached membership rules by ignoring binding awards.

The chief ombudsman, Lesley Horton, said: “We exist to provide a fair and independent route to resolve disputes with property businesses.

“Our decisions are binding on our members.”

She added: “Expulsion is always a last resort and follows a robust compliance process.

“The overwhelming majority of our members comply with our decisions and pay awards promptly.

“Where businesses fail to do so, we will take appropriate action to protect consumers and uphold standards within the sector.”

The six expelled letting agents

• Brimar Lettings & Management Ltd in Preston was ordered to pay £1,300 after a landlord complained that rent had been collected but not transferred. The Ombudsman found £950 had been received from a tenant and not passed on, with a further £350 added for aggravation linked to poor communication.
• Edward Clark Estates in Grays was told to pay £150 to a tenant after failing to respond to a formal complaint. The Ombudsman backed the tenant’s case on the basis that no reply had been given, yet the award remained unpaid.
• In the case against Hunter Ashley Sales & Lettings in Slough, a landlord said more than £12,000 in rent had been received but not transferred. Bank statements and agency records were reviewed, while the firm did not engage with the process. The Ombudsman upheld the complaint and directed payment of £12,635.
• In Rushden, Inspired Sales & Lettings was found to have arranged a tenancy without landlord consent and charged fees not agreed. The Ombudsman identified breaches of the Code of Practice and awarded £834, including refunds and compensation for distress.
• Skampi, based in Ilford, was ordered to pay £5,132 after a landlord reported rent had stopped being forwarded for several months. Although £1,882.92 was paid under a plan, no further payments followed, leaving £3,250 outstanding.
• Eight Asset Management in Harlow faced a complaint from a leaseholder covering withheld information, unauthorised maintenance, communication failures and delays. The Ombudsman found repeated shortcomings and awarded £250.

The scheme, established in 1990, offers dispute resolution between consumers and property firms.

It is not a regulator and cannot take legal action, however, decisions must be followed by members, or they face expulsion and potential referral to enforcement bodies.