Agents expelled by Ombudsman over unpaid landlord compensation

Two letting agents have been expelled from an independent redress scheme after failing to pay landlords compensation awards of £100 and £300.

One landlord had ended up arranging a tenancy directly with the tenants after problems with the agent.

The Property Ombudsman excluded the firms alongside a surveying business that had failed to pay an £800 award to a customer.

The Ombudsman’s Finance, Performance and Compliance Committee reviewed the cases and agreed that the three businesses should be expelled.

Ombudsman awards not optional

Chief Ombudsman Lesley Horton said: “An Ombudsman award is not optional.

“When a complaint is upheld and compensation is directed, registered businesses are expected to comply with that decision.”

She added: “Expulsion is always a last resort.

“We work with businesses throughout the compliance process to help them meet their obligations and ensure consumers receive the awards they are due.”

Landlord arranged tenancy directly

Musgrove & Co, based in North Walsham, Norfolk, faced a landlord’s complaint about its refusal to transfer a holding deposit and errors in a tenancy agreement for which no suitable replacement was provided.

The firm also failed to respond to the formal complaint.

The landlord subsequently contacted the tenants and arranged the tenancy, enabling them to move in and the owner to receive rent.

Musgrove & Co did not provide evidence requested during the investigation, and the Ombudsman upheld the complaint and directed a £300 compensation award.

Deposits and rent delayed

Coles Property Management, registered as C.P.M (NW) Limited and based in Blackpool, was ordered to pay £100 following a landlord’s complaint about the management of two properties.

After its management agreement ended, the firm delayed transferring tenants’ deposits and forwarding rent mistakenly paid to it instead of the new agent, while communication failings also contributed to the landlord’s inconvenience.

Meanwhile, Tothill Residential Surveying Ltd, trading as Tothill Residential Surveying in Mundon, Essex, was directed to pay £800 after a customer paid £500 for a survey report that was not provided and the business failed to deal adequately with their concerns.

Ombudsman decisions are binding on registered businesses, with failures to comply eligible for referral through the scheme’s compliance process and, where appropriate, to the independent committee for consideration of expulsion.