Agents excluded from The Property Ombudsman scheme

Agents excluded from The Property Ombudsman scheme

8:06 AM, 4th October 2022, About A year ago

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Five agents that failed to pay a compensatory award have been excluded from The Property Ombudsman (TPO) scheme, it has been revealed.

Because the agents – detailed below – failed to pay, they had been referred to the scheme’s independent Compliance Committee.

It ruled that they should be excluded from The Property Ombudsman scheme.

Ever-increasing demand for its service

The TPO says that despite an ever-increasing demand for its service – there were more than 45,000 enquiries in 2021 – the organisation has maintained 99% compliance with Ombudsman awards demonstrating its effectiveness in ensuring consumers continue to receive appropriate redress.

In 2021, there were 2,224 financial awards made to consumers and 2,193 were paid.

Only 17 awards remained unpaid throughout the year with 14 agents excluded, compared to 19 exclusions in 2020.

The Compliance Committee has acted against all agents that did not comply with the Ombudsman’s decision.

Notification of expulsions are shared with all relevant bodies

As part of TPO’s process, notification of these expulsions are shared with all relevant bodies, including both local and National Trading Standards for further investigation.

The memorandum of understanding between TPO and other redress schemes prevents agents from registering with another scheme until outstanding awards have been paid to consumers.

The five agents excluded

The five agents that have been excluded from The Property Ombudsman scheme for failing to pay a compensatory award are:

  • Home Trader Properties, a sales and lettings agent in London, E1. Following a landlord complaint, it was found that Home Trader Properties failed to inform the landlord that their guaranteed rent agreement had expired and that the tenant had accrued significant rent arrears. An award of £1,500 was made and remains outstanding. It appears that Home Trader Properties is still actively trading with properties for sale and let on its own website and Zoopla.
  • Hardman Estates, a sales and lettings agent in Crewe, Cheshire. Hardman Estates failed to transfer over a total of four months’ rent to the landlord and repeatedly ignored emails regarding the money owed. An overall award was made which included nearly £2,000 for rent and £300 in compensation. Hardman Estates is no longer trading, post is being returned to sender and emails are undeliverable. However, it remains active on Companies House but with a striking off pending.
  • New Estate Management Ltd, block and estate management in Nottingham. Numerous issues were raised in regard to New Estate Management’s block management service. These included failing to inform that cleaning services would be carried out by themselves, the standard of work undertaken to the basement corridor and a breach of management agreement. Nine of the issues raised were supported and an award of £1,000 made. TPO believes that New Estate Management Ltd is still trading.
  • Stratsmore Group, a sales and lettings agent in Ilford. A landlord raised a number of complaints about this agent, the primary one being that a new and unreferenced tenant was placed in the property without authorisation. Despite terminating the tenancy, Stratsmore Group sought to retain 24 months of fees that had been paid in advance. TPO directed for this to be refunded and made a further award of £500 for aggravation caused. TPO also found that this agent failed to register the deposit preventing the landlord from making a claim through the usual channel of a deposit protection scheme. An award was made equivalent to evidenced damages, as well as a further £400 for aggravation. The total award was just under £8,500. Stratsmore Group is going through liquidation, according to Companies House.
  • Mark Warren, a sales and lettings agent in Manchester. Despite agreeing within the contract to notify the landlord of her need to comply with relevant Health and Safety legislation, they failed to do so when certificates were due to expire, placing the landlord and property at a heightened risk. They also failed to deal with the subsequent complaint in the appropriate manner, causing further distress. An award of £125 was made. It appears that Mark Warren is still actively trading with properties being advertised on its website and Onthemarket.

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