Four property firms expelled by Ombudsman for compensation failures

The Property Ombudsman (TPO) has revealed that it has expelled four property businesses for neglecting to compensate consumers.

The action involves three letting agencies and one residential leasehold management (RLM) firm, underscoring the regulator’s commitment to protecting tenants and landlords alike.

The TPO, known for providing an unbiased dispute resolution service, saw a reduction in expulsions this year, with only five businesses removed in 2024 compared to 13 the previous year.

This drop is attributed to the Ombudsman’s rigorous compliance checks and enquiry service, which handled more than 73,000 inquiries in 2024, nipping potential problems in the bud before they could develop into formal grievances.

Uphold high professional standards

Lesley Horton, the interim Property Ombudsman, said: “Expulsion is a last resort and that is reflected in the small numbers of businesses that are expelled each year.

“The figures also highlight the impact of our early enquiries and proactive compliance work in resolving issues for consumers, whilst supporting businesses to uphold high professional standards and fulfil their obligations.”

She added: “However, these expulsions are a reminder that we take it incredibly seriously if awards are not fulfilled.”

Following the expulsions, notifications have been issued to various authorities, including local and national Trading Standards, as well as major property listing sites.

The four expelled firms

The Compliance Committee of the Ombudsman reviewed each case, determining that exclusion was necessary. Details of the expelled firms include:

• Linda Matthews Lettings, based in Chatham, Kent, was mandated to compensate a complainant with £1,000 after the Ombudsman backed a claim concerning inadequate communication and rent collection failures. Despite the ruling, the agency, which appears to still be operational with active listings online, has failed to settle this and four other outstanding payments. The adjudication confirmed multiple shortcomings, such as not notifying the tenant as required, ignoring the guarantor, and failing to prioritise the landlord’s interests during rent disputes
• Balinor Group Holdings (BGH), an RLM company in Bishops Stortford, Hertfordshire, was found wanting when it did not facilitate a crucial deed of variation needed for a leaseholder to sell their property. The superior landlord’s refusal to sign was linked to BGH’s oversight in managing ground rent payments. Despite repeated prompts, BGH delayed action without justification, leading to a £500 award to the leaseholder, who lost a sale due to the firm’s poor engagement
• White Tiger Estates in Coventry faced censure for not addressing a landlord’s concerns effectively, with five breaches identified, including delays in transferring rents, implementing rent adjustments, and refunding deposits. The firm was ordered to pay £500, a decision upheld by the Ombudsman.
• Saint Property Services, operating out of Nottingham, came under scrutiny for substandard electrical work and neglect in property inspections and documentation handover. With no defence provided, the Ombudsman supported the landlord’s complaint fully, ordering a £200 payout that remains unpaid, alongside two other unresolved claims.