Property Ombudsman expels firms over unpaid compensation

A letting agent and a residential leasehold management company have been expelled from The Property Ombudsman after failing to pay compensation ordered in favour of consumers.

A review by the scheme’s independent Compliance Committee concluded that both businesses had breached their membership obligations and should be excluded.

The Ombudsman found that Noble Living (Nottingham) Limited and Blocsphere Property Management Limited did not honour financial awards made after complaints were upheld.

‘Businesses were readmitted’

Chief Ombudsman Lesley Horton said: “Our proactive membership team works closely with agents to ensure that awards are paid promptly.

“Expulsion is the very last resort, and the last step in our compliance process.

“As an example, and after initial expulsion, two businesses were readmitted following awards payments being made.”

She added: “We know that sometimes things do go wrong, which is why we have focused on early resolution over the past year.

“By bringing consumers and businesses together sooner, we can resolve problems more quickly and reduce the impact on everyone involved.”

Noble Living (Nottingham) Limited

Noble Living (Nottingham) Limited, operating from Church Street, Wellington, Telford, failed to return a month’s rent that had been paid in error by a tenant.

Although the money had been passed on to the landlord and the mistake was identified, the company took no steps to recover or repay the funds.

The complaint was upheld, with an award of £875 made up of £725 in rent and £150 for aggravation, distress and inconvenience.

Blocsphere Property Management Limited

In the second case, Blocsphere Property Management Limited, based on Eco Park Road, Ludlow, Shropshire, was subject to a case involving poor communication.

A tenant raised concerns about a lack of response during a dispute, with the Ombudsman ruling that the firm’s conduct fell below acceptable standards.

Compensation of £50 was awarded.