Property Redress boots out 48 agents over consumer disputes

Between May and October 2024, Property Redress removed 48 letting and estate agents from its scheme due to persistent non-compliance.

The expulsions stemmed from unresolved consumer grievances, unpaid compensation awards and failure to cooperate with its complaints procedure.

Although 12 agents were later reinstated after meeting requirements, many remain excluded for ongoing breaches.

The government-approved body tasked with settling disputes between property agents and consumers, adds that six notable cases illustrate the serious lapses leading to these expulsions.

That saw consumers suffering financial losses, risks or substandard service.

The agents ignored the complaints process, failed to settle awards or neglected professional duties.

Zero-tolerance approach

Sean Hooker, the head of redress, said: “Agents who do not engage in the complaints process, ignore their professional responsibilities, or withhold client money are not only breaking trust, they fall short of the service they owe the people their business is there to serve.

“These expulsions reflect our zero-tolerance approach to non-compliance.”

He added: “Our aim is not only to protect consumers but to raise standards in the industry.

“We urge landlords, tenants, and homeowners to check that their agents remain members of a government-approved redress scheme and to report any misconduct immediately.”

The expelled agents showing serious lapses are:

• The Fountayne Group Ltd, a block management firm, was expelled after mishandling a leaking roof complaint, using inflammatory communication, and ignoring a £600 award for distress. The company has since entered liquidation
• Renta Properties Ltd, based in Reading, lost its membership after failing to pay a £100 award for poor communication and providing inadequate evidence regarding missing rent payments; it remains active
• Genesis City Ltd faced expulsion after a landlord terminated their management of five flats due to deficient service. The agent withheld tenancy deposits, neglected to transfer collected rent, and failed to provide deposit protection certificates, resulting in a £4,202.06 award for unpaid rent and £500 for distress. With no engagement from the agent, the decision relied solely on the landlord’s evidence. The company is under an active proposal to strike off
• Jigsaw Lettings in Spalding, Lincolnshire, was removed for mismanaging 15 rental properties, neglecting inspections and withholding critical documents like tenancy agreements and safety certificates. A £3,000 award was issued for distress and missing records, alongside an unexplained £1,775 payment.
• YourGaff Ltd was expelled for withholding two months’ rent (£1,100) and ignoring requests for arrears proceedings, with an additional unpaid £100 compensation; it also faces a strike-off proposal
• APX Estate Agents Ltd was barred after refusing to release a £1,700 tenancy deposit despite agreeing to do so, leaving the award unpaid while remaining active.

Property Redress says that these cases, concluded between May and October 2024, reflect issues that may have originated earlier since agents are given time to rectify breaches before publicising expulsions.

Five property firms barred by Ombudsman

Meanwhile, The Property Ombudsman has barred three estate agents and two letting firms from its scheme due to their failure to settle compensation owed to consumers.

Lesley Horton, the Interim Ombudsman, said: “Expulsion is a last resort and that’s evident in the low numbers.

“We always strive to be very clear and explain the evidence that has led to our decisions and any award we make, both to businesses and to consumers.

“This approach works well, with 99% of businesses complying with our decisions and paying awards when directed.”

The expelled letting agents

Among the expelled, The Jolly Landlord, based on Dunnings Lane in Bulphan, Essex, faced scrutiny after failing to transfer a tenant’s deposit and initial rent payment to the property owner.

The Ombudsman’s probe revealed that this oversight prompted the landlord to sever their management contract with the agency and seek to end the tenancy agreement.

Despite the tenancy remaining active and the landlord’s inaction to reclaim funds directly, a £350 compensation was awarded to the tenant for the unnecessary distress caused.

Lilypad Estates London, located on Honor Oak Park in Forest Hill, was found liable for withholding eight months of rental payments from a landlord and ceasing all contact.

The Ombudsman upheld the complaint in full, ordering the firm to pay £200 in compensation alongside the overdue rent.

The Ombudsman’s Compliance Committee reviewed these cases and determined that exclusion from the scheme was warranted, and this year has seen nine businesses being expelled.

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