Two letting agencies banned for withholding rent from landlords

Two letting agencies have been stripped of their membership with The Property Ombudsman following their failure to pass on rent income of more than £11,600 to landlords.

The decision, made by the Ombudsman’s Compliance Committee, has resulted in both firms being excluded from the redress scheme, effectively barring them from legally operating in the private rented sector.

The expulsion of these agencies means they can no longer trade lawfully, as membership in a redress scheme is a legal requirement for letting agents.

So far this year, 11 businesses have been removed from the scheme for similar breaches.

Will take further action

Ombudsman Lesley Horton said: “More than 99% of businesses comply with our decisions and pay awards when directed, so consumers can feel confident that where we award compensation, they will receive this.

“We work proactively to support businesses and carry out more than 2,000 compliance audits each year.”

She added: “There is a very small number of businesses who do not pay and as we see here, we will take further action if needed.”

Relevant authorities, including local and national trading standards and property portals, have been informed of the expulsions to ensure enforcement and public awareness.

Agents banned by The Property Ombudsman

The two banned letting agents are:

• Aldous Craig, located on High Street in Thames Ditton, Surrey, was instructed to pay £8,800 to a landlord after it neglected to transfer tenant rent payments. Despite clear evidence confirming the tenants had fulfilled their obligations, the agency did not respond to the Ombudsman’s inquiries, leading to the complaint being upheld.
• JNG Estates, based on Kirkham Street in Blackheath, southeast London, was ordered to pay £2,856 to a landlord. This sum included £200 as compensation for the distress caused by the agency’s actions, after it failed to forward rent owed to the property owner. The Ombudsman’s ruling supported the landlord’s claim in full.

The Property Ombudsman says it has been proactive in addressing issues, with its compliance checks and enquiry service helping more than 73,000 consumers last year to resolve disputes before they escalate.