The Property Ombudsman expels three members

The Property Ombudsman expels three members

0:03 AM, 13th November 2024, About A week ago 1

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Three members have been booted out of The Property Ombudsman scheme for refusing to pay compensation after losing complaints – two of which were brought by landlords.

They are BP Auctions, David Key Property Limited and Leonard D Morgan & Co.

They were expelled by the Ombudsman’s compliance committee.

So far this year, just three businesses have been expelled from the scheme, compared to 13 expulsions last year.

‘Expulsion is a last resort’

The Property Ombudsman, Rebecca Marsh, said: “Expulsion is a last resort as we want to work with businesses to ensure consumers get the awards they are rightly entitled to and to help agents improve practice.

“We try every avenue to ensure that awards are settled and thankfully in 99% of upheld complaints, the dispute is resolved with a compensatory payment for the consumer where appropriate.”

She added: “It’s pleasing to see our early enquiries and proactive compliance work resulting in fewer expulsions.”

The Ombudsman’s proactive compliance checks and enquiries service, which received more than 57,000 enquiries last year, helped prevent many issues from escalating into formal complaints.

The expelled businesses

  • BP Auctions, based in Birmingham, failed to advertise two flats correctly, leading to an £8,000 award. The company also has two other unpaid awards.
  • David Key Property Limited, from Haringey, north London, did not pay the landlord rent under a guaranteed rent agreement, did not remove sub-tenants. The complaint was supported and an award of £4,000 was deemed reasonable.
  • Leonard D Morgan & Co, based in Newport, Wales, failed to transfer rent from a tenant to a landlord, resulting in a £1,000 award.

In that case, The Property Ombudsman supported the complaint and concluded an award of £1,000 was reasonable for the considerable distress and inconvenience caused to the landlord.

This award was never paid by the agent, resulting in expulsion from the scheme.

The expelled businesses have been reported to Trading Standards and property portals.


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Ryan Stevens

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10:05 AM, 13th November 2024, About A week ago

Whoopadeedo. So the Property Ombudsman has no teeth. Just be a member until you don't like its decisions!

The Property Ombudsman should require members to place funds on deposit with the organisation, or have specific insurance to cover compensation in the case of upheld complaints.

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