A second agent has been expelled from The Property Ombudsman scheme within a matter of days.

The expulsion of Allen & Crane Estates, a sales and lettings agent based in Burnham, near Slough, follows that of MT Properties Central in Birmingham.

In both cases, the firms have been expelled after failing to follow the Code for letting agents and for subsequently failing to pay an award. Both agents have been expelled for a minimum of two years.

Failure to settle their awards means they will be unable to join either of the other two redress schemes – meaning that they would be trading illegally and could be put out of business.

However, should they pay their outstanding awards, they will be able to join another scheme.

Allen & Crane had been a member of TPO since May 2007, but withdrew whilst this complaint was being considered.

It instead joined the Property Redress Scheme which was unaware of the disciplinary action against this agent.

The PRS has since suspended membership and this will not be reinstated until the award of £1,600 has been settled.

The decision to exclude Allen & Crane Estates was made following a complaint from landlords who raised a number of concerns connected with the performance of the agent when they let a property through the agent.

All of the complaints were upheld to varying degrees by the ombudsman, Christopher Hamer.

The agent allowed tenants to take occupation of the property without the landlord’s knowledge and without evidence of reference checks having been carried out, making them in breach of paragraphs 7b and 7g of the TPO Code of Practice.

There was also a delay in providing the landlords with a copy of the tenancy agreement.

Other issues included the agent’s failure to obtain any security deposit or a valid guarantor agreement, failure to provide regular and clear statements of account following rent being paid in irregular instalments, and finally their inability to demonstrate that they had inspected the property regularly or upon check-out.

It was also claimed that Allen & Crane Estates were difficult to communicate with.

Following the investigation, the Ombudsman awarded the complainants a total of £1,600 in compensation. Allen & Crane Estates have still not paid the award.

Ombudsman Hamer said: “The shortcomings in the service provided by Allen & Crane Estates that I identified, particularly with regards to the lack of referencing and security deposits, are serious, and are matters which have significantly disadvantaged the complainants. I therefore supported the complaints that have been made.”

He added: “Agents cannot avoid paying awards if they jump from one scheme to another.

“Under the guidance of the Department for Communities and Local Government, the three approved redress schemes will not accept into membership any agent that does not meet its obligations to another scheme.

“Allen & Crane’s membership with PRS has now been suspended and will not be reinstated until they receive confirmation from TPO that the award has been paid in full and the issue has been resolved.”

Hamer clarified to EYE: “Once the agent has met their obligations to the first scheme, they are free to join another. Paying an outstanding award clears things up.

“Once they have paid their fee and the two years have passed, as in this case, the agent is free to rejoin TPO.”