I was shocked to see that the Property Ombudsman (TPO) received a massive 30% increase in enquiries last year, leading to a massive increase in compensation paid out by estate agents. What will this year’s results look like when they’re released?
The TPO handled over 57,000 enquiries in total in 2023 – with almost a tenth requiring full investigation, resulting in compensation of £1.52 million being awarded.
However, the total compensation in respect of sales shot up by 44% to just over £683k, although the total compensation relating to lettings went down 12% to £626k and residential leasehold management reduced by 19% to £138k.
Although fees tops the list of reasons why sellers complain, duty of care followed, along with communication, marketing and viewings. For buyers, their issues included the offer process.
Unsurprisingly, for lettings-related enquiries, almost two thirds came from tenants concerned about repairs and maintenance, duty of care, deposit, complain handling and termination of the let.
As a former board member of the TPO for many years, I’m appalled by these figures. All agents have to deal with complaints from time to time, and these are usually resolved informally and in-house, or with a small one-off compensatory payout and better processes implemented.
But I’ve seen data that shows that in the first quarter of 2023 alone the TPO received over 170 enquiries about one particular sales agency, resulting in over £32,000 in awards. These aren’t just numbers; they reflect real people and real dissatisfaction.
I also wonder how many complaints are made because of delays to the transaction process. While the Legal Ombudsman will deal with conveyancing complaints, we all know that the increase in transaction delays, often stretching to five or six months compared to the traditional 12 weeks, is leading to mounting frustration for customers caught in limbo.
The issues in conveyancing are well rehearsed, but in our digital savvy age, surely we should be much further forward in creating processes that speed everything up?
As an industry, I’m sure there are plenty of other things we can do to address this, starting with clearer timelines and honest communication about potential delays. Agents need to set realistic expectations from day one, keeping clients updated at every step to help reduce misunderstandings and complaints.
But we also need to go further. I believe better education and licensing for agents would go a long way toward raising standards across the board. I’ve called for licensing for many years so it would be good to see the new government sitting up and taking notice. That’s not just good for the client; it’s good for the reputation of our industry as a whole.
Around four out of five disputes formally investigated by the Ombudsman found in favour of the consumer. To me, that says many of these issues could have been prevented altogether if agents had been better trained and held to higher standards.
The TPO resolves almost half of all disputes through early resolution, and agencies with robust complaints handling procedures prevent many of those complaints reaching the Ombudsman in the first place.
So let’s use this rise in complaints as a catalyst for change. We owe it to our clients – and to ourselves – to commit to better service, clear communication, and robust training.
If we do that, we can reduce complaints and build a more trusted, professional industry that benefits everyone involved.
Paul Smith is chairman and founder of Spicerhaart
Paul touches on “the issues in conveyancing” and “delays in the transaction process”. In a national newspaper this week this question was posed: Why does moving house take ages?
This is the response I submitted:
“Your reader asks what appears to be a simple question; Why does moving house take ages? In what appears to be a straightforward case like his, no chain (i.e. only one buyer and one seller) it should in theory not take some three months or so. But without looking at his particular transaction I can’t explain why it took so long.
However, there are many reasons why most transactions take so long now, but in order to cover them all in detail this response would need to be full page article rather than a relatively short letter.
Your reader is correct when he says that 30 years ago, “before email, digital cameras, and other technological advances” it often took less than two months. During my conveyancing days (1974 – 2004) I had about 10 main tasks to carry out for my client. However, the 21st century conveyancer has at least double, and almost triple that number. They now have ID and source of funds and source of wealth to check, anti-money laundering procedures to follow, they have more questions to raise including ones relating to matters like Japanese Knotweed and climate change issues and with the purchase of a flat, leasehold and complex building safety issues. The list could go on and on.
Whatever government we have had in the past they do not seem to take the problems associated with home moving seriously. Just look a how many Housing Ministers there have been in the last 13 years, 16!
An attempt was made to improve the process nearly 15 years ago when Home Information Packs (HIPs) were introduced. They were far from perfect, but they were a step in the right direction, and they should not have been scrapped, just simply improved, but Grant Shapps was having none of it.
We are now almost going full circle. Trading Standards have recently introduced some new guidance for estate agents whereby, they should be collating and providing more Material Information about a property when it is first marketed, so a buyer can make a better-informed decision before making an offer for it. Again, in some quarters, this is seen as the start of trying to improve the process, but it is not enough, and in any event, the guidance is at the moment being widely ignored.
The public, with good reason, do not understand the conveyancing process, so imagine this; if you are in a chain of say 6 properties, picture a large 600-piece jigsaw, with 6 smaller 100 piece jigsaws inside it. That bigger jigsaw cannot be completed if one, just one tiny piece is missing. Conveyancing is just like that. Your home purchase cannot be completed if there is one tiny piece missing anywhere in your chain.
In my opinion, the public need to take matters into their own hands and my two top tips are; if you are selling, instruct your conveyancer just before or when you first market your property (do not wait until after you have accepted an offer for it), and if you are buying, ensure that your finances are in place before making an offer, and if borrowing money, make sure you have received an offer in principle from your proposed lender. Good luck!”
In 2025 agents and conveyancers really need to put their heads together.
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I agree with Paul, we should be licensed. Formal training, proper qualifications, licenced and have to keep up with all. Kids should go through school wanting to be an Estate Agent and have a career path through University to get there. The importance of the job and the fact that there are no barriers to entry is ridiculous, especially now as we are also required to do money laundering checks, source of funds checks and be able to list restrictive covenants and lease details for material information. This path would get our industry the respect it deserves and stop a lot of the bad agents even thinking about starting an agency or working for one. There is no other industry where the consumer is surprised you won’t work for nothing, shocked in fact. “I’m buying my partner out, can you come and do a valuation?”, free valuations are for people that are looking to sell, whether now or in the short term, so no., there’ll be a fee – the shock!!
A chain falls through and your seller has had enough, takes their property off the market. Quite rightly their solicitor will get paid, their surveyor for their onward purchase will have been paid, the council will have been paid for searches etc,. You’ve done all the work, agreed a sale to a buyer they were happy with at a price they were also happy with. You advertised it, you did lots of viewings, you’ve spent hours on sales progression and going back with the buyer and their Dad to measure for furniture – will you get a penny? Worse, the thought that they should pay you anything doesn’t even cross their mind.
“I think I’ll start an estate agency, I’ve thought of a name, never done it and don’t know much about it, I’ll be up and running within the month paying for ads on Facebook, working from my bedroom”. Should that be possible?
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Ok
The purported transaction average is in fact an anomaly
If enough estate agents persist in ignoring Material Information and in referring to inefficient conveyancing businesses just because they pay a referral fee then that affects other consumers and more efficient conveyancers.
The solution isn’t more technology or indeed digitisation because a lack of technology isn’t the problem. The problem is that certain large conveyancing businesses over rely on technology at the expense of employing qualified conveyancers and, unfortunately, some estate agents (usually the bigger ones) just keep pushing their clients and buyers towards these businesses.
The problem is that properties are listed in the hope they will sell rather than being made purchase ready before being listed.
Legislation is needed to cause sellers and estate agents to comply with Material Information and for those working for a conveyancing business who deal with transactions and consumers to be qualified conveyancers. In this way technology can assist the process rather than being used as a substitute for legal thinking. An example of the technology barrier is the proliferation in recent times of Standard Enquiries rather than transaction specific enquiries.
Conveyancing has been dumbed down and what needs to happen is that the legal complexity of property transactions needs to be more widely understood and appreciated and simplistic suggestions such as “ more technology” spotlighted for the non solution they are.
Purchase ready property at the point of listing.
Qualified conveyancers.
No chains.
Then we can return to 1980s completion timeframes of 8 weeks or less.
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Unfortunately, you are stuck in the 1980’s. The Consumer is ready for a digitised process, each stakeholder group is digitising in parts, but it needs to be a joined up effort not in silos across the home buying & selling landscape.
I appreciate technology is not the answer for everything, land law and the legal complexities need an experienced conveyancer, who can never be replaced, but by ignoring technology, and the journey the Consumer, will only lead to more complaints, as per the theme of the article.
Just being negative about technology helps no one, and those constantly bashing it, need to move into the 21st Century.
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“Where’s the data on transactions taking 5-6 months? Are we just adding on another month each quarter to suit agendas?
I checked our stats yesterday. 2000 + completions this year, average timescale 96 days. Last year 94 days. I called a few other MD’s… similar stats. There a risk here that we’re not painting the correct picture.” Bold Legal Group Member Firm
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regulation, get rid of the s**t agents that we all know who will no doubt be working in Asda’s when regulation comes in
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You got your uniform ready?. Over tannoy, ‘Gangsta Agent…. Spillage in aisle 7’
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god yes……….t**t
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I take a somewhat different view. I see (let’s use simple round figures) 6,000 legitimate complaints from 1m sales transactions AND 4m rented PRS homes. So out of 5m property transaction 6,000 weren’t happy- or 0.12%.
Paul cited being appalled by these numbers, but a lot of the increase stems from the growing awareness of Ombudsman protection- again it’s true purpose and value.
I’d argue that, for many, agency’s better than its ever been. Great agents deliver spectacular marketing a d run businesses that are customer-centric with an array of fab tech underpinning operations.
Will ROPA eliminate this tiny, mistreated segment? The reality is no- technical knowledge doesn’t make you more honest, a better communicator or more empathetic- and it certainly won’t lead to cheaper fees. In short, it won’t make everyone suddenly be great agents. If it did every doctor, lawyer and accountant would deliver perfection- and they don’t.
The only way to tackle this is to constantly look inwards at your business, be brutally honest & aspire to always do better.
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