Property Redress has published its 2025 annual report showing a 47% increase in complaint enquiries across the residential property sector, alongside shorter resolution times and a rise in early settlements.
The scheme received 4,220 enquiries in 2025, up from 2,863 in 2024 – a 77% increase compared with 2023. Accepted cases were 41% higher by December than the previous year.
Despite the increase in volumes, the average complaint rate per member remained just over 8%. Membership rose slightly to 19,051 firms, from 18,799 in 2024, while 85 firms – around 0.4% of the total – were expelled for non-compliance.
The average time to resolve complaints fell to 34 days, down from 39 days in 2024.
A continued emphasis on early engagement between complainants and member firms contributed to measurable changes in case outcomes. In 2025, 53% of cases were resolved at the early resolution stage, up from 50% in 2024. A total of £273,310 was awarded through early settlements, a 40% increase on the previous year, while total awards across all stages reached £1,476,824.
The £1.47m awarded during the year covers both early resolutions and formal decisions. Although the total value of formal awards declined compared with 2024, this largely reflects a higher proportion of disputes being settled earlier in the process, reducing the need for escalation. Appeals remained infrequent.
The fall in formal decisions corresponds with more cases being resolved through early communication and evidence gathering before progressing to later stages.
The report states that the main areas of complaint remain broadly unchanged.
In the lettings sector, disputes most frequently relate to holding deposits, standards of service and management, and tenancy payments and rent collection.
Sales complaints commonly concern duty of care and allegations of misleading information, as well as disputes over instructions, terms of business and commission. Marketing and advertising practices also feature regularly.
In property management and leasehold, complaints continue to focus on service standards, maintenance issues and the provision of documentation.
The findings reflect sustained pressure in the rental market, increased attention to material information requirements in sales transactions and ongoing tensions in leasehold management.
The report places these trends within a wider economic and legislative backdrop. The past year has been marked by subdued economic performance, proposed reforms affecting the rental and leasehold sectors and greater scrutiny of transparency and compliance.
While sales transaction levels remained relatively stable, market uncertainty contributed to rising levels of dissatisfaction. In lettings, communication issues remain prominent as higher rents and landlord exits continue to affect supply in some areas. Leasehold disputes remain among the most persistent sources of complaint.
The report also references discussions held by Property Redress’s advisory and member panels, which include representatives from agency, landlord, legal, compliance, Trading Standards and proptech sectors. During 2025, panels considered the implications of the Renters’ Rights Act, leasehold and freehold reform proposals and other statutory changes. Although the reforms are expected to provide greater clarity, there was recognition that some parts of the sector may not yet be fully prepared for implementation, increasing the risk of complaints where processes are not updated.
Sean Hooker, head of redress, Property Redress, commented: “The residential property sector is operating in a challenging and evolving environment. Economic pressures, reform and increased consumer awareness are all contributing to greater scrutiny.
“What the 2025 data shows is that although complaint volumes are rising, professional standards among our members remain resilient. Resolution times have improved and early settlements have increased, which reflects constructive engagement from both agents and consumers.
“Communication remains critical. Where agents are transparent, proactive and responsive at an early stage, disputes are far more likely to be resolved quickly and proportionately.
“As further reform takes effect, maintaining clear processes, accurate documentation and open dialogue will be essential for the sector.”
The full Property Redress 2025 annual report is now available to read here.