Five property businesses have been expelled from The Property Ombudsman (TPO) scheme after failing to pay compensation awards made against them.
The decision followed reviews by TPO’s independent Finance, Performance & Compliance Committee, which found that the firms had breached their membership obligations by not complying with Ombudsman rulings.
The firms removed from the scheme are Devon Block Management Limited, Pro Investment Properties Ltd, RPS Estates, Samuel Francis & Co and We Sell Lets.
The largest award involved Pro Investment Properties Ltd, which was ordered to pay £7,400 following a complaint relating to a property sourcing agreement and an unsuccessful purchase. RPS Estates was directed to pay £1,871.25 to a landlord after a complaint concerning unpaid rent, communication failures and complaint handling.
Elsewhere, Samuel Francis & Co was ordered to pay £350 after a complaint from tenants over the handling of mould reports and communication, while We Sell Lets was required to pay £150 following a complaint about a property sourcing service. Devon Block Management Limited was awarded to pay £75 after shortcomings were identified in its communication with a residents’ management company director.
Devon Block Management Limited
Devon Block Management Limited, based in Plymouth, was the subject of a complaint from a Residents Management Company director regarding the handling of a request to transfer funds into an interest-bearing account.
The Ombudsman found that while the company had honoured the complainant’s request, its handling of communications fell short of the standards expected of scheme members. An award of £75 was made to reflect the impact of those shortcomings.
Pro Investment Properties Ltd
Pro Investment Properties Ltd, based in Redcar, was ordered to pay £7,400 following a complaint from a buyer relating to a property sourcing agreement.
The complainant had paid a finder’s fee of £7,200 in connection with a property purchase that did not complete. The Ombudsman found concerns with the fairness and clarity of the firm’s terms and conditions and upheld the complaint.
An award of £7,400, comprised of the finder’s fee and £200 for aggravation, distress and inconvenience, was made.
RPS Estates
RPS Estates, registered as Property Management Services Limited, in Hounslow, was the subject of a complaint from a landlord regarding unpaid rent, communication failures and poor complaint handling.
The Ombudsman upheld the complaint and awarded £1,871.25 in compensation.
Samuel Francis & Co
Samuel Francis & Co, based in Barry, South Wales, was the subject of a complaint from tenants concerning the handling of mould reports, communication and complaint handling.
The Ombudsman found that the agent had failed to take adequate action to address an ongoing mould issue and had not proactively managed the matter. Shortcomings were also identified in communication with the complainants. An award of £350 was made.
We Sell Lets
We Sell Lets, registered as J. Anderson Ventures Limited, based in Stirling, was the subject of a complaint from a buyer regarding a property sourcing service.
The complaint related to marketing information, communication and the handling of expectations surrounding a property transaction. The Ombudsman concluded that the firm’s service fell below the standards required by the Code of Practice and made an award of £150.
TPO said all five firms had failed to honour the awards, resulting in their expulsion from the scheme.
Chief Ombudsman Lesley Horton said: “We exist to provide consumers with a fair and independent route to resolve disputes with property businesses. Our decisions are binding on our members.
“Expulsion is always a last resort and follows a robust compliance process. The overwhelming majority of registered businesses comply with our decisions and pay awards promptly. Where they fail to do so, we will take appropriate action to protect consumers and uphold standards within the sector.
“These cases demonstrate the importance of redress and accountability within the property sector. Consumers must be able to have confidence that when complaints are upheld, businesses will comply with decisions and provide the compensation directed by the Ombudsman.”
