The Property Redress Scheme, a government-approved redress scheme handling complaints about sales and lettings agents, has reported a significant increase in complaints registered in 2020.
The PRS annual report, released today, shows a 27% rise in formal complaint notifications referred to the Property Redress Scheme against its members.
In total during the period 1 December 2019 to 30 November 2020, the scheme received 1,829 initial complaints compared with 1,444 in the previous year, with lettings making up the majority – 80%. This is followed by sales, which represents 10%, and residential lettings management – also 10%.
The sharp rise in complaints is owed in part to a 24% increase in membership of the scheme, which is up from 12,043 members in 2019 to 14,932 members in 2020. The average number of complaints per member is 0.12, which was the same as in 2019.
Somewhat concerningly, the figures show that 78% of its decisions in 2020 were complied with compared to 90% in the previous year, with defaulting members being removed from the scheme.
The average award made to complainants has also risen to £2,696.31, more than double last year’s average. But the scheme explained that it awarded just over £453,000 in total – 26% less than in 2019 – suggesting that a minority of agents were responsible for complaints and awards.
Sean Hooker, head of redress at the Property Redress Scheme, said: “The fact that the Property Redress Scheme has grown in membership and the number of reported complaints is on the increase suggests that the scheme is working for the consumer, which was the reason for the requirement for agents to join a redress scheme. Clearly landlords and tenants expect a better service from their agents and are speaking out when their expectations are not being met.”
“But considering the difficult year that consumers and property professionals have faced, I am encouraged by the fact that only a small percentage of our membership experienced a complaint against them which shows that the majority of agents offer a good and personal service to their landlords and tenants.
“The scheme works hard to both educate and guide our members with an example being the launch of our tenancy mediation service during the height of the pandemic last year, helping to keep tenants in homes and landlords to balance their books.
“Through our focus on early resolution, we have once again reduced the time it takes to resolve a complaint for our members from 42 days to just 35 days from complaint to closure. But there is so much more to be done. We will be engaging with our members to understand how we can provide a better consumer redress service and further raise standards in the industry.”
You can view the annual report here: annualreport.theprs.co.uk.
These figures are quite scary, if truly representative of the industry as a whole. 15k members – 1,829 initial complaints; 12% or one in eight of everyone who engages with an agent. Surely not?
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1829 complaints and 40% of these received a financial penalty, so roughly 5% of the membership. I do not have any comparable evidence of other countries that run the same style of system or other industries, but I think your stats are slightly off. In today’s complaining culture I do not think that’s too bad.
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“The Property Redress Scheme, one of the three government-approved redress schemes handling complaints about sales and lettings agents…”
Care to have a recount on that number of approved redress schemes, Mr Da Silva…?
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“The Property Redress Scheme, a government-approved redress scheme handling complaints about sales and lettings agents…”
So the recount was inconclusive, I take it…?
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Hold on- membership went from 12,043 to 14,932- a growth of 24% and claims ‘soared’ by 27%. Factor in lockdown ( both time spent at home and the stress this has caused so many) and an uptick by a couple of percent actually shows what a great job Letting Agents have done in our of the strangest, harshes and most stressful events ever to impact the property market. The fact that only 10% relates to Property Management I also wonder how much of the 80% on lettings was Tenants not getting rent reduction. free periods or released on request during the pandemic (although lots of Landlords DID no these amazing things).Why do these stats alqways have to be presented in a way that suggests we are the shark and charlatans the public think we are!?
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No of complaints mean NOTHING!
UPHELD complaints is another matter.
The number of UPHELD complaints will be insignificant.
LA need not be concerned.
As a LL I would have 5 tenants complain about me.
That is because I evicted their feckless selves due to rent defaulting!
LA need not concern themselves with complaints made.
Very few are genuine.
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