The Property Ombudsman rules out increase in financial awards

The Property Ombudsman has said there are no plans to increase its redress limit despite its financial equivalent doing so.

It was confirmed at the end of last week that the Financial Ombudsman Service would have its award limit increased next month from £150,000 to £350,000 for any complaints about actions in the regulated finance market taking place after April 1.

Any complaints being made next month about issues that took place before April 1 will have a £160,000 limit – up from £150,000.

In comparison, the TPO’s award limit remains at £25,000, a very small proportion of the average value of a home where the complainant may have successfully argued mis-selling.

A TPO spokesman said that despite the Government’s recent consultation on redress schemes asking about increasing award limits, there are no plans to do so.

She said: “There are no plans for an increase at present.

“It was looked at by the Ministry of Housing as part of the strengthening redress consultation paper, but it was not a point picked up on in their consultation response.”

The Government’s redress consultation and subsequent response showed that 21% of respondents backed a financial award for complaints against agents of up to £25,000, while 33% supported a higher amount. There was no action taken on this by the Government.

More top news stories

Ex-professional footballer scores own goal as landlord of unlicensed properties

Continue Reading ...

Hybrid agents can take up to 30% market share in next five years, Purplebricks boss declares

Continue Reading ...

UK virtual tours firm clinches global deal with fast-growing US estate agency firm

Continue Reading ...

Email the story to a friend

Leave a reply

Thank you for signing up to our newsletter, we have sent you an email asking you to confirm your subscription. Additionally if you would like to create a free EYE account which allows you to comment on news stories and manage your email subscriptions please enter a password below.