Property Ombudsman gets four complaints an hour about lettings

21 October 2009

In his latest quarterly report for the period between July and September, the Ombudsman was investigating 127 cases for lettings, 79% up on the previous year’s quarterly tally of 71.

The principal causes of disputes over lettings arise when agents are alleged to have failed to make adequate checks of tenant references, not explaining that holding deposits are forfeit if the tenant does not go ahead with renting the property, and inspection visits not being frequent enough to prevent deterioration of the property.

But the number of new cases concerning house sales the Ombudsman is investigating is on the rise again and the expectation is that this figure will grow later this year.

Cases under investigation involving sales have risen 17%for the third quarter, from 104 to 122. Reflecting market conditions the figures are still almost 32% below last year’s level (179) while enquiries are down by 36% over the year (966 in 2009, 1,525 in 2008).

With regard to sales, complaints have arisen from sellers who have been asked to pay for a Home Information Pack when the property has not sold and home owners who have become liable to dual fees after switching agents when the market was slow.

The Ombudsman he is also getting calls from estate agents complaining about the behaviour of other agents who are making unsolicited approaches to sellers who already have their properties for sale or to let, widely known as touting.

Hamer adds that the quantity and format of flyers put out by agents, whether targeted at a district, street, or individual addresses, could be an irritation to occupants.

To comply with the Code of Conduct issued by the Ombudsman, any material should also fully explain to property owners that there is the risk of a double liability to fees if they are currently, or have been, selling their property through another agent.

Any consumer dissatisfied by such an approach can ask the Ombudsman to intervene if the agents involved cannot resolve the complaint. But the Ombudsman has no power to intervene between agents - disputes should instead be addressed to Trading Standards or agents’ professional bodies. If there is a breach of the Code of Conduct, Hamer will then write to the offending agent asking for the activity to cease.

Hamer says: “The statistics in this report covering the period 1 July to 30 September 2009 show the continuing trend of increasing lettings disputes referred to my office.

“I have noted, however, a small surge in sales disputes and whilst there has been much talk about the market beginning to pick up, if that is true it will be some months yet before that has an effect on my workload.

“Trends in the market are mirrored in the numbers of cases that I am asked to decide about three to four months later so any actual increase in activity in the market will become apparent in my workload towards the end of the year.”

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