"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"
- Sean Hooker - Property Redress
Property Redress has published its 2025 annual report, showing a steep rise in complaint enquiries across the residential property sector, with pressures in the lettings market emerging as a central driver of growth.
The scheme received 4,220 complaint enquiries in 2025, up from 2,863 in 2024. This marks a 47% year-on-year increase and a 77% rise compared with 2023. By December, accepted cases were 41% higher than the previous year.
Despite rising volumes, the average complaint rate per member remained stable at just over 8%. This suggests that growing consumer awareness and strain in the lettings market are contributing more to complaint growth than a deterioration in professional standards among member firms.
Membership levels were broadly unchanged, increasing to 19,051 from 18,799 in 2024. During the year, 85 firms were expelled for non-compliance, equivalent to around 0.4% of total membership.
Faster resolutions despite heavier caseloads
The report shows that average complaint resolution times fell to 34 days, down from 39 days in 2024. A sustained focus on early engagement between complainants and members delivered measurable results:
53% of cases were resolved at the early resolution stage, up from 50% in 2024
£273,310 was awarded through early settlements, a 40% increase on the previous year
Total awards across all case stages reached £1,476,824
The £1.47 million awarded in 2025 reflects financial redress achieved through both early resolutions and formal decisions. While formal award totals declined compared with the previous year, this largely reflects a greater share of disputes being settled before escalation, reducing delays and administrative costs.
Appeals remained rare, indicating continued confidence in the decision-making process.
The reduction in formal decisions also points to stronger use of early communication and evidence gathering between agents and complainants, particularly in lettings cases where misunderstandings can escalate quickly.
Lettings complaints remain the largest category
The report confirms that lettings continues to account for a significant proportion of complaints, reflecting sustained pressure in the private rented sector.
Lettings disputes most commonly relate to:
Holding deposits
Poor service and property management
Tenancy payments and rent collection
These themes mirror ongoing challenges in local rental markets, where rising rents, landlord exits and high demand have increased tensions between tenants and agents. Communication failures and unclear documentation remain at the heart of many disputes.
Sales-related complaints were more likely to involve duty of care, misleading information and commission disputes, while property management and leasehold complaints continued to centre on service quality, maintenance and access to relevant documentation.
However, the report notes that lettings remains particularly exposed to complaint risk because of the frequency of contact between agents and consumers and the financial pressures faced by tenants.
Reform adds further pressure to lettings practices
The findings are set against a wider economic and regulatory backdrop that is reshaping the rental sector. The year was marked by economic underperformance, reform proposals affecting both lettings and leasehold markets, and increased scrutiny of transparency and compliance.
While sales transactions remained broadly steady, unpredictability in the housing market contributed to frustration among consumers. In lettings, communication challenges intensified as higher rents and reduced supply continued to reshape local conditions. Leasehold disputes remained among the most entrenched areas of complaint.
The report draws on discussion from Property Redress advisory and member panels, which include representatives from agency, landlord, legal, compliance, Trading Standards and proptech sectors. In 2025, these panels examined the impact of the Renters Rights Act, Leasehold and Freehold Reform proposals and wider statutory changes.
Although reform is expected to bring greater clarity, panel members recognised that parts of the industry may not yet be fully prepared for implementation. Where processes and documentation are not updated correctly, the risk of lettings complaints is likely to increase.
“The residential property sector is operating in a challenging and evolving environment,” said Sean Hooker, head of redress at Property Redress (pictured). “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.”
Property Redress designed its annual report as a practical resource for agents and landlords. Alongside complaint statistics and award data, it identifies emerging themes, operational risk areas and points where clearer communication can prevent escalation, particularly within lettings and property management.
With complaint volumes expected to continue rising as government reform reshapes professional obligations, the 2025 findings provide a benchmark for how effectively lettings disputes are being handled and where compliance focus will be most critical in the year ahead.
