Six property businesses have been expelled from The Property Ombudsman after failing to pay compensation awards.
The expulsions followed a review by the scheme’s independent compliance committee, which agreed that each firm should be removed for breaching their membership obligations by not complying with Ombudsman decisions.
The Property Ombudsman, which provides impartial dispute resolution for property businesses and consumers, found that Brimar Lettings & Management Ltd, Edward Clark Estates, Hunter Ashley Sales & Lettings, Eight Asset Management (EightAM), Skampi and Inspired Sales & Lettings had all failed to pay compensation awarded to consumers.
Brimar Lettings & Management Ltd in Preston was the subject of a complaint from a landlord who said he had not received the rent collected by the agent. The Ombudsman found that £950 in rent had been paid by the tenant but not passed on to the landlord. An award of £350 was made for aggravation and inconvenience due to the agent’s poor communication, and a total of £1,300 was awarded to the landlord.
Meanwhile, Edward Clark Estates in Essex was ordered to pay £150 to a tenant after failing to respond to a formal complaint. The Ombudsman supported the complaint on the basis that the tenant had received no response to their concerns. An award of £150 was made, but was not paid by the company.
Hunter Ashley Sales & Lettings in Slough was the subject of a complaint from a landlord who said the agent had received more than £12,000 in rent but had not transferred the funds. Evidence reviewed by the Ombudsman included bank statements from the former tenant and the agent’s own statements issued to the landlord.
The agent did not respond to the formal complaint and did not engage with the Ombudsman during the investigation. The complaint was upheld, and the agent was directed to pay an award of £12,635.
Meanwhile, a landlord complained that Inspired Sales & Lettings in Northamptonshire arranged a new tenancy agreement without obtaining their consent and then charged fees for both a let-only service and property management that the landlord had never agreed to.
The Ombudsman upheld the complaint and awarded the landlord £834 in compensation. This comprised of a £570 let-only fee refund, £114 management fee refund, and £150 for aggravation, distress and inconvenience.
A further landlord complaint claimed that Skampi, based in Essex, stopped forwarding rental payments, leaving them without any rent income for several months.
Once again, the Ombudsman upheld the complaint and ordered Skampi to pay a total of £5,132.92, covering rent owed, overpaid management fee refunds and compensation. A payment plan was set up, and the agent paid the landlord £1,882.92, but no further payments were received, leaving £3,250 outstanding.
A leaseholder brought a complaint against Eight Asset Management in Essex, concerning its management of a residential leasehold property. The complaint covered five areas: the agent withheld available information that had been requested; maintenance work was carried out without proper authorisation; a lack of communication regarding a parking matter; unreasonable delays in providing information about CCTV; and inadequate complaints handling.
The Ombudsman found in favour of the leaseholder after identifying repeated communication shortcomings by the agent and awarded £250.
"We exist to provide a fair and independent route to resolve disputes with property businesses. Our decisions are binding on our members," chief ombudsman Lesley Horton said.
She added: "Expulsion is always a last resort and follows a robust compliance process. The overwhelming majority of our members comply with our decisions and pay awards promptly. Where businesses fail to do so, we will take appropriate action to protect consumers and uphold standards within the sector."
