Two London estate agencies can no longer legally trade after they were expelled by The Property Ombudsman for failing to transfer a total of £11,600 rental payments to landlords.

Thames Ditton estate agency, Aldous Craig, was directed to pay £8,800 to a landlord after it did not pass on the rent from the tenants. With no response from the agency, the Ombudsman reviewed the evidence and, finding that it proved the tenants had made the payments, the complaint was upheld.

AML fine

It is not the first time Aldous Craig has fallen foul of the law, as the agency was also recently fined £2,750 by HMRC for failing to register in time for AML.

The second expelled agency, Blackheath-based JNG Estates, was also involved in a dispute with a landlord who claimed that they owed them rental payments. The Ombudsman upheld this complaint, too, and added £200 to the award due to the distress caused by the agent’s actions. J

NG Estates was ordered to pay a total of £2,856 to the landlord, although according to Companies House records, the agency was dissolved via a voluntary strike-off in May.

There is a very small number of businesses who do not pay, and as we see here, we will take further action if needed.”

11 businesses have been expelled from the TPO’s scheme so far this year. Ombudsman Lesley Horton says: “More than 99% of businesses comply with our decisions and pay awards when directed, so consumers can feel confident that where we award compensation, they will receive this.

“We work proactively to support businesses and carry out more than 2,000 compliance audits each year. There is a very small number of businesses who do not pay, and as we see here, we will take further action if needed.”

All relevant bodies, including both local and national Trading Standards and property portals, have been notified as part of the expulsion process.