Five estate agencies expelled by Property Redress Scheme

The Property Redress Scheme has revealed a list of five estate agencies expelled in the last three months from its scheme.

The agents have been struck off and are no longer members of the scheme following complaints about the service they offered.

The PRS quarterly ‘expulsions update’ gives details of the agents involved and the reasons for the decision. Each of the agents has failed to comply with the PRS ruling.

The five agents:

Sourced Properties Group Ltd was ordered to repay a £8,000 return sourcing fee for rent-to-rent serviced accommodation.

NALC Auctions Limited was told to pay £1,000 for distress and inconvenience as well as refund a deposit in full.

With Procured Property Ltd, the decision was to refund a sourcing fee of £4,700.

Rent Room LTD was instructed to refund a deposit and pay £150 for stress and inconvenience.

Fountayne Managing Ltd had to pay eight months’ management fees back for poor service. Due to non-compliance with this decision and the link with Fountayne Residential Ltd, both agents were expelled.

Offence

With the memorandum of understanding in place between the PRS and the Property Ombudsman, no expelled member can join any other scheme until the terms of the decision have been settled.

Agents who continue to trade, without redress, could face fines up to 5,000 for each offence.

Last year 61 agencies were expelled, which was more than a 32% increase from 2021.

Complaints raised increased throughout the year by an average of 6.8% compared to 2021, and by December 2022 the PRS was dealing with over 30% more cases than at the start of the year.

Uncertainty

Sean Hooker, head of redress at the PRS, says: “It is interesting that the rate of complaints increased so significantly as the year went on.

“In my view this reflects the changing economic situation and growing uncertainty in the minds of consumers.”

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