Two property businesses – a letting agent and a residential leasehold management company – have been expelled from redress scheme for their failure to pay compensation awards after complaints against them were upheld.

The first expulsion involved Noble Living (Nottingham) Limited, a letting agent found to have failed to return a month’s rent paid in error by a tenant. The money was passed on to the landlord and, despite being made aware of the mistake, the company “made no effort to retrieve or return the funds”.

Complaint upheld

The Property Ombudsman upheld the complaint and ordered Noble Living to pay £875, made up of the £725 rent plus £150 for “aggravation, distress and inconvenience”.

The second case related to Blocsphere Property Management Limited, a residential leasehold management company that was the subject of a complaint over poor communication. A tenant raised concerns about a lack of response during a dispute, and the Ombudsman ruled the firm’s conduct fell below acceptable standards. A compensation award of £50 was issued.

Chief Ombudsman Lesley Horton (pictured) said, “With more than 19,000 registered businesses, we provide thousands of consumers with a trusted and reliable route to resolve their complaints.

Expulsion is the very last resort, and the last step in our compliance process.”

“Our proactive membership team works closely with agents to ensure that awards are paid promptly. Expulsion is the very last resort, and the last step in our compliance process. As an example, and after initial expulsion, two businesses were readmitted following awards payments being made.”

Horton added, “The fact that only 13 businesses were expelled throughout 2025 highlights the strength of our processes, with more than 99% complying with our decisions and paying awards when directed.”

As The Property Ombudsman is not a regulator, it cannot take legal action, but its decisions are binding on registered businesses and it maintains powers to refer non-compliant firms to enforcement authorities.