The Property Ombudsman kicks out five agents for failing to pay fines

The Compliance Committee has taken action against all agents that did not comply with the Ombudsman’s decision.

The Property Ombudsman Expulsions image

The Property Ombudsman kicked out five agents from the scheme in the third quarter of this year for failing to pay compensation awarded to their clients.

Those facing the wrath of the Ombudsman included Home Trader Properties in East London; Hardman Estates in Crewe, Cheshire; New Estate Management in Nottingham; Stratsmore Group in Ilford, London and Mark Warren, a sales and lettings agent in Manchester.

All five agents failed to pay the award made and were referred to the scheme’s independent Compliance Committee which ruled that they should be excluded from The Property Ombudsman scheme.

BREACHES

The Property Ombudsman code breaches were not insignificant.

Home Trader Properties failed to inform the landlord that their guaranteed rent agreement had expired and that the tenant had accrued significant rent arrears. Hardman Estates failed to transfer over a total of four months’ rent to the landlord and repeatedly ignored emails regarding the money owed.

CLEANING

New Estate Management, a block and estate management in Nottingham, failed to inform that cleaning services would be carried out by themselves.

FEES

While Stratsmore Group, a sales and lettings agent in Ilford, failed to deal with a number of complaints, the primary one being that a new and unreferenced tenant was placed in the property without authorisation. Despite terminating the tenancy, Stratsmore Group sought to retain 24 months of fees that had been paid in advance.

HEALTH AND SAFETY

Mark Warren, a sales and lettings agent in Manchester, failed to notify the landlord of her need to comply with relevant Health and Safety legislation, placing her and the property at a heightened risk.

Out of 2,224 financial awards made to consumers in 2021, 2,193 were paid. Only 17 awards remained unpaid throughout the year with 14 agents excluded, compared to 19 exclusions in 2020.

The Compliance Committee has taken action against all agents that did not comply with the Ombudsman’s decision.


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