Huge increase in workload for TPO may lead to rising fees
Extra workload created by surge in enquiries from members of public may lead to higher fees, the ombudsman has warned.
The Property Ombudsman (TPO) has warned that it may have to increase the fees it charges to agents after the organisation’s operating deficit increased from £10,103 in 2017 to nearly £400,000 last year despite an increased turnover of £3.77 million.
TPO says this reflects an increased demand for its service. The level of enquiries by members of the public to the organisation increased by 22% year-on-year during 2018 to 29,023 which is an all-time record.
Nearly 4,250 of these later became formal complaints about agents, an increase of 16% year-on-year.
“Consumers are increasingly aware of their rights,” says Property Ombudsman Katrine Sporle (above).
Some 97% of awards were paid and 92% of complex cases were resolved within three months, the reports says.
“Considerable progress has been made to invest in systems, skills and training internally, as well as investments in member training and in conferences to raise standards and operate in an efficient manner,” says TPO Chair Gerry Fitzjohn (left).
“To do this, TPO has incurred an in-year deficit and drawn down on reserves.”
Sporle says the record level of enquiries does not reflect a decrease in standards within the industry, but greater awareness among consumers about TPO’s service.
Rental transactions attracted the greatest number of complaints last year at 2,755, TPO reveals, while sales activity attracted 1,465 some 60% of which were made by vendors.
The level of awards paid by estate agents to disgruntled customers also hit a record high of £2.17 million. TPO says this is twice the value of awards paid by agents in 2016.
Seller frustrations
“It’s clear that in the current landscape agents are bearing the brunt of seller frustrations as houses are taking longer to sell and are ultimately selling for less,” says Colby Short, CEO (right) of GetAgent.co.uk.
“While this often isn’t the fault of the agent, they are the ones on the front line tasked with tackling these conditions head on and will inevitably come under fire when seller expectations are not fulfilled.”
The result of successful soliciting of complaints I would suggest.
If you encourage complaints, you get them. We’ve never had a complaint upheld, but still tenants make them to try to get money, knowing that the shear paperwork bureaucracy makes it uneconomical. 5 Years from now there will be half the agencies, half the houses to rent, half the landlords, twice the tenants and hopefully less than half the ombudsmans.