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Agents pay price for flouting compensation rules

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Six letting agents have been expelled from The Property Ombudsman after failing to pay compensation to landlords or tenants.

Hunter Ashley Sales & Lettings, in Brunel Way, Slough, was reported by a landlord who said it hadn’t transferred more than £12,000 in rent. Evidence reviewed by the Ombudsman included bank statements from the former tenant and the agent’s statements issued to the landlord. The firm was told to pay £12,635.  

Another landlord was awarded £1,300 after Brimar Lettings & Management, based in Plungington Road, Preston, didn’t receive rent collected by the agent. The Ombudsman found that £950 had been paid by the tenant but not passed on to the landlord.

Payments

In Ilford, a landlord complained that Skampi, based on Peregrine Road, had stopped forwarding rent payments for several months. The Ombudsman told the firm to pay £5,132, covering rent owed, overpaid management fee refunds and compensation.

It also awarded a landlord £834 in compensation from Inspired Sales & Lettings on High Street, Rushden. The firm had arranged a new tenancy agreement without obtaining his consent and then charged fees for both a let-only service and property management that the landlord had never agreed to.  

Failing

Edward Clark Estates, on Orsett Road, Grays, was ordered to pay £150 to a tenant after failing to respond to a formal complaint, while in another case, a leaseholder brought a complaint against Eight Asset Management, on Edinburgh Way in Harlow, concerning its management of a residential leasehold property including lack of communication over parking and inadequate complaints handling. It was told to pay £250.  

Chief Ombudsman Lesley Horton (pictured) says expulsion is always a last resort and follows a robust compliance process. “The overwhelming majority of our members comply with our decisions and pay awards promptly,” she adds. “Where businesses fail to do so, we will take appropriate action to protect consumers and uphold standards within the sector.”

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