Rogue estate agents pay heavy price for ignoring redress scheme

Nearly 50 estate agencies were expelled from the Property Redress scheme during a six month period last year, the organisation has revealed, including several which failed to pay landlords rent owed to them.

While 12 of the estate agencies were reinstated after complying with the scheme’s requirements, a ‘significant number’ remain barred from redress membership due to ongoing non-compliance and cannot trade legally.

Property Redress has released details of six 'example' firms who remain expelled saying that in each case, consumers were left out of pocket, exposed to risk, or experienced unacceptable levels of service.

“The agents failed to engage with the complaints process, settle awards, or meet their professional obligations,” the redress scheme says.
Property Redress has highlighted six cases where agents have been expelled and the issues that led to their expulsion.

Complaint process

This includes not engaging in the complaint process about a leaking roof, poor block management, and inflammatory communication; rent payments not passed on to landlords; monies including rent and deposit not returned once a management contract had been terminated; poor management of a medium-size portfolio on a landlord’s behalf including not completing regular inspection; and not paying a tenant their deposit back.

Property Redress says it always seeks to “give agents a reasonable opportunity to comply with decisions before formal expulsion is confirmed and then an additional amount of time to rectify the situation before the names of expelled agents are published”.

In a significant number of cases, agents who initially do not comply with their responsibilities but later return to settle awards, provide information and pay any outstanding penalty fees, may be reinstated.

Non-compliance

“Allowing this period ensures that expulsions are only recorded where there has been sustained non-compliance,” the redress scheme says.
“The reasons for delays in compliance can be complex, and the scheme’s approach is designed to balance consumer protection with a fair and proportionate process.”

Sean Hooker (pictured), Head of Redress at Property Redress, adds: “These expulsions reflect our zero-tolerance approach to non-compliance.

“Our aim is not only to protect consumers but to raise standards in the industry. We urge landlords, tenants, and homeowners to check that their agents remain members of a government-approved redress scheme and to report any misconduct immediately.”