Property complaint enquiries increased by 47% in 2024, according to data released in a redress scheme’s annual report, although the average complaint rate per member remained stable at just over 8%.
Sean Hooker, who reviewed the complaint data, noted that whilst the volume of enquiries rose significantly, the average time taken to resolve cases fell from 39 days to 34 days. More than half of disputes were resolved at an early stage before reaching formal adjudication.
Market conditions drive complaint volumes
The increase in complaints occurred against a backdrop of economic uncertainty and anticipated legislative reform affecting the residential property sector. Letting agents faced pressure from rising rents, landlord exits and uncertainty around future regulatory requirements, whilst sales agents dealt with steady rather than strong transaction levels.
Increased awareness of consumer rights, heightened scrutiny around material information disclosure and ongoing debate around conditional selling practices contributed to the rise in disputes, according to the analysis.
Communication breakdowns remain primary cause
The data revealed that most complaints did not stem from serious wrongdoing. Common issues included misunderstandings over holding deposits, incomplete information provided to buyers about properties, and unclear explanations of leaseholder maintenance costs.
In lettings, disputes most frequently involved holding deposits, rent handling and service expectations. In sales transactions, complaints commonly related to material information disclosure, communication during transactions and misunderstandings around terms of business.
Leasehold cases remain challenging
Leasehold property management continues to generate particularly complex disputes involving building safety, service charges and maintenance responsibilities. These cases frequently involve multiple stakeholders with competing interests.
The report indicated that despite anticipated leasehold reform, this area is likely to remain challenging for managing agents navigating an evolving regulatory landscape.
Early engagement shows results
The success rate of early resolution increased, with more than half of complaints handled in 2024 resolved before reaching a formal decision. The data suggested agents were engaging earlier with complaints and addressing problems before escalation.
The report emphasised that clear processes, documented procedures and regular communication updates proved most effective in preventing disputes from escalating, particularly in an environment where regulation, consumer expectations and market conditions are shifting simultaneously.
