The Property Ombudsman (TPO) has expelled five property businesses from its scheme following their failure to pay compensation awards issued against them after consumer complaints.
The expulsions, which affected Devon Block Management Limited, Pro Investment Properties Ltd, RPS Estates, Samuel Francis & Co, and We Sell Lets, were approved by the scheme’s independent Finance, Performance & Compliance Committee after the firms breached membership obligations by failing to comply with Ombudsman decisions.
Regulatory action
Chief Ombudsman Lesley Horton stated: “We exist to provide consumers with a fair and independent route to resolve disputes with property businesses. Our decisions are binding on our members. Expulsion is always a last resort and follows a robust compliance process.”
She added that the majority of registered businesses comply with decisions and pay awards promptly, but the organisation will take action to protect consumers and uphold sector standards when firms fail to do so.
The move highlights ongoing challenges in the property sector, where regulatory compliance remains a concern for both landlords and tenants. Recent calls for landlord support from government funds have underscored the financial pressures facing property businesses.
Compensation awards
Pro Investment Properties Ltd, based in Redcar, was ordered to pay £7,400 following a complaint relating to a property sourcing agreement. The complainant had paid a £7,200 finder’s fee for a purchase that did not complete, with the Ombudsman upholding concerns about the fairness and clarity of the firm’s terms and conditions.
We Sell Lets, registered as J. Anderson Ventures Limited in Stirling, was ordered to pay £150 following a complaint relating to a property sourcing service. The Ombudsman found shortcomings in the firm’s marketing information, communication and management of expectations around a property transaction.
Management failures
RPS Estates, registered as Property Management Services Limited in Hounslow, was ordered to pay £1,871.25 after a landlord complained about unpaid rent, communication failures and poor complaint handling.
Samuel Francis & Co, based in Barry, South Wales, was ordered to pay £350 following a tenant complaint concerning the handling of mould reports, communication and complaint handling. The Ombudsman found the agent had failed to take adequate action to address an ongoing mould issue.
Plymouth-based Devon Block Management Limited was ordered to pay £75 after a complaint from a Residents Management Company director regarding the handling of a request to transfer funds into an interest-bearing account. The Ombudsman found shortcomings in the firm’s communication despite complying with the original request.
The expulsions come at a time when the property sector faces broader challenges, with recent data showing weakening buyer demand across the market. The Property Ombudsman’s enforcement action underscores the importance of regulatory compliance for property businesses operating in an increasingly scrutinised sector.
