The Property Ombudsman has outlined the need for closer integration between regulation and redress mechanisms as the government prepares to introduce independent regulation of property agents in the UK.
Lesley Horton, chief ombudsman for The Property Ombudsman (TPO), stated that whilst regulation presents an opportunity to drive improvements across the sector through training standards and professional conduct expectations, it must work alongside redress providers to deliver meaningful consumer protection.
According to Horton, consumers frequently expect TPO to exercise regulatory powers such as closing agencies or preventing individual agents from operating. “Those powers are obviously beyond the realms of a redress provider, but for many consumers, they expect TPO to act as a regulator and express frustration that there are not stronger powers where things go wrong,” she said.
Data collection and early warning systems
TPO’s Initial Enquiries function captures consumer questions and problems before they become formal complaints, providing what Horton describes as a broader market picture than complaint outcomes alone. The organisation claims to be the only agency redress provider collecting this breadth of data.
“Used effectively, this data can do more than provide a retrospective picture of problems; it can act as an early warning system, identifying emerging patterns and risks across the market,” Horton noted. This intelligence could enable regulators to target guidance and intervention where needed.
Framework development
The government has confirmed the principle of independent regulation, licensing and qualifications for property agents, though details on the structure and operation remain under development. This follows recent moves towards professionalisation in the agency sector.
Horton argued for a single ombudsman working alongside a single regulator to provide clearer frameworks for agents and consumers. “It would allow emerging risks and poor practice to be identified earlier and enable regulators to focus guidance and scrutiny where they are most needed,” she stated.
The TPO currently refers serious concerns to National Trading Standards, but Horton suggested that valuable intelligence below that threshold can be lost without closer regulatory relationships. The organisation identifies shortcomings beyond individual disputes, including matters that do not form part of the dispute itself.
Industry implications
The proposed regulatory framework could establish codes of practice, with Horton emphasising the opportunity to build these around existing evidence rather than assumptions. The changes come as the property sector faces broader shifts, including rental market adjustments and agency network restructuring.
Horton concluded that if regulation sets clear standards whilst redress provides accessible routes for complaints, and complaint evidence informs regulatory priorities, the result should strengthen the property sector for consumers and responsible businesses.
Further details on the regulatory structure and operational framework are expected as the government develops the implementation plan.
