The Property Ombudsman Annual Report 2014 Contents 4 The Scheme 18 The Complaint Process OTHER JURISDICTIONS: 6 Foreword by the Chairman 19 Enquiries Statistics 58 Commentary and Statistics of the Council 20 Lettings Enquiries 60 Case Studies 7 TPO in the Press 22 Sales Enquiries 8 2014 Headlines and Highlights 24 Cases Resolved 2014 TPO GOVERNANCE AND ACCOUNTS: 26 Assessment and Resolution Team 64 The Council 10 The Ombudsman’s Report 66 The Disciplinary and Standards Committee LETTINGS: 15 TPO Codes of Practice 68 The Independent and Guidance 28 Casework Statistics Reviewer’s Report 16 Membership Statistics 30 Case Studies 40 Case Studies in Brief 70 The Report from the Board 42 DCLG Statistics 72 Financial Report SALES: 74 TPO Survey 44 Casework Statistics 77 TPO Staff List 46 Case Studies 56 Case Studies in Brief 3 The Property Ombudsman Annual Report 2014 The Property Ombudsman Scheme Who are we? Codes of Practice The Property Ombudsman (TPO) scheme has been TPO is the primary source for industry standards, providing consumers and property agents with an with both the TPO Codes of Practice for Residential alternative dispute resolution service for 25 years. Estate Agents and Residential Letting Agents receiving The scheme was originally established in 1990 and approval from the Trading Standards Institute’s was renamed TPO in 2009 to reflect its now broader Consumer Codes Approval Scheme (CCAS), following a jurisdictions relating to sales (including buying agents), rigorous application and monitoring process. TPO also lettings, search providers, residential leasehold provides Codes of Practice for buying agents, property management, chattels auctions, international and buying companies and commercial property agents. commercial property agents, as well as property Furthermore, understanding the significant differences buying companies. between the Scottish and English systems, TPO recently issued CCAS approved codes for Scottish sales and lettings agents. The Scheme In June 2008 TPO was the first redress scheme to What does TPO do? gain the status of an Approved Estate Agents Redress Scheme under the provisions of the Consumers, TPO provides consumers with a free, impartial and Estate Agents and Redress Act 2007. In April 2014, the independent dispute resolution service of complaints Department for Communities and Local Government against property agents (TPO scheme members). The also approved TPO as a redress scheme for letting and Ombudsman provides redress, where appropriate, to management agents operating in England. consumers whose complaints are considered on a case by case basis and may make awards of up to £25,000 for actual and quantifiable loss and/or for aggravation, distress and/or inconvenience caused by the actions of a registered agent. The Ombudsman is not a regulator and does not have the authority to take regulatory or legal action against an agent, impose fines or dictate the way in which firms conduct their business. 4 Independence Contact The TPO Board charges scheme members an annual The Property Ombudsman subscription however, it is the independent Council to Milford House, 43–55 Milford Street whom the Ombudsman reports, the majority of which Salisbury, Wiltshire SP1 2BP is made up of non-industry members. It is the Council who appoints the Ombudsman and sets his Terms of Complaint Enquiries: Reference i.e. how the complaint process operates. Tel: 01722 333 306 Email: [email protected] Membership Enquiries: Ombudsman Association Tel: 01722 335 458 Email: [email protected] TPO is a full member of the Ombudsman Association and adheres to the organisation’s principles of good Fax: 01722 332 296 governance for ombudsman schemes. The Ombudsman Web: www.tpos.co.uk sits on the Association’s Executive Committee. @TPOmb facebook.com/PropertyOmbudsman 5 The Property Ombudsman Annual Report 2014 Foreword by the Chairman of the Council 2014 was the year in which – under the Enterprise and Ombudsman schemes seldom record very high levels Regulatory Reform Act – all lettings and managing of satisfaction: this is because, usually, in approaching agents in England were required to be part of a dispute half the cases, the complaint is not upheld, and even resolution scheme. Until 2014 only sales/estate agents where awards are made, a proportion of complainants were compelled by law to join an ombudsman or similar believe these should be larger. TPO is no exception redress scheme: now there is much broader coverage. and this underlines the delicate nature of the task we The Property Ombudsman (TPO) is by far the largest undertake. TPO’s Council keeps these matters under scheme, but this change has added additional members. constant review and, despite the difficulties, concludes At the same time – as the Ombudsman explains in this that our service is of considerable value in raising and annual report – the public at large has resorted more maintaining standards in this sector. frequently to raising complaints with us. So TPO has been under pressure. This year changes in the private rented sector in both Scotland and Wales are afoot. TPO’s remit covers all To cope with the increased work load without raising parts of the UK and we look forward to working with the cost of membership, and to speed up consideration the devolved administrations in their efforts to ensure of the less problematic cases, greater use has been the quality of management, as well as the quantity of made of an early resolution option. This has avoided homes, receives the attention required. There may well the necessity, for many complainants, of a full blown be lessons for England from Scotland and Wales, for dispute resolution process. introducing necessary new measures to drive out bad practice within the PRS. The private rented sector has grown exponentially over recent years (and is now bigger than the social In conclusion, I place on record sincere appreciation housing sector of Council and housing association to my fellow Council members for their service during accommodation). The role of lettings and managing the year and to our hard-working and highly effective agents has increased proportionately; it is clearly wise Ombudsman, Christopher Hamer. In 2015 we will see for many of the 1.6 million private landlords – so many the retirement of TPO’s Deputy Chair, Noel Hunter and of whom have no specialist knowledge or skills – to use we will mark that occasion at the appropriate time. In professional agents. But equally, the standard of service the meantime I send a heartfelt thank-you to all of our for both tenants and landlords needs to keep pace with team in Salisbury for their admirable work throughout the expansion of the PRS. TPO is there to support those this last year. seeking to raise standards and it continues to take action – through our Disciplinary and Standards Committee – where agents do not perform as they should. Lord Richard Best OBE Chairman of the Council 6 TPO DID YOU KNOW? in the Press 2014 The Ombudsman’s first-hand experience of reviewing thousands of complaints every year gives him an unrivalled TPO’s profile grew significantly • Briefings understanding of the key issues facing during 2014 with the Ombudsman’s • Live interviews the property sector. independent viewpoint advising on • Market commentary the impact of new legislation and • Q&A advice The Ombudsman was personally asked emerging commercial practices of • Expert viewpoints by Parliament to issue new guidance on national interest. • Consumer case studies an emerging commercial practice, known • Consumer tips as Sale by Tender, which was published As the UK’s largest and best- • Statistics relating to consumer in 2014 with input from the industry. known government-approved enquiries and complaints Ombudsman scheme, TPO TPO’s work with the media is crucial to featured heavily in the media TPO’s 25-year history enables educate consumers on the service they during 2014 drawing on our journalists and industry should expect from property agents and extensive experience to advise commentators to use the how disputes can be resolved if they arise. landlords and tenants of their schemes extensive property TPO’s strong industry profile legal right to redress in the event archives to research stories, provides a direct channel to share best of a lettings dispute. gauge consumer sentiment, practice advice on emerging issues assess emerging topics of interest and provide updates concerning new With more than 30,000 agent and publicise case articles that regulations and changes to legislation. offices registered with TPO help consumers understand their offering consumers a free, rights, the responsibilities of The Ombudsman’s close ties with fair and independent dispute property agents and vital role of industry regulators, government resolution service, the TPO’s unique TSI CCAS-approved departments, trade bodies and Ombudsman is ideally placed to Codes of Practice. consumer groups ensure TPO continues help the media with: to play a pivotal role on steering groups and advisory boards, placing the scheme at the forefront of industry developments and regulatory reform. ARLA Conference To find out more about TPO’s work with the media, OMBUDSMAN [ 56 ] FEATURE: READY, WILLING AND ABLE please contact Auctions: the practices and the pitfalls Christopher Hamer, ARE YOU READY, [email protected] or The Property Ombudsman, WILLING AND ABLE? calls for diligence and fairness. In this issue of Property Professional, The Property Ombudsman, Christopher Hamer, uying property