Agency sales complaints rise as issues become more co...

Increasing numbers of complaints about agents are being resolved without formal investigation but issues are becoming more complex, The Property Ombudsman (TPO) has revealed.

The industry watchdog’s 2021 annual review revealed that call lengths almost doubled last year while the average number of issues per case has increased.

A report from the TPO showed buyers had 3.5 issues per case last year, up from two in 2019 and 3.1 in 2020.

There were 4.2 issues per case for sellers, up from 2.5 in 2019 and 3.7 in 2020.

Tenants and landlords made up most issues per case at 4.4 and six respectively.

TPO said demand for help and advice rose by 15% in 2021 to 45,007 enquiries – up 48% since 2019.

Of these, 39,499 complainants were provided with advice and guidance that resolved matters before they became formal complaints or, where appropriate, were signposted to other organisations, TPO said.

The other 5,508, evolved into disputes accepted for consideration by TPO.

Overall, a total of 6,006 official complaints about agents and property firms – which includes issues leftover from 2020 – were looked at by TPO last year.
From this figure, 49% were resolved through early resolution, meaning there was no need for a formal investigation.

There was a financial settlement or award granted in 2,860 of cases, with just 17 unpaid awards resulting in the expulsion of 14 agents from the scheme.

This translates to a 99% compliance rate, with the 14 agents constituting just 0.04% of TPO’s 39,019 membership.

TPO dealt with 2,656 disputes relating to lettings, 1,807 relating to sales, 1,356 for residential leasehold management (RLM) and 187 for other property professionals.

The largest award was £18,000 in sales, followed by £15,981 for lettings and £9,861 for RLM.

Most of the complaints for sales came from vendors, up 3% to 1,166, while there was a 26% increase in buyer complaints to 26%.

The number of sales cases was up 9%.

TPO ruled in the consumer’s favour in 62% of cases – up 4% - with 268 from early resolutions and 855 from formal decisions.

The top causes of sales disputes were marketing, terms of business, communication between acceptance and exchange of contracts, market appraisals and complaints handling.

The main complaints in lettings concerned management, complaints handling, tenancy agreements, inventories and deposits, terms of business and rent collection.

There was a 12% drop in complaints from landlords, making up 1,322 of cases, while tenant disputes rose 7% to 1,246.

The number of lettings cases overall was down 3% and 66% were resolved in the consumer’s favour.

Rebecca Marsh, property ombudsman, said: “When comparing the volume of enquiries to the number of disputes which go on to become formal investigations, it is clear to see the value that our enquiries team is providing.

“Firstly, to consumers who can speak to someone who will listen to their issues and provide expert advice to resolve matters before they become formal complaints.

"Over the past few years we have seen call lengths nearly double with issues becoming more complex. Secondly, to member businesses who are saved time, resources and costs associated with having to deal with the complaint themselves.”