The annual report from The Property Ombudsman, Christopher Hamer, reveals a huge rise in general public enquiries and specific followed up' cases against lettings and sales agents.
There were 16,000 enquiries in total in 2013, a 23 per cent increase on the previous year.
Lettings is now the biggest proportion of my work - 60 per cent - with 1,300 cases being received against a figure for 2012 of 1,087, an increase of 20 per cent explains Hamer.
Some 358 lettings complains were resolved by mediation and 915 were the subject of formal reviews. Some 79 per cent of those reviewed were upheld.
There are now 10,903 lettings offices signed up to TPO (up from 9,748 a year ago and just 7,276 in 2009).
This is a breakdown of the lettings issues reported to the TPO during 2013:
Communication Failure 23%
Duty of Care 17%
Reports and Maintenance 9%
Deposit 7%
Rent 6%
Complaints Handling 5%
Check-in/Check-out/Inventory 5%
Management Failure 3%
Fees and Charges 3%
Tenancy Agreement 3%
Holding Deposit 2%
Administration 2%
Inspections 2%
References 2%
Other 11%
The average amount Hamer awarded to complainants was a modest £412 (up from £325 in 2013) but the total awarded was a high £318,452.59; this included eight awards in excess of £3,000.
Other key lettings aspects of The Property Ombudsman's report include:
- a 22 per cent increase in enquiries (that's double the number of sales enquiries and a 100 per cent rise in lettings enquiries since 2009);
- 13,877 separate issues were raised;
- 50 per cent of the complainants were landlords;
- 26 per cent complainants were from the south east, followed by the south west on 12 per cent and Greater London on 19 per cent.
Lord Richard Best, chairman of TPO Council, says in the report: It is certainly encouraging that politicians are increasingly interested in the sector, not least because of the continuing growth of private renting over recent years. We intend to remain at the centre of deliberations on raising standards, as an independent voice working in partnership with the industry up and down the country.
One key ingredient in the protection for consumers - in this case for landlords - on which TPO has made progress has been in ensuring our members can and should have access to Client Money Protection insurance. In future this will be a significant component in the requirements on lettings.
Comments
Just what is so strange about these increased figures
There has been a massive increase in lettings in recent years, as there has been in 'lettings offices'. Much of this increase in 'offices' has been sales agents jumping on the 'band wagon' but with little knowledge of what is involved, therefore they are probably the cause much of the increase!
Mr. Hamer should present the whole detailed picture.
So out of 16,000 enquiries made only 557 complaints were upheld (3.49%) and the average award was only 412.00.
As 10903 letting agents are signed up then agents can expect one complaint against them to be upheld every 19 years.
This hardly points to an industry that according to the media and Shelter is populated by rogues, out of control and needs regulated.
All the figures are there - the Annual Report includes stats and numbers relating to cases supported (upheld):
Sales = 70%
Lettings = 79%
Visit http://www.tpos.co.uk/annual_reports.htm
CMP is now available for letting agents that are members of the TPO.
The following link tells you a little more about our services for property professions. http://www.lonsdaleib.com/our-business/chartered-surveyors-property-professionals/
Surely the most important figure should be the number of complaints upheld (figure not given) not the number of complaints made.