There’s been a large rise in complaints and a huge increase in compensation according to figures out today from the Property Redress Service (PRS).
The total figure awarded for ‘decisions’ by the PRS was £953,062.24. This is an increase of 95% from 2022 (£489,916).
In addition, PRS ‘early resolutions’ awarded a total of £359,426 in 2023, which is a small increase on 2022. An early resolution is a settlement made between the parties meaning the PRS does not have to make a formal decision.
The average award was £1,832.81 and the total figure awarded for early resolution and decisions combined was £1,312,488.
Complaint enquiries rose throughout the year by an average of 20% compared to 2022 while the average rate of complaints for each member reduced to a little over eight per cent, down from over 10% in 2022.
The top complaints for lettings involved holding deposits, poor service and management, and tenancy payments and rent collection.
Complaints were completed, on average, in around 40 days from the time the PRS received them.
Some 58 agencies were expelled, compared to 61 in 2022.
“The notable increase in financial awards underlines the growing volume of complaints, compounded by a lack of engagement from a minority of members” reveals Sean Hooker, Head of Redress at the Property Redress Scheme.
“Despite this, it’s encouraging to observe a reduction in complaints per member, indicative of improved efficiency in our investigative processes. Our steadfast commitment to early resolution has proven effective, reflecting a shared willingness among parties to reach amicable solutions.”
He continues: “As we strive to support, educate, and improve industry standards while continuing to clamp down on some of the poor practices that ensue, our adoption of innovative approaches like mediation and early resolution has yielded positive outcomes, fostering greater satisfaction among stakeholders.”
PRS membership numbers grew by seven per cent to 17,459 agents including 1,397 registered branches throughout the UK.
