Three estate agents and two letting agents have been expelled from The Property Ombudsman for failing to pay compensation awards to consumers.
Prime Property Agents on Clarendon Street, Nottingham, failed to refund a buyer’s £7,200 reservation fee after a purchase fell through. The agent did not follow their own terms and conditions, failing to present any suitable alternative properties or refunding the buyer in full. The Property Ombudsman awarded a total of £7,400 to the buyer to reflect the return of the fee and £200 for the distress caused.
Cowlings Estate Agents on The Quay, Bideford, Devon, was ordered to pay £1,087 after it did not obtain proof of funds for a property sale, which caused the sellers to withdraw. The agent confirmed in the Memorandum of Sale that it was a cash buyer, but the sellers later discovered that the buyer was sourcing finance to complete the sale. After the renegotiated terms could not be met, the sellers withdrew. The Property Ombudsman supported the complaint and made the award to cover the seller’s costs.
Nexmove (registered company name: NXMVETGN Ltd) on Den Road, Teignmouth, Devon, also failed to disclose the source and availability of a buyer’s funds until after the sale fell through. The agent did not take any reasonable steps to find out how the sale was being funded but told the sellers that it was a cash buyer. The Property Ombudsman directed the agent to pay an award of £400.
The Jolly Landlord on Dunnings Lane, Bulphan, Essex, was involved in a dispute after it did not transfer a tenant’s deposit and first months’ rent to the landlord. The Property Ombudsman’s investigation found that the agent’s actions led directly to the landlord terminating their management agreement with The Jolly Landlord as well as requesting the termination of the tenancy agreement. The Ombudsman did take into consideration that despite the request, the tenancy agreement was still in place and the landlord had made no effort to recover the funds directly from the agent. £350 was awarded to the tenant to reflect the avoidable stress and inconvenience.
Lilypad Estates London on Honor Oak Park, Forest Hill, did not transfer eight months of rental payments to a landlord and stopped all communication. After all aspects of the dispute were upheld, the agent was directed to pay a £200 award, plus the outstanding rent.
The businesses were referred to the Ombudsman’s Compliance Committee, which ruled that they should be excluded from the scheme. Nine businesses have been expelled from the scheme in 2025.
Interim Ombudsman Lesley Horton said: “Expulsion is a last resort and that’s evident in the low numbers. We always strive to be very clear and explain the evidence that has led to our decisions and any award we make, both to businesses and to consumers. This approach works well, with 99% of businesses complying with our decisions and paying awards when directed. We also highlight where agents can improve their service and proactively carry out audits to check that they are following best practice and regulations.”
All relevant bodies, including both local and national Trading Standards, and property portals have been notified as part of the expulsion process.
