[ad_1]
I was shocked to see that the Property Ombudsman (TPO) received a massive 30% increase in enquiries last year, leading to a massive increase in compensation paid out by estate agents. What will this year’s results look like when they’re released?
The TPO handled over 57,000 enquiries in total in 2023 – with almost a tenth requiring full investigation, resulting in compensation of £1.52 million being awarded.
However, the total compensation in respect of sales shot up by 44% to just over £683k, although the total compensation relating to lettings went down 12% to £626k and residential leasehold management reduced by 19% to £138k.
Although fees tops the list of reasons why sellers complain, duty of care followed, along with communication, marketing and viewings. For buyers, their issues included the offer process.
Unsurprisingly, for lettings-related enquiries, almost two thirds came from tenants concerned about repairs and maintenance, duty of care, deposit, complain handling and termination of the let.
As a former board member of the TPO for many years, I’m appalled by these figures. All agents have to deal with complaints from time to time, and these are usually resolved informally and in-house, or with a small one-off compensatory payout and better processes implemented.
But I’ve seen data that shows that in the first quarter of 2023 alone the TPO received over 170 enquiries about one particular sales agency, resulting in over £32,000 in awards. These aren’t just numbers; they reflect real people and real dissatisfaction.
I also wonder how many complaints are made because of delays to the transaction process. While the Legal Ombudsman will deal with conveyancing complaints, we all know that the increase in transaction delays, often stretching to five or six months compared to the traditional 12 weeks, is leading to mounting frustration for customers caught in limbo.
The issues in conveyancing are well rehearsed, but in our digital savvy age, surely we should be much further forward in creating processes that speed everything up?
As an industry, I’m sure there are plenty of other things we can do to address this, starting with clearer timelines and honest communication about potential delays. Agents need to set realistic expectations from day one, keeping clients updated at every step to help reduce misunderstandings and complaints.
But we also need to go further. I believe better education and licensing for agents would go a long way toward raising standards across the board. I’ve called for licensing for many years so it would be good to see the new government sitting up and taking notice. That’s not just good for the client; it’s good for the reputation of our industry as a whole.
Around four out of five disputes formally investigated by the Ombudsman found in favour of the consumer. To me, that says many of these issues could have been prevented altogether if agents had been better trained and held to higher standards.
The TPO resolves almost half of all disputes through early resolution, and agencies with robust complaints handling procedures prevent many of those complaints reaching the Ombudsman in the first place.
So let’s use this rise in complaints as a catalyst for change. We owe it to our clients – and to ourselves – to commit to better service, clear communication, and robust training.
If we do that, we can reduce complaints and build a more trusted, professional industry that benefits everyone involved.
Paul Smith is chairman and founder of Spicerhaart
[ad_2]
Source link
