A letting agent and a residential leasehold management company have been expelled from a leading redress scheme after failing to pay compensation awarded to consumers.
The decision followed a review by the scheme’s independent Compliance Committee, which ruled that both firms had breached their obligations by not honouring upheld awards.
The Property Ombudsman found that Noble Living (Nottingham) Limited and Blocsphere Property Management Limited failed to pay compensation following complaints brought by tenants.
Noble Living (Nottingham) Limited, based on Church Street, Wellington, Telford, was ordered to pay £875 after failing to return a month’s rent paid in error. The money had been passed to the landlord and, despite being made aware of the mistake, the firm took no steps to recover or refund the funds. The award included £725 in rent and £150 for aggravation, distress and inconvenience.
In a separate case, Blocsphere Property Management Limited, based on Eco Park Road, Ludlow, Shropshire, was expelled after a complaint over poor communication. The Ombudsman ruled that the company’s conduct fell below acceptable standards and awarded the tenant £50 in compensation.
Chief Ombudsman Lesley Horton said: “With more than 19,000 registered businesses, we provide thousands of consumers with a trusted and reliable route to resolve their complaints.
“Our proactive membership team works closely with agents to ensure that awards are paid promptly. Expulsion is the very last resort, and the last step in our compliance process. As an example, and after initial expulsion, two businesses were readmitted following awards payments being made.
“The fact that only 13 businesses were expelled throughout 2025 highlights the strength of our processes, with more than 99% complying with our decisions and paying awards when directed.
“We know that sometimes things do go wrong, which is why we have focused on early resolution over the past year. By bringing consumers and businesses together sooner, we can resolve problems more quickly and reduce the impact on everyone involved.”
The Ombudsman scheme, which was established in 1990, plays a critical role in offering redress where property businesses fall short, including the power to direct financial awards or other actions to return consumers to their pre-complaint position.
It is not a regulator and cannot take legal action, but its decisions are binding on registered businesses, and it maintains powers to refer non-compliant firms to enforcement authorities.
