Property companies expelled from ombudsman scheme over unpaid awards

Metro Loud
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Two property companies have been expelled from The Property Ombudsman (TPO) scheme after failing to pay compensation awards following upheld complaints in opposition to them.

Noble Dwelling (Nottingham) Restricted, a letting agent, was expelled after failing to return £725 in hire paid in error by a tenant. The agency handed the cash to the owner and made no try to retrieve or return the funds after being notified of the error, in accordance with TPO.

The Property Ombudsman upheld the grievance and ordered Noble Dwelling to pay £875, comprising the £725 hire plus £150 for aggravation, misery and inconvenience. The agency didn’t adjust to the award.

Administration firm expelled

Blocsphere Property Administration Restricted, a residential leasehold administration firm, was the topic of the second expulsion. The agency obtained a grievance over poor communication throughout a tenant dispute. TPO dominated that the corporate’s conduct fell under acceptable requirements and issued a compensation award of £50, which remained unpaid.

Chief Ombudsman Lesley Horton acknowledged that the organisation offers grievance decision providers to customers throughout greater than 19,000 registered companies. She described expulsion as “the final resort, and the final step in our compliance course of”.

Horton famous that two companies have been readmitted to the scheme in 2025 after making excellent award funds following preliminary expulsion.

Compliance charges

TPO expelled 13 companies all through 2025, representing lower than 1% of its registered membership. In response to Horton, greater than 99% of member companies adjust to TPO selections and pay awards when directed.

The organisation’s membership workforce works with brokers to make sure immediate cost of awards. Whereas TPO will not be a regulator and can’t take authorized motion, its selections are binding on registered companies. The ombudsman maintains powers to refer non-compliant companies to enforcement authorities.

The expulsions spotlight the implications for property companies that fail to adjust to ombudsman rulings, although the low expulsion charge signifies widespread adherence to the scheme’s necessities throughout the sector.

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