18 November 2009 - London based agent expelled from Property Ombudsman Scheme

The Property Ombudsman has expelled a London based agent from its scheme after its failure to pay a £1,600 fine awarded in September.

The agent, Global Realty, paid a Landlord the full £2,300 deposit at the end of the tenacy considering that he was entitled to it because of rent arrears and damage to the property. However the Property Ombudsman ruled that the Landlord had only been entitled to £900 to cover rent arrears and that £1,400 should have been returned to the tenant. The £1,600 fine included the money the tenant should have had refunded plus an extra £200 to cover the aggravation, stress and inconvenience caused to the tenant.

Global Realty fiercly deny any wrongdoing and said that they refused to pay the fine on a point of principle and accused the Ombudsman of "pomposity and arrogance".

It certainly seems that the damage to the property was not taken into consideration by the Ombudsman. The lesson for agents is to take great care over deposits and ensure that Landlords are aware of their responsibilities under deposit protection legislation. We also need to ensure that our inventories, inspections, and their related documentation is of the highest standard in order to satisfy the Ombudsman and the courts that any deductions we make are valid.



Back to news articles