Ombudsman For Estate Agents Scheme Growth Outstrips Complaints

11th June 2007

The number of enquiries about estate agents to the Ombudsman for Estate Agents rose to 8,472 in 2006, an increase of 41 per cent from 2005.

This resulted in 586 cases being referred for formal review and resolution, an increase of 18 per cent over 2005 in a year that saw OEA membership rise by 52 per cent to 7,666 offices, but still below the peak of 615 in 2002, when membership was only 4,251 offices.

“When viewed against the number of house sale transactions in a year, frequently quoted at 1.2 million, the number is still thankfully small,” says Ombudsman Christopher Hamer.

And he adds there is no room for complacency from anyone involved in the residential property industry – until the number of complaints received is nil, and whilst that’s never likely to happen, there will always be scope for improvement.

Mr Hamer took over the job in December last year and has committed to enrolling as many non members into the scheme as he can.

“I have joined the OEA as Ombudsman at a tremendously interesting time. On the one hand, I have a growing caseload and on the other I need to contribute to the establishment of the future redress arrangements in the residential property arena,” said Mr Hamer.

“As things stand, in less than two weeks every residential estate agent in England and Wales will have to be registered with an approved redress scheme to cover their Home Information Pack activities when HIPs become a legal requirement on June 1. At present the OEA is the only such scheme.

“But registration for HIPs is not the same as full membership, and we have made it easy for agents to become full members as they register. Any who have not done so have made a conscious decision to ignore our OFT-approved Code of Practice. I urge consumers to continue to look for full member agents, the only businesses entitled to display the OEA logo. Consumers should ask why some agents have not committed to our Code and actively avoid them.”

Statistics in the annual report show that although the number of member estate agent offices embraced by the OEA rose by 52 per cent compared with 2005 to a new high of 7,666, the number of new cases involving member agents rose by roughly 18 per cent and of these 297 were upheld.

“I have found in complainants’ favour in 61 per cent of cases. Although this figure is much reduced by comparison with the situation three years ago, really this is still too high given that the complaints have already been through the agents’ internal grievance procedures. Agents should be following the standards laid down in the Code of Practice so that complaints are not necessary,” stated Mr. Hamer.

“I am committed to communicating best practice to the industry so that the aggravation, distress, and inconvenience to sellers and buyers are reduced.

“The OEA plays an important role is resolving disputes between buyers and sellers of property and estate agents which are members of the scheme. It is pleasing to see a rapidly growing membership and the increased application of the Code of Practice.”