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Increase in estate agent complaints

Increase in estate agent complaints

Tuesday, 18 March 2008 12:00 AM

There was a sharp increase in the number of homebuyer complaints over their treatment at the hands of estate agents during 2007.

According to figure from the Ombudsman for Estate Agents (OEA) some 870 complaints were received last year.

This represents an increase of 45 per cent on the number of complaints received in 2006.

However, the upward trend may be associated to the 60 per cent increase in membership of the OEA following the introduction of home information packs (Hips) last year.

The controversial government scheme was finally rolled out on December 14th, following months of delay.

The ombudsman, Christopher Hamer, detailed up to 12,344 UK estate agency branches were covered by the scheme at the end of 2007.

"People should be encouraged by the news in my report this year, the first report which covers a full year with me as ombudsman," reported Mr. Hamer, who took up the post in December 2006 and is only the third ombudsman since the scheme started.

"There is generally much more focus now on consumer redress, led in the residential property field by the OEA for 18 years," he continued.

The introduction of Hips last summer meant every residential estate agent in England and Wales was obliged to have redress in place for its Hips activities, bringing a huge rise in membership to the OEA.

This, in turn, has resulted in the increase in complaints.

During the year, some 795 cases were resolved by the OEA - a rise of 63 per cent from the 489 completed in 2006.

It is thought membership will increase further during 2008.

The OEA is one of three schemes bidding for approved status from the Office of Fair Trading (OFT) to offer redress to consumers with Hip related grievances.

This will improve protection for consumers further, according to Mr Hamer.

"If the new law is to have teeth, then it needs to bring results within a reasonable time, so that disputes do not become protracted and consumers disillusioned," he concluded.