Property Ombudsman Takes Firm Action Against Non-Paying Agents

The Property Ombudsman (TPO) has expelled two property businesses after they failed to pay compensation awarded to consumers following upheld complaints. The decision came after an independent Compliance Committee review found that both firms breached their membership obligations by not honouring financial awards. This move underscores the Ombudsman’s commitment to ensuring that compensation payments are made promptly and in full, protecting the interests of landlords and tenants alike.

Expulsion as a Last Resort

Lesley Horton, Chief Ombudsman, explained that expulsion is the final step in TPO’s compliance process. She said, “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.” Horton also noted that some businesses have been readmitted after making the required payments, demonstrating the Ombudsman’s preference for early resolution where possible.

The Ombudsman has focused on early resolution over the past year to reduce the impact of disputes on all parties involved. “By bringing consumers and businesses together sooner, we can resolve problems more quickly and reduce the impact on everyone involved,” Horton added.

Case Details: Noble Living (Nottingham) Limited

Noble Living (Nottingham) Limited, operating from Church Street, Wellington, Telford, was expelled after failing to return a month’s rent that had been paid in error by a tenant. Although the landlord had received the funds and the error was identified, the company did not take any steps to recover or repay the money to the tenant.

The complaint was upheld by the Ombudsman, which awarded £875 in compensation. This sum included £725 for the rent and £150 for aggravation, distress, and inconvenience caused by the company’s failure to act.

Case Details: Blocsphere Property Management Limited

Blocsphere Property Management Limited, based on Eco Park Road, Ludlow, Shropshire, was expelled following a complaint concerning poor communication during a tenant dispute. The tenant raised concerns about a lack of response from the company, and the Ombudsman ruled that the firm’s conduct fell below acceptable standards.

A compensation award of £50 was made, which Blocsphere Property Management failed to pay, leading to their expulsion from the scheme.

What This Means for Landlords and Agents

For landlords and letting agents, these expulsions serve as a reminder of the importance of adhering to the Property Ombudsman’s rulings. Compliance with compensation awards is not optional and failure to comply can result in expulsion from the scheme, damaging a business’s reputation and standing in the industry.

The Ombudsman’s approach emphasises early resolution and cooperation between consumers and businesses to minimise disputes. Agents should ensure robust processes are in place to manage complaints promptly and to honour any financial awards to maintain membership and trust.

Conclusion

The expulsion of Noble Living (Nottingham) Limited and Blocsphere Property Management Limited highlights the Property Ombudsman’s firm stance on unpaid compensation. UK landlords and agents should take note of the consequences of non-compliance and prioritise swift resolution of disputes to uphold professional standards within the private rented sector.

Suggested internal link anchors

• Property Ombudsman
• compensation awards
• letting agents compliance
• tenant disputes
• landlord compensation
• dispute resolution process
• private rented sector standards
• agent expulsion
• complaint handling
• financial awards enforcement

TLA update

TLA is launching a new Trusted Partners Hub in Q1 2026, featuring verified and approved service providers selected to support landlords, tenants, and property management businesses. We are inviting legal, trades, insurance, financial, mortgage, tenant screening, and other service providers to register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/