Ombudsman boots out 3 agents over unpaid awards up to £800

The Property Ombudsman has thrown three property businesses out of its redress scheme after they failed to pay compensation it had ordered. The awards were tiny, £100, £300 and £800, but the firms still wouldn’t pay.

The expulsions were announced on 8 October 2026 and follow a review by the Ombudsman’s independent Finance, Performance and Compliance Committee. Two of the three complaints came from landlords, so this is a story about the agents you hand your rent, deposits and tenants to.

Here is who was expelled, why it matters, and how to use the ombudsman yourself. That includes the two deadlines that can sink a complaint and a tracker that works them out for you.

The three firms and what went wrong

All three firms had complaints upheld against them and were told to pay. None of them did, so the case went to the committee, which agreed to expel them. These details come from the Ombudsman’s own announcement.

Chief Ombudsman Lesley Horton said that “an Ombudsman award is not optional” and that expulsion “is always a last resort”. She also noted that only three businesses reached expulsion this quarter, which shows how rarely the sanction is used.

The announcement does not say whether the complainants have now been paid. Expelling a firm does not put money in anyone’s pocket.

Why expulsion is a big deal for an agent

Under TPO’s Terms of Reference, an award becomes binding on both sides once the complainant accepts it in writing in full and final settlement. The member then has 28 days from the final decision to comply and must show evidence within 30 days.

The firm doesn’t get to choose whether to pay. And in England, belonging to a redress scheme is a legal requirement for letting agents, property managers and estate agents, not a badge they can take or leave.

An agent doing lettings or property management work in England without scheme membership is breaking the 2014 Redress Schemes Order. The council can fine them up to £5,000. To keep operating legally, an expelled firm has to join another approved scheme.

Who legally has to belong to a scheme

There are two government-approved redress schemes for property agents: The Property Ombudsman and the Property Redress Scheme. An agent must be in one of them. Which rules apply depends on the work the agent does.

Government guidance says letting agents and property managers in Wales must also join a redress scheme. Scotland has its own regime and this article does not cover it.

Client money protection (CMP) is a separate requirement from redress. Redress covers a complaint about poor service. CMP covers rent or deposit money that disappears because an agent goes bust or misuses it. Agents must display their CMP certificate in every office and publish it on their website. If their membership is revoked, they have 14 days to tell clients in writing.

How to complain, and the deadlines that matter

TPO won’t look at a complaint until you have been through the agent’s own complaints procedure. After that, three time limits decide whether your case can be heard.

• 12 months to complain to the agent. Put your complaint in writing within 12 months of the problem, or of when you became aware of it.
• 8 weeks to wait. If the agent hasn’t given you a final response 8 weeks after your written complaint, you can refer it to TPO. There is a quicker route if the agent ignores you. Chase after 15 working days, and if there is still no reply after another 5 working days, you can refer without waiting the full 8 weeks.
• 12 months to refer. You must refer to TPO within 12 months of the agent’s final response. TPO’s consumer page counts from when you receive it, while the Terms of Reference count from the date of the letter. Work from the letter date to be safe.

Worked example: you email a formal complaint on 3 August 2026 and hear nothing. You can refer to TPO from 28 September 2026, which is 56 days later. If the agent instead sends a final response dated 15 September 2026, your last day to refer is 15 September 2027.

What an agent dispute is worth

Be realistic. TPO says its average compensation awards are between £100 and £400, and that its awards “tend to be hundreds rather than thousands of pounds”. Awards can go much higher where money has actually been lost. This year’s expulsion rounds included a £7,400 award and one of £12,635.

Worked example: your agent charges a £600 let-only fee and then places a tenant without carrying out the checks you paid for, and nobody answers when you complain. A refund of all or part of the £600, plus £100 to £400 for the hassle, is a realistic range based on TPO’s published averages. Accepting the award settles the dispute in full and may stop you suing over the same issue later.

The new Landlord Ombudsman: what’s planned

Today’s redress rules cover agents, not landlords who manage their own properties. The Renters’ Rights Act 2025 changes that. The government’s implementation roadmap, published on 13 November 2025, says a Private Rented Sector Landlord Ombudsman will be mandatory for private landlords in England, and landlords will pay for it.

In force now: the first phase of the Act’s tenancy reforms took effect on 1 May 2026. Planned, not yet live: the government expects compulsory landlord sign-up to the ombudsman in 2028, but only once the Secretary of State is confident the service is ready. A scheme administrator still has to be chosen. Separately, the private rented sector database is due to start rolling out from late 2026.

Until then, a tenant with a complaint about a self-managing landlord has no ombudsman to go to. If you use an agent, both you and your tenants can complain about the agent to its redress scheme.

What landlords should do now

1. Check your agent’s memberships today. Search TPO’s member register or the Property Redress Scheme, and ask for the agent’s CMP certificate.
2. Check the expulsion lists. TPO publishes every round of expulsions in its news section. If your agent appears, ask which scheme it belongs to now.
3. Put any complaint in writing. Use the agent’s formal complaints procedure, quote dates and amounts, and keep a copy.
4. Diary the deadlines. Use the tracker above to note the 8-week point and the 12-month cut-off.
5. Refer with evidence. Include the agreement, invoices, rent statements, emails and the agent’s final response.
6. Think before accepting an award. Accepting it is full and final settlement. If your losses are far larger than TPO typically awards, take advice first.

Vetting checklist: before you sign with an agent

• Member of The Property Ombudsman or the Property Redress Scheme, checked on the scheme’s own register
• Client money protection certificate shown in the office and on the website
• Client money held in a separate client account
• A written complaints procedure, provided on request
• Not on TPO’s 2026 expulsion lists
• Clear terms on fees, notice periods and handing over deposits and rent if you switch agents
• Deposits protected in a government-backed scheme, with the certificate given to you
• Monthly rent statements that reconcile with your bank account

FAQs

How long do I have to complain to the Property Ombudsman?

You must refer your complaint within 12 months of the agent’s final response. Before that, you must have complained to the agent in writing within 12 months of the problem.

What if my letting agent ignores my complaint?

You can refer to TPO 8 weeks after your written complaint. If you chase after 15 working days and get no reply within another 5 working days, you can refer sooner.

Do letting agents have to be in a redress scheme?

Yes. In England this has been the law since 1 October 2014, and an agent can be fined up to £5,000 by the council for not belonging. The approved schemes are The Property Ombudsman and the Property Redress Scheme.

What happens if an agent doesn’t pay an ombudsman award?

TPO can refer the firm through its compliance process to its Finance, Performance and Compliance Committee, which can expel it, as happened to these three firms. To work legally, an expelled letting or property management firm in England must join another approved scheme.

Can the Property Ombudsman help with my deposit dispute?

No. TPO says it cannot resolve deposit disputes. Use the free dispute service of the scheme protecting the deposit. TPO can still look at how an agent handled deposits, such as late transfers when you change agent.

When will landlords have to join an ombudsman?

The government expects mandatory sign-up to the new Private Rented Sector Landlord Ombudsman in 2028. That date is a plan, not law in force, and depends on the service being ready.