Concerns about market appraisals and how offers are managed are set to be the leading industry grievances this year amid dwindling property stock, according to The Property Ombudsman (TPO).
The projection follows TPO’s Annual Review for 2023, which noted a decline in official sales complaints, aided by an uptick in the use of its early resolution service.
TPO reported 1,663 resolved sales disputes in 2023—a 12% decrease from the previous year. Of these, 740 were settled through early resolution, marking a 28% increase, while 923 were resolved through formal decisions, a 29% drop.
The primary issues flagged were instructions and fees, followed by concerns during the under-offer period, and issues related to marketing and advertising.
Sellers accounted for 70% of the complaints, with buyers making up the remaining 29%. TPO upheld 61% of the complaints in favour of consumers.
Despite the reduction in complaints, there was a significant 44% rise in the total value of awards, reaching £683,470.
Key concerns highlighted included conditional selling and buyer reservation fees.
TPO’s review commented, “Market conditions of 2022 have carried over into 2023, leading to a slowdown in transactions. For agents, the competition to market a smaller pool of properties will increase, likely causing more seller concerns around valuations during market appraisals. For buyers, a reduced property pool is expected to heighten worries about offer handling. Estate agents must ensure all offers are communicated in writing and use appropriate comparable properties when providing market valuations.”
Across the agency sector, a record 57,635 consumers sought TPO’s assistance—a 30% increase. Out of these, 5,644 disputes were accepted for investigation, a 46% rise, while 47% were resolved through early resolution.
Rebecca Marsh, The Property Ombudsman, stated, “We offer much more than dispute resolution; our expert teams provide guidance to resolve consumer issues before they escalate to complaints, saving consumers and businesses time and money. We also work with businesses to drive best practices through our Codes of Practice, which have become the industry’s gold standard.
“Our 99% satisfaction rate with our decisions shows the industry’s commitment to delivering high-quality service and offering redress where they fall short.”
Marsh added, “Consumers are increasingly demanding justice and becoming aware of their options when unable to resolve a dispute with a property business. The consumer enquiry function is a crucial support for those who might otherwise struggle to access help for their property and housing-related issues, with multiple redress schemes serving both new, public, and private properties.”