Complaints about lettings agents increase

The Ombudsman received around 129 calls a week about letting agents during the three months to the end of September, well up on the 77 inquiries received each week during the same period of 2008.

Overall, 1,679 people contacted the service after having problems with a letting agent during the period, the highest level since letting agents were first able to join the scheme in June 2006.

The main cause of disputes was landlords saying letting agents had failed to make adequate checks on tenants' references, while they also claimed inspection visits were not being carried out frequently enough.

Potential tenants also complained that it had not been made clear to them that they would lose their holding deposit if they decided not to go ahead with renting a property.

The high volume of inquiries led to a 79% jump in the number of cases involving letting agents which were investigated by the Ombudsman during the third quarter, with these rising to 127, up from 71 in the third quarter of 2008.

Many of the inquiries were not investigated, as consumers were told they needed to take the matter to the letting agent first, while in some cases people were ringing for advice on how they should proceed.

The Ombudsman, Christopher Hamer, also reported a rise in the number of cases about estate agents that he investigated as the property market began to pick up again.

There was a 17% jump in cases involving property sales, rising from 104 in the second quarter to 122, although cases were still 32% lower than a year ago, reflecting the subdued level of transactions.

Many of the complaints about estate agents related to the depressed market, with homeowners complaining about being asked to pay for Home Information Packs when their property had not sold, or being liable for dual fees after switching agents in the slow market.

But Mr Hamer said he was also getting complaints from estate agents themselves about other agents who were making unsolicited approaches to sellers who were trying to sell or let their property through a rival firm.

He added that the quantity and format of flyers put out by agents touting for business in particular areas or through writing to individual addresses could also be an irritant to occupants.

Mr Hamer said: "The statistics in this report covering the period July 1 to September 30, 2009 show the continuing trend of increasing lettings disputes referred to my office.

"I have noted, however, a small surge in sales disputes and whilst there has been much talk about the market beginning to pick up, if that is true it will be some months yet before that has an effect on my workload.

"Trends in the market are mirrored in the numbers of cases that I am asked to decide about three to four months later so any actual increase in activity in the market will become apparent in my workload towards the end of the year."