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Ombudsman provider to stop handling complaints in ‘broken’ property market
A multi-sector ombudsman has announced it will stop handling complaints in the property sector because it believes it is offering a “broken solution to a broken market”.
Ombudsman Services, a not-for-profit private company which handles complaints for the communications, energy and property sectors as well as UK Finance, said it aims to tackle an “imbalance of power” in the housing sector.
Ombudsman Services will start to withdraw from the current schemes it operates for surveyors, managing agents, estate agents and letting agents from August.
The organisation will also work with charities, consumer groups, property professionals and the public on a report into the creation of a single housing ombudsman for submission to the Ministry of Housing, Communities and Local Government in the spring.
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Last year housing secretary Sajid Javid proposed creating a single ombudsman for housing and called the current system of overlapping dispute resolution services “confusing and…uncoordinated”.
Lewis Shand Smith, chief ombudsman at Ombudsman Services, said: “Redress in the housing sector is a really confusing picture for all involved. The patchwork of [alternative dispute resolution] and ombudsman schemes is a mystery to consumers and therefore is incredibly difficult for them to navigate.
“We are ceasing what we’re currently doing in the housing sector in a professional and planned way, because we believe it is not adding value. Rather than continue to offer a broken solution to a broken market, we are stepping away to listen to what consumers actually want.
“We fully support Sajid Javid regarding the need for a single ombudsman for housing – only then will the housing sector be able to restore trust and ensure that consumers get a much better standard of service.
“Housing is one of the biggest issues we face as a nation and a fair, balanced redress system will make sure that it serves the whole of society. We want to work to develop a model that works for everyone.”
