×

What Is The Property Ombudsman Code of Practice?

This article explains what the Property Ombudsman is and how its code of practice works.

Published 24 January 2023

Author Steven Rae

What Is The Property Ombudsman Code of Practice?

The Property Ombudsman (TPO) Code of Practice provides tenants and landlords with a redress scheme for disputes with letting agents.

     Highlights:

  • TPO code of practice protects landlords and tenants from unscrupulous letting agents.
  • The TPO code of practice doesn’t cover private landlords. Instead, it covers letting agents that a private landlord would hire to manage their properties. 
  • TPO cannot take enforcement action or make decisions on legislative breaches. Instead, the code focuses on whether the letting agent has adhered to best practice. 
  • The Property Ombudsman has several powers, including issuing fines of up to £25,000.

The Property Ombudsman (TPO) is a not-for-profit organisation that offers impartial resolution for property disputes. 

This article explains what TPO is and how the code of practice works.

 

What Is the TPO Code of Practice?

The Property Ombudsman (TPO) is a not-for-profit organisation that offers impartial resolution for property disputes. 

Its code of practice is a series of rules that set the standard for lettings and estate agents. It offers both landlords and residents the right to redress.

There are several versions of the code available. Each refers to a different type of agent or a different part of the UK.

For example, there is a code of practice for residential lettings agents in England and another for Scotland. 

Agents are required by law to sign up to a redress scheme, although the TPO code of practice isn’t the only one. Another example is the Property Redress Scheme.

If your letting agent is not a member of a scheme then they could be fined up to £5,000.

If you have a complaint about an agent, you should find out which scheme they are members of and go through them.

 

How Does It Apply to Landlords?

The TPO code doesn’t cover private landlords. Instead, it covers letting agents that a private landlord would hire to manage their properties. 

This means it can also protect you from a letting agent’s poor practice.

For example, if you think that your letting agent has not been meeting the standards set out in the code then your reputation may suffer. If this happens, you can report them to The Property Ombudsman.

 

It keeps you up to date

The code is constantly changing to reflect the latest developments in the property industry. 

Following these changes can help ensure that your property company remains up to date with requirements.

For example, issues with damp and mould in rental properties have received a lot of media attention recently. The Property Ombudsman has announced that they will be taking a new approach to dealing with these issues to ensure they get the attention they deserve.

In the past they have also announced changes relating to communications and GDPR.

 

All Propertymark holders are TPO members

Propertymark is the UK’s largest membership body for property agents. To become members, letting agents need to be registered with TPO. 

They can use the logos of both organisations on their marketing materials as a sign of professionalism, trust and respectability. 

 

What Does It Not Cover?

TPO cannot take enforcement action or make decisions on legislative breaches. 

If the organisation finds that this has happened, it will report the incident to the appropriate authorities. This could include local trading standards, the police or a court. 

Instead, the code focuses on whether the letting agent has adhered to best practices. 

 

What Powers Does the Ombudsman Have?

The Ombudsman has the power to:

  • Criticise an agent for failing to follow the code 
  • Make an award of up to £25,000 to the complainant
  • Direct the agent to take formal steps, like issuing an apology

The case study below shows the sort of case that TPO deals with and the decisions that it makes.

 

Case study: Landlord complains after letting agent fails to spot illegal activity

Complaint:

A landlord complained to TPO about their letting agent after tenants used their property for criminal activity. They grew cannabis plants and caused around £8,000 of damage.

The tenants had submitted fake passports to the letting agent and used fake work references. The landlord claimed that the letting agent hadn’t done enough to verify the tenant’s identity.

The landlord also complained of other failures, such as the agent failing to report suspected criminal activity at the property to them.

The agent accepted some of the failures and offered the landlord £600 as a goodwill gesture. But the landlord rejected it.

Investigation:

TPO found the following:

  • The forged passports were high quality and that staff could not have known they weren’t real.
  • The agent had failed to follow guidance on obtaining proof of address.
  • The agent had failed to report the criminal activity to either the landlord or the police.
  • The letting agent could not be held responsible for the conduct of the tenants.

Outcome:

  • The agent had made mistakes but was not to blame for the criminal activity taking place in the property.
  • There was no reason for them to think anything was amiss when accepting the tenants.
  • However, they had failed to follow guidance on referencing reports and obtaining proof of address.
  • Their communication failures with the police and landlord caused avoidable issues.
  • TPO ordered the agent to award the landlord £1,000.

 

What Is the Process?

Here is the process if you or one of your residents wants to complain to The Property Ombudsman. It takes between 30 - 90 days.

Attempt to resolve the issue with the agent

Before contacting The Property Ombudsman, you should complain to the letting agent. You should contact TPO if:

  • You receive a response and you find it unsatisfactory
  • If three weeks elapse without a response (the TPO will remind them)
  • If eight weeks elapse without a response (final deadline).

Send a Complaint

Visit The Property Ombudsman website and fill in a complaint form. It takes just 15 minutes, although you will need to include copies of supporting evidence. Note that The Property Ombudsman won’t handle your case if you complained to the agent more than 12 months ago.

When writing a complaint, you should make it clear what you think would resolve the dispute. For example, would you like financial compensation or just an apology?

Ombudsman investigates

An adjudicator will consider the documents submitted by you and the agent. If the case is simple then it may skip adjudication and get resolved early.

Sometimes the complaint is valid but not relevant to the code. If this is the case, the Ombudsman will suggest third-party mediation.

The more complex and egregious the case, the higher it will be escalated and the longer it will take. The Ombudsman personally deals with issues where the compensation is £5,000 or more.

Final decision

Finally, the Ombudsman will write to you explaining their final decision. If the letting agent is found to have broken the code of practice they can be asked to:

  • Perform staff training
  • Change processes
  • Apologise
  • Pay compensation

Better Lettings with EVO

Delivering a great service to tenants is tough for landlords and letting agents. Managing repairs and maintenance and communicating with residents and tradespeople is complex and can cause costs to spiral.

EVO is a digital platform that brings together landlords, tenants, tradespeople and letting agents all in one platform. It significantly increases efficiency and reduces costs, while improving landlord and tenant satisfaction. 

PHOTO BY EVO

Related Articles

Soho Housing Association and EVO pilot

Soho Housing Association launches a pilot with EVO to accelerate its digital transformation and improve tenant experience

READ MORE

The Renters Reform Bill 2023: Everything You Need to Know

The biggest change in the rental sector for over a decade....

READ MORE

What to Include in a Tenant Welcome Pack

A tenant welcome pack helps get the tenant-landlord relationship off to a great start. This article explains what they are and what to include in them.

READ MORE

Best Landlord Insurance UK: Which One is Best For You in 2023?

There are several different types of landlord insurance. This article explains the basics.

READ MORE

What Is the Social Housing Decarbonisation Fund?

The Social Housing Decarbonisation Fund will upgrade the energy efficiency of thousands of UK homes.

READ MORE

SimplyPhi Partners with EVO Digital

SimplyPhi partners with EVO Digital to add seamless repairs and maintenance technology.

READ MORE

Traditional VS Modern Property Repairs and Maintenance

Our CEO, Steven Rae, dives into the traditional way of managing property repairs and maintenance and how it compares to a new, modern way of doing things.

READ MORE

Storm Housing Partners with EVO Digital

Social impact developer Storm Property and Registered Provider of Social Housing Storm Housing Group (“Storm”) have partnered with EVO Digital Technologies Limited (“EVO”), a unique property management company to manage its post-tenancy repairs and maintenance processes through EVO’s tenant-focused digital cloud platform and mobile applications.

READ MORE

Duty to Manage Asbestos: Everything Landlords and Tenants Need to Know

Landlords have a duty to manage asbestos in their properties. This article explains everything landlords need to know about this dangerous material.

READ MORE

What Is the Pre-Action Housing Disrepair Protocol?

What is the Pre-Action Housing Disrepair Protocol? This article explains everything landlords need to know.

READ MORE

Capital Letters partners with EVO Digital as it steps up efforts to tackle the homelessness crisis

Not-for-profit company Capital Letters has made a major move in it’s work to tackle the homelessness crisis by partnering with unique property maintenance company EVO Digital Technologies (EVO) to digitalise its repairs, maintenance and compliance services through a unique tenant-driven platform.

READ MORE

EVO Joins SEC DPS for Responsive Repairs, Voids and Planned Maintenance Services

EVO has joined the SEC Dynamic Purchasing System for Responsive Repairs, Voids and Planned Maintenance Works and Services, providing access to their 49 members and 446,000 properties

READ MORE

EVO Client Case Study in Inside Housing magazine highlighting the benefit of going digital for repairs and maintenance

The benefits of using smartphones for and a digital workflow for reporting and tracking repairs is highlighted by an Inside Housing case study of an EVO client.

READ MORE

Are Landlords Responsible for Pest Control UK?

Are landlords responsible for pest control UK: Do tenants or landlords pay for pest control in rented properties? This guide explains everything you need to know.

READ MORE

Section 8 Grounds: Everything You Need To Know

This guide explains everything landlords and tenants need to know about changes to the Section 8 grounds for eviction.

READ MORE

What is Planned Preventative Maintenance?

 

Planned preventative maintenance is a great way to keep your property in top condition, reduce your costs and keep your tenants happy.

READ MORE

Failing Landlords to Expect Ofsted-Style Inspections and Unlimited Fines

Failing Landlords to Expect Ofsted-Style Inspections and Unlimited Fines

READ MORE

Electrical Installation Condition Report (EICR)

Electrical installations are subject to wear and tear and if they are not checked on a regular basis, they can become dangerous...

READ MORE

Gas Safe Building Compliance Regulations Certificate: What Landlords Need to Know in 2023

Building Regulations are formulated to ensure that buildings are safe to live in. All rented properties in the England and Wales must have a valid Gas Safe certificate.

READ MORE

How to choose the Right Property Management Company

For many landlords in the UK, renting out properties can be time-consuming and stressful. An experienced property management agency can do the work for you, but which one best fits your needs?

READ MORE

Extended Regulations on Domestic Smoke and Carbon Monoxide Alarms

Extended Regulations on Domestic Smoke and Carbon Monoxide Alarms

READ MORE

Energy Efficiency Standards are Changing

What Landlords Need to Know

New government proposals planned for 2025 are going to increase the requirements on landlords to make their properties more energy efficient....

READ MORE

Inquiry into Private Rental Sector Publishes Findings

The House of Commons Committee of Public Accounts has published its report following an inquiry into the regulation of England’s private renting sector.

READ MORE

The Tenant Experience and Why It Matters

Tenant experience is the most important phrase most landlords don’t use. However, it is a key part of a successful rental agreement that benefits both parties...

READ MORE