The Property Ombudsman | Press Releases 2008

As an experienced professional in the residential property business, Mr McClintock is being increasingly sought out by estate agents frustrated at current conditions in the house sales market and seeking advice on what they should do.

'Many see lettings as an easy option, and it's easy to see why,' he explains.

'The lettings market is obviously growing at a fast pace because people who can't afford a mortgage still have to live somewhere. Some estate agents see a vast reserve of potential tenants looking for homes plus a bank of buy-to-let landlords who are desperate to match those tenants to their empty properties.

'Unfortunately, it's not just a case of shutting up shop in sales at midday and opening as a lettings agent after lunch. There's a lot to think about and disputes regarding lettings are becoming a larger feature of the caseload at the OEA.

'The OEA has included residential lettings agents since summer 2006 and has a growing number enrolling. This has been boosted by the National Approved Letting Scheme (NALS) requiring its accredited firms to join and I am now in talks with the Association of Residential Lettings Agents (ARLA), the lettings division of the National Federation of Property Professionals (NFoPP) about enrolling their members, too.

'At present, 4,960 lettings offices in the UK are signed up to the OEA and its Lettings Code of Practice, designed to protect all parties in a transaction by ensuring high standards.

'The OEA is seeking OFT approval for the Lettings Code. This already applies for our residential sales Code which is the only one in the industry that reaches this high standard and is, in effect, monitored remotely from the property industry itself, making it truly independent.'

End

Notes for Editors:

The Ombudsman for Estate Agents scheme offers a free, independent, and impartial service to members of the public who are dissatisfied with the service provided by an estate agent who is a member of the scheme during the buying, selling, or letting of a residential property. The Ombudsman can recommend member agents pay compensation of up to £25,000 in any one case.

Any decision made by the Ombudsman is binding on member agents but not on complainants, who are free to reject the Ombudsman's decision and pursue the matter in the courts if they wish.

Since October 1, 2008, it has become compulsory for every estate agent dealing with sales of residential properties in the UK to be registered with a Government-approved scheme for redress. The OEA was the first redress provider to be approved and now embraces at least 92 per cent of all UK residential estate agency branches. Belonging to the OEA for lettings agents is still a voluntary arrangement.

For more information, contact Maurice Hardy, PR, OEA, on 01264 771661/07831 272220.

04 November 2008

Keep an eye on your HIPs, Ombudsman advises home sellers

People who are selling their homes have been advised by the Ombudsman for Estate Agents to make sure they understand any agreements they sign covering the provision of Home Information Packs (HIPs).

In his report for the third quarter of 2008, Ombudsman Christopher Hamer says it is obvious to him there is a lack of understanding among people selling residential properties about when they have to pay for the HIP that is compulsory when a home is being marketed.

'In particular it appears that sellers see the charge for the HIP as simply a fee for selling their property and of course if it doesn't sell, they do not expect to pay,' says Mr. Hamer.

'In drawing a client's attention to the terms of the HIP agreement agents should emphasise that it is a legal requirement under the Housing Act 2004 for a Pack to be produced; and if the relationship between seller and agent ends, the payment of the fee means that the seller gains ownership of the HIP.'

Mr. Hamer outlines cases in his report where sellers disputed the need to pay for a HIP but makes it clear that in each case the estate agent's terms made it obvious that payment would be required for the HIP whether or not the property was sold through them.

He also reminds estate agents that prospective buyers who ask for a copy of a property's HIP must be given it unless there is good reason not to do so. If that doesn't happen and he receives a complaint, he is bound by law to report the agent to the Office of Fair Trading, which could have serious consequences for the firm.

Since the start of this year, Mr. Hamer has received 146 initial enquiries from the public regarding HIPs and he has now decided on 22 formal disputes. Not all of them were necessarily solely related to the HIP but were part of a wider dissatisfaction being expressed by complainants.

With regard to his general workload, Mr Hamer says there has been a slight decline in the number of disputes referred to him when compared with the second quarter of 2008 and over the whole year so far cases have been averaging 65 per month compared to 64 last year.

Lettings cases had also dropped during the third quarter of 2008 but over the year as a whole he had received 213 lettings cases, 115 per cent of the figure for the whole of 2007.

'The OEA only started dealing with lettings redress during 2006 and has since been recruiting a growing number of lettings agents so the rise in disputes is no more than I would expect to see,' adds Mr. Hamer.

During the quarter under review, the OEA received 2,882 enquiries compared with 3,036 during the second quarter.

End

Notes for Editors:

Any decision made by the Ombudsman is binding on member agents but not on complainants, who are free to reject the Ombudsman's decision and pursue the matter in the courts if they wish.

For more information, contact Maurice Hardy, PR, OEA, on 01264 771661/07831 272220

24 September 2008

Around 90 per cent of Estate Agents now covered by Ombudsman Scheme

With a week to go until every residential estate agent handling property sales in the UK is required to have redress in place for clients, the Ombudsman for Estate Agents scheme is now quoting membership as a minimum of 89 per cent of the country's estate agency branches.

'We now have 11,119 residential sales offices registered for redress,' reports Bill McClintock, chairman of the company that operates the Ombudsman for Estate Agents scheme which also covers 4,561 offices dealing with residential lettings, a fast-growing sector of the property market.

'Official estimates vary as to the number of sales offices throughout the UK, but even the highest only sets the figure at 12,500. More realistically it is 12,000, giving us coverage of 92.6 per cent.

'However, the public should be aware that there are still residential sales estate agents who have yet to meet the requirements of the Consumers, Estate Agents, and Redress Act that all such businesses in the UK must belong to an approved redress scheme by October 1 - that's next Wednesday.

'Dealing with these agents, who will be showing a clear contempt for this important law should they fail to register, means they would have no recourse to an independent adjudication on their complaint if it is not dealt with satisfactorily by the agent involved.

'Our service is free to consumers and redress protects both buyers and sellers who have a dispute with an estate agent that cannot be resolved directly with that agent. To belong to a scheme, agents have to have their own robust system in place but it may not always work. It's then that an Ombudsman scheme comes into play.

'The OEA pioneered redress when it launched 18 years ago and is the only approved scheme that has a Code of Practice approved by the Office of Fair Trading to ensure the highest standards of behaviour by estate agents.

'My message to consumers is that they should not settle for second best - or a scheme that does not have the wealth of experience that the OEA can call upon.

'At present, we have most work to do in Northern Ireland and Scotland with regard to signing up the last remaining agents. It's thought, for instance, there may be as many as 650 estate agency branches in Ulster but only 108 are currently registered with the OEA although we have started to receive a trickle of enquiries.

'Agents ignore this new law at their peril - not registering for redress could bring a £1,000 fixed penalty fine from Trading Standards officers who could then go on to report the agent to the Office of Fair Trading, which has the power to warn them about their conduct or even to ban them from practising as an estate agent.

'Joining up is good value when you consider that one fine equals eight years' OEA membership at current rates - and after the fine is issued, the agent still has to join or close down!

'The legal definition of an estate agent also embraces those like buying agents, who find properties for a commission on clients' behalf. Basically, anyone acting as a paid intermediary in the buying or selling of residential property falls within the scope of the new law - and that includes solicitors who operate a separate estate agency company with its own premises.'

Estate agents who want to join can get details from www.oea.co.uk or call 01722 333306. Consumers can access the same website to find an estate agent who is a member of the OEA and who therefore works to the highest standards.

End

Notes for Editors:

Any decision made by the Ombudsman is binding on member agents but not on complainants, who are free to reject the Ombudsman's decision and pursue the matter in the courts if they wish.

The provision for a £1,000 penalty charge is contained in The Estate Agents (Redress Scheme) (Penalty Charge) Regulations 2008. This was made on 28th June 2008, laid before Parliament on 1st July 2008, and comes into force on 1st October 2008. Use the link to see the Order

For more information or to arrange an interview with Bill McClintock, call Maurice Hardy, PR to the OEA, on 01264 771661/07831 272220.

11 September 2008

Unexpected bonus as new property law approaches

Legislation designed to give access to redress for consumers involved in buying or selling residential property is already having an unexpected benefit for those who rent or let property, too.

Residential estate agents selling properties who are not already members of an approved redress scheme will have to have a means of independent redress by October 1 when the Consumer, Estate Agents and Redress Act comes into operation. Agents who fail to register with an approved scheme face a £1,000 fixed penalty should they be caught.

As the new law approaches, the Ombudsman for Estate Agents scheme has written to more than 10,000 members outlining how the law will affect them. At the same time, those involved with residential lettings were invited to provide redress for that, too, and many have reacted positively.

Bill McClintock, chairman of the company that runs the Ombudsman for Estate Agents scheme - it pioneered redress for the residential property industry when it was launched 18 years ago and became the first body to gain Government approval under the CEAR Act - says consumers will now draw a double benefit as a result of CEAR.

'The principal intention of the law was to give extra protection to those involved in buying or selling homes and with that in mind I am currently writing to all those businesses selling residential property who will now be required to have redress in place,' he said.

'The OEA already embraced around 85 per cent of estate agency branches in the UK handling residential sales and had seen several thousand sign up to its Code of Practice for lettings, too.

'I invited all those who had not done so to sign up for lettings when I wrote to outline the new sales law and have been amazed by how many have taken me up on this. It's a real boost to those involved in the burgeoning lettings market and an unforeseen bonus where CEAR is concerned.

'However, I'm dismayed by the slow response from estate agents in Northern Ireland. Membership in the Province has not grown in the last 12 months despite the impending implementation of this new law and a visit I made with the Ombudsman, Christopher Hamer, last October to explain redress. In Scotland, the reaction has been rather better and membership has risen by a third in the same period.

'Estate agents should understand that if they are not registered with an approved scheme on October 1 they will be trading illegally should they continue to sell houses and face an instant fine of £1,000.

'They may think little will be done to enforce the legislation but I would hate them to get caught out. Experience in England and Wales, where residential agents have been obliged to have redress in place for their Home Information Pack activities, shows that Trading Standards officials have started looking at their registrations.

'The HIPs rules do not apply in Scotland or Northern Ireland so maybe some agents are under the impression that CEAR does not, either. I need to disillusion them because the rules will be in force in less than a month so they must act quickly to register with a scheme and stay legal.

'Our redress system is a relatively quick way of resolving disputes and is free to consumers. Nor do member agents pay any case fee. The Ombudsman does not apportion blame but has the power to make financial awards when a client has been disadvantaged by the actions of an estate agent.

'My advice to consumers is that, after October 1, they should ask estate agents to show them evidence they are registered for redress before doing business with them.

'It is in people's interests to ensure their estate agent complies with this law should things go wrong. The Ombudsman cannot investigate cases involving unregistered estate agents.'

End

Notes for Editors:

Any decision made by the Ombudsman is binding on member agents but not on complainants, who are free to reject the Ombudsman's decision and pursue the matter in the courts if they wish.

For more information or to arrange an interview with Bill McClintock, call Maurice Hardy, PR to the OEA, on 01264 771661/07831 272220.

11 September 2008

Get moving on new law, Scottish Estate Agents warned

Residential estate agents who are not members of an approved ombudsman scheme will also have to get used to the idea of independent redress as the Consumer, Estate Agents and Redress Act comes into operation on October 1.

The legislation will force all residential estate agents in the UK to have redress in place if they want to stay in business - and, so far, agents operating in Scotland may be taking more notice of the new rules than other regions. Those who fail to register face a £1,000 fixed penalty should they be caught.

Bill McClintock, chairman of the company that runs the Ombudsman for Estate Agents scheme - it pioneered redress for the residential property industry when it was launched 18 years ago and has since become the first scheme to gain Government approval under the CEAR Act - says numbers of estate agents from Scotland enrolled with OEA have grown by a third since this time last year.

'Then, 130 estate agency branches in Scotland were covered by the OEA and today the figure is 174. But I'm sure there's still some way to go before all Scottish estate agencies are seen to comply with the new rule.

'The Scottish residential property market is different from the rest of the UK because many solicitors also sell houses. But our evidence shows that estate agents are increasingly active in some areas, particularly with more expensive homes. My advice to consumers is that, after October 1, they should ask estate agents to show them evidence they are registered for redress before doing business with them.

'It is in people's interests to ensure their estate agent complies with this law should things go wrong. The Ombudsman cannot investigate cases involving unregistered estate agents.'

End

Notes for Editors:

Any decision made by the Ombudsman is binding on member agents but not on complainants, who are free to reject the Ombudsman's decision and pursue the matter in the courts if they wish.

For more information or to arrange an interview with Bill McClintock, call Maurice Hardy, PR to the OEA, on 01264 771661/07831 272220.

11 September 2008

Get moving on new law, Ulster Estate Agents warned

The legislation will force all residential estate agents in the UK to have redress in place if they want to stay in business - but, so far, agents operating in Northern Ireland appear to be showing little enthusiasm for signing up to the new rules. Agents who fail to register face a £1,000 fixed penalty should they be caught.

Bill McClintock, chairman of the company that runs the Ombudsman for Estate Agents Scheme - it pioneered redress for the residential property industry when it was launched 18 years ago and has since become the first scheme to gain Government approval under the CEAR Act - says numbers of estate agents from Northern Ireland enrolled with OEA have shown little change.

'I visited Northern Ireland with the Ombudsman, Christopher Hamer, in October last year and we outlined to estate agents the desirability of joining the scheme voluntarily,' said Mr. McClintock.

'At that time, slightly more than 100 of the 630 or so estate agency branches in the Province were covered by the OEA and that remains virtually unchanged.

'The HIPs rules do not apply in Northern Ireland or Scotland so maybe some agents are under the impression that CEAR does not, either. I need to disillusion them because the rules will be in force in less than a month so they must act quickly to register with a scheme and stay legal.

'Our redress system is a relatively quick way of resolving disputes and is free to consumers. Nor do member agents pay any case fee. The Ombudsman does not apportion blame but has the power to make restoration financially when a client has been disadvantaged by the actions of an estate agent.

'Last year's was a useful visit and we met a good number of agents. However, we may well have been preaching to the converted. My advice to consumers is that, after October 1, they should ask estate agents to show them evidence they are registered for redress before doing business with them.

'It is in people's interests to ensure their estate agent complies with this law should things go wrong. The Ombudsman cannot investigate cases involving unregistered estate agents.'

End

Notes for Editors:

Any decision made by the Ombudsman is binding on member agents but not on complainants, who are free to reject the Ombudsman's decision and pursue the matter in the courts if they wish.

For more information or to arrange an interview with Bill McClintock, call Maurice Hardy, PR to the OEA, on 01264 771661/07831 272220.

14 July 2008

Take care on commission, Ombudsman warns Estate Agents

Estate agents adopting a fixed fee approach to commissions rather than the more recognised percentage of the sale price should take care, warns the Ombudsman for Estate Agents today.

The Ombudsman, Christopher Hamer, says in his latest quarterly report: 'I have seen many cases recently where an agent has employed a fixed fee basis, generally arrived at by calculating a percentage of the asking price but then described as a cash amount, which has clearly not been explained fully or where some ambiguity has crept in as to whether that fee is a percentage or a fixed monetary amount.

'If a Seller has signed a contract on a fixed fee basis I will not rewrite that contract but if there is evidence that some confusion has been built into the process by the agent I am likely to make an award of compensation against the agent.

This fixed fee issue is particularly serious where the property has been overvalued either deliberately or carelessly and sells for significantly less than the asking price and where there were no supporting valuation comparables. The effect of this is to give a huge advantage to the agent in terms of the fee received - particularly so in today's market conditions.

'To avoid disputes and dissatisfied clients in relation to this matter, my message is that the property valuation must always be supportable but reflect the market situation and the fee must be openly described as fixed irrespective of the price finally achieved for the property.'

In his report, he cites the case of a complainant who was clearly confused over the fee arrangement and he awarded a full refund of £235, the difference between the fixed fee commission and what it would have been if decided by the final selling price.

Mr. Hamer also points out that after a recent widely reported Appeal Court decision on when commission becomes payable an 'introduction' must now be shown to have been the effective cause of the applicant becoming the purchaser to qualify for a fee.

'An introduction must be more than just proof that a viewing took place. The Buyer's interest must be referable to that viewing and to whatever else the agent did to promote the Buyer's interest,' he explains.

Overall, Mr. Hamer's report shows a small rise in overall enquiries despite membership now being at the highest level in the 19 year history of the scheme.

'During the second quarter of 2008 workload has remained at the same level as in the first quarter of the year across all enquiries but new disputes have reduced by 12 per cent. In all, 255 new disputes were referred to me during this period, of which 182 related to sales and 73 to lettings, and for the whole of the year so far it means I have received 402 Sales disputes and 142 Lettings disputes.

'This represents an overall two per cent increase on the same period for 2007. The number of enquiries on matters within my Terms of Reference was 1,710, an increase of 3 per cent, again with lettings being the prime reason for that. The total number of enquiries for the year so far is 6,089.

'Membership of the scheme at 30 June, 2008, stands at 5,812 members operating out of 12,593 offices. Whilst the number of member firms increased slightly, there has been a marginal decrease in the number of offices from when I reported this statistic in my previous quarterly report.'

Of the 402 disputes reviewed, the least number emanated from Northern Ireland, with just one per cent of the total. The south east fared worst, generating 21.5 per cent, with Greater London contributing 14 per cent. For Eastern England, the figure was 12 per cent, the West Midlands and South West were both on nine per cent, the North West on 8.5 per cent, Yorkshire on seven per cent, the North East on six per cent, Scotland five per cent, the East Midlands four per cent, and Wales three per cent.

End

Notes for Editors:

Any decision made by the Ombudsman is binding on member agents but not on complainants, who are free to reject the Ombudsman's decision and pursue the matter in the courts if they wish.

For more information, contact Maurice Hardy, PR, OEA, on 01264 771661/07831 272220

19 June 2008

Redress pioneer welcomes Government approval

As the pioneer organisation for providing redress for consumers in the residential property market, the Ombudsman for Estate Agents welcomes news of its approval to operate a redress scheme under the new Consumers, Estate Agents and Redress Act.

Membership currently stands at 12,699 branches (5,808 firms) representing around 85 per cent of residential estate agents and this percentage looks likely to grow now the CEAR approval has been received.

'The ombudsman scheme was founded almost 20 years ago and has seen membership steadily increasing in recent years as residential estate agents have come to realise the value of having a redress scheme in place,' said Bill McClintock, chairman of OEA Ltd, which operates the scheme.

'A significant majority of residential sales agencies in the UK, but especially in England and Wales, now belong to the OEA as a full member, with 7,612 branches involved in sales and 3,381 in sales and lettings. A further 953 branches cover lettings only and 753 branches (477 agencies) are registered just for their HIPs activities.

'However, agents still only registered for HIPs activities need to act before implementation expected on 1st October either to upgrade to full OEA membership or register with an Approved Scheme.

'The OEA will allow them to transfer across to full membership at no cost until their next renewal date.

'Buying agents will also be required to be part of an approved redress scheme once the law comes into effect, as will all estate agents in Northern Ireland and Scotland who do not belong to a scheme at the moment.

'Meanwhile, agents who have already become full members of the OEA need do nothing extra to comply with the new law. Consumers can be confident that where they see the familiar OEA logo they are already covered by independent redress.

'But I would just remind consumers that before they bring a dispute to the OEA they must ensure they have been through the member agent's own internal disputes procedure first. All member agents must have such a system in place.

'The Act will provide a basis for all residential estate agents to provide an approved Redress Scheme free buyers and sellers along with a number of other requirements designed to improve the service to consumers.'

End

Notes for Editors:

The Ombudsman for Estate Agents scheme offers a free, independent, and impartial service to members of the public who are dissatisfied with the service provided by an estate agent who is a member of the scheme during the buying, selling, or letting of a residential property. The Ombudsman, Christopher Hamer, can recommend member agents pay compensation of up to £25,000 in any one case.

Any decision made by the Ombudsman is binding on member agents but not on complainants, who are free to reject the Ombudsman's decision and pursue the matter in the courts if they wish.

Christopher Hamer has a strong background in ombudsman schemes, starting as private secretary to the Parliamentary Ombudsman in 1984.

Immediately prior to joining the OEA, he spent six years with HSBC as head of insurance product and distribution risk but previously he was general manager of the Personal Investment Authority Ombudsman Bureau and, before that, director of services at the Insurance Ombudsman Bureau.

The operation of the OEA scheme is supervised by an independent council with membership drawn from both consumer and industry representatives. It is chaired by Lord Borrie. As Director General of Fair Trading, he was in charge of the Office of Fair Trading from 1976 to 1992. Then known as Gordon Borrie, he became a household name and was created a Life Peer in 1995.

Lord Borrie has served on the Council of the Consumers' Association (now known as Which?) and has written on consumer law. He was also President of the Institute of Trading Standards from 1992 to 1996 and was Chairman of the Direct Marketing Authority from 1997 to 2000. He became the Advertising Standards Authority's Chairman in January, 2001.

For more information call Bill McClintock on 01794 341400 or 07836 525252

18 March 2008

Consumers benefiting from higher standards

REPORT SHOWS ESTATE AGENTS AND THEIR OMBUDSMAN ARE PERFORMING BETTER

At a time when the relationship between consumers and estate agents is very much in focus, more agents are showing a commitment to improving their professional standards by signing up to the Ombudsman for Estate Agents Scheme and its Code of Practice.

With the Consumers, Estate Agents and Redress Act due to come into full effect this year, everyone who deals with a residential estate agent in the UK will have access to a redress system if they have a dispute with the agent that cannot be resolved.

The principal source of redress for consumers is the Ombudsman for Estate Agents, and in his annual report issued today the Ombudsman, Christopher Hamer, reveals that membership numbers have been growing far faster than the Enquiries received or the number of new cases investigated. The organisation covered 12,344 UK estate agency branches at the end of 2007.

He also reports that his own organisation has become more efficient, with a 63 per cent rise in the number of cases closed during 2007 when compared with 2006.

"People should be encouraged by the news in my report this year, the first report which covers a full year with me as Ombudsman," reports Mr. Hamer, who took up the post in December, 2006 and is only the third Ombudsman since the Scheme started.

"There is generally much more focus now on consumer redress, led in the residential property field by the OEA for 18 years. The introduction of HIPs last summer meant every residential estate agent in England and Wales was obliged to have redress in place for its HIPs activities, bringing a huge rise in membership."

"What's gratifying is that the vast majority of agents who registered for HIPs in fact did more than the legal minimum required and signed up to our full Code of Practice that covers all their activities. Estate agents in England and Wales volunteered to abide by the OEA Code of Practice and its stringent rules well before the new law has required it."

"While member numbers climbed by 60 per cent during 2007 the number of complaints received within my Terms of Reference only increased by 48 per cent for residential sales."

"At the same time as my staff had to deal with this huge influx of members, they also coped with closing more cases. During 2007 I resolved 795 cases compared with 489 resolved during 2006, an increase of 63 per cent."

"This means that as consumers have greater protection under the new CEAR laws, they can be assured that we at the OEA, if we become an approved Scheme, will do our utmost to see their dispute through to a satisfactory resolution as speedily as possible. If the new law is to have teeth then it needs to bring results within a reasonable time so that disputes do not become protracted and consumers disillusioned."

"The figures shown in my report hide an increase in disputes involving lettings, in all 99 cases. It should be remembered that the OEA did not deal with lettings disputes before the middle of 2006 and it took time for public awareness to grow."

"A more realistic overview of the situation involving lettings should be available next year, when we have two full years of lettings complaints to compare."

"During 2008, we will continue to advise and guide consumers who contact us, so that those who consider they have a grievance concerning an estate agent feel they have some support."

"Last year saw a 42 per cent rise in initial enquires, partly driven, I'm sure, by the fact the people are becoming more aware of our existence as a result of the publicity surrounding legislative changes."

"This can only be good for all those involved in the residential property market, whether it's in sales or lettings."

"The majority of disputes I receive are the result of failings by agents' administration such as the organising of viewings or in maintaining the security of keys to a property being marketed rather than any suggestion of malicious intent."

"More particularly, I have received many disputes, for example, about buyers being described as 'cash buyers' when they actually need a mortgage or will only be cash buyers when they have sold their own house; and other disputes about the way in which the original complaint was handled by the estate agent and misleading or imprecise property descriptions."

Lord Borrie former Director General of Fair Trading, who chairs the independent Council that oversees the OEA, commented: "At last legislation is catching up with what the OEA has been trying to achieve for many years."

"The new Act can only be good for all involved but especially consumers, who can now feel confident that disputes will be resolved by a system that is so much better than lengthy and expensive legal proceedings."

"The OEA costs them nothing to use - it is totally free to the consumer."

Notes for Editors:

The Ombudsman for Estate Agents Scheme offers a free, independent, and impartial service to members of the public who are dissatisfied with the service provided by an estate agent who is a member of the Scheme during the buying, selling, or letting of a residential property. The Ombudsman can recommend member agents pay compensation of up to £25,000 in any one case.

Any decision made by the Ombudsman is binding on member agents but not on complainants, who are free to reject the Ombudsman's decision and pursue the matter in the courts if they wish.

Christopher Hamer has a strong background in Ombudsman Schemes, starting as Private Secretary to the Parliamentary Ombudsman in 1984.

Immediately prior to joining the OEA, he spent six years with HSBC as Head of Insurance Product and Distribution Risk but previously he was General Manager of the Personal Investment Authority Ombudsman Bureau and before that, Director of Services at the Insurance Ombudsman Bureau.

The operation of the OEA Scheme is supervised by an independent Council with membership drawn from both consumer and industry representatives. It is chaired by Lord Borrie. As Director General of Fair Trading, he was in charge of the Office of Fair Trading from 1976 to 1992. Then known as Gordon Borrie, he became a household name and was made a Life Peer in 1995.

Lord Borrie has served on the Council of the Consumers' Association (now known as Which?) and has written on consumer law. He was also President of the Trading Standards Institute from 1992 to 1997 and was Chairman of the Direct Marketing Authority from 1997 to 2000. He became the Advertising Standards Authority's Chairman in January, 2001.

For more information or to arrange an interview with Christopher Hamer, call Maurice Hardy, PR to the OEA, on 01264 771661 / 07831 272220.

08 January 2008

Tenants and landlords get greater access to redress with NALS and OEA initiative

The New Year has brought positive change for the lettings market. With effect from this week, tenants and landlords of properties across the UK will benefit from a new partnership between the OEA (Ombudsman for Estate Agents) and NALS (National Approved Letting Scheme) allowing easier access to independent redress to settle disputes and seek early resolution to issues.

The enhanced service for NALS accredited firms follows the appointment of the Ombudsman for Estate Agents, Christopher Hamer, who together with NALS has responded to a growing need within the private rental sector for independent redress. A solution has increasingly been sought that is effective, simple and delivers results but without involving extended and costly procedures to all parties.

Previously, NALS accredited lettings firms* had used arbitration as the final stage in the complaints handling process. The new agreement with the OEA gives independent redress for both tenants and landlords at NO cost to either party, and provides the lettings sector with a potentially faster, yet professional service, in line with best practice. The arrangement with the OEA will be funded entirely by NALS members. The procedure is based on seeking early agreement by all parties through a more informal decision process. Where this is not possible, OEA will carry out a full review of the complaint.

According to NALS Chair Caroline Pickering, the new alliance is a "win-win" for tenants, landlords and lettings agents: "It is our on-going aim to raise standards, add value and endorse best practice in the private lettings sector. And, of key importance is to support our accredited firms by securing the utmost credibility for them in their dealings with tenants and landlords. It makes total sense that adjudication should be open to both tenant and landlord in the unfortunate event that an intractable problem arises with a letting agent and here we have a solution that is cost-effective and straightforward for all parties - by recognising that early agreement is beneficial on all sides."

Christopher Hamer reinforced that the OEA had now been dealing with lettings issues for over 18 months and had gained valuable experience as a result: "In line with the growth in property rental, it is likely that there will inevitably be an increase in the number of disputes in months to come," he says. "It's a natural extension to offer independent redress to NALS accredited agents and their clients. People buying and selling properties in the UK have been able to use the services of the OEA for many years and it makes sense for those in the private rental sector to have the same opportunity."

NALS has more than 1,500 member offices and 1,200 accredited firms throughout the UK who recognise the benefit of promoting themselves in their local marketplace as part of an industry wide accreditation scheme.

RICS firms will continue to use their own arbitration scheme which is recognised by NALS

About NALS NALS is backed by the Government and the professional bodies in the lettings sector. NALS offers a reliable benchmark for landlords and tenants to compare the standards of service they receive from residential letting agents. All accredited firms commit to providing clearly defined levels of customer service, have client money protection cover, maintain professional indemnity insurance and operate a customer complaints procedure. For more information visit www.nalscheme.co.uk

The National Letting Scheme Board comprises: Caroline Pickering (Chair), representatives from Communities and Local Government (CLG), British Property Federation, RICS, ARLA, NAEA, the Guild of Letting and Management, Sanctuary Shaftesbury Housing, and the National Landlords Association.