Estate agents cold on Ombudsman

BARELY one-third of estate agents have signed up with an industry Ombudsman scheme designed to give property buyers a fairer deal and investigate complaints, it has emerged.

Just 36% of firms across the country have become members of the Estate Agent Ombudsman scheme since it was set up in 1990. Meanwhile, new research exclusively revealed by This Is Money shows that public disquiet about estate agents' activities is on the increase.

The estate agent Ombudsman Stephen Carr-Smith acknowledged that the low level of take up among firms was 'an issue' and he called for agents across the country to sign up in greater numbers.

'I am publicly calling for membership of our scheme to be made mandatory. I would like all firms to join and we are making a great effort to persuade them to do so. We are working with the Royal Institute of Chartered Surveyors and the National Association of Estate Agents to get their members to register.

'The problem is that they are membership organisations and worry about the risk of losing members if they persuade their members to sign up to the scheme. The organisations are both represented on our board but neither has yet been able to take the view that joining should be made mandatory.'

The continuing rise in property prices has led to claims that some estate agents are returning to their old ways with a resurgence of complaints about their activities.

Bizarrely, however, the number of complaints to the Ombudsman fell in 2003. Figures due to be revealed later this month in the Ombudsman‘s annual report will show the first drop in complaints since the scheme was set up.

The fall does not, however, mean that all is well in the estate agency profession. Industry sources say that the decline simply reflects a slight downturn in the property market last year.

One source, who declined to be named, said: 'The Ombudsman usually examines about 600 cases a year and the level of claims is a fairly constant proportion of total transactions. This means that with the market dip last year there was a commensurate drop in the number of complaints.'

Carr-Smith declined to be drawn on his annual report but confirmed that in about 60% of the 600 plus cases he investigates he still finds for the complainants.

'The other part of our work is concerned with people who contact us regarding some aspect of their estate agent‘s work but don‘t then make a formal complaint. We monitor compliance with the estate agent code by registering comments and views expressed about agents‘ adherence to the code.

'As an Ombudsman I‘m not a regulator or policeman but adjudicate on complaints. I also identify best practice and try to spread it around the industry.'