Estate agency complaints and payouts on the rise

Agents faced more complaints and paid out higher levels of redress last year, industry data shows.

Annual figures from the Property Redress Scheme (PRS) show complaint enquiries rose by an average of 20% in 2023 at 2,393.

The PRS said it investigated 55% more cases than the previous year. 

Around half of cases were resolved at the early resolution stage in 2023, with total awards of £359,426 – up from £353,053 in 2022. The average award was £776.30.

The PRS issued 24% more proposed and default decisions than in 2022, its annual report showed.

The total figure awarded over proposed decision and default cases was £953,062.24, an increase of 95% from 2022. The average award was £1,832.81.

The most common sales complaints about agents concerned duty of care and misleading information, terms of business and commission, as well as marketing and advertising.
 

Overall, 58 agencies were expelled from the PRS in 2023 compared with 61 in 2022.

Its membership figures stood at 17,459 agents at the end of the year, up 7% annually.

Sean Hooker, head of redress at the PRS, said:  “The notable increase in financial awards underlines the growing volume of complaints, compounded by a lack of engagement from a minority of members. 

“Despite this, it's encouraging to observe a reduction in complaints per member, indicative of improved efficiency in our investigative processes. Our steadfast commitment to early resolution has proven effective, reflecting a shared willingness among parties to reach amicable solutions.

“As we strive to support, educate, and improve industry standards while continuing to clamp down on some of the poor practices that ensue, our adoption of innovative approaches like mediation and early resolution has yielded positive outcomes, fostering greater satisfaction among stakeholders.”

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