New property ombudsman plan to make complaints simpler

Homeowners and tenants will find it easier to complain about poor treatment as the government has announced plans to set up a single property ombudsman.   

The new body would cover complaints ranging from shoddy building work through to landlords failing to maintain properties to a decent standard for tenants.

Under Government’s proposals, the new ombudsman would also be able to order compensation where complaints were found to be justified.

Housing secretary Sajid Javid announced the start of an eight-week consultation on the plans

As it stands, homeowners and tenants have to navigate a complex network of property-related ombudsmen, depending on the nature of their complaint.

There are currently three schemes: The Property Ombudsman, Ombudsman Services Property and The Property Redress Scheme.

Each has a slightly different remit. Ombudsman Service Property covers building surveying whereas The Property Ombudsman does not. 

Furthermore, if you want to complain about your new home you need to follow the procedure set out out in one of the seven consumer codes or to the Financial Ombudsman as if your complaint concerns your ten-year guarantee as this is treated as an insurance product.

The ombudsman to which you need to complain also depends on which redress scheme the company you’re complaining about is a member.   

If the company you have a dispute with is not a member of any of the schemes you can either take them to the Property Tribunal if the matter relates to leaseholds or managing agents, or take them to court.

Housing secretary Sajid Javid said: ‘From broken boilers to cracks in walls, the current choice of schemes risks leaving thousands without answers, with others having to manoeuvre between at least four different services just to work out where to register a complaint.

‘Fixing this housing crisis is about more than just building homes, it’s ensuring people have the answers available when something goes wrong.

‘Today’s top-to-bottom review shows Government is working hard to deliver a better and simpler system.’ 

Tenants, landlords and homeowners have all been invited to share their views with the Department of Housing, Communities and Local Government by filling out an online form before 16 April 2018. 

What can you do if something goes wrong?

Paula Higgins, chief executive of Homeowners Alliance explains your rights as a homeowner. 

Why do we need a new Ombudsman?

Paula Higgins is chief executive of consumer champion body, Homeowners Alliance

Paula Higgins is chief executive of consumer champion body, Homeowners Alliance

Unlike other sectors, the property industry has quite a confusing set up when it comes to complaining. Whereas financial services, for example, has the Financial Ombudsman Service, the property sector has three separate redress schemes and nothing that covers people complaining about their new home developer. 

Homeowners are often at a loss as to where to turn to and with housing problems dominating the headlines lately – from leasehold issues to new build nightmares – it’s clear a better system needs to be put in place.

Ombudsman Services – one of the three schemes – has now announced that from August it will no longer handle complaints on property matters and has backed the Government’s plans to create a new, single redress scheme.

Can I complain about estate agents?

Yes, all estate agents must be a member of one of the three redress schemes which are all approved by the National Trading Standards Estate Agency Team.

Can I complain about a builder, agent or surveyor?

All three redress schemes require that you complain directly to the company you’re having issues with first before contacting an ombudsman. Most companies will have an internal complaints procedure you should follow.

You must give the company eight weeks to respond to your complaint before contacting an Ombudsman. If after this you still haven’t got anywhere you can enlist the help of the Ombudsman. It’s worth noting that if you accept any offer or reduced fee from the agent, you won’t be allowed to take your complaint to the Ombudsman unless you accept the offer on a ‘without prejudice basis’ and not in full and final settlement of the dispute.

If all else fails, you can instruct a solicitor and take your case to court, but unless you have surplus cash lying around and plenty of time on your hands this shouldn’t be your first choice.

What rights do I have as a homeowner?

Your rights as a homeowner differ depending on the tenure you have. A freeholder will, in theory, have much more freedom than a leaseholder. That said, some freeholders (for example, those on newly built estates) may find themselves with even fewer rights and paying maintenance charges they have no power over, hence the newly coined term ‘fleecehold’.

Beyond that your rights in terms of what you can do with your home will likely be determined by any restrictions in the title deeds of your property, your agreement with your mortgage lender and your local authority.

As a home buyer, if you’re buying a new build you will also have a new homes warranty provided with the property. Most new builds have a warranty from the National House Building Council – which covers 80 per cent of the new build market. 

However, there are other warranty providers including the Local Authority Building Control Warranty (LABC), and BLP Insurance. If you buy a home off plan, as is often the case with new builds, once you exchange contracts your warranty will cover your deposit against the firm going insolvent.

Once the property is built, the warranty is split into two periods – the defects insurance period, which covers the first two years, and the structural insurance period which covers years three to ten.

During your first two years in the home, you can approach the warranty provider if the builder doesn’t carry out any required repairs. For the next eight years, the warranty only covers major problems with the structure of the house.

What’s the best way to get my complaint heard?

Go through the necessary complaints procedures, keep a record of everything and get everything in writing. If you’re on a new build estate, talk to your neighbours, you may not be alone, and there is strength in numbers. Engage your local MP and make use of social media to get your story heard.

How do I complain about my landlord?

Check if the landlord is a member of an accredited body such as the National Landlords Association or the Residential Landlords Association. If so you can follow their complaints procedure.

Some local councils also run mandatory Landlord Accreditation schemes which you can complain to.

Unfortunately, however, on the whole, landlords are not required to register with a complaints scheme at the moment. This could change following the consultation into property redress. 

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