Ombudsman Services has announced it is to withdraw from complaints handling in the property sector, declaring it no longer wanted to offer a “broken solution to a broken market”.
The multi-sector Ombudsman currently provides independent dispute resolution services for sectors including energy, communications and copyright licensing.
It said it will now work with charities, consumer groups, property professionals and members of the public on a report looking at how to create a single housing ombudsman, something which Sajid Javid, the Communities Secretary, has previously called for.
A managed withdrawal from the schemes the Ombudsman currently operates for surveyors, managing agents, estate agents and letting agents will now begin ahead of stepping aside on 6th August.
Even with the withdrawal of Ombudsman Services, there will still be two redress schemes operating in the property market: The Property Ombudsman and the Property Redress Scheme.
Last year Javid said he would look at “bold options” to improve the redress options open to consumers on housing, including the possibility of a single Ombudsman covering the entire sector.
Lewis Shand Smith, chief ombudsman at Ombudsman Services, said that the current system is “a really confusing picture for all involved” due to a “patchwork” of different schemes which are difficult for consumers to navigate.
He explained that Ombudsman Services had chosen to step away because it believed it was “not adding value”, instead simply offering “a broken solution to a broken market”.
He continued: “There are models in other sectors that work far better – for instance the single ombudsman model in financial services and the scheme we operate in energy which handles around 40,000 complaints every year.
“Housing is one of the biggest issues we face as a nation and a fair, balanced, redress system will make sure that it serves the whole of society. We want to work to develop a model that works for everyone.”
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