Year of massive growth for the Ombudsman for Estate Agents Scheme

More than two thirds of the estate agency branches in England and Wales are now covered by the independent redress scheme run by the Ombudsman for Estate Agents.

At the end of 2006, the OEA covered 7,283 offices offering residential sales, lettings, or sales and lettings. Official figures estimate the total number of branches in England and Wales at 10,600.

Across the UK as a whole, there are thought to be 12,000 estate agency branches, meaning the OEA covers 60 per cent.

At the start of 2006, the OEA scheme encompassed 5,011 offices and it was only in January, 2005, that Portsmouth estate agency Fry and Kent became the 1,000^th member firm in the OEA. At the end of 2006, that number stands at 2,708.

“This has been a remarkable period of growth for the OEA,” said Bill McClintock, chairman of OEA Ltd, which operates the scheme. “Numbers were boosted in the Spring when the National Association of Estate Agents (NAEA) required the majority of its members to sign up to the OEA.

“In June, a further landmark was reached when for the first time the OEA embraced firms operating within the residential lettings industry and today OEA members operate 1,665 offices that offer lettings services, either as stand-alone operations or alongside sales.

“A new Ombudsman, Christopher Hamer, started work at the beginning of December following the retirement of Stephen Carr-Smith, who had done much to encourage the growth of the scheme during his time in office since 1999.

“Christopher Hamer has already been busy talking to firms that are not members of OEA with regard to encouraging them to join. First signs are that his efforts will soon bear fruit.

“OEA has also made a submission to the Office of Fair Trading to become the recognised independent redress scheme under the new Home Information Packs legislation that comes into effect on June 1, 2007.

“This will require all estate agents in England and Wales to belong to an independent redress scheme and a decision on the OEA application is expected from the OFT during February.”

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 or selling 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.

Reception marks Ombudsman's retirement

Baroness Gillian Shephard presents Stephen Carr-Smith with a retirement gift.

A reception has been held to mark the retirement of Stephen Carr-Smith as Ombudsman for Estate Agents.

Senior figures from the residential estate agency industry attended the reception in the President’s Suite at the Royal Institution of Chartered Surveyors in Parliament Square, London, where Mr. Carr-Smith was accompanied by his wife, Nicole.

Baroness Gillian Shephard, chairman of the OEA Council, the scheme’s governing body, paid warm tribute to Mr. Carr-Smith’s work. She said Mr. Carr-Smith was notable for his energy, enthusiasm, and eye for detail.

Mr. Carr-Smith became Ombudsman in 1999 following a distinguished military career. During his time in office, the OEA has expanded considerably and now covers 60 per cent of all estate agency branches in the UK. He said he was looking forward to seeing how the scheme now progressed and developed.

The new Ombudsman for Estate Agents is Christopher Hamer, who took up his post on December 1. Stephen Carr-Smith wished him every success in his new role.

Use of OEA logo and OEA/OFT joint logo

So that consumers are not misled, please would you ensure that the following logos are shown on the correct stationery.

Code of practice for residential sales

In 2005 the OEA achieved the OFT approval for the Code of Practice for Residential Sales.  This means the above joint logo can only be used by members who have signed up to this Code of Practice and who deal with residential sales only.

Code of practice for lettings

The single logo above should only be used in respect of lettings. The Code of Practice for Lettings which became effective from April 2006 does not have OFT approval and therefore you must display the OEA logo only on any stationery regarding lettings.

New Estate Agents' Ombudsman named

The new Ombudsman for Estate Agents has been named as Christopher Hamer.

Mr. Hamer (53) succeeds Stephen Carr-Smith and takes up his appointment on December 1, 2006. He is only the third person to hold the position since the Ombudsman for Estate Agents scheme started in 1989.

More than two thirds of all the estate agency branches in England and Wales now participate in the OEA scheme – it covers 7,194 branches belonging to 2,423 member firms. This represents 68 per cent of branches in England and Wales or 60 per cent across the UK as a whole.

With a strong background in ombudsman schemes, starting as private secretary to the Parliamentary Ombudsman in 1984, Mr. Hamer brings a wealth of experience to his new role.

Most recently, 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.

Mr. Hamer said he was looking forward to taking up his new position as the OEA played an important role in the residential estate agency and lettings industry, providing a facility to member companies and their clients when something had gone wrong in a residential property transaction.

“I take on this position when an increasing number of firms are joining the scheme. We still have some way to go before all estate agents are signed up and inevitably I will work towards that 100 per cent target,” added Mr. Hamer.

“I will therefore be applying my energy to talking with non-member agencies to understand their concerns and sensitivities and to address those while at the same time getting to know those who are already members of the OEA.

“Any ombudsman scheme has as its sense of purpose the resolution of disputes as swiftly and painlessly as possible. I intend to work towards ensuring that all parties involved in a complaint have a focus and determination to achieve a speedy resolution to that complaint.”

Baroness Gillian Shephard, chairman of the OEA council, which oversees the Ombudsman scheme, welcomed Mr. Hamer’s appointment.

“We had a strong field of candidates and those shortlisted all possessed outstanding qualities. But Christopher’s past experience of ombudsman schemes stood out,” she added.

“As we move towards the Government’s ambition to appoint an ombudsman with authority under legislation as part of the HIPS scheme, Christopher, with his knowledge of ombudsman schemes and his past work in government, should put OEA in a strong position and will build on the excellent work of his predecessors.”

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 or selling 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.

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

New code for Estate Agents increases consumer protection

A new Code of Practice that strengthens the transparency of the estate agent’s role in the whole house buying process launches on October 1.

The Code is being introduced by the Ombudsman for Estate Agents after a regular periodic review of the previous Code. The new Code has full approval from the Office of Fair Trading and means the OFT logo can be displayed alongside the familiar OEA triangle at the offices of estate agents who are members of the scheme.

One of the most important provisions of the strengthened Code is that estate agents must confirm in writing to buyers who have made an offer on a property that their offer has been passed to the seller. The previous Code already obliged the agent to pass on all offers in writing to the seller and this continues.

An agent is also now obliged to inform anyone viewing a property if an offer has already been accepted on it. By law, estate agents are required to pass on any higher offer to the seller.

From now on, when an estate agent’s fee is based on a percentage of the selling price, the percentage of the asking price must be expressed as an actual amount and it must be explained that if the selling price is higher or lower a corresponding change will be made to the fee.

“We have made several other detail changes to the old Code, all designed to improve the way it operates and give increased protection to consumers,” said Bill McClintock, chairman of OEA Ltd, which operates the Ombudsman scheme.

“Periodic reviews are undertaken of the Code and we have attended to areas where it needed fine tuning in response to consumer demand.

“The OEA regularly surveys consumers who have used member agents to either sell or buy a house and we get regular feedback from them. In the last three years, more than 12,000 people have responded to our surveys and 85-87 per cent of them say they are satisfied with the service they receive from OEA members.

“Around two thirds of all the estate agency branches in England and Wales now participate in the OEA scheme – there are 7,028 branches belonging to 2,380 member firms.

“The OEA has discussed the Code changes with the National Association of Estate Agents and the Royal Institution of Chartered Surveyors. Our objective is to have a single Code of Practice covering the whole industry so there is one set of standards with which all estate agents must comply and be measured against.

“We hope to achieve this in the next few months.”

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 or selling 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.

Significant growth for OEA scheme

The Ombudsman for Estate Agents scheme now has almost 2,400 member firms covering more than 7,000 sales and letting offices across the country.

Only 18 months ago, the OEA was celebrating the enrolment of its 1,000^th member firm and at that time covered around 45 per cent of the estate agency offices in Britain.

Now, the OEA covers 63 per cent of the 10,600 estate agency branches in England and Wales and 55 per cent of all the outlets across the UK as a whole.

Revised Code of Practice agreed

At the board meeting at the beginning of July, the revised Code of Practice for residential sales was agreed subject to a few final details being amended.

The Code is reviewed every three years and the revised document will be issued shortly, coming into effect on October 1.

1,250 lettings offices covered already

Of the 7,000 branch offices now in the scheme (see above), 1,250 cover lettings, several hundred uniquely and the rest combined with residential property sales. The OEA only embraced lettings from June 1 so this is a major step forward both for the industry and consumers.

Have your say on Strategic Plan

In view of the increasing and widening scope of the OEA scheme, both the Board and Council feel it is now time to work out a Strategic Plan for the future.

It’s intended to take a look at the medium and longer term objectives of the scheme and input from OEA members would be invaluable and greatly appreciated.

How do you feel the OEA should move forward. It’s now time to give this some thought and let me know your views.

Redress under HIPS proposals

I am continuing negotiations with the Department of Trade and Industry over redress proposals for when the Home Information Pack becomes mandatory in June next year following the 2004 Housing Act.

Our aim is to make the OEA the redress scheme for all residential estate agents in the UK and this will be backed by legislation. It will bring the OEA into sharper public focus and reinforce the value of the scheme in the eyes of the public.

Revamp for website

The OEA website is going to have an overhaul, with the idea of making it easier for users to navigate.

An important benefit for members is that it will be more easy for the public to find an OEA agent in their area, which I’m sure you will agree will be a vast improvement.

Bill McClintock,
Chairman, OEA Board.

New protection for Landlords and Tenants

Landlords and their tenants have a new form of redress with effect from June 1.

From that date, the Ombudsman for Estate Agents scheme covers members of the National Association of Estate Agents who deal in lettings but are not members of the Royal Institution of Chartered Surveyors.

“This is a landmark for the lettings market,” said Bill McClintock, chairman of OEA Ltd, which operates the Ombudsman scheme.

“It’s the first time lettings agents have been covered by the Ombudsman. Lettings agents who have signed up to the OEA Code of Practice will have to have a complaints procedure in place which landlords and tenants should use as their first port of call.

“However, if they are unable to reach a satisfactory resolution of their complaint, they will be able to complain to the Ombudsman for Estate Agents. The Ombudsman is able to offer redress up to a maximum of £25,000 at no cost to the consumer, who is still free to pursue legal action if desired.

“The Ombudsman’s decision is binding on the estate agent involved, who must abide by the ruling given. The service relates to disputes between landlords or tenants and their agent and does not cover disputes between landlords and tenants themselves.

“I hope this will encourage landlords and tenants to use agents who display the OEA and NAEA symbols. These are a sign that they can expect the highest professional standards in their dealing with the agent, so hopefully complaints will be less likely to arise.”

Ombudsman Scheme on the march

The Annual Report of the Ombudsman for Estate Agents for 2005,  published today, Friday May 12^th, 2006, highlights a number of developments that will bring about a big increase in membership of this voluntary scheme, and hence a significant improvement in consumer protection for buyers and sellers who use Estate Agents.

For the first time since its original formation (as the Ombudsman for Corporate Estate Agents) back in 1990, it is expected that the Scheme will, this summer, be able to claim a clear majority of all Estate Agents as members.

A key factor in this development has been the decision by the National Association of Estate Agents (NAEA) to make membership mandatory for all its Principal, Partners and Directors Members excluding Chartered Surveyor Members.  Bill McClintock, Chairman of the OEA Board, said:

“I am delighted that the NAEA has taken the decision to join as it will bring our coverage to more than 60% of all Agents working in the UK by this summer. If, as we hope, the Royal Institution of Chartered Surveyors (RICS) takes a similar decision, this will increase to more than 70%.”

The Report also highlights the forthcoming changes in legislation, which will make membership of an independent redress scheme a legal requirement for Estate Agents from 1 June 2007, although only in respect of Home Information Packs, which come into force from the same date.  Fresh legislation will be needed if this requirement for an independent redress scheme is to be extended to all Estate Agents’ activities, and the OEA has been told that this is currently being considered by the government.

Letting Complaints

The scope of the OEA Scheme will also take a significant leap forward this year when, for the first time, it will be able to deal with complaints about lettings from tenants and landlords against NAEA Letting Agents.  The Letting Agents began registering as from 3 April and the OEA will be able to start looking into complaints concerning events that have occurred on or after 1 June 2006.  Stephen Carr-Smith says:

“This will be a new venture for us and it is not without its challenges.   We will be starting with NAEA Letting Agents, but we hope that those from RICS, the Association of Residential Letting Agents (ARLA) and other will join later.”

Initially, the OEA will be using The Dispute Service (TDS) in assisting them with letting and property management complaints.

Code of Practice

The second major development in the OEA Scheme during 2005 has been the approval by the Office of Fair Trading (OFT) of its Code of Practice.  Baroness Gillian Shephard, Chairman of the OEA Council, said:

“We have worked hard to achieve this OFT approval.   However, we have not stopped there.   We have developed the Code of Practice to produce even better consumer protection – and the new Code of Practice will come into effect in September.   What we are especially pleased about is that the NAEA and the RICS have agreed the Code – so that, once more, we will have a Code of Practice that we can say is applicable to the majority of the industry.”

However, the Ombudsman believes that the industry should go further to improve public confidence. He says:

“I believe that there should be a single code of practice that applies to all residential Estate Agents in the UK that sets out the standards that should be adhered to; I believe that there should be a single independent redress scheme that applies to all residential Estate Agents and which  can deliver a consistent approach in measuring an Agent’s actions against the code of practice; and I believe that all Estate Agents should be licensed to demonstrate a level of competence before they even take up the profession.  In my view, it is only by all three of these elements coming into effect that will really increase consumer confidence in residential Estate Agents and ensure improved consumer protection.”

A Broader Scheme

In the Annual Report, Ombudsman Stephen Carr-Smith calls for an overall Residential Property Ombudsman Service to be set up, incorporating the current OEA Scheme to deal with buying and selling, with separate arms for hearing the other types of complaint - thus providing consumers with a ‘one-stop shop’ for all their property-related complaints.  Bill McClintock, Chairman of the OEA Board, says

“What we are proposing is not an OEA take-over – it is the creation of a new, independent redress service for several aspects of residential property in which there will be several stakeholders.  We are looking to make a start with the first two legs – buying and selling, which the OEA currently provides; and letting and property management, which the OEA is about to undertake with assistance from TDS.   I hope that all the various bodies with an interest in providing independent redress for consumers involved in any aspect of residential property will work together in driving this concept forward.  It can bring nothing but benefit to consumers, and will do wonders for the reputation of the residential property industry.”

Complaint Levels

The Annual Report reveals that complaints against Estate Agents increased during 2005, although the number of cases actually dealt with by the Ombudsman fell slightly (by 5%). During 2005, the number of complaints was as follows (2004 figures in brackets):

• Against all Estate Agents: 6021   (5,500) up 9%
• Against non Member Agents: 3,053  (2,564)  up 19%
• Against Member Agents (within terms of reference): 2,334 (2,320)  up 1%
• Against Member Agents (outside terms of reference): 338  (305)   up 11%

The number of complaints that went to full review by the Ombudsman was 481. The decisions broke down as follows (2004 figures in brackets):

• In favour of Complainant and award made: 238  (271)
• Negotiated settlement: 77 (81)
• In favour of Agent  and no award made: 162 (143)
• Outside terms of reference: 4 (8)

Highest Award in 2005

The Ombudsman made an award of £17,948 in respect of deception.

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, whether they are a house buyer or house seller. It can recommend Member Agents pay compensation up to £25,000 in any one case. 

As at the date of this release, the Scheme, which is voluntary, has 1,750 sales firms, covering 5,950 branch offices - estimated to be 50% of the total number of estate agent offices in the UK, and 55% in England and Wales.

Any decision made by the Ombudsman is binding on the Member Agents, but not on Complainants who are free to reject his decision and pursue the matter in the courts if they wish.

For further information, please contact:

Stephen Carr-Smith, Ombudsman
Tel: 01722 333 306 Fax: 01722 332 296
Email: admin@oea.co.uk
Website: www.oea.co.uk

BBC undercover programme shows why consumers should use OEA Estate Agents

Allegations, if proven, made by the BBC undercover team in tonight’s Whistleblower programme would all be serious breaches of the Code of Practice of the Ombudsman for Estate Agents (OEA).

None of the agents mentioned in the programme has signed up to the OEA and its Code, which has just won backing from the Office of Fair Trading. Had they done so, consumers would have been able to take their complaints to the Ombudsman, who can make awards binding on the agent of up to £25,000.

OEA strongly believes all agents should be licensed and have an independent redress system free to the consumer. It calls on Government and professional bodies to assist in making membership of an ombudsman scheme obligatory.

Bill McClintock,
Chairman, OEA Ltd.

Editors’ note: The OEA currently has more than 40 per cent of estate agencies in Britain as members and this number will rise to 65 per cent after April when members of the National Association of Estate Agents join the scheme.