The Property Redress Scheme's 2022-2023 annual report highlighted some key takeaways for the lettings industry, as Sean Hooker, Head of Redress, explains.
The Property Redress Scheme Annual Report had been released - and makes fascinating reading. In addition to the statistics we present in detail in the report, we undertook a major survey of the sector to see what the reality is like on the ground, and I urge you to look at the results of these and the headlines that come out of it.
Anyone who expected last year to be a quiet one was sorely disappointed. As I've tried to reflect on in my regular blogs on Newsagent, we've had a tumultuous year as a country and an industry, and we now face a more uncertain and unpredictable future than in living memory.
For 2023, house prices remain high. They're still rising - even if at a slower pace - rents are at record levels, and demand from tenants huge. However, this is tempered by a worrying fall in housing stock across the boar. With increased competition in the agent world, only the fittest will survive.
We also have one eye firmly on what this year will bring. Our engagement with the government means I'm confident that the long-promised reforms and legal changes will start to be introduced.
How has this landscape affected complaints and the work of the Property Redress Scheme?
Our primary objective is to deal with complainants. Last year we handled over 2,000 individual complaints - an almost 7% increase on the previous year which, even considering our larger membership, indicates a rise in the average number of complaints.
Interestingly the rate of complaints increased as the year went on. This, in my view, reflects the changing economic situation and growing uncertainty in the minds of consumers.
However, we're not all about handling complaints - and our report picked up on some other interesting insights.
Lettings to see new legislation
On the rental side the government finally released its white paper. The legislative process to bring this into law will commence very shortly.
That does not mean things will change overnight and, for the industry, there should be the opportunity to transition and prepare. However, communication will be a major challenge.
What is clear is the new regime will incorporate all rental properties and also landlords, with a register of properties and their condition, and a redress and complaints mechanism for all tenants to access.
Research into the future of redress
This will square the circle which exists currently where an agent can have their issues dealt with by an accessible, affordable and fast resolution service, whereas a tenant and landlord face the prospect of a lengthy and costly court process.
In anticipation of the changes, the Property Redress Scheme has piloted a landlord redress scheme in conjunction with the National Residential Landlord Association. The learnings from this are being shared with the government and will hopefully shape what any future service will look like.
Sales to see more stringent material information requirements
In the sales market, the determination to improve the buying and selling process remains undiminished.
The delays, fall throughs, and general frustration of what consumers have to go through is still unacceptable. Yet, the blame for this does not lie with any particular sector involved in the transaction.
Work continues to see if real changes can be made to make things better and great strides have been made in improving up-front and material information to help with the journey and this will have positive benefits for all parties.
Managing leasehold properties
Residential leasehold remains a huge challenge, and the responsibilities and pressures on property managers are set to increase. It's not surprising the complaints we receive relating to leasehold property management are some of the most complicated and fractious.
This is not helped that many of the issues we're presented with are directly and legally related to the lease and the obligations of the freeholders who own the buildings. The new changes should hopefully resolve some of these gaps.
More building safety changes in the works
What however will remain a big challenge at least for a good number of years is the fire and building safety changes that have been brought in since the Grenfell tragedy. These will have an impact for agents and will take a concerted effort to implement and get right. We'll help and support as much as we can.
Access to an effective complainant resolution mechanism will be a key factor. The government has promised a radical reform of the leasehold sector, and we await the details of these.
Professionalising the lettings sector
Ongoing emphasis will be on professionalising the sector and raising standards particularly on property conditions and quality. This, coupled with the challenges of dealing with an environmental and cost of living crisis, will put energy efficiency high up the agenda.
The recent publicity on the health implications of such issues as damp and mould which was brought into sharp focus by the death of toddler as a direct consequence of a badly infested property will only increase the pressure.
This said, the opportunity to create an early and effective complaint handling service will make a real difference.
Accountability for the Property Redress Scheme
I was pleased to be part of a reform of the way we organise our governance and therefore the previous Advisory Council, which was chaired by Lord Monroe Palmer, has been revamped and replaced with a wider and more inclusive Advisory Panel.
This will work on various projects to help enhance and improve the service the Property Redress Scheme provides. Lord Palmer will continue to chair this body.
I'd like to thank the previous members of the council, who served with me over the last nine years and welcome the new members to the new dynamic body.
A new body has also been set up to represent the PRS’s members and customers. Chaired by former council member and leading figure in the sector, Eric Walker, this will allow the scheme to continue to serve the needs of those who use it and to innovate and improve the service and delivery of the scheme.
The two new bodies will work together to raise standards and professionalism in the sector.
For an in-depth discussion around what agents need to prepare for in 2023, register to watch our free webinar, Your agency's checklist for 2023.
