The housing sector was stunned after Ombudsman Services – a key organisation specifically set up to resolve disputes within the property market – have announced that they will be pulling out of the sector.
Explaining their reasons for doing so, the company claimed that they would no longer offer “a broken situation to a broken market”.
Ombudsman are one of at least four services that offer redress in arguments between property agents – which also includes estate agents – and individuals.
The company have said that they are looking to formally complete their withdrawal by the 6th of August 2018.
Other services that operate within the housing market from Ombudsman include The Property Ombudsman, The Property Redress Scheme and the Housing Ombudsman.
Speaking about the current situation, Lewis Shand Smith – the head of Ombudsman Services – went more in depth about redress and how much confusion it generates.
“Redress in the housing sector is a really confusing picture for all involved,” Smith said. “The patchwork of alternative dispute resolution and ombudsman schemes is a mystery to consumers and therefore is incredibly difficult for them to navigate.”
Currently, the government are consulting on whether the creation of a single ombudsman can cover the entire of the housing market – which is how other sectors, like energy and finance, operate, with just one dispute resolution service.
However, Henry Pryor – a property expert – claimed the current system is “bonkers” and that the withdrawal of Ombudsman Services is great news for consumers.