Over the last 12 months complaints against letting agents received by the Property Ombudsman Scheme have risen by a significant 26%. Even more astonishing is that 2008 saw an increase in complaints of nearly 200% compared to the previous year. So what is going on?
At first glance you could be forgiven for thinking that standards in the industry are slipping. It is when you look a little deeper that the statistics reveal their true deceptive nature. Whilst lettings complaints increased by 26%, complaints in relation to house sales fell by 38%. But of course this is nothing more than a sign of the differing fortunes between property sales and rentals sectors. Whilst the sales market has reached shocking lows, its rentals cousin is in much better shape.
With many selling agents struggling to sell property, an increasing number have introduced a lettings division, or in many cases moved to lettings altogether. It is this change in the balance of sales to lettings agents and transaction volume that has created the ‘all so shocking’ statistics. With fewer selling agents and more lettings agents signed up to the property ombudsman scheme and substantially higher lettings transactions than sales transactions it is no wonder that we have seen an increase in lettings complaints and a decrease in sales complaints. The statistics are simply mirroring changes to the market conditions.
So have standards decreased in the lettings sector? Of course not, this is simply a sign of a healthier market. Statistics can show anything but remember statistically 99% of statistics are rubbish. See what I mean?