How Do All the Property Ombudsman Schemes Work?

You may have noticed in recent weeks various headlines about complaints right across the property industry. The number of complaints reaching property Ombudsman schemes is rising. However, there’s more behind those headline figures than first meets the eye.

I believe there are multiple reasons: greater awareness of our rights, AI used to create complaint letters, and of course genuine dissatisfaction if things go wrong.

The trend of complaining appears to be growing across society. Even so, the figures for the property world make for sober reading.

The number of formal complaints made to the New Homes Ombudsman Service (NHOS) more than tripled in a year from 593 in 2024/25 to 1,802 in 2025/26.

Meanwhile, The Property Ombudsman (one of two redress services covering consumer complaints about estate agents) dealt with 2,518 complaints relating to lettings, 1,669 relating to sales and 780 for residential leasehold management in just 12 months. All were increases on the previous year.

Then the other consumer/agent complaint service – called Property Redress –  handled over 4,000 complaints in 2025.

These figures are only for private new-build homes, and privately purchased or rented properties involving High Street estate agents. There were actually thousands of other complaints, too, about council housing and housing associations.

Getting things in perspective

Although the absolute figures appear high, remember there are 1.2m households buying and selling each year. In addition, approaching half a million people either become first-time tenants or move within the private rental sector.

So that’s about 1.7m transactions resulting in, by comparison, a relatively small proportion of complaints.

But of course if you have a genuine grievance, you may consider using an Ombudsman service: so how do you do it?

Ombudsman schemes in general

Few people would disagree that Ombudsman schemes are positive – they’re independent and free to use. However, it’s key to identify what scheme your agent or new homes developer is a member of. This avoids misdirecting a complaint.

Every estate and lettings agent must by law join one of the two approved schemes (The Property Ombudsman or Property Redress), so check which one your agent is signed up to. No scheme can investigate an agent that is a member of the other.

The New Homes Ombudsman Service only covers builders signed up to the New Homes Quality Code. That’s most but not all builders.

Now there’s plenty of debate about each of those schemes. Many consumer advocates say they aren’t powerful enough, but they each offer compensation if the complaint merits it.

And if an estate or lettings agent is expelled from one scheme (the ultimate sanction), they cannot join another. Without membership, they cannot legally trade.

Now let’s look at the schemes in detail.

It’s got simple rules, but without following them, your case may not be investigated.

• Complain to the agency first – you need to exhaust all its complaint procedures to try to resolve the issue;

• If still dissatisfied, log your complaint with TPO via its online form, giving full details and attaching documents as appropriate;

• TPO will decide within 20 working days if it can investigate. If it goes ahead, an adjudicator will consider evidence from you and the agent;

• There’s an appeals process which you or the agent can use once a decision has been reached;

• Compensation may be awarded – it’s up to £25,000 but is typically well under £1,000;

• The final decision and compensation award are binding on the agent.

Property Redress

This is similar to The Property Ombudsman, although timescales are different.

Property Redress puts particular emphasis on early resolution processes, frequently with tight timescales, in a bid to avoid issues escalating further.

As with TPO, the ultimate sanction is for Property Redress to expel the agency. There is a strong likelihood that it will not be able to continue trading legally.

New Homes Ombudsman Scheme (NHOS)

There are similarities to the process adopted by other schemes, but the types of complaints will be very different. For example, in the most recent year, defect-related enquiries increased by 162% while snagging enquiries rose by 205%.

The scheme applies to issues about purchasing the new home, snagging, or building defects within two years of reserving or completing the purchase.

This is the complaints procedure:

• Complain to the house builder – exhaust reasonable complaint processes;

• If the house builder fails to respond fully to you within 56 days (8 weeks) of you raising your initial complaint, you can then raise a complaint with NHOS;

• If the complaint meets NHOS’s criteria, the house builder is asked to respond;

• Early resolution is attempted, but if unsuccessful, a decision is made and compensation, if required, is expected from the housebuilder.

Private Rental Sector Ombudsman

There’s also a new Ombudsman on the way for England’s private rented sector.

Introduced under the Renters’ Rights Act 2025, the Private Rented Sector Landlord Ombudsman Service will eventually require all private landlords with assured or regulated tenancies to join – including landlords who use a managing agent.

Tenants will be able to use the service free of charge to resolve complaints about their landlord. The Ombudsman will be able to require landlords to take remedial action, provide information, apologise or pay compensation.

The Government is introducing the new Ombudsman as part of the next phase of its rental reforms. This is alongside a new national Private Rented Sector Database.

We’ll keep you updated as further details of the scheme and its implementation are confirmed.

Choosing an estate agent

Hopefully, you’ll never need to use an Ombudsman service. One of the best places to start is by choosing an estate agent who works to recognised professional standards. It is also wise to ensure they are clear about the redress scheme they belong to.

Move iQ works with Propertymark-qualified estate agents across the UK.

Find a regulated and qualified estate agent in your area.

Last Updated: September 28th, 2026