The Ombudsman Files – The case of the missing rent transfers

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A landlord escalated a case of a letting agent consistently failing to forward rent transfers to The Property Ombudsman.

6th Feb 20260 341 1 minute read Lesley Horton, The Property Ombudsman The complaint

A landlord, Marie*, said that the letting agent she used consistently failed to forward rent transfers received from her tenants in a timely manner. This placed Marie in a vulnerable financial position, and so she brought her long-term dispute to The Property Ombudsman.

Throughout 2023 and 2024, there were repeated rent transfer delays and in some months, rent was not transferred at all.

The investigation

Marie provided a spreadsheet detailing overdue payments, showing continued late transfers over many months. For the four months in 2024 where no rent was passed on, she provided a bank statement from the tenants confirming full payment of £1,550 per month.

The letting agent did not provide any explanation or evidence showing that these funds had been transferred, nor any justification for withholding them, such as deductions for repairs or fees.

Marie also provided documentation confirming that the letting agent was entitled to retain a 5% management fee (£77.50 per month) before forwarding the remaining balance.

Based on the evidence, The Property Ombudsman found that the letting agent owed Marie £5,890 in unpaid rent. This should have been transferred promptly in accordance with The Property Ombudsman Code of Practice.

The Ombudsman also noted that the letting agent did not cooperate with requests for a response to the complaint regarding the late rent transfers or provide its branch file.

Outcome

The Ombudsman upheld the complaint, identifying clear shortcomings in the letting agent’s service.

An award of £6,490 was made: £5,890 for rent not passed on and £600 in compensation. The £600 compensation reflected the unnecessary aggravation and financial strain caused by the failure to transfer rent.

Marie relied on the rental income to meet mortgage obligations, and the delays placed her in a vulnerable financial position. The situation was further exacerbated by the letting agent’s lack of communication and failure to resolve the matter.

*All names have been changed to maintain anonymity.

Tagsredress The Property Ombudsman 6th Feb 20260 341 1 minute read Lesley Horton, The Property Ombudsman Share Facebook X LinkedIn Share via Email