This announcement comes as the not-for-profit organisation launches a major dialogue with consumers to help tackle an ‘imbalance in power’ in the housing sector.

OS will work with charities, consumer groups, property professionals and the public on a major report around the creation of a single housing ombudsman for submission to the Ministry of Housing, Communities and Local Government (MHCLG) in the spring.

Until then, OS will begin a managed withdrawal from the current schemes it operates for surveyors, managing agents, estate agents and letting agents by 6^th August 2018.

OS plans to consult with the public regarding the service to be offered and understand the key issues for renters, tenants and homebuyers to ensure the new model addresses the concerns currently faced by consumers.

Lewis Shand Smith, chief ombudsman, said redress in the housing sector was a confusing picture for all involved.

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“The patchwork of [alternative dispute resolution] and ombudsman schemes is a mystery to consumers and, therefore, is incredibly difficult for them to navigate. 

“We are ceasing what we’re currently doing in the housing sector in a professional and planned way, because we believe it is not adding value. 

“Rather than continue to offer a broken solution to a broken market, we are stepping away to listen to what consumers actually want.”

Lewis explained that there were models in other sectors which worked far better, pointing to the single ombudsman model found in financial services.

“We fully support Sajid Javid regarding the need for a single ombudsman for housing – only then will the housing sector be able to restore trust and ensure that consumers get a much better standard of service.

“Housing is one of the biggest issues we face as a nation and a fair, balanced, redress system will make sure that it serves the whole of society.

“We want to work to develop a model that works for everyone.”

OS will provide more details of the dialogue next month.