Disappointment at Government’s decision not to bring in regulation of letting agents

DISAPPOINTMENT has been expressed at a decision by the Government to stall plans to introduce tougher regulations to safeguard tenants and landlords in the Private Rented Sector.

This follows the Government’s announcement during House of Commons Oral Questions that the Government has no plans to move forward with regulation of the Private Rented Sector.

“We are extremely disappointed with the Housing Minister’s decision to scrap the previous Government’s plans for the regulation of letting agents. This move risks seriously hampering the improvement of standards in the Private Rented Sector, the sector’s reputation, and the fundamental role it plays in the wider housing market as well as failing to protect the consumer who has nowhere to go when there is service failure or fraud,” said Jill Elkington, Midlands spokesperson for The Association of Residential Lettings Agents (ARLA) and residential letting manager for Hodgson Elkington, chartered surveyors.

“A minimum requirement must be surely be consumer redress and protection of all funds taken from the public not just tenants deposits,” said Jill Elkington.

“We have long campaigned for the introduction of compulsory regulation of lettings agents, along the same lines as our own member-led licensing scheme launched last year. Currently, any person or organisation can become a letting agent. Until that is changed via national regulation, unprofessional, unqualified and unethical operators will continue to exist, to the detriment and expense of consumers and the market as a whole,” said Jill Elkington.

“The only option now is for the consumer to look for an agent which has signed up to voluntary redress and has client money protection; by doing so they would at least have a degree of protection not offered by many agents operating on the high street.

“We are however pleased that the minister has not closed the door. Both ARLA and NALS (National Approved Landlords Scheme) are both campaigning to bring about an acceptable form of regulation and hopefully the Government will soon be in a position to revisit this most important aspect of the PRS. We look forward to the opportunity to have meaningful dialogue with the minister in the future,” added Jill Elkington.