The Government has once again rejected a call for regulation of letting agents and landlords, saying there is enough legislation already in place to protect the public.
The minister, Baroness Hanham, specifically referred to the Consumer Protection from Unfair Trading Regulations 2008 which applies to both letting and sales agents.
A story on LAT’s sister site Estate Agent Today on Monday covered what is believed to be the first prosecution of an agent who had breached the regulations, not by misdescribing the property, but by omitting something that could have soured the deal.
The minister also said that regulation of the private rental sector was not necessary because there were sufficient voluntary bodies.
Lord Browne of Ladyton tabled this question: “To ask Her Majesty’s Government whether they will regulate landlords and letting agents, in the light of the increase in the number of young people unable to afford a deposit to buy a home; and, if so, how.”
The Parliamentary Under-Secretary of State, Department for Communities and Local Government (Baroness Hanham) replied as follows: “Letting and managing agents are already subject to consumer protection legislation.
“Consumer protection legislation covers issues such as giving false or misleading information, not acting with the standard of care and skill that is in accordance with honest market practice and claiming falsely to be a member of a professional body or approved redress scheme.
“For tenants or landlords who are charged unfair or unreasonable fees by an agent, this means that they are able to report this to their local trading standards officer or to the Office of Fair Trading which has both civil and criminal enforcement powers.”
She added that between one third and half of all agents belong to voluntary schemes.
She said: “[These] set standards and offer redress if things go wrong. In the light of these existing schemes, we have no current plans to introduce further statutory regulation. Disproportionate regulation on the private rented sector would push up rents and reduce the choice and availability of accommodation on offer to tenants.”
This is how EAT covered the landmark prosecution case on Monday:
http://www.estateagenttoday.co.uk/news_features/Landmark-case-over-property-description-to-set-precedent
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Comments
Although of little consequence it's 'rogue' not 'rouge' which is stuff you put on your face! I have even seen this mis- spelling in a newspaper headline.
HMMNNN
regulation. A subject i am actually quite passonate about.
Regulation and control is a good thing for everyone. Consumers and operators. It denys amibiguity and sets common standards, it gives the clear path for restitution if a wrong occurs. So why do i see people pratle on with negative comments and dispondency?..
What we need to be wary of is that it will become yet another cash generator for the government. Lets face it the "voluntary" organisations are quite frankly usless! My 10 year old son could run them better! They are full of the "old boys and ladies club" they are impotent and more concerned with thier cash flow and bottom line, it if were controlled by the government with an idendendant regulatory body to oversee it's practices it would surely improve the housing situation in this country. Stop worrying about rents going up and all that, market forces will prevail, if you are too dear then nobody will buy..simple we still have a freedom of choice in this nation the last i heard.
I gave into public opnion this year and decided to sit the basic entry level exam with ARLA. £200 + lighter my "eductaion package" arrived a short time later. To my dismay i found it out of date by six months! So this is what they are teaching the industry and this is what the industry pontificate to me when i apply for letting manager jobs you need to be ARLA this and ARLA that, poppy cock!. pathetic!
There is no substitute for life experience, business accumen and basic level customer care, these combined can make an effective business model that satisfies all levels of customer. To all of the rouges out there stop cutting corners, regulation will come eventually. i for one will not stop lobbying for it.
If landlords and tenants who have been wronged won't report it to the TSO or OFT now, then what makes anyone think they would do it if agents and landlords were regulated by central government who, in turn, would rely on exactly the same agencies to take action?
Sounds to me like its the TSO and OFT who need regulating, or a boot up the backside as I like to call it.
"Letting agents must obey Consumer Protection laws, says minister" - yes we know this but they don't always want to if they can get away with it.
Do we have to wait until a Government minister who has a few properties to rent out suddenly finds their agent has gone to the wall with a few squillions of their dosh because the money was unprotected before "something is done"?
Seems like it!