Clive Betts MP, Chair of the Communities and Local Government Committee said:
“I am pleased that the Government has embraced many of the recommendations in our private rented sector report. The proposals for a tenants’ charter and model tenancy agreements reflect our calls for greater awareness of rights and responsibilities.
Far too often the security needed by families is not being provided by the private rented sector. I am pleased, therefore, that the Government has listened to what the Committee said about the need for more family friendly tenancies. It is also welcome that the Government is taking forward our proposal to allow rent and housing benefit to be clawed back when landlords have been convicted of letting out dangerous property.
Whilst these warm words are welcome, the Committee will be watching closely to ensure that they are translated into action. We will also press to ensure that the Government’s gathering of information on selective licensing leads to action to raise standards.
Much remains to be done if renting is to become an attractive alternative to owner occupation. It is disappointing, therefore, that the Government does not see fit to crack down on cowboy letting agents and their rip off fees and charges. It is also regrettable that the Government has declined to give local authorities the powers and freedom they need to improve housing in their areas.”
Which? executive director, Richard Lloyd, said:
"Renting is now the only housing option for millions so we're pleased to see the Government taking steps to address problems in the lettings market. Making charges clear upfront will enable people to shop around more easily, and longer tenancies could mark the end of unnecessary renewal fees.
The new legislation giving landlords and tenants access to a complaints scheme now needs to be brought in as soon as possible and there must be strong action taken against any agent in breach of the scheme."
Background
1. Which? first campaigned for improved protection and redress in the lettings market in 2007 when we called for an amendment to the Consumers, Estate Agents and Redress Act 2007 to require letting agents to join an approved complaints scheme, as sales agents are. After continued lobbying, we are pleased the Enterprise and Regulatory Reform Act 2013, to be implemented in Spring 2014, is going to give all landlords and tenants access to a complaints scheme. This will mean that 40% of agents who currently aren't signed up to a redress scheme will have to become members.
2. Our investigation earlier this year found that major letting agents are acting unlawfully by not being upfront about the fees charged to clients. The Tenants' Charter announced today outlines that lettings agents must tell people what all their fees are upfront and before they have committed to anything, including visiting a property.
Peter Bolton King, RICS Global Residential Director said:
"Today's announcement is a definite step in the right direction, albeit long overdue. The lettings sector has for far too long been the Wild West of the property industry, with many tenants having absolutely nowhere to go should they wish to complain about shoddy service. The introduction of a code of practice specifically covering those managing rented property should certainly improve standards. Through compulsory redress, tenants will now have access to official channels should they wish to complain, and we will now work with the government and the industry on the proposed code of practice. However, the government needs to go one step further. Consumers still cannot be sure that the agent they're dealing with is suitably qualified or knowledgeable to operate.
As part of our consumer research last year, almost ninety percent of people questioned felt that agents should be forced to register with an independent regulatory body before trading. We will continue to call for a consistent national regulation scheme for lettings agents which protects the public where the risks are greatest".
