Until now, many agents who let property have been able to operate totally unchecked, with consumers having no way out should they fall foul of malpractice or unethical behaviour. Following an amendment to the Enterprise and Regulatory Reform Bill, tabled by Baroness Hayter, the government today proposed an alternative, ensuring tenants and landlords are better challenge potential negligence.
The bill will require, for the first time, all lettings and management agents to sign up to a redress scheme. This means that unsolved grievances with agents can then be referred to the Ombudsman.
RICS has long been campaigning for increased regulation in the sector. Whilst the change to the law will give landlords and tenants much needed access to recourse in the event of poor practice, it only offers the consumer support after the damage has been done. This is a step in the right direction, however there is still more to be done to raise standards in the market; protecting the consumer throughout the transaction.
Peter Bolton-King, RICS Residential Director, said:
"The lettings market has for far too long been in danger of becoming the Wild West of property industry. While, clearly, there are good agents out there, the market has been dogged by poor practice and a lack of consumer protection. From now on, should a tenant or landlord experience problems due to poor service, they will be able to register their grievance with an independent redress scheme which, if appropriate, will investigate and award compensation.
"RICS has long called for regulation of the lettings industry, and this is a step towards ensuring tenants and landlords are comprehensively protected. What we would now like to see is lettings and managing agents required to sign up to a professional regulation scheme that would ensure a better standard of professionalism right across the sector. We still think there is a very strong business case for better targeted regulation and we are working with Government to this effect."
