Landlords and tenants are to be better protected by rogue letting agents under new government legislation.
A recent amendment to the Enterprise and Regulatory Reform Bill has introduced the regulation of letting agents. Until now letting agents have not been legally required to be a member of an ombudsman scheme, despite the huge sums of money the industry handles each year.
It’s thought prior to this new legislation up to 40 per cent of letting agents did not sign-up to self regulation.
This made the situation difficult when things went wrong. Tenants and landlords now have the chance to get money they are owed back from rogue agents without resorting to the courts.
Mistoria Estate Agents welcomes tighter regulation, we believe until now many agents have been able to operate with impunity as consumers have had no way of addressing the actions of unscrupulous or negligent agents.
Lady Hayter, the Labour peer who has led the campaign for lettings regulation comments,
“While this is definitely a step in the right direction, I think it’s a shame that the government stopped short of introducing full regulation of the lettings industry.”
Ian Potter, managing director of the Association of Residential Lettings Agents says,
“The government’s amendment to the Enterprise and Regulatory Reform Bill marks a positive move for the private rented sector and in particular, for consumers, who only stand to benefit from a formal system of redress. However it is vital that the Government begins the process of consultation quickly, taking on board the views of the sector and moves to introduce secondary legislation as soon as possible.”
It’s hoped this new legislation will come into effect by the autumn, following a consultation with both industry and consumer groups.
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