Amendment in law will help to regulate the lettings industry
The Royal Institution of Chartered Surveyors (RICS), The Property Ombudsman, Which? and ARLA welcome the decision in the House of Lords to introduce an amendment in law to help protect tenants and regulate the lettings industry.
These organisations and others have long campaigned for the regulation of the lettings industry, working with MPs and Peers to highlight problems and inconsistencies in current legislation which is having a detrimental effect on consumers and business. Following the House of Lords vote, RICS, The Property Ombudsman, Which? and ARLA now look to Government to implement these much needed changes.
The change to the law will give tenants much needed access to redress in the event of poor practice, and helps raise standards in the lettings market. In addition it will:
- Extend consumer protection measures governing estate agents to letting agents, giving the Office of Fair Trading (OFT) powers to ban sales, lettings and managing agents who act improperly.
- Require all agents to have clear and free consumer redress mechanisms in place
- Stop sales agents who have been banned from trading to immediately set up a new business as a lettings and/or managing agent.
Peter Bolton-King, RICS Residential Director said: "RICS has long called for the regulation of the lettings industry, given that ultimately, this is about the provision of shelter, a basic human requirement. This decision is one step nearer to this vital change becoming law."
Ian Potter, ARLA Managing Director said: "We all look forward to working with Government on the Bill as it moves back to the Commons for final approval."