New regulatory approach required for letting agents and whole industry, says ARLA

Letting agents should be included in a new regulatory approach which should also include both block managers and sales agents.

Letting agents should also be “‘suitably qualified”.

The call has come from ARLA Propertymark, in response to a ‘call for evidence’ made by the Government into the letting and managing agent market.

ARLA has also expressed its frustration that current laws are not enforced, and that instead local authorities are choosing to introduce discretionary licensing schemes.

Additionally, it calls for steps to be taken to prevent rogue letting agents to set  up as sales agents, and vice versa.

It says: “Many agencies are multi- disciplinary. As a result, many letting agents are also sales agents.

“To further highlight the need for regulatory consistency across the sector and to widen the scope of regulation we believe that being banned under the Estate Agents Act 1979 should also constitute a Banning Order Offence under the Housing and Planning Act 2016.

“Without combining the lists, there is a very real danger that a banned sales agent could set up as a letting agent or vice versa which will do little to improve the standards or perception of the industry.

“Ensuring that the whole housing market is under the same regulatory umbrella would not only reduce this inconsistency, but further protect consumers.”

The response says licensing schemes in the private rented sector are not working: “In many areas, rogue landlords and letting agents are assessing the risk of prosecution to be so low that they ignore the requirement to get a licence and continue to let sub-standard housing at high costs to tenants.”

The ARLA response proposes a single code of practice for everyone working in the industry, and that the public should have full transparency in accessing details of banned agents and the disciplinary action taken against them.

The response by trade body ARLA, which will be read by some as a bid by the body to become the industry regulator, also calls  on the Government to align the timetable of regulation of letting agents. It says that regulation should be put in place at the same time as  the tenants fees ban and the requirement to offer Client Money Protection.

The ARLA response makes very clear how confused it considers the current ‘call for evidence’  to be: this particular call for evidence is calling for views on the different leasehold and lettings markets.

In its first response to the very first question, ARLA says: “This question relates to the leasehold sector . . . therefore it is not applicable to us to reply”. It goes on to make similar responses.

However, ARLA goes on to say: “We have long held the view that the Government cannot continue legislating in a piecemeal fashion. This approach is unmanageable and unenforceable as demonstrated by the significant increase in legislation governing the sector over the last few years but no corresponding increase in prosecutions.”

ARLA adds in its response: “We believe that overarching statutory regulation of the whole sector is needed.

“Ensuring agents are suitably qualified and meet minimum competency standards is the only way to drive up standards of service for consumers and eliminate existing issues in the sector.”

ARLA alls for all staff involved in letting agency work to have to have, or be working towards, a Level Three industry qualificatiion designed by and specifically for the lettings industry itself.

It says letting agents should have to undertake at least 12 hours of Continuing Professional Development (CPD) each year.

ARLA ends its response by saying there should be one regulatory body to cover the whole property industry, including lettings, block management and sales.

 

 

 

 

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