The legislation, which would create compulsory self-regulation for the sector, would aim to give tenants greater protection from unscrupulous agents and improve standards in the industry.
It is estimated that only half of letting agents are currently members of a professional body and the Association of Residential Letting Agents (ARLA) has claimed that many people coming into the industry have no training or affiliation.
ARLA president, Robert Jordan, welcomed the news. “We would like to see all letting agents licensed. However, the private rented sector needs regulation with a light touch. We must be able to keep our house in order without discouraging the private individuals who run, invest in and maintain the rental market. This experienced regulation can be organised and policed by professional bodies who provide qualifications, complaints and disciplinary procedures and maintain the safeguards for tenants’ deposits and landlords’ rents.”
However, ARLA believed that self-regulation should not be under the auspices of an Ombudsman, as recommended by the Law Commission.
Pierre Williams, head of communications at Instant Access Group, commented: “The main bone of contention between landlords and tenants has been dealt with through the Tenancy Deposit Scheme so I’d have thought they would wait and see how that was working before making more changes. However, it’s very important for landlords that letting agents represent them professionally and protect tenants, so by all means introduce self-regulation. But it will need to be clarified in terms of what it will do, otherwise it will be toothless.”
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