Landlords and tenants must protect themselves from rogue letting agents

A disturbing number of cases of agents involved in theft and fraud cases have come to light in recent months, and in the 28 years that Leaders has been in the industry, this has always been a problem.

Leaders, along with a number of key organisations in the lettings industry, has long been calling for the government to bring in legislation to tackle rogue agents.

Leaders’ managing director, Paul Weller said:

“We are very disappointed by the government’s refusal to act to protect landlords and tenants from unscrupulous and incompetent letting agents, particularly at a time when more people are turning to this sector than ever.

"Many are unaware that there is no proper regulation governing letting agents, despite the plethora of legislation that applies to letting itself.  

“Over the decades we have been in business, we have seen countless landlords and tenants let down by incompetent and dishonest letting agents.

"Under the current system, there is no legislation in place to prevent letting agents from using their tenants’ deposits and landlords’ rents for their own purposes, and nothing that requires them to be qualified and understand the regulations that govern the practice of letting and property management.”

The news that the government will not be regulating letting agents comes at the same time as a new report published by the Gas Safety Trust which reveals that tenants in private rented accommodation are 50 per cent more at risk of carbon monoxide poisoning than both home owners and social housing tenants.

The figure is based on carbon monoxide poisoning incidents linked to natural gas between 1996 and 2010.

Mr Weller, says:

“The issue of unregulated agents is not only about money.

"If letting agents do not know and comply with the many regulations that apply to letting, properties can be unsafe and the landlord’s and tenant’s interests unprotected during the tenancy.

"Letting agents need to be experienced, knowledgeable and competent to let and manage property, with a thorough understanding of the complex legislation surrounding letting.”

With formal regulation of letting agents unlikely, Mr Weller’s advice to landlords and tenants is simple: only use an agent with many years experience, a good reputation and above all, that is a member of a professional body such as ARLA, NAEA or RICS.

These organisations are self-regulating and ensure that member agents comply with a rigorous code of conduct and that clients’ money is held in separate, ring-fenced accounts and properly protected.

Mr Weller, continues:

“When you consider the many potential risks to the public, it is shocking that any person or organisation can become a letting agent, with no training, qualifications or financial probity.

“Now that the government has confirmed that it will not be bringing in any formal regulation of letting agents, the public needs to be aware that unprofessional, unqualified and unethical agents will continue operate.

“We will continue to call for better protection, but until that happens landlords and tenants will need to protect themselves by vetting their letting agent carefully."