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 last week, RICS, The Property Ombudsman, Which? and ARLA are now calling on the government to implement the changes as soon as possible.
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.
It will also require all agents to have clear and free consumer redress mechanisms in place and stop sales agents who have been banned from trading to immediately set up a new business as a lettings and/or managing agent.
‘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,’ said Peter Bolton-King, RICS residential director.
Ian Potter, managing director of ARLA said that he is looking forward to working with the government on the Bill as it moves back to the Commons for final approval.
‘From my experience of disputes that arise between consumers and letting agents this is a welcome and positive step that could see the 40% of agents currently not registered with TPO or affiliated to a professional body, brought within a framework of standards. This will mean greater protection for a greater number of consumers,’ explained Christopher Hamer, The Property Ombudsman.
And Richard Lloyd, executive director of consumer organisation Which?, said that as renting is now the only housing option for millions the move is much needed. ‘Our research has shown this market is dogged by poor practice and there is an alarming lack of consumer protection,’ he pointed out.
‘Tenants deserve much better and the government must take this opportunity to improve regulation and redress in this sector. We want letting agents to be covered by the same rules as estate agents, overseen by an independent ombudsman,’ he added.
Agents are also pleased about the vote. 'I have for many years been advocating the regulation of lettings agents and worked with Baroness Hayter on the Property Standards Board. It never ceases to amaze me that the government will not regulate our industry and therefore improve standards, professionalism and put a stop to the rogues. At the very least, all agents should have Client money protection, professional indemnity insurance and sign up to a redress scheme,' said Lucy Morton, senior partner and head of lettings at Prime Central London estate agency W.A. Ellis.