The information is published by the Office of Fair Trading which analysed nearly 4,000 complaints made by people renting a home as well as those letting out at property.
The complaints included 1,557 about fees and charges, 1,211 about agents providing a poor service, 1,015 about security deposits, 668 about delayed and substandard repairs and 565 about unfair business practice.
As a result it is now making a set of recommendations for government, industry, enforcers and others in order to make the market work better. At present anyone can set themselves up as a lettings agent in the UK.
The OFT said it analysis has identified several consumer protection issues in the lettings market and it is calling for better compliance with legislation and in particular better up front information.
The OFT would like fees to be set out in a clear tariff of charges, a general redress mechanism so landlords and tenants can sort out problems when they occur and more consistency within the industry so that common principles are applied throughout the industry, such as what information is used for pre-tenancy checks.
It wants the government, industry, enforcers and consumer bodies to agree a national strategy and an enforcement strategy for traders who do not comply with the law as well as initiatives which make it easier for landlords and tenants to assess quality, such as recognised logos.
It also believes there should be more done between the industry and consumer bodies to develop joint educational material such as quick guides to help tenants and landlords understand their rights.
The OFT is hosting a series of events with parties involved in the lettings industry to discuss its findings and recommendations aimed at raising standards within the market. It is also committed to develop and review its advice and education work including developing new guidance on consumer protection laws for letting agents and reviewing existing guidance on unfair terms in tenancy agreements.
‘Our findings shows that tenants and landlords are often dissatisfied with their agents but we also know that most agents want to do the right thing. It's important that tenants ask for key information, but we also believe that government, industry and enforcers working together can have a real impact and improve overall standards in the lettings market,’ said Cavendish Elithorn, senior director of goods and consumer at the OFT.
‘Our report sets out our view on what improvements could be made to address concerns with this market and we are keen to play our part in bringing together those involved in the lettings industry to focus efforts where they are most needed,’ he added.
The Royal Institution of Chartered Surveyors (RICS) said that the OFT report adds yet another voice to those calling for changes to the lettings market. However, it said it remains concerned there is still no recommendation for clear, consistent and targeted regulation for all aspects of the UK residential property market.
RICS global residential director Peter Bolton Kind said that its own recently published research shows there is real potential to introduce such clear, targeted regulation without generating burdens on business.
It wants to see lettings agents brought within scope of the Estate Agents Act 1979, and the introduction of statutory minimum professional standards.
‘In light of this latest OFT report, RICS urges government to think again, and use the Enterprise and Regulatory Reform Bill to introduce such regulation, in particular, statutory redress for lettings agents,’ said Bolton King.
‘The OFT recommends increased transparency in lettings agents’ fees and charges, and working with trading standards to develop an agreed enforcement strategy. These measures are important in creating a level playing field for all residential property professionals and consumers which RICS has long sought,’ he pointed out.
‘As an independent body with a royal charter which requires us to act in the public interest, RICS is ready to help with advice and guidance so consumers are aware of their rights and responsibilities in the lettings market,’ he added.
