Nearly one in five landlords in England lack confidence in letting agents’ handling of rental income and tenancy deposits, according to research from The Letting Partnership, an accounting and client money protection specialist.
The survey of 890 landlords found that 19% do not trust agents to correctly manage client money, whilst more than a third (34%) reported that their agent fails to clearly communicate compliance credentials and professional standards.
Low awareness of compliance reviews
The research also revealed limited awareness of independent compliance verification processes within the sector. Some 76% of landlords were unaware that certain agents voluntarily undergo reviews of their client accounting and operational processes, with only 24% knowing such reviews exist.
Chris Mason, COO of The Letting Partnership, stated: “Trust is one of the most valuable assets any letting agent can have, particularly when landlords are entrusting them with rental income, tenancy deposits and increasingly complex compliance obligations. What our research shows is that whilst most landlords trust their letting agent, there is still a sizeable minority who remain unconvinced.”
The findings come as the lettings sector faces increased scrutiny over professional standards, with estate agents continuing to play a central role in property transactions and referrals across the market.
Demand for transparency
The survey indicated strong landlord appetite for greater transparency, with 99% of respondents saying an independently verified compliance review would increase their confidence in a letting agent.
Mason added: “The fact that almost every landlord surveyed said an independently verified compliance review would increase their confidence demonstrates that transparency matters. It’s not enough to be compliant; increasingly, landlords want evidence that the right controls, processes and safeguards are actually in place.”
The research suggests that agents able to demonstrate clear client money management processes and independently verified compliance standards may gain a competitive advantage in the market. The trust gap identified in the survey highlights ongoing challenges within the lettings industry as regulatory requirements continue to evolve.
