Beresfords call for the lettings market to be regulated

By the Beresfords Marketing Team - 11th October 2011

The Property Ombudsman has received 5000 complaints (a 27 per cent increase) about letting agents so far this year, and ARLA (Association of Residential Letting Agents) reports that fraud complaints have risen to their highest level ever.

What's more, according to the Financial Times, the National Fraud Intelligence Bureau recently issued a rental fraud alert after 95 tenants were victims of let-and-run scams. Bogus letting agents had apparently tricked tenants into paying more than £100,000 in cash deposits for properties that, in some cases, never existed.

Grant Shapps, the Housing Minister, disappointed many letting agents when one of his first actions as minister was to scrap plans to regulate letting agents in June. Beresfords have repeatedly called for the lettings market to be regulated.

Steven Bond, Managing Director of Beresfords Lettings Division, comments: "As a member firm of ARLA we are constantly campaigning for the industry to become more regulated. Some letting agents are not sufficiently experienced or qualified to offer sound and professional advice, which can create significant distress for those landlords and tenants who are dealing with them.

Letting a property can be full of potential hazards, especially for inexperienced landlords from material issues, such as a tenant mistreating a property, to financial problems such as a tenant missing rental payments. A qualified, licensed agent can help guide both landlords and tenants through the process and those that fail their clients or tenants could have their licences revoked to avoid other people falling victim. Unless the agent is a member of a body like ARLA, long winded and expensive legal action is often the only opportunity open to people who are let down by their letting agent so we feel this an opportunity missed.

Steven concluded: If Mr Shapps had not scrapped the plans It would have given tenants confidence that they were renting a property that was owned by a responsible landlord who was formally registered within a government backed scheme. Landlords would also have the confidence that they had instructed a reputable letting agent that is recognised by the relevant regulatory body. In the absence of such protection, it is even more important that both landlords and tenants alike use a reputable letting agent who is ARLA registered.