Published in 2012, the Property Ombudsman report has re-raised the issue of introducing the compulsory regulation of Letting Agents.

Christopher Harmer, the Property Ombudsman points out that only 60% of Letting Agents are registered with his organisation leaving a significant percentage of Letting Agencies unable to offer their customers even the most basic form of redress should something go wrong.
As a professional company we understand the costs in terms of both time and money in subscribing and adhering to the codes of conduct that come with our membership of ARLA, SafeAgent and the Property Ombudsman. Our membership of ARLA in particular means that we have to hold client money protection insurance, have our clients account audited each year, undertake a minimum of 12 hours professional development per year and adhere to their code of conduct. This ensures that our customer’s money is safe, that they are dealing with qualified professionals and have someone independent they can complain to in the event of a problem.

The growth in the Lettings Market means there are now many more Tenants reliant on it and it is estimated that the Letting Agents handle around £14 Billion of their client’s money each year. In the context of this, it is difficult to disagree with the Ombudsman’s call for legislation to ensure the compulsory regulation of Letting Agents.

It is always frustrating for those of us who work hard to do a good job for our clients to see the stories about the rogue Agents who flout the rules and misuse customer’s money. This reflects badly on all of us and means that the industry is often seen by many people in a negative light. Introducing licensing of all Letting Agencies who would clean up the industry and go a long way to helping to ensure that Landlords and Tenants alike receive a professional and fair service.

In the current climate, it looks unlikely that these calls will be answered in the near future as the Government have not shown any interest in taking this forward. With the continued growth of the Lettings market, and the frequent stories of Agency miss-practice, it can only be a matter of time before some compulsory regulation is introduced. In the meantime professional companies in the industry will need to do all they can to keep selling the benefits to Landlords of using a regulated Agent.