Call For More Regulation Of Letting Agents

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The provisions of the Consumers, Estate Agents and Redress Act 2007 should be extended to lettings and management agents recommends Professor Colin Jones's Review of Regulation and Redress in the UK Housing Market published by the Department for Business.

Professor Colin Jones, of Heriot-Watt University took into consideration the problems across the housing sector that are damaging consumer confidence. Jones calls for the simplification and strengthening of existing redress provisions to help improve the public's awareness of their rights.

He criticised current arrangements to protect consumers from rogue agents and landlords saying: "Voluntary accreditation/redress schemes of estate agencies and lettings agencies cover approximately two thirds and a half of their respective market in terms of numbers of agents.

The professor's recommendations have been warmly received by Ombudsman for Estate Agents (OEA) Christopher Hamer. He said: "It is clear that more people are now either tenants or landlords than previously and a development of the legislation will mean that everyone who either buys, sells, rents or is the landlord of a property in the UK would have access to independent redress if something goes wrong.

"The Act has clearly brought a major benefit to consumers in the residential sales sector and people in the ever expanding lettings market have the right to expect the same access to redress.

The British Property Federation believes the report adds weight to its long standing campaign for the regulation of letting agents.

Membership of the OEA reached 12,696 branches across the UK by the end of 2008. Lettings activities are embraced by 5,100 of the branches, with 1,246 just dealing with lettings alone rather than sales and lettings.

Hamer added: "The figures for lettings reflect industry trends, with a 36 percent rise in offices covering both sales and lettings compared with 2007. But more remarkable still is that the number of offices covering lettings alone rose by 93 percent during 2008.

Ian Fletcher, the British Property Federation's residential director said: "We're pleased that the government is making moves to protect consumers and help the industry become more professional and more responsible.

"Allowing rogue operators damages consumer confidence and undermines the positive work undertaken by the many professional players in the market.

"This report is a useful summary of redress in the sector and generally a good indicator of the direction of travel the policy is developing on several issues. The overarching themes of simplification and ensuring consistency are ones that I am sure will be supported across the sector."


About the Author:
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