The government is trying to clean up the rental sector by introducing a
Consumer Protection Charter for letting agents. The rental sector has been
blighted in recent years by reports of rogue letting agents. Tales of stupidly
high fees abound and many agents have ended up in court after defrauding their
clients. Some have even gone bust overnight, taking client money with them.
Because of this the government has been reviewing how best to offer a greater
level of protection to landlords and tenants. They have come up with a
Consumer Protection Charter and all letting agents will be forced to join the
scheme.
What are the Key Points of the Consumer Protection Charter?
• Independent investigation of complaints – Previously, clients had few
avenues for redress if things went wrong.
• Compensation scheme for clients – This will give landlords peace of
mind in the event that a letting agent goes bust.
• Secure money protection scheme – There have been a few cases where
letting agents spent their clients’ money after cash flow dried up.
• Voluntary Code of Practise – Letting agents will have to be open about
the properties on their books, which means telling tenants if critical jobs
need doing.
• Transparent fee structure – There should be no hidden fees cloaked
within the small print and letting agents must be upfront about what their
costs include.
Compulsory Requirement
The government hopes to have all schemes approved by the end of January 2014,
although it will be a while longer before it becomes compulsory for letting
agents to join.
