House of Lords vote in favour of protecting private tenants welcomed

Published by Jon Land for 24dash.com in Central Government and also in Housing

A vote by the House of Lords in favour of protecting tenants in the private rented sector by regulating the lettings industry has been welcomed by housing and consumer organisations.

The Royal Institution of Chartered Surveyors (RICS), The Property Ombudsman (TPO), Which? and ARLA all welcomed the decision by Peers to introduce an amendment in law aimed at giving private tenants much needed access to redress in the event of poor practice and help raise standards in the lettings market.

In addition it will:

• Extend consumer protection measures governing estate agents to letting agents, giving the Office of Fair Trading (OFT) powers to ban sales, lettings and managing agents who act improperly. 
• Require all agents to have clear and free consumer redress mechanisms in place
• Stop sales agents who have been banned from trading to immediately set up a new business as a lettings and/or managing agent.

Peter Bolton-King, RICS Residential Director, said: “RICS has long called for the regulation of the lettings industry, given that ultimately, this is about the provision of shelter, a basic human requirement.

"This decision is one step nearer to this vital change becoming law. Ian Potter, ARLA Managing Director added: “We all look forward to working with Government on the Bill as it moves back to the Commons for final approval."

Christopher Hamer, The Property Ombudsman, said: “From my experience of disputes that arise between consumers and letting agents this is a welcome and positive step that could see the 40 percent of agents currently not registered with TPO or affiliated to a professional body, brought within a framework of standards. This will mean greater protection for a greater number of consumers.”

Richard Lloyd, executive director of Which?, said: "Renting is now the only housing option for millions, and our research has shown this market is dogged by poor practice and there is an alarming lack of consumer protection.

"Tenants deserve much better and the Government must take this opportunity to improve regulation and redress in this sector. We want letting agents to be covered by the same rules as estate agents, overseen by an independent ombudsman.”

Following the House of Lords vote, RICS, The Property Ombudsman, Which? and ARLA now look to Government to implement these much needed changes.