Industry body urges letting agents to comply with regulations

An industry body has warned letting agents not to become complacent when it comes to the Renters Reform Bill.

Propertymark has said letting agents should still continue to comply with current requirements to avoid financial penalties.

The Bill has only had its first reading and could undergo various amendments before it becomes law.

Crucial to ensure agents are compliant with current regulations

With more than 168 pieces of legislation already in place and with more to come, Propertymark says it’s important for letting agents to be up-to-date with current legislation.

Nathan Emerson, CEO of Propertymark comments: “It’s important for agents to remember that proposals made in the Renters’ Reform legislation are not set in stone and that changes could well be made to ensure efficiency for all parties involved.

“We urge professionals to keep on top of their current requirements and continue to provide the upmost service to their clients.”

The industry body says: “Qualified and experienced agents will have a firm grasp on compliance obligations, although there are many ‘accidental’ letting agents who may not be fully aware of their obligations e.g. estate agents who ventured into lettings to avoid rejecting business.”

All letting agents must be a member of the Property Ombudsman

To assist agents Propertymark has teamed up with The Letting Partnership to outline an overview of basic compliance requirements.

Some of the requirements are listed below:

Estate and letting agencies and property management companies must be a member of one of the following two independent approved redress schemes or face a fine of up to £5,000:

• The Property Ombudsman Limited (TPO)
• Property Redress Scheme (PRS)

Scheme details should be provided to new clients when entering into an agreement. Agents already with a scheme should check that the terms of their membership specifically cover their letting agency work.

All lettings and management firms handling clients’ money must be part of a government-approved CMP Scheme in order to continue to trade. These schemes compensate landlords and tenants if the agent cannot repay their money, e.g., if the agency goes into administration.

All deposits taken on ASTs must be correctly protected in one of the government-approved TDP schemes within 30 days of receipt or face a potential fine of up to three times the amount of the original deposit, as well as invalidating any subsequent Section 21 Notice.

More requirements can be found here

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