Industry body calls for crackdown on unregulated letting agents

An industry body is warning that action must be taken to regulate property agents.

Propertymark has written to Housing Secretary Michael Gove urging comprehensive regulation for both letting and sales agents.

Under current rules, there is no statutory regulation of private sector letting agents in England or the need to be part of a trade association.

Piecemeal legislation

In February 2023, Mr Gove stated that all property managers in the social rented sector should be qualified.

At the Labour Party Conference in October 2023, Matthew Pennycook, MP, said that if in government his party would introduce regulation as recommended by Lord Best in his 2019 report.

Propertymark says half measures won’t cut it and full mandatory government regulation of agents is the quickest and most effective method to eliminate unprofessional agents from the property sector.

Nathan Emerson, chief executive of Propertymark, said: “Piecemeal legislation is unmanageable and unenforceable and there is no overarching regulation to ensure property agents meet basic competency standards.

“These bills provide an opportunity to introduce minimum qualification requirements and a statutory Code of Practices to be adhered to by all letting, managing and sales agents, professionalising the sector and giving consumers vital protections.

Regulation of letting agents in Scotland

According to a survey by Propertymark in 2023, 46% of landlords use a letting agent to carry out various tasks including inspections, notices, and sometimes fully managing the property.

In 2014, legislation was passed making provisions for the regulation of letting agents in Scotland.

In a Propertymark survey, 84% of letting agents in Scotland said the introduction of qualifications has been positive for the sector overall.