Lettings industry regulation consultation response releasedMake Text Bigger
The Government announced its response to consultations for letting industry regulation and Client Money Protection (CMP) in a crack down announced over Easter.
Client Money Protection will now be compulsory and privately-led schemes will be introduced alongside civil penalties of up to £30,000 for agents who do not comply with the scheme.
Regulation changes include:
- An independent regulator and code of practice for letting and managing agents
- Possible prosecution for agents breaking the code, with criminal sanction
- Letting and managing agents will be required to obtain a nationally recognised qualification in order to practise
- At least one person in every organisation will be required to have a higher qualification
- All letting and managing agents must undertake continuing professional development
- Agents who fail to comply will not be allowed to trade
ARLA Propertymark Chief Executive, David Cox, said: “We are hugely supportive of these proposals. After 20 years of campaigning, the Government has finally listened to our call for proper regulation of the industry.
“For the last two decades, successive Governments have passed significant amounts of complex legislation on landlords; none of which have been properly policed or adequately enforced. These announcements demonstrate a very sensible shift towards focusing on the root cause of the issues affecting the sector rather than trying to find legislative solutions to individual problems.
“For landlords, their rental property is usually their biggest asset after the home in which they live and for tenants it’s their home. It must be the right of every landlord and every tenant to have a letting agent who knows what they are doing, is professionally qualified and the money they entrust to their agent is protected. This is a huge step towards creating a level playing field across the industry, and we look forward to working with the Government on this.”
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